Posted on 03/13/2023 4:57:38 PM PDT by Chad C. Mulligan
Oh but so many climate-related firms are going to fail to make payroll! - Any one of a thousand Internet scolds.
My answer: So what?
Next up - Republic, which apparently had lines out the door (if you believe the Internet) on Saturday. Again: So what?
Folks, bubbles attract stupidity. Stupidity is a constant in the universe; in fact it is likely the only thing that is truly infinite (with all due respect to the late Mr. Einstein.)
The so-called "Chief Risk Officer" at SVB had a masters in..... public administration. Anyone care to bet if she passed any form of advanced mathematics -- you know, like for example Calculus or Statistics? Do you think she understood exponents and why this graph made clear that concentration of risk and duration was stupid and likely to blow up in everyone's face -- including hers?
How about Bill Ackman and the others on the Internet screaming for a bailout? How about the CFOs of public companies like Roku that stuck several hundred million dollars in said bank? Was it not widespread public knowledge (and available to anyone who took 15 minutes to do research, which you'd think someone would do before putting a hundred million bucks somewhere) that this institution was chock-full of VC-funded startup companies which, historically fail 90% of the time and their debt becomes impaired or even worthless?
Where are the indictments for fiduciary malfeasance among these people?
(Excerpt) Read more at market-ticker.org ...
Our lizard elites will once again bail themselves out and stick US with the bill.
Ping!
GET WOKE, GO BROKE
Rumors say that OPRAH had $560 MILLION deposited there.
Harry & Markle, also.
How politicians and the media love that word “systemic” to create crisis for their own agenda! What distinguishes this potential bailout of uninsured depositors from the bailout of the 7 big banks in 2008 is that 2008 involved government loans to the undercapitalized banks, that had not yet failed, to avoid systemic failure of the banking system The loans were paid back with interest. SVB has already failed. It no longer exists. Thus, SVB is not a bank bailout in the true sense. Nor do I see its failure as systemic to the entire banking system as was 2008 which was exposed to a national economic crisis. It is systemic solely to that one poorly risk managed bank exacerbated by a unique set of phenomenal deposit growth circumstances in one industry to which it catered- SV tech. It may end up being an uninsured depositor bailout. If the government does directly reimburse uninsured depositors, which is currently unclear, it is a gift by the taxpayers, not a loan as was the case in 2008. Uninsured depositors should not be reimbursed with taxpayer funds.
SVB had many large payroll accounts.
Payroll accounts keep workers paid.
I’m OK with the FDIC protecting payroll accounts of all sizes as of this year.
Wow, think of all the tax write offs they will get. They may not have to pay any taxes for years.
Stupid should hurt....
Oh please...He’ll get money to Newsome and N will take care of it.
Thanks!
Get woke. Go broke.
Work for woke. Go broke.
Vote for EGS pushing policies and the only a few options for not-woke are available, but they'll be the successful ones.
Public learns and quits voting woke. We all win in the end.
But not life lesson is learned with the bailout. Not at the bank leadership level. Not at the woke company leaders level. Not at the workers knowing they're working for woke companies level. And not at the voters level demanding ESG from government to save us from cow farting invisible fire-breathing warmageddon dragons that exist only in woke minds.
The Bank gambled and lost, NO BAILOUT for anyone ever.
A question I've been asking since Friday morning. Knowing that at least ONE of SV Bank's Exec's was responsible for the Lehman Brothers collapse which caused the 2008 meltdown, WHY IN THE BLUE HELL weren't people cuffed and perp walked live on TV for this?
I work for a Top Ten bank, which is also one of the Top Ten most scrutinized banks in the world. I cannot tell you the amount of research, planning and work SV Bank, Silvergate and Signature Bank all failing last week did to us.
We have ZERO exposure to any of the three. The bank I work for is very conservatively run and is considered a safe haven during economic turmoil. Clients that left us 2-3 years ago for SV Bank were calling their former relationship managers and high-level C-Suite personnel to get re-onboarded to our bank asap over the weekend.
From my perspective, this is what really pisses me off in all this:
1. Our stock price, like every other bank, is taking a complete beating, despite having no exposure to this mess and being as highly capitalized as we are, with well above that required by the regulators, capital reserves.
2. The failure by Banking Regulators to have seen what was going on with SV Bank, the long and short term positions they held, the risk of failure and the mismanagement of that bank. All of which Federal Regulators SHOULD HAVE SEEN had they properly done their jobs. Again, I work for one of the TOP TEN most scrutinized banks in the world. At any given time we have every banking regulatory agency in the bank performing multiple audits and let me tell you: they crawl up every nook and cranny in our financial asses and look for any thing they can find. I've sat in on audits and the auditors aren't any dummies either. So how did SV Bank get "missed" like this? Same question for Signature Bank and Silvergate. As much of a banking failure this is, this is a massive regulatory failure too, and don't let anyone bullshit you into thinking this was somehow "Trump's fault" for minimizing requirements for small to mid-size banks so they could remain competitive and not get eaten up by the big boys.
3. The bank I'm at will be fine. We'll weather this just fine and in fact because we're considered a safe haven for money, we'll actually GROW and gain business from all this. That's what happened in 2008/2009, again around 2015 and now again in 2023. Our workload is already increasing due to onboarding efforts that kicked off over the weekend and are going to stretch at least six months based on the schedule I saw today.
4. Finally, all the people who had absolutely nothing to do with any of this nonsense, that's you and I, who are taking haircuts in 401k's, going to be losing jobs, impacts to the economy, inflation, monetary policy and more that are going to get hurt by this.
So this really makes me angry that those responsible at SV Bank aren't being perp walked live on TV to jail for what they've done. They've done it before in 2008. There are apparently no consequences for playing with money recklessly, losing, and impacting the economy. No, it's apparently REWARDED.
Seems the only people NOT too big to fail, happen to be us taxpayers.
Someone let me know when the revolution starts so we can start holding these bastards accountable for effing up all our lives and our financial futures. Damn' them straight to hell. When will their meeting with the devil be finalized?
SEE TAGLINE, IN EFFECT SINCE NOV. 2000!!!
Yeah. Let me know when that happens.
It should be lethal.
.
It happened in 1980. It happened in 2016.
Let's do the math: 2016 - 1980 = 36 years.
2023 - 2016 = 7 years.
Talk to me in 29 years. If I'm still alive. (Chances are high I won't be, having outlived the average life expectancy in the U.S.)
The Bank gambled and lost, NO BAILOUT for anyone ever.
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