Posted on 03/11/2023 1:14:12 PM PST by RomanSoldier19
SVB Financial Group faced a perfect storm, but there are plenty of other banks that would face big losses if they were forced to dump securities to raise cash
Silicon Valley Bank has failed following a run on deposits, after its parent company’s share price crashed a record 60% on Thursday.
Trading of SVB Financial Group’s SIVB stock was halted early Friday, after the shares plunged again in premarket trading. Treasury Secretary Janet Yellen said SVB was one of a few banks she was “monitoring very carefully.” Reaction poured in from several analysts who discussed the bank’s liquidity risk.
(Excerpt) Read more at marketwatch.com ...
I see a run on twenty more banks tomorrow.
Who in their right mind has any significant amount of their total net worth in a bank account. Even OPRAH or MEAGHAN?
that’s all that was on the only list I found.
Just because they are wealthy doesn’t mean that they are financially smart.
All of my capital is in 4-week US Treasuries.
Performing quite nicely, thank you.
As are my balanced funds...
Only lost money 1 month so far... compared to everyone else, not too shabby
Bad management has consequences.
Not just not financially smart, not even remotely sane.
Yeah, the more I look at the fundamentals I think the problem is going to be much broader. It’s not rocket science to know that when interest rates increase asset prices decrease. The writing has been on the wall for two years that interest rates would increase from near zero. The executives at these banks had fiduciary responsibility to move investments to other asset classes.
$250k is safe and guaranteed.
In every bank you put that sum into.
Lol, they may be book smart, but they can’t manage a lemonade stand.
A gold nugget in the hand is worth two in the bank.
Fake fiat money kills, every time. That is where the US is headed.
“$250k is safe and guaranteed.
In every bank you put that sum into”
That’s the theory, I’m just wondering if they s*** hits the fan so hard that can even FDIC fall apart?
There was a large credit union in Texas that was in conservatorship for four years because 1)there was no way to inject capital and 2) the Credit Union regulator didn't have sufficient funds to actually resolve it (pay off depositors). So they rocked along until they were able to squeeze enough out of the members to write off enough bad debt and return control to the members.
My financial advisor told me Charles Schwab bank is worse than SVB by a mile. They have my 401k… but supposedly, it’s separate and guaranteed to a much higher level than a bank.
Charles Schwab was down 25% yesterday. Monday should be interesting.
Dow 26k. I’ve been waiting.
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