Here We Go Again. Wall St. Billionaires Demanding Bailouts Of Big Banks

[skews13]

I guess the woke mentality doesn't bode well in banking. I wonder what else will fail because of the woke mentality in the economy?

Wrong. As you usually are.

The Times noted in its report that the bill was championed by SVB CEO Greg Becker. Becker had pressed lawmakers in Congress to lessen regulation that placed higher scrutiny on certain banks, claiming that SVB had a "low risk profile of our activities and business model." By 2018, his bank had spent roughly $500,000 to lobby for the changes that Trump ultimately signed into law, according to The Lever, an investigative news outlet.

The rules rolled back by the bill were first introduced in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act, a sweeping reform law signed by former President Barack Obama to address issues in the financial sector in the wake of the 2007-2008 global financial crisis and the Great Recession. As noted in a tweet on Saturday from businessman and former Obama economic adviser Robert Wolf, the Dodd-Frank Act originally required banks with over $50 billion in assets to submit to stress testing.

That bill. S. 2155, had bipartisan support of 17 Democratic Senators, and 33 Dem Reps.

No comment from Trump so far.

 

[B. Kidd]

I wouldn't characterize it that way -- at least not yet based on what I've seeb. There was not, as far as I can tell, an intent to defraud account holders or investors, but time will tell. Will be interesting to see if their banking practices conflicted with any reports they might have filed.

Terrible, terrible optics of the CEO selling shares before the implosion. He will definitely face scrutiny, and should.

Stress tests for community banks is too low at the current $50 Billion level!
It should be minimum $150 Billion.

The current level of bank stress testing fails to take into account our devalued dollar due to inflation combined with Gov't policy past cash Covid infusions AND current and future public debt forgiveness policy (ie: student loans, and the spectre of reparations, and cash allowances to illegals.).

As usual, our Bi-partisan Congress remains fucking asleep at the wheel!!!

 

[CrusaderFrank]

In essence SVB was running a quasi Ponzi scheme

Then so is every bank in America

 

[multivita-man]

A Ponzi scheme has no real business behind it.

Thank you.

It's fine to have different opinions and ideological viewpoints on this, but yeah, Ponzi scheme? Let's keep it real.

 

[multivita-man]

Stress tests for community banks is too low at the current $50 Billion level!
It should be minimum $150 Billion.

Probably something worth looking at.

Know what else is worth looking at? The size of the Fed's balance sheet. Interest rates are apparently the only tool the Fed can find in its tool box right now. We're just making borrowing expensive, but not really tightening money supply. We still have loose conditions for the most part. Being the mostly big-gubmint libtard that I am, I am *not* - I repeat, *not* - a fan of austerity. But this shit should have been corrected even before the pandemic.

I think Jay Powell has good intentions and a functioning brain, but he has been the weakest Fed chair since the 1970s when it comes to having the spine to establish independence from what sitting presidents, pols, and talking heads want.

 

[Rocko]

Thank you.

It's fine to have different opinions and ideological viewpoints on this, but yeah, Ponzi scheme? Let's keep it real.

fair enough. I didn’t write Ponzi scheme to make a false accusation. Just by reading your description of what transpired sounded Ponzi scheme esq

 

[Ringo]

The fact that Silicon Valley Bank (SVB) has been seized by federal regulators is a big deal and will have a huge impact on Silicon Valley’s startup scene.

What's the difference... We have only three months to live anyway...

 

[multivita-man]

fair enough. I didn’t write Ponzi scheme to make a false accusation. Just by reading your description of what transpired sounded Ponzi scheme esq

I definitely think there's some questionable behavior at the top. Whether that's just unethical or illegal remains to be determined.

I hope DOJ doesn't puss out like they did under Obama. People should have gone to jail for that shit. Not advocating throwing prosecutorial weight around for the hell of it but there def should be an investigation.

 

[Toddsterpatriot]

Probably something worth looking at.

Know what else is worth looking at? The size of the Fed's balance sheet. Interest rates are apparently the only tool the Fed can find in its tool box right now. We're just making borrowing expensive, but not really tightening money supply. We still have loose conditions for the most part. Being the mostly big-gubmint libtard that I am, I am *not* - I repeat, *not* - a fan of austerity. But this shit should have been corrected even before the pandemic.

I think Jay Powell has good intentions and a functioning brain, but he has been the weakest Fed chair since the 1970s when it comes to having the spine to establish independence from what sitting presidents, pols, and talking heads want.

The size of the Fed's balance sheet.

Shrinking.

Recent balance sheet trends

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

We're just making borrowing expensive, but not really tightening money supply.

But they have tightened money supply.

M2 | FRED | St. Louis Fed

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

 

[B. Kidd]

The size of the Fed's balance sheet.

Shrinking.

