Posted on 03/12/2023 8:58:20 AM PDT by E. Pluribus Unum
Oh so woke, oh so green, oh so diverse Silicon Valley Bank (SVB) just went bust.
One can go to its website—still up for who knows how much longer—and see that it claims assets of $212 billion. But as they say, the bigger they are, the harder they fall; and SVB makes for the second largest bank failure in U.S. history.
Remarkably, 93 percent of the bank’s $161 billion in deposits are uninsured by the Federal Deposit Insurance Corporation (FDIC), which only covers accounts up to $250,000. And Roku, to name just one whale, had $487 million in Silicon Valley Bank. So, just for starters, a lot of CFOs—the folks in charge of handling a company’s money—are gonna have some ‘splaining to do.
(Excerpt) Read more at breitbart.com ...
“interest rate shock on the bonds they hold”
And why is that?
Not trying to defend anyone. Just pointing out that a CEO and CFO have a Fiduciary Duty to the investors, the stockholders, and the employees.
No amount of government action diminishes this duty. It is why they earn the big bucks.
I know there are brilliant people here but most have never made a payroll or suffered the crisis of a failed bank holding all your deposits. I have. It was a long time ago. I learned just how bad an idea it is to have even most of your eggs in one basket. I wanted to blame someone else but I did it all on my own and I never expected a bail-out or a bail-in. I wanted one but knew it was not coming and my problem was nobody’s responsibility but my own.
People learn things and then forget or a new generation comes along to learn the lesson all over again. I’m seeing a lot of new kids who have never learned or even been taught the lessons that came hard for so many who are now irrelevant.
"Green", "woke", geez look at the squirrel.
SVB is entangled with the CCP and the many tech companies that are tied to the CCP.
SVB is too CCP to fail.
THERE IT IS!
And if you keep pulling that string brandon pops out....and then obama and then soros.....and eventually satan himself IMO.
... and clinton ... brought to us by perot ...
Thank you for that summation. I have been through it, too. More than once.
The only difference is that I grew up with parents and grandparents who remembered the ‘30s so I maintained accounts at other institutions … even for my businesses.
If my average payroll run is $3,000 per employee and I have 2,000 employees, I need $6 million to cover the payroll. Do I need to maintain accounts at 24 separate banks just to pay my staff?
bttt
And the same people that propped up this bank and did the run on all their cash, causing the collapse, are still WOKE and always will be.
That is, as long as the WOKE policies don’t effect their bank accounts, homes, cars, and lifestyles.
Why did they not freeze The bank when the run first started?
They could’ve done that they waited until it was almost depleted
The solicitation the bank made for I think $2 billion was not indicative that they were fixing to collapse yet people panicked and removed 90+ percent of all deposits and destroyed the bank
Bank still has loan portfolios etc
Somebody here explain to me why they let the run on the bank for 48 hours
Ice simply do not have all cash deposit because They make Loans and other investments with your money
And charge fees
It’s how they profit
They are only required to have a certain percentage of cash deposits on hand and when they need to bolster that they also go to bankers banks or in some cases the federal reserve
I wish bbluflag was still with us
He was a Texas bank president and could explain this better
From what I read last night, CEO of SVB was the first in line pushing and urging for deregulation.
See my post number 33 can you add to that or correct anything please
Those are good points I have never had that happen to me but I suppose we’re Ikes big business I would spread my money around and probably keep large cash deposits with the JP Morgan type people because you know they are not going to let a multi trillion dollar bank fail
I also expect some sort of remedy for this bank
Depositors are big Dems
If these SVB depositors/loan customers start filing for bankruptcy and stop making payments on the loans, then SVB’s custodians will have to start writing off the value of those loans on the books — which means its balance sheet is eroded even further.
The scenario Rickards has proposed there sounds like a sure way to guarantee that no depositor gets a penny more than their FDIC-insured $250,000 back.
Word to the Wise … Listening to ideas related to complex issues that are posted in a 280-character Twitter message is likely to make you mentally retarded.
As interest rates go up say from 1.5% to 5%, bonds issued at the 1.5% rate fall in price to be competitive with the new 5% interest bearing bonds.
Of course not, but you can split your vendor and payroll to two different banks. You can even have a third or fourth or more banks to keep your reserves.
If you don’t have reserves, then you have bigger issues than a bank failure.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.