Posted on 03/10/2023 8:56:57 AM PST by PJ-Comix
Silicon Valley Bank has been closed by regulators, which have taken control of the bank’s deposits, the Federal Deposit Insurance Corporation announced Friday.
The California Department of Financial protection and Innovation closed SVB, and named the Federal Deoposit Insurace Corporation as the receiver.
The FDIC has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.
I thought this below article no Zerohedge gives an excellent explanation, in layman’s terms, about this problem.
Its also worrying, because many banks will be sitting on huge, unrealized bond losses due to interest rates rising so quickly
There is never only one cockroach.
Wow, this is pretty big. I am curious if other banks will follow.
https://en.wikipedia.org/wiki/Silicon_Valley_Bank
“On 9 March 2023, shares of SVB Financial plunged more than 62% after the company proposed a share sale to shore up its balance sheet which had suffered a $1.8 billion loss on Treasuries due to rising inflation.[26][27] Trading of SVB shares was halted before market open on 10 March.[28]”
2008 all over again..bet Biden will somehow blame Trump cause the POS can’t accept responsibility for ANYTHING he does
Lol
VIDEO FEB 2023, Jim Cramer urges investors to buy Silicon Valley Bank stock $SIVB, saying it was “still cheap” and has “room to run.”
https://rumble.com/v2ci6mo-feb-2023-jim-cramer-urges-investors-to-buy-silicon-valley-bank-stock-sivb.html
Not a good sign.
That one bears repeating.
I heard most customers had over $250,000 in Deposits so many will lose money and yet still vote for Biden.
*There is never only one cockroach*
The fit is about to hit the Shan.
I hope all these woke rats 🐀 lose every penny.
I wonder if SVB had a disproportionate number of wealthy foreigners in the tech sector holding accounts there. Many of them probably can’t even spell “FDIC.”
Not entirely accurate, yes banks fail but “all the time” is not a proper characterization. In truth a failing bank is a rarity except for the banking crisis from 2008 through 2013.
So in truth bank failures are something to be worried about
https://www.fdic.gov/bank/historical/bank/
Good chart—notice that bank failures happen late in the financial meltdown process.
If the 2008 timing holds true we are a year or more away before this stuff starts getting real.
This makes sense because banks can hide a lot of problems for a while with accounting games—it is only when they run out of cash that they have to confess their sins.
If the problem is widespread enough to cause a systemic breakdown, the solution will inevitably be a bailout of some sort. The two largest issues will be how much of a haircut will depositors and shareholders have to suffer. Most likely, shareholders will get hit, but even large depositors will likely be made whole by the FDIC and the Fed.
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