Started by Legend, Mar 11, 2023, 08:00 AM
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What does this mean? Are we iced?probably not. not yet anyways.
Lol this was so stupid. Self-fulfillingI'm not sure who you are making fun of in that but in case you are negative on the Feds policy...
Second, it's possible that Silicon Valley Bank's extremely online clientele may have contributed to its downfall.
At most normal, midsize regional banks, what happened at S.V.B. probably wouldn't have led to a panic. Banks sell assets all the time. They run into liquidity problems and raise short-term capital to solve them. Most of the time, customers never notice or care.
But S.V.B.'s depositors are not normal customers. They're start-up founders and investors, the kinds of people who scrutinize banks' securities filings, who pay close attention to risk and volatility and who (most importantly) talk to each other on the internet all day. Once a few people in tech raised questions about the firm's solvency, Slack channels and Twitter feeds lit up with dire warnings from venture capitalists, and soon many people were panicking
The third lesson we can draw from S.V.B.'s collapse is that bank regulation works. As soon as it was clear on Friday that S.V.B. was going under, the Federal Deposit Insurance Corporation did what it always does when a bank fails -- it swooped in, took over and started trying to make the bank's customers whole. As a result, S.V.B. customers who had $250,000 or less deposited in insured accounts will be able to access those funds quickly. With any luck, a big bank will subsume the old S.V.B. seamlessly, make its larger depositors whole, and there will be no domino effect -- no taxpayer bailouts, no mass start-up failures, just a simple and orderly bank failure.3 Lessons From Silicon Valley Bank's Failure https://nyti.ms/3mAWQqo
In recent years, a certain set of tech leaders disparaged regulators and government officials as slow, corrupt and a drag on innovation. (Some of these same leaders begged for government bailouts on Friday.)
But because Silicon Valley Bank was mostly an ordinary bank -- not some unregulated crypto casino or risky fintech start-up, where investors and deposits might have no recourse if their money disappeared -- its failure will, in all likelihood, be more of an inconvenience than a long-term crisis.
If that happens, Silicon Valley will have regulation to thank for its survival.
U.S. regulators said Sunday it shut down New York-based Signature Bank, a second financial institution they shuttered after Silicon Valley Bank's collapse.
"We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority," Treasury, Federal Reserve, and FDIC said in a joined statement Sunday evening.
The banking regulators said depositors at Signature Bank will have full access to their deposits.
"All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer," the regulators said.
oi.That is horrible timing. 3rd largest bank collapse in US history just a couple days after the 2nd largest bank collapse in US history.
this is related to the ongoing crypto collapse but the timing sucks.
https://www.cnbc.com/2023/03/12/regulators-close-new-yorks-signature-bank-citing-systemic-risk.html
VizionEck Cube Royale is releasing this year "I'm Mike Armbrust" -Me |
"Americans can rest assured that our banking system is safe. Your deposits are safe," the president said. "Let me also assure you we will not stop at this; we'll do whatever is needed."
Credit Suisse lost almost a quarter of its value on Wednesday, dropping to a new record low after its largest investor said it could not provide the Swiss bank with more financial assistance.i hope you guys have nostalgia for 2008/9...
"We cannot, because we would go above 10%. It's a regulatory issue," Saudi National Bank chairman Ammar Al Khudairy said on Wednesday.
oh boy, the fear is real and seems to be getting bigger:Avatar back, banking collapse, it really is 2009!
https://finance.yahoo.com/news/credit-suisse-shares-drop-fresh-093204454.html
Credit Suisse crashing simply because of this statement:
i hope you guys have nostalgia for 2008/9...
VizionEck Cube Royale is releasing this year "I'm Mike Armbrust" -Me |
there is nothing specific to point at and say "this is bad" but there seems to be a lot of closed door activity this weekend. it's hard to believe this kind of activity would be happening if everything was fine.What I do after I close the door is my business!
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