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Not to interrupt the very cool bank discussion. But I'd like to pose a question,It is true no bank could handle a full bank run meltdown. However, it can calm the depositors if they are informed that the bank is well-capitalized.
I think that is what banks are doing now to hedge their interest rate risk. They are borrowing money from the Fed.
While you pointed out that the Fed charges around 4 percent, that is still cheaper than the going rate anywhere else.
What no one knows is how well hedged all these banks are against the interest rate risk. I think SVB and First Republic inform us "not at all".
"The Democrats ATM." That expression is for the consumption of the uninformed who have the intellectual bandwidth of a bumper sticker. It's a cheap tagline. It gives the ignorant something to parrot.Not to interrupt the very cool bank discussion. But I'd like to pose a question,
Since SVB was termed "the democrat's ATM", and FTX donated millions to democrats, does politics enter into the bank failure discussion?
If one of the failed banks was from TX, or FL, or KS I'd say politics doesn't matter.
Does politics matter? Is that why SVB got backstopped instead of let go bankrupt?
That's too simplified. Savings increased by a much larger percentage than the percentage of disposable income increased by the fed stimulus. It's not even close, really. Much more significant was the decrease.in household spending.As of mid-2022, US banks had $10.5 trillion in uninsured deposits, and only $7.4 trillion insured.
Note the big jump at the onset of the pandemic. That's your Fed stimulus at work, and various US government stimulus programs.
Uninsured deposits are those which exceed $250,000. It is not the common man's money. It is the 1 percent's money.That's too simplified. Savings increased by a much larger percentage than the percentage of disposable income increased by the fed stimulus. It's not even close, really. Much more significant was the decrease.in household spending.
1. Were the Board members of SVB experienced knowledgeable bankers or democrat hacks? Hint: hacks"The Democrats ATM." That expression is for the consumption of the uninformed who have the intellectual bandwidth of a bumper sticker. It's a cheap tagline. It gives the ignorant something to parrot.
SVB's collapse had nothing to do with wokism, Democrats, the fleas on a whore's back, or the alcohol content of rum.
SVB collapsed because in 2020 they massively ramped up their interest rate risk. I looked at their financials, and they ramped up their bond holdings by 158 percent in 2020. In 2020, the interest rate on bonds hit bottom. When the Fed began raising interest rates a year ago, all those bonds SVB bought in 2020 became virtually worthless.
SVB's deposits were mostly VC money deposited by the recipients of that money. Basically, some wannabe inventor in Silicon Valley sold a pitch to venture capitalists, and those venture capitalists gave them a buttload of money to develop those ideas. That money was then deposited in SVB.
I don't know exactly what triggered a bank run at SVB. I think in the beginning it was just depositors realizing they could get better interest rates on their deposits at another bank since interest rates are higher. SVB could not raise the interest rate they paid to their depositors because they had sunk their depositor money into bonds that are now virtually worthless. You can't pay your depositors a higher rate than what you are getting on their money you invested. Then all it would take is for word of mouth to spread that something is wrong at SVB and you get a bank run.
www.treasurydirect.gov
"The Democrats ATM." That expression is for the consumption of the uninformed who have the intellectual bandwidth of a bumper sticker. It's a cheap tagline. It gives the ignorant something to parrot.
SVB's collapse had nothing to do with wokism, Democrats, the fleas on a whore's back, or the alcohol content of rum.
SVB collapsed because in 2020 they massively ramped up their interest rate risk. I looked at their financials, and they ramped up their bond holdings by 158 percent in 2020. In 2020, the interest rate on bonds hit bottom. When the Fed began raising interest rates a year ago, all those bonds SVB bought in 2020 became virtually worthless.
SVB's deposits were mostly VC money deposited by the recipients of that money. Basically, some wannabe inventor in Silicon Valley sold a pitch to venture capitalists, and those venture capitalists gave them a buttload of money to develop those ideas. That money was then deposited in SVB.
I don't know exactly what triggered a bank run at SVB. I think in the beginning it was just depositors realizing they could get better interest rates on their deposits at another bank since interest rates are higher. SVB could not raise the interest rate they paid to their depositors because they had sunk their depositor money into bonds that are now virtually worthless. You can't pay your depositors a higher rate than what you are getting on their money you invested.
Then all it would take is for word of mouth to spread that something is wrong at SVB and you get a bank run.
