The Conservative Cave
Current Events => Breaking News => Topic started by: Ptarmigan on March 10, 2023, 08:42:47 PM
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Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis
https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html
Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago.
The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money.
According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.
Silicon Valley Bank is the largest bank failure since Washington Mutual in 2008.
BIGGEST BANK FAILURES SINCE 2001
BANK ASSETS DEPOSITS
WASHINGTON MUTUAL $307 billion $188 billion
SILICON VALLEY BANK $212 billion $173 billion
INDYMAC $32 billion $19 billion
COLONIAL BANK $25 billion $20 billion
GUARANTY BANK $13 billion $12 billion
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Here’s how the second-biggest bank collapse in U.S. history happened in just 48 hours
https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html
On Wednesday, Silicon Valley Bank
was a well-capitalized institution seeking to raise some funds.
Within 48 hours, a panic induced by the very venture capital community that SVB had served and nurtured ended the bank’s 40-year-run.
Regulators shuttered SVB Friday and seized its deposits in the largest U.S. banking failure since the 2008 financial crisis and the second-largest ever. The company’s downward spiral began late Wednesday, when it surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet. What followed was the rapid collapse of a highly-respected bank that had grown alongside its technology clients.
Even now, as the dust begins to settle on the second bank wind-down announced this week, members of the VC community are lamenting the role that other investors played in SVB’s demise.
How it happened.
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My very, very first thought about the SVB-failure was that it seems 'localized'.
But if anything sparks a villagers with torches reaction, it's a bank-run.
So the news is a bit unsettling for me and a lot of people heading into the weekend.
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My very, very first thought about the SVB-failure was that it seems 'localized'.
But if anything sparks a villagers with torches reaction, it's a bank-run.
So the news is a bit unsettling for me and a lot of people heading into the weekend.
It looks localized, but it is not. Many tech companies use Silicon Valley Bank to meet payroll.
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The Nikkei Index will open down 1.67% presently.
Musk is teasing that he may buy SVB.
I bet conversations about corporate-wokeness will be changing drastically from here on in.
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While Silicon Valley Bank collapsed, top executive pushed ‘woke’ programs
https://nypost.com/2023/03/11/silicon-valley-bank-pushed-woke-programs-ahead-of-collapse/
A head of risk management at Silicon Valley Bank spent considerable time spearheading multiple “woke” LGBTQ+ programs, including a “safe space” for coming out stories, as the firm catapulted toward collapse.
Jay Ersapah, the boss of Financial Risk Management at SVB’s UK branch, launched initiatives such as the company’s first month-long Pride campaign and a new blog emphasizing mental health awareness for LGBTQ+ youth.
“The phrase ‘you can’t be what you can’t see’ resonates with me,’” Ersapah was quoted as saying on the company website.
“As a queer person of color and a first-generation immigrant from a working-class background, there were not many role models for me to ‘see’ growing up.”
Not surprised.
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Liberals blame Trump for Silicon Valley Bank collapse citing 2018 bipartisan bill
https://www.foxbusiness.com/politics/liberals-blame-trump-silicon-valley-bank-collapse-citing-2018-bipartisan-bill
Shortly after the second-largest bank collapse in United States history, many liberals took to social media to place the blame on former President Donald Trump.
"By the way, Trump deregulated banks like Silicon Valley Bank, which failed Friday," Robert Reich, who served as labor secretary under former President Bill Clinton, posted on Twitter Friday after news that Silicon Valley Bank had been shut down by FDIC regulators in an effort to protect customers as the bank faced a liquidity crunch after losing $2 billion.
Reich was joined by other liberals on Twitter attempting to place the blame on Trump for signing a bipartisan bill in 2018 that rolled back elements of Dodd-Frank.
"It seems likely that this could have been avoided if it weren't for the roll-backs by the Trump administration," journalist Ed Krassenstein tweeted.
The Dodd-Frank rollback was passed by bipartisan Congress in 2018.
The Gramm–Leach–Bliley Act was signed by President Bill Clinton in 1999. It repealed Glass–Steagall law.
https://www.investopedia.com/terms/g/glba.asp
The Gramm–Leach–Bliley Act played a role in the 2008 Recession.
https://www.investopedia.com/ask/answers/050515/did-repeal-glasssteagall-act-contribute-2008-financial-crisis.asp
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Silicon Valley Bank Followed Exactly What Regulation Recommended
https://www.dlacalle.com/en/silicon-valley-bank-followed-exactly-what-regulation-recommended/
The Silicon Valley Bank Collapse Is a Direct Consequence of Loose Monetary Policy.
The second largest collapse of a bank in recent history after Lehman Brothers could have been prevented. Now, the impact is too large, and the contagion risk is difficult to measure.
The demise of the Silicon Valley Bank (SVB) is a classic bank run driven by a liquidity event, but the important lesson for everyone is that the enormity of the unrealized losses and financial hole in the bank’s accounts would have not existed if it were not for ultra-loose monetary policy. Let us explain why.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits, according to their public accounts. Their top shareholders are Vanguard Group (11.3%), BlackRock (8.1%), StateStreet (5.2%) and the Swedish pension fund Alecta (4.5%).
The incredible growth and success of SVB could not have happened without negative rates, ultra-loose monetary policy, and the tech bubble that burst in 2022. Furthermore, the bank’s liquidity event could not have happened without the regulatory and monetary policy incentives to accumulate sovereign debt and mortgage-backed securities.
How loose monetary policies played a role in Silicon Valley Bank (SVB). Interesting read.
