SVB failure

[Anonymous]

Anonymous wrote:

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Anonymous wrote:Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

British authorities said to be in talks with a Middle Eastern investor to buy SVB UK.

This reminds me of frantic last minute talks to sell Lehman Brothers to other countries.. I am no expert in this matter but today seems too quiet. Are the public too naive (or uninformed) to know what’s ahead of us again this time around?

Actually plenty is happening behind closed doors. FDIC is taking bids from potential acquirers and the hope is for an announcement this evening.

Let’s assume that SVB can find a buyer. What if another bank falls? Are the problems that SVB had just limited to SVB or other small size banks have similar problems? I wonder if there are widespread systemic problems vs isolated case of SVB. I am asking this as a non-expert person who gets information from TV and newspapers

The fact of the matter is that the FDIC needs to line up a buyer AND the Fed needs to throw a lifeline to the rest of the banking sector to contain the panic and prevent a mass run. Tomorrow is literally the day that decides everything. If it works, then by Wednesday everything will be normal and we will be chuckling about the freak-out.

What would happen if it doesn’t work? Didn’t Yellen say that the government will not bail out Silicon Valley bank? I am not confident the government will provide the lifeline to the rest of banks. I am worried about regular people and how this will affect people who barely make a living, live paycheck to paycheck

I’m very worried about all the other small banks that will collapse if small businesses decide their payroll accounts aren’t safe.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

British authorities said to be in talks with a Middle Eastern investor to buy SVB UK.

This reminds me of frantic last minute talks to sell Lehman Brothers to other countries.. I am no expert in this matter but today seems too quiet. Are the public too naive (or uninformed) to know what’s ahead of us again this time around?

Actually plenty is happening behind closed doors. FDIC is taking bids from potential acquirers and the hope is for an announcement this evening.

Let’s assume that SVB can find a buyer. What if another bank falls? Are the problems that SVB had just limited to SVB or other small size banks have similar problems? I wonder if there are widespread systemic problems vs isolated case of SVB. I am asking this as a non-expert person who gets information from TV and newspapers

The fact of the matter is that the FDIC needs to line up a buyer AND the Fed needs to throw a lifeline to the rest of the banking sector to contain the panic and prevent a mass run. Tomorrow is literally the day that decides everything. If it works, then by Wednesday everything will be normal and we will be chuckling about the freak-out.

What would happen if it doesn’t work? Didn’t Yellen say that the government will not bail out Silicon Valley bank? I am not confident the government will provide the lifeline to the rest of banks. I am worried about regular people and how this will affect people who barely make a living, live paycheck to paycheck

Opening the discount window is not a bailout. It’s just maturity transformation and the Fed has the balance sheet capacity & long term incentives to HTM and return some nice profits to the American taxpayer.

I am a physician who doesn’t know much about how our economy works. Is opening the discount window just symptom control or actual cure of the disease like resection of early state cancer?
Didn’t people in government and finance learn any lessons from 2008 financial crisis? Big sigh..

[Anonymous]

how many bank account should we have? should we ever have more than 250k in a single accouhnt?

[Anonymous]

Anonymous wrote:how many bank account should we have? should we ever have more than 250k in a single accouhnt?

No

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

British authorities said to be in talks with a Middle Eastern investor to buy SVB UK.

This reminds me of frantic last minute talks to sell Lehman Brothers to other countries.. I am no expert in this matter but today seems too quiet. Are the public too naive (or uninformed) to know what’s ahead of us again this time around?

Actually plenty is happening behind closed doors. FDIC is taking bids from potential acquirers and the hope is for an announcement this evening.

Let’s assume that SVB can find a buyer. What if another bank falls? Are the problems that SVB had just limited to SVB or other small size banks have similar problems? I wonder if there are widespread systemic problems vs isolated case of SVB. I am asking this as a non-expert person who gets information from TV and newspapers

The fact of the matter is that the FDIC needs to line up a buyer AND the Fed needs to throw a lifeline to the rest of the banking sector to contain the panic and prevent a mass run. Tomorrow is literally the day that decides everything. If it works, then by Wednesday everything will be normal and we will be chuckling about the freak-out.

What would happen if it doesn’t work? Didn’t Yellen say that the government will not bail out Silicon Valley bank? I am not confident the government will provide the lifeline to the rest of banks. I am worried about regular people and how this will affect people who barely make a living, live paycheck to paycheck

Opening the discount window is not a bailout. It’s just maturity transformation and the Fed has the balance sheet capacity & long term incentives to HTM and return some nice profits to the American taxpayer.

I am a physician who doesn’t know much about how our economy works. Is opening the discount window just symptom control or actual cure of the disease like resection of early state cancer?
Didn’t people in government and finance learn any lessons from 2008 financial crisis? Big sigh..

Think of it more like someone showing up in the ER. They have cellulitis with red streaks going up their leg and a fever of over 104. You immediately give them heavy duty IV antibiotics to prevent the patient from going completely septic. Usually, this will stop the spread but sometimes it's too late.

[Anonymous]

For the nerds out there- I found this Twitter Spaces discussion going on now

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

British authorities said to be in talks with a Middle Eastern investor to buy SVB UK.

This reminds me of frantic last minute talks to sell Lehman Brothers to other countries.. I am no expert in this matter but today seems too quiet. Are the public too naive (or uninformed) to know what’s ahead of us again this time around?

Actually plenty is happening behind closed doors. FDIC is taking bids from potential acquirers and the hope is for an announcement this evening.

