SVB Bank Run: Fed Calling Emergency Meeting

[Anonymous]

Anonymous wrote:

Yellen has said no bailouts. Tomorrow should be fun.

A bailout is different than making sure depositors are made whole. They're arranging for another bank to take it over - final bids to the FDIC are due this afternoon.

https://www.bloomberg.com/news/articles/2023-03-12/fdic-auction-for-svb-said-to-be-underway-final-bids-due-sunday

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does one mismanaged bank cause confidence in the entire banking system to collapse?

Because it's the psychology of being a small business owner seeing the headlines that you could instantly lose all money for your business over $250k in bank. You could wake up the next day and have $0 to pay your employees, buy supplies, and pay your rent. It only takes one domino to fall to start the panic. Then another bank fails, and then another. Soon we have a full on nation wide bank run that sends us back to 40% unemployment like the Great Depression. Does fear and greed ever make rational sense? It doesn't have to, but it can happen when people start to panic.

Did the small business owners think that FDIC insurance was just pretend?

Why should these people get a bail out over any other group of people who have last money for some other reason.

It's amazing to me that some of the most vocal people i have seen out there loudly demanding handouts are people who I have also seen being completely hostile towards other forms of government assistance. I guess it's different when the money goes to them.

Are you stupid? What if you have $10M to run a small business? Where are you going to put the cash? Under your mattress? Into 40 bank accounts? What if you have $20M to run your small company? 80 bank accounts?

The people being harmed are depositors, nitwit. They're not some kind of scheming wall street banker. They are businesses that have to pay employees their salaries, health care
, etc.

If you want to collapse the economy and send unemployment up to 40%, this is a great way to do it.

Maybe we need a collapse. Some people are stupid and stubborn and want to keep printing and spending. Many right on this forum. Well F them.

On the positive side, I see a lot of entertainment in my future from idiotic terms like "risk corridors" from progressive Washington DC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does one mismanaged bank cause confidence in the entire banking system to collapse?

The gov is guilty of mismanagement too.

www.usdebtclock.org

Government debt is an entirely different beast than commercial bank or company debt. Come on now, you can’t be that ignorant.

World is losing confidence, buddy. National debt is around 95K for every person in the country. You seem unphased. You deserve what's coming.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Yellen has said no bailouts. Tomorrow should be fun.

A bailout is different than making sure depositors are made whole. They're arranging for another bank to take it over - final bids to the FDIC are due this afternoon.

https://www.bloomberg.com/news/articles/2023-03-12/fdic-auction-for-svb-said-to-be-underway-final-bids-due-sunday

Extending the three card monty. Good.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does one mismanaged bank cause confidence in the entire banking system to collapse?

Because it's the psychology of being a small business owner seeing the headlines that you could instantly lose all money for your business over $250k in bank. You could wake up the next day and have $0 to pay your employees, buy supplies, and pay your rent. It only takes one domino to fall to start the panic. Then another bank fails, and then another. Soon we have a full on nation wide bank run that sends us back to 40% unemployment like the Great Depression. Does fear and greed ever make rational sense? It doesn't have to, but it can happen when people start to panic.

You are a small business owner in CA? I’m a small business owner (maybe more midsize now)in MD but I don’t fear a collapse. If you are that concerned, diversify your bank accounts.

You, personally may not fear a collapse, but Sandy Spring bank in Maryland has now been flagged as having a similar risk as SVB, if you didn't know. How many local businesses have their money in Sandy Springs? It's not easy to diversify your bank accounts when you have several million dollars or more for your company and you don't have an army of accountants at your small company to keep track of all of the finances. It also makes financial reporting exponentially harder. Also, it's not just business owners in CA harmed by the failure of SVB. Many companies across the country had used SVB for starting their companies. Small time biotechs, for example, used SVB a ton for financing and banking. They're all over from Boston, to Research Triangle, to even this area.

[Anonymous]

Anonymous wrote:

Yellen has said no bailouts. Tomorrow should be fun.

She also said the American banking system is really safe.

This would all be more comforting is she didn't have a horrible track record of dismissing and downplaying economic problems.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Yellen has said no bailouts. Tomorrow should be fun.

