Silicon Valley Bank is shut down by regulators, FDIC to protect insured deposits

CNBC ^ | March 10, 2023 | Jesse Pound

[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.

[Alberta's Child]

Mortgage lending is one of the rare cases where the U.S. financial system is actually rigged AGAINST the banking industry. This is what is driving this turmoil that we see today.

[Vermont Lt]

Usually the FDIC will try to sell the assets to other banks. So, the money isn’t gone yet. But it’s at risk.

[Vermont Lt]

Watch the private jet traffic this weekend. Weekends are when the deals are cut.

Monday morning could be “fun.”

[Vermont Lt]

I don’t think this has much to do with mortgages. I think it was getting caught flat footed when they should have been adjusting it’s asset mix.

[EBH]

10 banks that may face trouble in the wake of the SVB Financial Group debacle
MarketWatch ^ | 3/10/23
Posted on 3/10/2023, 6:11:29 AM by EBH

[RayChuang88]

Or traffic on customized encrypted chat programs.

[grey_whiskers]

SVB CFO dumped 2,000 shares SIVB stock @ $287.59/shr two week ago (2/27/2023)
https://d18rn0p25nwr6d.cloudfront.net/CIK-0000719739/bc554c92-a43b-4390-a350-b32043ca9ba8.pdf
Some people have ejection seats before the plane crashes.

5 minutes ago
remove
CEO too https://d18rn0p25nwr6d.cloudfront.net/CIK-0000719739/6d205721-9446-42f9-9e45-7797ebe9a84f.pdf
Cannot let those executive pay 12,452 shrs from stock options expire worthless, exercise and dump em.

Both of the above are according to poster NELBEV at ZeroHedge.com

[Theoria]

Says twitter:

[mware]

Oh damn. Here we go.

[traditional2]

" but even large depositors will likely be made whole by the FDIC and the Fed."

FDIC and the Fed will pay nothing; it's the Taxpayers who will fund the bank's failures, with NO ACCOUTABILITY, as always, for the assholes that committed Fraud.

[mware]

Logged on wells Fargo and got message that if account is not correct not to worry.

[Alberta's Child]

You might be right. I should have been more clear. The link in Post #2 seems to indicate that most of SVB’s assets are mortgage-backed securities.

[Wallace T.]

Simple arithmetic: if the FDIC covers all deposits of Silicon Valley Bank, it will assume $175 billion in liabilities. As of December 31, 2022, the Deposit Insurance Fund was $126 billion. That agency has set up a Deposit Insurance National Bank, so they will manage the assets of the failed bank. The FDIC can recoup a percentage of the liabilities through sale of marketable assets of Silicon Valley Bank, such as investment grade securities and good loans. Sale of deposits, particularly consumer deposits, will also help reduce the exposure. However, it is likely that the FDIC will have to borrow from the Fed, as the fallout from the liquidation of this large bank will jeopardize the viability of the Deposit Insurance Fund.

[PJ-Comix]

Dow Jones now DOWN 405 points. The big plunge today started almost from the moment the bank’s failure was announced.

[plain talk]

-0.23% is not plunging. The Dow is now down -1.18%. Still not plunging ... yet.

[Wdempsey]

When is enough enough?

This puppet of Obama needs to be dragged off to Happydale. The rest of the family belongs in Leavenworth.

[Tipllub]

Cramer is a great contrary indicator.

[TribalPrincess2U]

;-) So true!