Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Pinkerton: Green, Woke, and Now Broke — How SVB Became the 2nd Biggest Bank Failure in U.S. History
Breitbart ^ | 11 Mar 2023 | JAMES P. PINKERTON

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 ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government; Politics/Elections
KEYWORDS: banks; roku; siliconvalleybank; svb
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-71 next last
To: bankwalker

“interest rate shock on the bonds they hold”

And why is that?


21 posted on 03/12/2023 9:32:40 AM PDT by V_TWIN (America...so great even the people that hate it refuse to leave!)
[ Post Reply | Private Reply | To 17 | View Replies]

To: napscoordinator

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.


22 posted on 03/12/2023 9:36:09 AM PDT by beancounter13 (A Republic, if you can keep it.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Alberta's Child

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.


23 posted on 03/12/2023 9:38:31 AM PDT by Sequoyah101 (Procrastination is just a form of defiance.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: V_TWIN
fed raised rates to fight inflation which was triggered by the greenies energy policies, the covid response of printing trillions, rates too low since the 2008 bailouts and QE, etc., etc., etc.

and the beat goes on ...
24 posted on 03/12/2023 9:39:29 AM PDT by bankwalker (Repeal the 19th ...)
[ Post Reply | Private Reply | To 21 | View Replies]

To: E. Pluribus Unum
Pinkerton: Green, Woke, and Now Broke — How SVB Became the 2nd Biggest Bank Failure in U.S. History

"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.

25 posted on 03/12/2023 9:40:57 AM PDT by FreeReign
[ Post Reply | Private Reply | To 1 | View Replies]

To: bankwalker

THERE IT IS!

And if you keep pulling that string brandon pops out....and then obama and then soros.....and eventually satan himself IMO.


26 posted on 03/12/2023 9:42:51 AM PDT by V_TWIN (America...so great even the people that hate it refuse to leave!)
[ Post Reply | Private Reply | To 24 | View Replies]

To: V_TWIN

... and clinton ... brought to us by perot ...


27 posted on 03/12/2023 9:43:59 AM PDT by bankwalker (Repeal the 19th ...)
[ Post Reply | Private Reply | To 26 | View Replies]

To: Sequoyah101

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.


28 posted on 03/12/2023 9:44:02 AM PDT by beancounter13 (A Republic, if you can keep it.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: beancounter13
Suppose my company gets paid on a $400,000 invoice from a customer. Do I ask the customer to make two separate payments so I’m not depositing more than $250,000 in any one account?

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?

29 posted on 03/12/2023 9:52:45 AM PDT by Alberta's Child
[ Post Reply | Private Reply | To 18 | View Replies]

To: bankwalker

bttt


30 posted on 03/12/2023 9:52:55 AM PDT by BenLurkin (The above is not a statement of fact. It is either opinion, or satire, or both.)
[ Post Reply | Private Reply | To 7 | View Replies]

https://www.netinterest.co/p/the-demise-of-silicon-valley-bank


31 posted on 03/12/2023 9:53:20 AM PDT by BenLurkin (The above is not a statement of fact. It is either opinion, or satire, or both.)
[ Post Reply | Private Reply | To 30 | View Replies]

To: E. Pluribus Unum

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.


32 posted on 03/12/2023 9:58:13 AM PDT by qaz123
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum; Pelham

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


33 posted on 03/12/2023 10:02:47 AM PDT by wardaddy (Truth is treason in the Empire of lies)
[ Post Reply | Private Reply | To 1 | View Replies]

To: napscoordinator

From what I read last night, CEO of SVB was the first in line pushing and urging for deregulation.


34 posted on 03/12/2023 10:03:41 AM PDT by Bubbette
[ Post Reply | Private Reply | To 19 | View Replies]

To: bankwalker

See my post number 33 can you add to that or correct anything please


35 posted on 03/12/2023 10:04:12 AM PDT by wardaddy (Truth is treason in the Empire of lies)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Sequoyah101

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


36 posted on 03/12/2023 10:08:47 AM PDT by wardaddy (Truth is treason in the Empire of lies)
[ Post Reply | Private Reply | To 23 | View Replies]

To: wardaddy
heading out now .. not much time ...

but I think they invested in govt bond rather than make loans and were locked into low yielding assets that had to be sold ate a steep loss ...

can't answer your other questions ...

will look later tonight ...
37 posted on 03/12/2023 10:34:26 AM PDT by bankwalker (Repeal the 19th ...)
[ Post Reply | Private Reply | To 35 | View Replies]

To: Rusty0604
At best, Rickards hasn’t thought everything through. At worst, he’s a moron.

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.

38 posted on 03/12/2023 10:54:11 AM PDT by Alberta's Child
[ Post Reply | Private Reply | To 11 | View Replies]

To: V_TWIN

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.


39 posted on 03/12/2023 11:01:00 AM PDT by Maine Mariner
[ Post Reply | Private Reply | To 21 | View Replies]

To: Alberta's Child

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.


40 posted on 03/12/2023 11:13:46 AM PDT by beancounter13 (A Republic, if you can keep it.)
[ Post Reply | Private Reply | To 29 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-71 next last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson