The SVB (Silicon Valley Bank) Failure, Nothingburger? Or More?

[MJ DeMarco]

I wasn't worried until I just heard a politician say "The banking system is safe" -- now I'm worried.

Anything these F*ckers say cannot be trusted.

 

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[MJ DeMarco]

Apparently SVB wasn't too good about managing risk.

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

 

[AllenCrawley]

For those with your websites on Shopify. I believe SVB is one of 12 banks that Shopify uses so they are not as exposed as I thought they may have been. However, take a read of the SVB Faq they put up:

Shopify Capital in Canada

Learn about merchant cash advances and how to apply for a Shopify Capital merchant cash advance in Canada.

help.shopify.com

Selling on Etsy? You may have already received an email about your deposits being on hold but looks like they found alternative processors:

Etsy begins processing seller payments via alternative partners after delays caused by SVB implosion | TechCrunch

Etsy is starting to process payments via its other payment partners this morning following the collapse of Silicon Valley Bank.

techcrunch.com

Selling on Faire.com? Seems like everything will be ok (for now?) in receiving your deposits as they were able to transfer monies from SVB to JPMorgan Chase.

 

[Andy Black]

I wish I could think of a way to turn virtue signaling into millions of dollars. Besides running for Congress, I mean.

T-shirts?

 

[Skroob]

I wonder why are start-ups putting money in smaller banks instead of more established bug brand names.

Are they paying higher interest or what?

SVB and the like were giving them lines of credit that other banks wouldn't give them.

Because of the risk.

Apparently SVB wasn't too good about managing risk.

 

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[techvx]

I don't think anyone really takes China, Russia, India or the Middle Eastern countries seriously as an alternative to American dominance.

You honestly don't notice anything remotely wrong with this kind of phrasing? Is this just an American way of looking at the world, or just a heuristic that is meant to reduce the whole of humanity to one giant status game and a **** measuring contest with one player dominating others by any and all means possible?

Not everybody out there is willing to play by the "win or die" rules of the US stock market. Not everyone only gives a heck about establishing their geopolitical authority to, ultimately, bend others into the kind of position that will let the nameless "shareholders" and their puppets in the Senate keep milking the rest of the world for their personal gain. Is that much not clear?

You know what you get with the Americans...

Do you, now? And what would that be, I have to wonder? The privilege of being tied to their currency, not backed by anything since 1971? The honor of the SWIFT pool, easily turned off for whomever is considered to be a threat or a good candidate to be beaten into submission?

Or, perhaps, the agents of "national security" chasing Snowden-s and Assange-s to the end of the world for daring to provide the public with the information you'd think people would need to know in order to make better, informed, and educated, perfectly democratic decisions?

Should the rest of the world be rejoiced about American multinationals and their incredible health prevention strategies, tied only to the depth of their pockets - not to any kind of integrity, sense of moral or ethical code?

Does every country in the world need its own set of Nikola/Theranos-style startups, maybe?

Or the stunningly incredible combination of the smoking age being counted from 18, and the age at which it's perfectly fine to question the whole notion of your entire identity and place in society (not even mentioning the gender and the exact combinations of characters and sounds by which others must refer to you), that many people have trouble with well in their 40s (a.k.a. midlife crisis), from an arbitrarily young and peer pressure / conformism susceptible number of years? Can't imagine anything going horribly wrong with that blindly "empathetic" kind of attitude later on, that's for sure.

everyone likes to give out about them but if you play within their rules you can be highly successful

And which criteria for success are you so ready to consider as absolutely universal to our whole world? On the basis of what do you believe the American rules to be objectively, hands down, overwhelmingly superior to any other set of standards? Perhaps more importantly, though - what kind of assurance can others have in the US government (or their sponsors, really) not changing any of these magnificent rules overnight to suit their personal agenda?

(i.e Ireland poaching a lot of their multinationals)

Are you actually comparing the state of Ireland with the territories and resources, both natural and economic, possessed by China, Russia, Middle East, and the rest of the players - refusing to dance to the American whistle?