Recent balance sheet trends

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

We're just making borrowing expensive, but not really tightening money supply.

But they have tightened money supply.

View attachment 765095

M2 | FRED | St. Louis Fed

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

Okay.

So we're just re-arranging chairs on the deck of the Titanic.

 

[skews13]

Oh look. A NOT bailout.

U.S. announces it will stem SVB fallout, customers to have deposit access

Silicon Valley Bank customers will have access to their deposits starting on Monday, U.S. officials said on Sunday, as the federal government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of the tech startup-focused lender.

www.reuters.com

 

[Meister]

Wrong. As you usually are.

The Times noted in its report that the bill was championed by SVB CEO Greg Becker. Becker had pressed lawmakers in Congress to lessen regulation that placed higher scrutiny on certain banks, claiming that SVB had a "low risk profile of our activities and business model." By 2018, his bank had spent roughly $500,000 to lobby for the changes that Trump ultimately signed into law, according to The Lever, an investigative news outlet.

The rules rolled back by the bill were first introduced in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act, a sweeping reform law signed by former President Barack Obama to address issues in the financial sector in the wake of the 2007-2008 global financial crisis and the Great Recession. As noted in a tweet on Saturday from businessman and former Obama economic adviser Robert Wolf, the Dodd-Frank Act originally required banks with over $50 billion in assets to submit to stress testing.

That bill. S. 2155, had bipartisan support of 17 Democratic Senators, and 33 Dem Reps.

No comment from Trump so far.

I wonder what sectors their investments were weighted?

 

[multivita-man]

The size of the Fed's balance sheet.

Shrinking.

Recent balance sheet trends

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

We're just making borrowing expensive, but not really tightening money supply.

But they have tightened money supply.

View attachment 765095

M2 | FRED | St. Louis Fed

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

A teeny, tiny bit in the grand scheme of things.

 

[skews13]

I wonder what sectors their investments were weighted?

Have any grandkids? One of the companies I own stock in.

Roblox.

If you have grandchildren, then you know who they are. A lot of the video games they are playing is guess who?

It's a hot stock, that will only see upside as the economy gets further away from the pandemic.

I put it in the buy category, if you haven't already.

 

[Meister]

Have any grandkids? One of the companies I own stock in.

Roblox.

If you have grandchildren, then you know who they are. A lot of the video games they are playing is guess who?

It's a hot stock, that will only see upside as the economy gets further away from the pandemic.

I put it in the buy category, if you haven't already.

How about all the green alternative stocks?

All my stocks produce dividends, I'm not so interested in growth.
Just blue chip stocks with dividends and a history of increasing their dividends.

 

[skews13]

How about all the green alternative stocks?

All my stocks produce dividends, I'm not so interested in growth.
Just blue chip stocks with dividends and a history of increasing their dividends.

Dow futures jump 300 points as regulators announce backstop of SVB depositors — CNBC

Investors were monitoring developments out of Washington for details on next steps in the Silicon Valley Bank crisis.

stocks.apple.com

 

[Care4all]

Thing is, they can't get it all out at once....maybe up to 75%, then it's a waiting game.

I didn't know that...nor do I know much about these kind of things..... What's the waiting game for? Why not the whole $250k at once? Where would the 25% held back, be held? Are they paying interest on what is held back? If another bank comes in and buys them, why take your money out at all???

 

[Toddsterpatriot]

I didn't know that...nor do I know much about these kind of things..... What's the waiting game for? Why not the whole $250k at once? Where would the 25% held back, be held? Are they paying interest on what is held back? If another bank comes in and buys them, why take your money out at all???

What's the waiting game for? Why not the whole $250k at once?

If the bank only has $1 billion in their account at the Fed, they can't give depositors
more than $1 billion. Even if the depositors say pretty please.

Where would the 25% held back, be held?

They would have to wait for assets to be sold.

Are they paying interest on what is held back?

It's possible that interest would be frozen.

If another bank comes in and buys them, why take your money out at all???

Exactly. And now that the FDIC and Fed said deposits are covered, the bank run should be over.

 

[DudleySmith]

How does someone "leverage those tranches in CDO's at 35 to 50 times the averages values in the overnight markets"?

Spell it out. Don't use gibberish, use English.

Take some classes in finance, and you might be able to actually discuss issues instead of just posting idiot one liner questions you would never understand the answers to anyway, since you don't know squat.

 

[DudleySmith]

In essence SVB was running a quasi Ponzi scheme

Wall Street is mostly Ponzi schemes, a lot of people all trying to get rich off of other people's bets. It's a game of musical chairs, trying to avoid being the last moron to get stuck eating all the water when it finally fails. With the 'limited liability' scam , it's always going to be the public who eats the water; the swindlers get to keep what they embezzled.