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Regulators close Silicon Valley Bank after bank fails to raise new capital
Yahoo! Finance ^ | March 9, 2023 | David Hollerith, Myles Udland and Dan Fitzpatrick

Posted on 03/10/2023 10:21:03 AM PST by ConservativeInPA

Regulators closed troubled Silicon Valley Bank after deposit outflows and a failed capital raise plunged the country's 16th largest bank into crisis, roiling the larger lending industry.

It became the largest bank to fail since Seattle's Washington Mutual during the height of the 2008 financial crisis, and the first since 2020. Treasury Secretary Janet Yellen acknowledged the industry turmoil Friday, saying there are "a few" banks the department is closely watching.

"There are recent developments that concern a few banks that I'm monitoring very carefully and when banks experience financial loss it is and should be a matter of concern," Yellen told lawmakers Friday.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; News/Current Events; US: California
KEYWORDS: bigbanks; boa; citi; debt; economy; svb; wellsfargo; yelled; yellen
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To: ConservativeInPA
Silicon Valley Bank was founded in 1983 by Bill Biggerstaff and Robert Medearis over a poker game

Texas HOLD’EM ?

21 posted on 03/10/2023 12:07:09 PM PST by Brandonmark (November 2024 cannot come soon enough!)
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To: caww
Article says “there are “a few” banks the department is closely watching”.....

There will be other banks failing soon, don't know which ones. But I've read of banks that had tons of money, that lent out billions in 10-year loans between 1 and 2 percent interest. Then the Fed raised rates far beyond that and the banks are stuck losing money as they sell off loans at a huge loss. Would you buy a 1.2 percent loan when you can make 5 percent elsewhere? Not without a huge reduction on the principal costs. As a depositor, wouldn't you withdraw your money earning less than 1 percent in order to invest elsewhere at 5 percent? Some banks are screwed.

22 posted on 03/10/2023 12:30:32 PM PST by roadcat
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To: momincombatboots
A local bank is basically a very expensive billboard.

A bank executive once told me that his bank could function without any branches at all. But the market research they’ve done over the years consistently shows that customers would much rather do business with a bank that has a local branch even if they never set foot in that branch.

23 posted on 03/10/2023 1:21:28 PM PST by Alberta's Child
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To: wardamneagle
That’s simply not true.

These banks are losing their asses because their reserves are filled with U.S. Treasury bills paying 1.5% interest that they purchased two years ago. Meanwhile, their customers are withdrawing all their money because they can get 5% on a U.S. Treasury bill today.

24 posted on 03/10/2023 1:26:40 PM PST by Alberta's Child
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To: Alberta's Child

https://markets.businessinsider.com/news/stocks/sunrun-down-over-10-on-silicon-valley-bank-exposure-what-other-companies-are-exposed-1032160734


25 posted on 03/10/2023 7:24:25 PM PST by wardamneagle
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To: roadcat

Reminders of 2008....


26 posted on 03/11/2023 5:55:48 AM PST by caww (O death, when you seized my Lord, you lost your grip on me......)
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To: frank ballenger
Silicon Valley Bank shutters amid nationwide modern-day bank run...A Wellesley police officer tells customers that the FDIC has just closed the Silicon Valley Bank in Wellesley Friday. It was just before noon. (Staff Photo By Matt Stone/MediaNews Group/Boston Herald)


27 posted on 03/11/2023 6:00:25 AM PST by caww (O death, when you seized my Lord, you lost your grip on me......)
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To: wardamneagle
When the Bank Rep tells you the bank is closed....some of the people waiting were business owners concerned to meet their payroll.


28 posted on 03/11/2023 6:07:30 AM PST by caww (O death, when you seized my Lord, you lost your grip on me......)
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To: ConservativeInPA

2022: SBF
2023: SVB


29 posted on 03/11/2023 6:13:32 AM PST by x
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To: caww
I had no idea that there was a SVB in Wellesley. I am not affluent enough to drive anywhere near that town.
30 posted on 03/11/2023 6:17:50 AM PST by Radix (The perfect Tag Line is recognized by its conciseness and brev)
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To: caww

Photo of group confronting bank guard.

“Look, folks, the way they told it to me is they have to replace all the chains on the pens. When they get done you can come back in.”


31 posted on 03/11/2023 6:59:10 PM PST by frank ballenger (You have summoned up a thundercloud. You're gonna hear from me. Anthem by Leonard Cohen)
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To: donozark

Lol, it gave me a good excuse to change the direct deposit on my pension from Wells Fargo to my credit union. I’m not worried, I have faith in the FDIC. I worked there during the last bank crisis. They have access to sufficient capital, and they quickly sell assets from failed banks to replenish the Deposit Insurance Fund.


32 posted on 03/11/2023 7:05:22 PM PST by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Gonzales! Come and Take It!)
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