Let’s assume that SVB can find a buyer. What if another bank falls? Are the problems that SVB had just limited to SVB or other small size banks have similar problems? I wonder if there are widespread systemic problems vs isolated case of SVB. I am asking this as a non-expert person who gets information from TV and newspapers

The fact of the matter is that the FDIC needs to line up a buyer AND the Fed needs to throw a lifeline to the rest of the banking sector to contain the panic and prevent a mass run. Tomorrow is literally the day that decides everything. If it works, then by Wednesday everything will be normal and we will be chuckling about the freak-out.

What would happen if it doesn’t work? Didn’t Yellen say that the government will not bail out Silicon Valley bank? I am not confident the government will provide the lifeline to the rest of banks. I am worried about regular people and how this will affect people who barely make a living, live paycheck to paycheck

Opening the discount window is not a bailout. It’s just maturity transformation and the Fed has the balance sheet capacity & long term incentives to HTM and return some nice profits to the American taxpayer.

I am a physician who doesn’t know much about how our economy works. Is opening the discount window just symptom control or actual cure of the disease like resection of early state cancer?
Didn’t people in government and finance learn any lessons from 2008 financial crisis? Big sigh..

We have a completely different banking system with far more capital than 2008. Plenty of lessons were learned and it should be clear to anyone even casually watching that this isn't an inadequate capital / bad asset crisis but a liquidity issue. Also, the discount window is always open.

[Anonymous]

Anonymous wrote:For the nerds out there- I found this Twitter Spaces discussion going on now

Massie isn't on a banking committee, so I don't see the value of any insight he could offer.

[Anonymous]

Anonymous wrote:how many bank account should we have? should we ever have more than 250k in a single accouhnt?

If it's a joint account it's insured for $500k ($250k/owner)

[Anonymous]

Anonymous wrote:back to 2-3% mortgages

doubtful

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

British authorities said to be in talks with a Middle Eastern investor to buy SVB UK.

This reminds me of frantic last minute talks to sell Lehman Brothers to other countries.. I am no expert in this matter but today seems too quiet. Are the public too naive (or uninformed) to know what’s ahead of us again this time around?

Actually plenty is happening behind closed doors. FDIC is taking bids from potential acquirers and the hope is for an announcement this evening.

Let’s assume that SVB can find a buyer. What if another bank falls? Are the problems that SVB had just limited to SVB or other small size banks have similar problems? I wonder if there are widespread systemic problems vs isolated case of SVB. I am asking this as a non-expert person who gets information from TV and newspapers

The fact of the matter is that the FDIC needs to line up a buyer AND the Fed needs to throw a lifeline to the rest of the banking sector to contain the panic and prevent a mass run. Tomorrow is literally the day that decides everything. If it works, then by Wednesday everything will be normal and we will be chuckling about the freak-out.

What would happen if it doesn’t work? Didn’t Yellen say that the government will not bail out Silicon Valley bank? I am not confident the government will provide the lifeline to the rest of banks. I am worried about regular people and how this will affect people who barely make a living, live paycheck to paycheck

Opening the discount window is not a bailout. It’s just maturity transformation and the Fed has the balance sheet capacity & long term incentives to HTM and return some nice profits to the American taxpayer.

I am a physician who doesn’t know much about how our economy works. Is opening the discount window just symptom control or actual cure of the disease like resection of early state cancer?
Didn’t people in government and finance learn any lessons from 2008 financial crisis? Big sigh..

We have a completely different banking system with far more capital than 2008. Plenty of lessons were learned and it should be clear to anyone even casually watching that this isn't an inadequate capital / bad asset crisis but a liquidity issue. Also, the discount window is always open.

They can make changes to the discount window ahead of tomorrow’s opening to better incentivize use. My guess is they allow more depositories qualify for the primary window rate and even lower the discount window rates. Maybe even modify the discount window to swap USTs for TBills

[Anonymous]

We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

[Anonymous]

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

[Anonymous]

Anonymous wrote:It is very, very clear who most of the entitled but utterly clueless posters here arguing against depositor protection but who want student loan bailouts are.

yeah you finance bros are so smart. tell me again how smart you are.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

British authorities said to be in talks with a Middle Eastern investor to buy SVB UK.

This reminds me of frantic last minute talks to sell Lehman Brothers to other countries.. I am no expert in this matter but today seems too quiet. Are the public too naive (or uninformed) to know what’s ahead of us again this time around?

Actually plenty is happening behind closed doors. FDIC is taking bids from potential acquirers and the hope is for an announcement this evening.

Let’s assume that SVB can find a buyer. What if another bank falls? Are the problems that SVB had just limited to SVB or other small size banks have similar problems? I wonder if there are widespread systemic problems vs isolated case of SVB. I am asking this as a non-expert person who gets information from TV and newspapers

The fact of the matter is that the FDIC needs to line up a buyer AND the Fed needs to throw a lifeline to the rest of the banking sector to contain the panic and prevent a mass run. Tomorrow is literally the day that decides everything. If it works, then by Wednesday everything will be normal and we will be chuckling about the freak-out.

What would happen if it doesn’t work? Didn’t Yellen say that the government will not bail out Silicon Valley bank? I am not confident the government will provide the lifeline to the rest of banks. I am worried about regular people and how this will affect people who barely make a living, live paycheck to paycheck

Opening the discount window is not a bailout. It’s just maturity transformation and the Fed has the balance sheet capacity & long term incentives to HTM and return some nice profits to the American taxpayer.

bS. If they deployed the market in current long dated treasuries and HTM they would make far more profit. This is socializing losses