SVB Bank Run: Fed Calling Emergency Meeting

[Anonymous]

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

[Anonymous]

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.

Do you see this poster? One of zillions who will attach their agenda to any crisis to get what they want.

This isn't about interest rates, Trump or robbing tax payers because you don't want to pay YOUR student debt.

BTW, PacWest Bancorp is having "issues" also. Monday could get sporty.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

Not sarcastic at all. Biden is building up from the bottom. The top will take care of itself. These rich vc’s should buy the bank.

[Anonymous]

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

SVB would have been subject to a Dodd-Frank requirement for a stress test that likely would have uncovered this risk, but Trump and GOP congress removed that requirement for banks of this size in 2018.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

Not sarcastic at all. Biden is building up from the bottom. The top will take care of itself. These rich vc’s should buy the bank.

Yeah, he's building from the bottom all right. Review how many companies had holdings with SVB and how those holdings were above 250K.

Roku, Hulu, Syros, Atara, Juniper, Roblox, RocketLab, Lending Club, etc.

That can affect payroll. But the "bottom" don't get payroll, huh? You wanna think how it'll affect employment numbers and tax receipts if a few more like Wells Fargo go under?

[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

SVB would have been subject to a Dodd-Frank requirement for a stress test that likely would have uncovered this risk, but Trump and GOP congress removed that requirement for banks of this size in 2018.

Uncover risk? How about we uncover that FDIC can only cover 3 to 4 percent of holdings if many banks go at once? Is Dodd-Frank going to fix FDIC?

[Anonymous]

Anonymous wrote:

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

SVB would have been subject to a Dodd-Frank requirement for a stress test that likely would have uncovered this risk, but Trump and GOP congress removed that requirement for banks of this size in 2018.

Uncover risk? How about we uncover that FDIC can only cover 3 to 4 percent of holdings if many banks go at once? Is Dodd-Frank going to fix FDIC?

What are you babbling about? The risk was that they were covering deposits with long dated bonds that were dropping in value, this is exactly the kind of scenario that stress tests are designed to discover.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

Not sarcastic at all. Biden is building up from the bottom. The top will take care of itself. These rich vc’s should buy the bank.

It is Biden's spending that got us where we are.

[Anonymous]

Anonymous wrote:

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

SVB would have been subject to a Dodd-Frank requirement for a stress test that likely would have uncovered this risk, but Trump and GOP congress removed that requirement for banks of this size in 2018.

Uncover risk? How about we uncover that FDIC can only cover 3 to 4 percent of holdings if many banks go at once? Is Dodd-Frank going to fix FDIC?

So you want to increase deposit insurance fees on banks? Go for it, I’ll support you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

SVB would have been subject to a Dodd-Frank requirement for a stress test that likely would have uncovered this risk, but Trump and GOP congress removed that requirement for banks of this size in 2018.

Uncover risk? How about we uncover that FDIC can only cover 3 to 4 percent of holdings if many banks go at once? Is Dodd-Frank going to fix FDIC?

So you want to increase deposit insurance fees on banks? Go for it, I’ll support you.

No, I want the reserve requirements to be much higher than a few percentage points.

IOW, rely less on bailouts and don't cause the problem in the first place.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

Not sarcastic at all. Biden is building up from the bottom. The top will take care of itself. These rich vc’s should buy the bank.

It is Biden's spending that got us where we are.

I’ve seen a bunch of dumb takes on this, but this wins the award for dumbest so far.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

SVB would have been subject to a Dodd-Frank requirement for a stress test that likely would have uncovered this risk, but Trump and GOP congress removed that requirement for banks of this size in 2018.

Uncover risk? How about we uncover that FDIC can only cover 3 to 4 percent of holdings if many banks go at once? Is Dodd-Frank going to fix FDIC?

So you want to increase deposit insurance fees on banks? Go for it, I’ll support you.

No, I want the reserve requirements to be much higher than a few percentage points.

IOW, rely less on bailouts and don't cause the problem in the first place.

Reserve requirements and the percentage of insured deposits are two entirely separate things.

[Anonymous]

Turns out that being a bank for tech startups and venture capitalists is not easy money. Business models for investing and losing money for several years for a possible big payoff down the road are fine when interest rates and inflation are low, not so much when they are high. As a poster above said, the bank made stupid long-term investments and the tech bro depositors panicked and started a run on the bank.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

Not sarcastic at all. Biden is building up from the bottom. The top will take care of itself. These rich vc’s should buy the bank.

Yeah, he's building from the bottom all right. Review how many companies had holdings with SVB and how those holdings were above 250K.

Roku, Hulu, Syros, Atara, Juniper, Roblox, RocketLab, Lending Club, etc.

That can affect payroll. But the "bottom" don't get payroll, huh? You wanna think how it'll affect employment numbers and tax receipts if a few more like Wells Fargo go under?

I string wire all day so yeah, I am concerned about these folks making payments on their teslas. I guess they don’t have payments- come to think of it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

Not sarcastic at all. Biden is building up from the bottom. The top will take care of itself. These rich vc’s should buy the bank.

It is Biden's spending that got us where we are.

I’ve seen a bunch of dumb takes on this, but this wins the award for dumbest so far.

DP. But PP is correct. Though I’d edit it to say trump and Biden spending is why we’re here.

Print trillions of dollars, causes inflation. So the fed had to pivot and raise interest rates to lower rates. SVB didn’t foresee interest rates hikes and it was too little, too late.