Posted on 03/12/2023 8:58:20 AM PDT by E. Pluribus Unum
Oh so woke, oh so green, oh so diverse Silicon Valley Bank (SVB) just went bust.
One can go to its website—still up for who knows how much longer—and see that it claims assets of $212 billion. But as they say, the bigger they are, the harder they fall; and SVB makes for the second largest bank failure in U.S. history.
Remarkably, 93 percent of the bank’s $161 billion in deposits are uninsured by the Federal Deposit Insurance Corporation (FDIC), which only covers accounts up to $250,000. And Roku, to name just one whale, had $487 million in Silicon Valley Bank. So, just for starters, a lot of CFOs—the folks in charge of handling a company’s money—are gonna have some ‘splaining to do.
(Excerpt) Read more at breitbart.com ...
$150 BILLION NOT INSURED
Roku huh? Guess I’ll be watching TV off my antenna in the near future 😏
Wow! I bet the rest of the story is on Breitbart…SOMEWHERE…
>$150 BILLION NOT INSURED
Poof! Annnnnnd it’s gone...
This is where The Swamp will cave. FedGov has to borrow money so the banks can lend the money back to FedGov. It’s a never-ending cycle and becomes the principal driver of inflation.
It’s time to let the bank fail, and let the stupid depositors lose everything over the FDIC threshold.
Even if the feds don’t bail them out directly the tax write offs will accomplish a percentage of the same.
Hoping someone with better understanding of tax law will correct me.
That is very odd. I ran much smaller operations in the late 80’s and early 90’s.
Overnight repo’s were how we invested cash.
Pretty simple and it really makes me wonder what has changed with the treasury function (as it is called).
This Freeper is spending the weekend meeting with his senior management to figure out how to pay their employees, and determine if they can even open for business tomorrow.
I don’t know what has happened to this website over the years, but I swear the average IQ has dropped by at least 20 points since I joined … and there are a lot of ignoramuses stinking the place up.
Jim Rickards
@JamesGRickards
·
54m
Master Class: Many (not all) depositors at SVB were also loan customers. That’s “relationship banking.” Their owners can file bankruptcy, wipe out loans, wait for partial recovery of deposits, and pocket a nice profit. One of the unintended consequences of new “bail-in” rules.
https://twitter.com/JamesGRickards
Jim Rickards
@JamesGRickards
·
54m
Master Class: Many (not all) depositors at SVB were also loan customers. That’s “relationship banking.” Their owners can file bankruptcy, wipe out loans, wait for partial recovery of deposits, and pocket a nice profit. One of the unintended consequences of new “bail-in” rules.
https://twitter.com/JamesGRickards
First FTC then SVB.
Both woke idiot companies. Pattern here ?
Makes one wonder which is the 3rd most Woke bank ?
Probably a good bank stock to short. It would be interesting to know if informed investors shorted these stocks and cleaned up.
Thanks for posting that.
“Unrealised gains of $39 billion across banks’ AFS portfolios at the end of 2020 swung to unrealised losses of $31 billion by the end of 2021.”
Now let’s see....what major event did the country see in that time frame 🤔 ......oh yeah, NOW I remember
Some people are at different places with how they view the gov and banking systems. People like myself for example who don’t trust them for 2 seconds would not of been using banks with questionable policies or attitudes. Some people are simply unaware and get caught up. It can happen to a lot of people and there are no easy answers.
The amount of Uke cheerleading is a far bigger problem with far more severe consequences.
I really hope some of the good honest companies can get this figured out and not permanently lose their capital and operating finances.
Bermuda flue hits SVB whos next?.
interest rate shock on the bonds they hold ...
Not disagreeing with you: it does take an ignoramus to put all of his eggs in one basket.
Would it have been difficult for a person or company of any size to have bank accounts at multiple institutions?
Of course not … unless the bank was making promises (e.g.improbable rates of return) that it couldn’t possibly keep. That is where one has to wonder: what did the CFO do to justify his salary? And possibly more important: why did the CEO put such faith in his CFO?
https://www.nasdaq.com/articles/trump-deregulating-banks-heres-what-means-you-2019-02-12
This didn’t help.
They should send investors that are upset to go talk to the equity and diversity officer.
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