Name them.1. Were the Board members of SVB experienced knowledgeable bankers or democrat hacks? Hint: hacks
Were the Board members of SVB experienced knowledgeable bankers or democrat hacks? …
So what did other banks do that SVB didn't do? …
Federal Reserve raises benchmark rate by 0.25 point despite bank turmoil
God knows how many more billions of dollars of bonds just sank beneath the waves.
The Fed was looking at 50 basis points, but I guess the banking crisis gave them some second thoughts.
I would love to know: If the GOP can fix all that, why is it going out of its way to annoy American voters as much as possible by electing ignorant, embarrassing clowns who spend virtually all their time acting like juvenile middle school playground bullies?Federal Reserve Raises Interest Rates By 25 Basis Points
Well at least fuel is cheap….OH WAIT!
At least food is cheap….OH WAIT!
At least home values are stable….OH WAIT!
At least the stock market isn’t volatile.…OH WAIT!
At least our border is closed to thirdworld cockroaches…OH WAIT!
At least we aren’t engaged in war with a world super power….OH WAIT!
At least we aren’t forcing two super powers to gang up on us.…OH WAIT!
At least the future looks bright under Democrat rule….OH WAIT!
Well….at least the feelings of weirdos, faggots, rug munchers, chicks with dicks, feminazis, criminals, illegals and taxpayer dependent bottom feeders aren’t hurt.
Mac1958 Golfing Gator dblack pknopp
The SVB Board link won't load, but here is a link to backup my assertionName them.
Particularly, name the CEO, COO, and CFO.
Then show me they were inexperienced Democrat hacks. You are buying into the bogus bumper sticker tagline.
nypost.com
www.motherjones.com
Right, so it wasn't the meager stimulus making much of a dent in that.Uninsured deposits are those which exceed $250,000. It is not the common man's money. It is the 1 percent's money.
Strictly true.When the Fed began raising interest rates a year ago, all those bonds SVB bought in 2020 became virtually worthless.
They dropped in value. They're hardly worthless.
The NY Post is a shit MAGA rag. They claim there was only one "real banker on board".The SVB Board link won't load, but here is a link to backup my assertion
Obama official, Hillary donors, improv actor: Meet SVB’s board of directors
Among the 12 directors who were supposed to oversee fallen Silicon Valley Bank — and prevent the catastrophic errors on Friday threw the entire banking system into jeopardy — there’s only one…
www.svb.com
What you post says that the Board was competent, and we know that they were NOT, otherwise they wouldn't have failed.The NY Post is a shit MAGA rag. They claim there was only one "real banker on board".
Complete and total horseshit. They fed you a shovelful of manufactured bullshit and you gobbled it right down.
The CEO of SVB was Gregory Becker.
Here is his wiki page: Gregory W. Becker - Wikipedia
As you can see, he is an experienced banker. Not a hack.
The COO of SVB was Phil Cox.
Here is his c.v.: Phil Cox - Chief Operations Officer
Again, very very experienced banker. Not a hack.
The CFO of SVB was Daniel Beck.
His background can be found here along with the President Michael Descheneaux:
Beck joins SVB Financial Group from Bancwest Corp. where he was CFO and Treasurer and a member of the executive management committee. Previously, he was CFO of Bank of the West and the bank’s controller. In his former positions, Beck was responsible for leadership of the finance function, along with large scale transformation programs. He managed the relationships and communication with the parent company, regulators, rating agencies and management and he also played a lead role in the company’s successful submission of its first Comprehensive Capital Analysis and Review (CCAR) stress test. Prior to joining Bancwest, Beck held financial positions at Wells Fargo and Freddie Mac and worked at Deloitte & Touche and E*Trade Financial Corporation earlier in his career. Beck earned a bachelor’s degree in accounting from Virginia Commonwealth University and a bachelor’s degree in biology from Virginia Polytechnic Institute and State University.
All of them were experienced bankers. Not hacks.
Stop buying into the bumper sticker bullshit you are being fed. Why do you fools keep doing that?
The Federal Reserve has determined there are about $620 billion of unrealized losses in the US banking system.
And that is just here in the US. If you've been watching the news, Credit Suisse is being bailed out and Deutsche Bank is starting to look shaky.
The Fed has already printed $540 billion in the past couple of weeks to rescue just a few banks. SVB was only $17 billion of that, but guess what MAGA world has all the rubes focused on. They are forging a bullshit narrative which relies on the ignorance of their audience.
I think we might see some more mid-size or small banks implode in the near future.