They don't seem to want to rule over a system though and favor neutrality

Because the weakest dog always barks the loudest. It has nothing else to put forward. India, Russia, Arabs, Chinese don't care: they have enough already. And it's precisely because they can not play by the "most wonderful" - and ultimately colonialist - rules of the system that US is so keen to get under its thumb, that they still exist on their own in their current form.

Otherwise they'd long succumb to the definitely not hypocritical combinations of the principles of "freedom", "sovereignty", "democracy", and a bunch of other emotionally charged, sense of fairness triggering words, parroted left and right by the talking heads on your TV and news channels, owned and financed by god knows who - which are somehow combined with missions to "sway opinions and actions of foreign governments, groups, and individuals" and "strategically influence and deceive" that the PsyOps department doesn't even try hide.

 

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[MJ DeMarco]

https://twitter.com/i/web/status/1634850919555932160

View: https://twitter.com/GrahamStephan/status/1634850919555932160?s=20

https://twitter.com/i/web/status/1634385155061084161

View: https://twitter.com/CapaTosta122/status/1634385155061084161?s=20

https://twitter.com/i/web/status/1634904598409277440

View: https://twitter.com/Reuters/status/1634904598409277440?s=20

 

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[loop101]

SVB is on the top right. Not very big, but systemic collapses always start with something that should not have been able to bring down the system.

 

[NeoDialectic]

https://twitter.com/i/web/status/1634850919555932160

View: https://twitter.com/GrahamStephan/status/1634850919555932160?s=20

https://twitter.com/i/web/status/1634385155061084161

View: https://twitter.com/CapaTosta122/status/1634385155061084161?s=20

https://twitter.com/i/web/status/1634904598409277440

View: https://twitter.com/Reuters/status/1634904598409277440?s=20

Im not an expert and this is just my off the cuff thoughts, but my 2c.....

I'm guessing the govt will go with the typical "rugged capitalism for the poor, socialism for the rich" option and help the bank and rich depositors. I have never seen so many libertarians completely and unironically flop on their positions online as I have seen this weekend. Of course they have their reasons of why their situation is different.....Don't we all!

I do empathize with the depositors though, as people don't exactly expect a large bank to go under. It's probably a good idea to revamp the FDIC system.....it's not realistic for bigger companies to have small balances, and regular checking accounts shouldn't be considered a risk asset. They probably need to raise their limits but charge either the depositor or bank for it....

- in regards to your exqct question, I would guess a nothingburger for systemic effects, but a big deal in the online community and those effected...especially since a big portion of those effected are the loud people online... -

 

[loop101]

I don't believe this crisis is over. You can't go from "These are the best banks in the world." to "Total financial collapse!!!" in 24 hours, and then back to "Never mind, everything is fine again.", without something or someone being fundamentally wrong.

I heard a phrase today that seems appropriate, "Privatizing profits, and socializing losses."

• Privatizing profits and socializing losses is the consequence of allowing shareholders to benefit from company earnings while making society responsible for their losses.

Privatizing Profits and Socializing Losses: Overview

Privatizing profits and socializing losses recognizes company earnings as shareholder property and losses as the responsibility of society.

www.investopedia.com

 

[YanC]

Credit Suisse next to fall? Silicon Valley Bank stock sales probed as Credit Suisse failure predicted – latest

That would be a hell of a different story than SVB. Credit Suisse is a systemic bank. As are Deutsche Bank and UniCredit. From their 2007 top, these are respectively down 98%, 89% and 92%. I would love to have a look at what they are holding in their balance sheet... Must be quite a thing to see !

 

[Kak]

I wish I could think of a way to turn virtue signaling into millions of dollars. Besides running for Congress, I mean.

Sell the commie starter pack: face diapers, piercings and purple hair dye.

 

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[Kevin88660]

Deflation is not a big problem. Because money can be printed to save whoever that is too big to fail.