A bailout is different than making sure depositors are made whole. They're arranging for another bank to take it over - final bids to the FDIC are due this afternoon.

https://www.bloomberg.com/news/articles/2023-03-12/fdic-auction-for-svb-said-to-be-underway-final-bids-due-sunday

+1

I’m glad Yellen and not DCUM posters are in charge. I’m confident that Treasury and the FDIC will contain this responsibly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Yellen has said no bailouts. Tomorrow should be fun.

A bailout is different than making sure depositors are made whole. They're arranging for another bank to take it over - final bids to the FDIC are due this afternoon.

https://www.bloomberg.com/news/articles/2023-03-12/fdic-auction-for-svb-said-to-be-underway-final-bids-due-sunday

Can't read - paywall. Are they selling the assets to pay the depositors? Or are they selling the bank, including its risk, and potentially creating another bank at risk of a run/collapse? And what dumb bank would buy that?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So there are all of these libertarians etc calling on the Fed/FDIC to basically take over and secure the bank.

Keep in mind, this i only happening because Trump totally gutted regulations that would have prevented this from happening. So we are going to get a massive bailout for Silicon Valley Bank and yet people complain about a few thousand dollars in bailouts for student loans.

For one, the FDIC already took over the bank around 24 hours ago

Two, this is not caused by Trump gutting regulations. The cause was interest rate risk- recall people deposit money at banks and they turn around and lend money, in this case in the form of MBS and treasuries. The fed kept interest rates too low for too long and then they hiked rates precipitously, which caused huge losses for the bank on those securities that were purchased when interest rates were much lower

Disagree. Trump gutted Dodd-Frank that would have protected against this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does one mismanaged bank cause confidence in the entire banking system to collapse?

Because it's the psychology of being a small business owner seeing the headlines that you could instantly lose all money for your business over $250k in bank. You could wake up the next day and have $0 to pay your employees, buy supplies, and pay your rent. It only takes one domino to fall to start the panic. Then another bank fails, and then another. Soon we have a full on nation wide bank run that sends us back to 40% unemployment like the Great Depression. Does fear and greed ever make rational sense? It doesn't have to, but it can happen when people start to panic.

You are a small business owner in CA? I’m a small business owner (maybe more midsize now)in MD but I don’t fear a collapse. If you are that concerned, diversify your bank accounts.

You, personally may not fear a collapse, but Sandy Spring bank in Maryland has now been flagged as having a similar risk as SVB, if you didn't know. How many local businesses have their money in Sandy Springs? It's not easy to diversify your bank accounts when you have several million dollars or more for your company and you don't have an army of accountants at your small company to keep track of all of the finances. It also makes financial reporting exponentially harder. Also, it's not just business owners in CA harmed by the failure of SVB. Many companies across the country had used SVB for starting their companies. Small time biotechs, for example, used SVB a ton for financing and banking. They're all over from Boston, to Research Triangle, to even this area.

Do you know what a "bail in" for a bank is?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does one mismanaged bank cause confidence in the entire banking system to collapse?

Because it's the psychology of being a small business owner seeing the headlines that you could instantly lose all money for your business over $250k in bank. You could wake up the next day and have $0 to pay your employees, buy supplies, and pay your rent. It only takes one domino to fall to start the panic. Then another bank fails, and then another. Soon we have a full on nation wide bank run that sends us back to 40% unemployment like the Great Depression. Does fear and greed ever make rational sense? It doesn't have to, but it can happen when people start to panic.

Did the small business owners think that FDIC insurance was just pretend?

Why should these people get a bail out over any other group of people who have last money for some other reason.

It's amazing to me that some of the most vocal people i have seen out there loudly demanding handouts are people who I have also seen being completely hostile towards other forms of government assistance. I guess it's different when the money goes to them.

Are you stupid? What if you have $10M to run a small business? Where are you going to put the cash? Under your mattress? Into 40 bank accounts? What if you have $20M to run your small company? 80 bank accounts?

The people being harmed are depositors, nitwit. They're not some kind of scheming wall street banker. They are businesses that have to pay employees their salaries, health care
, etc.

