Anonymous
03/11/2023 08:22
Subject: SVB Bank Run: Fed Calling Emergency Meeting
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
To be fair, the bank ignored some very basic fundamentals of risk mgmt. It got $90B in deposits over 18 months….you don’t buy long dated MBS and USTs to offset those. They should’ve been investing in cash, 3 & 6 month TBills and terming those out. They also did not hedge their massive interest rate risk.
All of this was just plain stupid and greedy.
Anonymous
03/11/2023 08:21
Subject: SVB Bank Run: Fed Calling Emergency Meeting
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.
Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.
Ignore fat cat banker issues.
Anonymous
03/11/2023 08:16
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
Good let this bank go under. If billionaires want to bail it out let them.
Anonymous
03/11/2023 08:12
Subject: SVB Bank Run: Fed Calling Emergency Meeting
The economy is going gangbusters and the Fed can’t fix it.
Anonymous
03/11/2023 08:10
Subject: SVB Bank Run: Fed Calling Emergency Meeting
I’m tired of banks and their crappy lending. Part of the reason is customers are moving their money into money market accounts. Interest rates go up and bank customers are getting 1% at most on savings. WTF?
Anonymous
03/11/2023 07:55
Subject: SVB Bank Run: Fed Calling Emergency Meeting
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
Anonymous
03/11/2023 07:14
Subject: SVB Bank Run: Fed Calling Emergency Meeting
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.
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.
Anonymous
03/11/2023 07:13
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:Anonymous wrote:I've seen several people whose credentials seem like they might be in a position to know what's going on with the banking system calling for a 50 bp emergency rate CUT and discount window opening first thing Monday.
Really? How would a rate cut address any of this? I could see them providing emergency supports to other banks to make sure they don't go under.
Chris Whalen describes it here in this podcast:
https://podcasts.apple.com/us/podcast/forward-guidance/id1592743188?i=1000603649088
Essentially, a rate cut + discount window resets expectations and settles down the jitters. This panic only gets worse if people make withdrawals. They need to halt withdrawals
Anonymous
03/11/2023 07:03
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:I've seen several people whose credentials seem like they might be in a position to know what's going on with the banking system calling for a 50 bp emergency rate CUT and discount window opening first thing Monday.
Really? How would a rate cut address any of this? I could see them providing emergency supports to other banks to make sure they don't go under.
Anonymous
03/11/2023 06:43
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Tech bros are right with the administration they are gettin their money paid this is no story at all.
Anonymous
03/11/2023 05:19
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Freaking Bay Area banks. Worked in banking in 2008 and west coast banks and their portfolio sub prime lending started the whole shebang.
Anonymous
03/11/2023 05:17
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:This is going to be another 2008 all over again.
I’ve thought all along 9/11 took about 6 years to tank the economy, and Covid will too. I just think there’s a delayed reaction but this is the first sign. You can’t shut down the entire US economy, there will be consequences.
Anonymous
03/11/2023 03:55
Subject: SVB Bank Run: Fed Calling Emergency Meeting
I've seen several people whose credentials seem like they might be in a position to know what's going on with the banking system calling for a 50 bp emergency rate CUT and discount window opening first thing Monday.
Anonymous
03/11/2023 01:20
Subject: SVB Bank Run: Fed Calling Emergency Meeting
This is going to be another 2008 all over again.
Anonymous
03/10/2023 23:29
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Looks like Fed is calling a meeting on Monday to "review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks." uh oh...
https://www.federalreserve.gov/aboutthefed/boardmeetings/20230313closed.htm
https://www.federalreserve.gov/aboutthefed/boardmeetings/20230313closed.htm