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Has Achieved Nirvana |
The big picture: https://www.cbsnews.com/news/s...dwide-repercussions/ Monday could be interesting, depending upon what happens tomorrow... jon, quirt...you guys are probably following this more closely...how bad could it get?
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Has Achieved Nirvana |
I don’t know about contagion or anything like that. I’m more concerned about whether clients have exposure. It was something like the 14th largest bank in the country … odds are that some law firms are gong to have clients affected. (I imagine that the Silicon Valley law firms that do a lot of venture capital and start-up work are not having a fun weekend, but that’s just speculation.) | |||
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| Has Achieved Nirvana |
This is what Kroll's chief economist is saying: "It has been a long time since we’ve had to face a bank run, but in many ways Silicon Valley Bank (SVB) was a special case. SVB’s client base and funding structure both suggest that it is unlikely to trigger a systemic crisis. There may be some contagion to other small, community banks in the U.S.—particularly if depositors aren’t all made whole--but the larger banks are unlikely to follow in SVB’s footsteps. SVB is yet another example that we can expect market disruptions as central banks raise rates and shrink their balance sheets." | |||
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| Has Achieved Nirvana |
In the UK:
https://www.bbc.com/news/business-64930944
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| Has Achieved Nirvana |
News from the government. https://www.federalreserve.gov...onetary20230312b.htm CNN explains. https://www.cnn.com/2023/03/12...r-bailout/index.html
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| Has Achieved Nirvana |
https://www.federalreserve.gov...onetary20230312a.htm | |||
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| Has Achieved Nirvana |
Bank stocks, not surprisingly, are taking a huge hit this morning....
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Has Achieved Nirvana |
Why, I wonder. Seems like everyone made money in the end.
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| Has Achieved Nirvana |
I thought the stockholders of SVB and Signature all got wiped out...
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| Has Achieved Nirvana |
Seems to me these guys should have known better. .
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Minor Deity |
A few excerpts of posts from a financial forum. Seems there are quite a number of banks teetering on the edge of imploding like Silicon Valley and Signature. Wonder if we've been on the brink of a bank bubble for a good while without realizing it (and since so much in bank runs is psychological, what would it take for this nascent one to take off?) Dominos! Reminds me of 2008 as risky borrowing set that one off. Seems greed (risky greed) overtaken rapidly by fear was the fuse then. Look how close we are to so many brinks right now! Just how many banks is Yellen keeping a close eye on? And how many SHOULD she be watching? (What good is such scrutiny after the fact, anyhow?) Do NOT get why all these big (supposedly) savvy firms dare to place their assets way over the FDIC insurance limit. So many financiers seem to be skating on very thin ice (and who pays the price when they turn out to have been too daring? Somehow not them, but the people who depended on their derring-do to manage their pension funds and so on.)
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Minor Deity |
https://rooseveltinstitute.org...ow-to-change-course/ The author argues that “2018’s Regulatory Rollback Made the SVB Catastrophe More Likely” and “S.2155 Allowed Regulators to Miss SVB’s Warning Signs.” Prior to the 2018 regulatory rollback, Dodd-Frank required sharp regulatory monitoring ad “stress testing” of liquidities for banks with assets over $50 Billion — this would have included SVB. But the 2018 regulatory rollback raised that threshold to $250 Billion, that higher threshold allowed SVB (and many other regional banks) to operate under weakened regulatory oversight and a bunch of less stringent rules (examples cited in the article). The argument goes that SVB might not have gotten to where it was had all the original Dodd-Frank rules were left in place.
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| Has Achieved Nirvana |
UBS buying Credit Suisse. https://www.cnn.com/2023/03/19...bs-rescue/index.html
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| Has Achieved Nirvana |
Inside SVB, an interview with an employee. https://www.businessinsider.co...lure-fdic-fed-2023-3
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well-temperedforum.groupee.net The Well-Tempered Forum Off Key Anybody following the Silicon Valley Bank situation?