If you want to collapse the economy and send unemployment up to 40%, this is a great way to do it.

Then why didn't they obtain insurance for deposits over $250k?

People who were fully aware that the FDIC limit was $250k shouldn't suddenly be acting surprised that the payout will be $250k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Yellen has said no bailouts. Tomorrow should be fun.

A bailout is different than making sure depositors are made whole. They're arranging for another bank to take it over - final bids to the FDIC are due this afternoon.

https://www.bloomberg.com/news/articles/2023-03-12/fdic-auction-for-svb-said-to-be-underway-final-bids-due-sunday

+1

I’m glad Yellen and not DCUM posters are in charge. I’m confident that Treasury and the FDIC will contain this responsibly.

Hellen helicopter money and nationalized banking so we can redistribute wealth equitably? Yeah, she doesn't fill me with confidence.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does one mismanaged bank cause confidence in the entire banking system to collapse?

Because it's the psychology of being a small business owner seeing the headlines that you could instantly lose all money for your business over $250k in bank. You could wake up the next day and have $0 to pay your employees, buy supplies, and pay your rent. It only takes one domino to fall to start the panic. Then another bank fails, and then another. Soon we have a full on nation wide bank run that sends us back to 40% unemployment like the Great Depression. Does fear and greed ever make rational sense? It doesn't have to, but it can happen when people start to panic.

Did the small business owners think that FDIC insurance was just pretend?

Why should these people get a bail out over any other group of people who have last money for some other reason.

It's amazing to me that some of the most vocal people i have seen out there loudly demanding handouts are people who I have also seen being completely hostile towards other forms of government assistance. I guess it's different when the money goes to them.

Are you stupid? What if you have $10M to run a small business? Where are you going to put the cash? Under your mattress? Into 40 bank accounts? What if you have $20M to run your small company? 80 bank accounts?

The people being harmed are depositors, nitwit. They're not some kind of scheming wall street banker. They are businesses that have to pay employees their salaries, health care
, etc.

If you want to collapse the economy and send unemployment up to 40%, this is a great way to do it.

Then why didn't they obtain insurance for deposits over $250k?

People who were fully aware that the FDIC limit was $250k shouldn't suddenly be acting surprised that the payout will be $250k.

Because it's too big to fail. Until it isn't.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does one mismanaged bank cause confidence in the entire banking system to collapse?

Because it's the psychology of being a small business owner seeing the headlines that you could instantly lose all money for your business over $250k in bank. You could wake up the next day and have $0 to pay your employees, buy supplies, and pay your rent. It only takes one domino to fall to start the panic. Then another bank fails, and then another. Soon we have a full on nation wide bank run that sends us back to 40% unemployment like the Great Depression. Does fear and greed ever make rational sense? It doesn't have to, but it can happen when people start to panic.

Did the small business owners think that FDIC insurance was just pretend?

Why should these people get a bail out over any other group of people who have last money for some other reason.

It's amazing to me that some of the most vocal people i have seen out there loudly demanding handouts are people who I have also seen being completely hostile towards other forms of government assistance. I guess it's different when the money goes to them.

Are you stupid? What if you have $10M to run a small business? Where are you going to put the cash? Under your mattress? Into 40 bank accounts? What if you have $20M to run your small company? 80 bank accounts?

The people being harmed are depositors, nitwit. They're not some kind of scheming wall street banker. They are businesses that have to pay employees their salaries, health care
, etc.

If you want to collapse the economy and send unemployment up to 40%, this is a great way to do it.

Then why didn't they obtain insurance for deposits over $250k?

People who were fully aware that the FDIC limit was $250k shouldn't suddenly be acting surprised that the payout will be $250k.

Right, because your average small business owner running a landscaping business has the financial knowledge to understand the systemic risks of rising interest rates on banks' holdings of bonds that could make them collapse. You seriously overestimate how much thinking business owners use when they use banking. People out their money into a bank and expect it to be there and for the system to be stable. They don't give a single crap about the gritty details of banking regulations, reserve requirements, etc. Once common people see banks starting to fail, they're going to panic and pull their money out.

[Anonymous]

Must be worse than many think for a Sunday announcement.