SVB failure (3 Viewers)

[MT15]

This seems to be generating a lot of talk among the on-line tech set. I don’t really care why it failed or about the nuts and bolts, but I found the immediate calls for a government bail out of investors fascinating. This guy’s thread makes a great set of points about it.



There’s an entire thread, not too long, well worth reading.

 

[el caliente]

Velocity of communication isnt new.

My god, Banks and investment houses make 100s of millions off the "velocity of communication" trading.

Thats kinda my point here. If you are operating in an environment that is susceptible to any issues arising out of "Velocity" you better have a plan A.

Its like we keep discovering things that are known hazards and addressing AFTER the calamity. We arent proactive- we are reactive. Too much $$$ being made for these institutions to NOT have safeguards in place.

Hell, Michael Lewis wrote an entire book on the subject.

 

[el caliente]

Just in case you don’t believe me:

Pretty interestingly, everyone I talk to at my firm (or my prior 2 forms) thinks the C-Suite at SLVB should do prison time. And I mean top down. What they did, how they operated, was not in good faith.

There are certain regulations, and bars that bigger banks (JPM, Citi, BoA, even WF) have to abide by, that banks like SLVB didn’t have too, and SLVB, Signature, and First Republic didn’t have to abide by. Those rules allowed them to operate like community banks, when in reality they were not

I say put them all behind bars. With luck that will help restore the consumers faith in the banking system.

 

[el caliente]

I learned this during our companies morning call today, there are 4,200 banks in the US. Only 2 failed.

Another interesting fact, India only has 43 banks, and China 143.

 

[MT15]

Pretty interestingly, everyone I talk to at my firm (or my prior 2 forms) thinks the C-Suite at SLVB should do prison time. And I mean top down. What they did, how they operated, was not in good faith.

There are certain regulations, and bars that bigger banks (JPM, Citi, BoA, even WF) have to abide by, that banks like SLVB didn’t have too, and SLVB, Signature, and First Republic didn’t have to abide by. Those rules allowed them to operate like community banks, when in reality they were not

I say put them all behind bars. With luck that will help restore the consumers faith in the banking system.

I read that the original bill that watered down the Frank requirements had a money limit that would have only included small community banks, where they would have very few accounts over the $250k limit. But these middle large banks, and specifically SVB, lobbied hard to have the limit raised so high that they would fit under it too. They did it on purpose so that they could do just what they did. I’m fine with whatever criminal charges they can find against them.

 

[MT15]

I learned this during our companies morning call today, there are 4,200 banks in the US. Only 2 failed.

Another interesting fact, India only has 43 banks, and China 143.

I think our way is better. And I’m not at all biased because my daughter heads up the marketing department at a credit union here.

I had to learn not to say bank when referring to her place of employment, lol. Gets me corrected every time.

 

[samiam5211]

Credit Suisse is going to have a bad day.

 

[efil4]

Credit Suisse is going to have a bad day.

Good.

My mother passed in Dec 2021. As a Swiss citizen, her "pension" account is with Credit Suisse. Over 10,000 Euros.

We traveled there June 2022. While there, we made appointment and met with a rep at Credit Suisse in LAusanne to determine how to liquidate/close account, only to be told, we have to submit everything via email. So we finally go the proper dept, submitted all the documents, received an email back saying received and they will be in touch.

That was July of 2022. We made dozens of calls to them over the next 6 months. There is no state-side Credit Suisse that handles this- its all investment banking, so every call is overseas. No one could provide any info, we would resend the email, call again, every time a dead end.

EVERY TIME. I even reached out to the Swiss Consulate in Atlanta ( financial division ) for assistance and they were of no help.

MEanwhile, Credit Suisse is charging $250 Euros EVERY QUARTER for the "maintenance" of this account. My sister and I are so disgusted over the whole process, that we have decided to forgo attempts and allow it to eventually dwindle down to $0 balance.

 

[el caliente]

The Gavin Newsom story is disappointing, but in todays politics, it’s par for the course.

Cheering Silicon Valley Bank Bailout, Gavin Newsom Doesn’t Mention He’s a Client

At least three of the California governor’s wine companies are held by SVB, and a bank president sits on the board of his wife’s charity.

theintercept.com

 

[el caliente]

 

[MT15]

You seem to trust this source, el. It seems partisan to me, when I looked at it last time. Do you have reason to trust it?

 

[J-DONK]

You seem to trust this source, el. It seems partisan to me, when I looked at it last time. Do you have reason to trust it?

That tweet? My first thought was that better be in millions, or who cares.

 

[efil4]

You seem to trust this source, el. It seems partisan to me, when I looked at it last time. Do you have reason to trust it?

That graph illustrates, quite well, just how embedded Big Banks are with the Republican party imo.

They spend almost 2:1 on Dems - because THOSE are the minds they need to change. Not Republicans.

you dont toss money are Republicans that are consistently in your favor. ( and are NOT going to break party lines for fear of repercussions from within/voters )

 

[Maxp]

SVB was a "tech" focused bank in California, seems logical they donate to more Demcratic politicians. This would be like a Houston based bank donating to mostly Republicans.

 

[el caliente]

Unusual Whale is called biased by both sides, so yeah, I feel like they are trustworthy.

The information on their chart isn’t all that surprising (given the Newsom news). Banks are in bed with politicians, regional banks are in bed with the politicians in their region.

 

[el caliente]

 

[samiam5211]

Poor thing.

If we start bailing out these collapses from the bottom up instead of the top down, at least we can get some wealth redistribution out of them.

 

[MT15]

Unusual Whale is called biased by both sides, so yeah, I feel like they are trustworthy.

The information on their chart isn’t all that surprising (given the Newsom news). Banks are in bed with politicians, regional banks are in bed with the politicians in their region.

You may be right about the local angle, but I don’t think SVB is really a local bank. I just remember that Twitter account posting skewed numbers when that crypto guy got arrested that made it look like he mostly donated to Dems, when he was questioned though he said it was even, he just donated to dark money PACs for the Reps.

Also, when I perused the timeline of that account it seemed pretty one-sided to me.

 

[el caliente]

You may be right about the local angle, but I don’t think SVB is really a local bank. I just remember that Twitter account posting skewed numbers when that crypto guy got arrested that made it look like he mostly donated to Dems, when he was questioned though he said it was even, he just donated to dark money PACs for the Reps.

Also, when I perused the timeline of that account it seemed pretty one-sided to me.

I’m not sure what to tell you, the timeline seems pretty straight down the fairway. It doesn’t favor Republicans or Democrats. The graph I shared showed that both sets of pigs eat at the same trough.