Bankruptcy and companies going under due to insolvency and liquidity issue are all “deflationary problem” that can be solved easily with a Fed announcement.

The real power is inflation because it puts a cap on the limitation of Fed’s printing power. As Alan Greenspan summed it up “We can guarantee all liabilities but not their purchasing power”.

Centrals banks can do broad spectrum tightening to fight inflation while doing target spots “QE” to bail out entities in trouble. So companies going down is not a big issue.

Real issue is still inflation figures not coming down.

 

[JordanK]

Signature Bank failed a few hours ago.

Now a bailout is announced.

Will it all be a nothing or will it be wild!?!?

Tune in tomorrow to find out!

 

[loop101]

Patrick Boyle is one of the smartest YT commentators on finance and trading. He occasionally slips in some sardonic humor in to his dead-pan deliveries. Here are his comments on SVB.

View: https://www.youtube.com/watch?v=GdfYnqyu7v8

 

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[Guest-5ty5s4]

Regulators close crypto-focused Signature Bank, citing systemic risk

U.S. regulators on Sunday shut down New York-based Signature Bank in a bid to prevent the spreading banking crisis.

www.cnbc.com

Oddly, the S&P Futures are higher.

I know the gains disappeared already, but my (gloomy, dismal) take on this is that any time something bad happens in the economy, it is bullish, because it means the Fed is going to inject more liquidity to artificially prop everything up.

Because we don't have "rugged capitalism," we have monetary socialism. Everything below that just looks like capitalism.

 

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[Fox]

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

Identified as solvent/solvency.

 

[Kak]

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

It died of ESG cancer.

 

[JordanK]

My crystal ball says:

This is all planned of course. The owners of the FED decide when, where and what they want to do with money supply. They know everything about every bank and balance.



The plan is to create the CBDC, issued by the FED, take over other banks directly or indirectly, so everyone has their account with them and to control the digital fiat money supply (they cannot control physical money the same way hence we will see two systems in a couple of years, same as in communist countries).*

"Give me control of a nations money supply, and I care not who makes it’s laws" (Rockefeller or Rotschild?)

This is just a small step.

Depends. Because 20 years ago Hussain stopped using the FED dollar and started using EURO for oil payments. Look what happened in 2003. Same with Gaddaffi - he wanted to create a single African currency based on gold... same story. Only 2011. But look now - 2019 - 2023. More and more countries are moving away from the FED dollar to settle trade...

*But I heard stories from Sweden that they tried cashless there and ended up in disaster. Look India 2016. These are 'exercises'

The FED already controls every single person in the US. With a stroke of a pen they can make banks insolvent, push your monthly payments up so high that your assets are stripped from you... increase the power of the dollar and bankrupt indebted countries then seize their physical assets as payments.... etc etc I don't see what more power they could even get. They have it all.

 

[YanC]

We may have to change the title of this thread with Credit Suisse instead of SVB. Regulators, SNB and UBS are apparently negotiating to bail it somehow and prevent a disaster.

Credit Suisse is almost 3 times as big as Lehman Brothers was when it declared bankruptcy, almost 10 times bigger than SVB. It is also a systemic bank.

If there is no positive outcome before markets open, tomorrow may be an interesting day !

 

[ZackerySprague]

I heard a few more banks were having trouble Silvergate and Signature Banks on a Twitter live call.

These were apparently banks that was apart of Crypto.

 

[loop101]

Yellen bails them out.

U.S. Treasury To Back Silicon Valley Bank Deposits - Breaking911

Washington, DC — The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our...

breaking911.com

 

[Vigilante]

https://twitter.com/i/web/status/1634850919555932160

View: https://twitter.com/GrahamStephan/status/1634850919555932160?s=20

https://twitter.com/i/web/status/1634385155061084161

View: https://twitter.com/CapaTosta122/status/1634385155061084161?s=20

https://twitter.com/i/web/status/1634904598409277440

View: https://twitter.com/Reuters/status/1634904598409277440?s=20

Beware of the Ides of March. - William Shakespeare

 

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[loop101]

Bill Ackman explains the government did the right thing, and only bailed out the depositors. Futures are still up. Considering Forbes named SVB one of the Top 5 banks about a week ago, it seems premature to think everything is fixed now.

https://twitter.com/i/web/status/1635109889302315008

View: https://twitter.com/BillAckman/status/1635109889302315008

 

[loop101]

The +1.5% gains seem to have evaporated. Monday should be interesting.

 

[Skroob]

I don't believe this crisis is over. You can't go from "These are the best banks in the world." to "Total financial collapse!!!" in 24 hours, and then back to "Never mind, everything is fine again.", without something or someone being fundamentally wrong.

You can, when most of that is the extremist hyperbole narrative the media spits out to sell ads.

They were never the best banks in the world, they had fundamental lending issues that got revealed when the tide went out. It was never total financial collapse, because not all banks had that much exposure. Everything is not fine again, because the people who make all the major monetary policy decisions in the country world are going to keep putting their thumbs on the scales to try to "fix" things.

The thing that is fundamentally wrong is centralized control over money and monetary policy, and it doesn't seem likely to get any better. Best thing for us to do personally is insulate ourselves from it as much as possible. Don't keep all your eggs in one bank, don't keep all your money in one investment or currency or crypto token.

 

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[ZF Lee]

When one of the Big Four accounting firms gives SVB and Signature Bank the green light...and everyone
gets blindsided...you have to start wondering WHAT ELSE the accounting firms have missed on the other companies they audit:

KPMG in the spotlight over Silicon Valley Bank, Signature Bank audits

Erik Gordon, professor at the University of Michigan’s Ross School of Business: 'The timing is spectacularly embarrassing for KPMG'

www.fnlondon.com

SVB was also running without a risk officer for a long time:

SVB had no risk chief through much of 2022, proxy statement shows

Last year, Silicon Valley Bank’s risk committee doubled the number of meetings it held, suggesting board-level concern over the bank’s financial position.

www.bankingdive.com

You'd expect these to be simple, commonplace safety measures. But they were not kept in place.

I used to shake my head at the folks who say buy-and-hold is dead, but I am beginning to see why they might
think that way. How can you trust in fundamentals when the entire auditing system is F*cked?

 

[Kevin88660]

View: https://m.youtube.com/watch?v=dZXutPyCE8U


Happened before in China.

Small banks offering higher interest to compete with big banks and in turn forced to do riskier business. Vicious cycle in economic downturn.

Stay away from small banks.

 

[Skroob]

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

I wish I could think of a way to turn virtue signaling into millions of dollars. Besides running for Congress, I mean.

 

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[ZF Lee]

US Dollar Gains as Fed Balance Sheet Swells, but it is Not What You Think

The US Dollar climbed as First Republic Bank was poised to receive aid and market volatility cooled. Meanwhile, the Fed’s balance sheet ballooned, but not because of quantitative easing.

www.dailyfx.com

Fed’s balance sheet took on an additional 300 billion.
Not really QE as we know it as treasuries and MBS still winding down... it all came from discount window borrowing, which is a very short-term loans only used when its VERY necessary (they have higher rates)

And while First Republic hadn't found buyers yet, major banks dropped in some dough:

Major US banks inject US$30b to rescue First Republic Bank

NEW YORK: Large US banks injected US$30 billion (RM135 billion) in deposits into First Republic Bank on Thursday (March 16), swooping in to rescue the...

www.thesundaily.my

Still feel that its just buying time though...

And it sure reminds me of the Panic of 1907, when JP Morgan marshalled up the bankers and his own cash to
hold things up:

Panic of 1907 - Wikipedia

en.wikipedia.org

That event led to the creation of the Fed. So if we do have a crash NOW, I wonder what is the NEXT institution folks
will come up with...