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Silicon Valley Bank exec was Lehman Brothers CFO prior to 2008 collapse
https://www.foxbusiness.com/economy/silicon-valley-bank-exec-was-lehman-brothers-cfo-prior-to-2008-collapse
Silicon Valley Bank (SVB) executive, Joseph Gentile, was a former executive of the Lehman Brothers' Global Investment Bank prior to the bank's public collapse in 2008.
Prior to joining SVB as Chief Administrative Officer, Gentile worked as Chief Financial Officer at Lehman Brothers' Global Investment Bank. Gentile left Lehman in 2007, just one year before it went bankrupt in 2008.
"You can't make this up." one Twitter wrote as the internet erupted at the revelation.
"This is truly unusual" another user added.
CVB CFO Joseph Gentile was the CFO for Lehman Brothers. He left before Lehman Brothers crashed in 2008.
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" I'd like to solve, Pat... "
" Go ahead. "
" 'No banks collapsed when Trump was President.' "
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One of many outrages - senior management at SVB approved BONUSES literally just hours before the feds rolled in.
AND, a second bank - Signature Bank - failed as feds rolled into that one too.
Yellen and her criminal friends are bailing out both banks. She claims it's not with taxpayer money, but I think we all know she can't open her mouth without lying. It's the SharterJoe way!
https://www.cnn.com/2023/03/12/investing/svb-customer-bailout/index.html
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Signature Bank shut down in connection with Silicon Valley Bank collapse
https://www.foxbusiness.com/economy/signature-bank-shut-down-connection-silicon-valley-bank-collapse
Federal regulators on Sunday said New York-based Signature Bank was being shut down to protect consumers and the financial system following the collapse of California’s Silicon Valley Bank.
The announcement came in a joint statement from the U.S. Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation. The regulators said SVB clients will have access to their money starting Monday, at no expense to the American taxpayer.
A similar program, they said, was being enacted for Signature Bank, which was closed Sunday by its state chartering authority.
"All depositors of this institution will be made whole," the joint statement read. "As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer."
Signature Bank was closed on Sunday. Barney Frank was a board member of Signature Bank.
"We have built a strong reputation serving commercial clients through nine business lines and reached in excess of $100 billion in assets by continually executing our single-point-of-contact, relationship-based model where banking teams are capable of meeting all client needs."
Signature was notable for having former Democratic Congressman Barney Frank on its Board. Frank’s signature Dodd-Frank Act, crafted in the wake of the 2008 financial crash, sought to improve accountability and transparency in the financial system.
Under that law, banks with assets in excess of $50 billion were deemed as being potentially "too big to fail," and were therefore subject to a host of rigorous testing and regulation.
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What Happened To Signature Bank? The Latest Bank Failure Marks Third Largest In History
https://www.msn.com/en-us/money/markets/what-happened-to-signature-bank-the-latest-bank-failure-marks-third-largest-in-history/ar-AA18zOVr
Signature Bank, a New York-based regional bank that became a leader in cryptocurrency lending, shuttered suddenly on Sunday, marking the third-biggest bank failure in U.S. history just two days after the country’s second biggest failure, Silicon Valley Bank, rocked the stock market and reignited fears of “challenging and turbulent” economic times.
Key Facts
State regulators in New York shuttered Signature Bank—a 23-year-old regional bank that had previously focused on digital assets by becoming one of a few banks to accept crypto deposits—after regulators warned the stability of the financial system could be threatened if the bank remained open.
New York’s Department of Financial Services announced Sunday it had taken possession of the bank, which had more than $110 billion in assets and more than $88 billion in deposits as of the end of last year.
Signature Bank became the third regional bank to collapse in a matter of weeks, following the high-profile collapse of California-based crypto-friendly banks Silvergate Bank and Silicon Valley Bank, whose failure spooked investors wary of widespread financial vulnerability.
Signature had announced new financial data Thursday and said it had limited crypto deposit balances in an attempt to increase its diversification, telling investors, “we want to make it clear again that Signature Bank is a well-diversified, full-service commercial bank with more than two decades of solid performance serving middle market business.”
Signature bank was popular for cryptocurrency. It is the third largest bank failure after Washington Mutual and Silicon Valley Bank. Two large bank failures within days is really troubling.
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First Republic Shares Crash 60% As Regional Bank 'Crisis In Confidence' Spreads
https://www.zerohedge.com/markets/first-republic-shares-crash-60-regional-bank-crisis-confidence-spreads
First Republic Bank's stock crashed in premarket trading in New York following a statement issued on Sunday night that sought to ease investor worries about its liquidity situation in the wake of the failures of Silicon Valley Bank and Signature Bank.
Shares of the regional bank are down 60% in the premarket. The lender said in a statement late Sunday that it had more than $70 billion in unused liquidity to fund operations from agreements that included the Federal Reserve and JPMorgan Chase & Co.
(https://cms.zerohedge.com/s3/files/inline-images/Snag_64fc32a8.png?itok=QGzRe35Z)
"The additional borrowing capacity from the Federal Reserve, continued access to funding through the Federal Home Loan Bank, and ability to access additional financing through JPMorgan Chase & Co. increases, diversifies, and further strengthens First Republic's existing liquidity profile," the bank said, adding that more liquidity is available through the Fed's new lending facility.
First Republic Bank stock dropped a lot.
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Barney Frank under fire over role on board of doomed Signature Bank
https://nypost.com/2023/03/13/barney-frank-under-fire-over-role-on-board-of-signature-bank/
Barney Frank — the retired congressman who co-authored the Dodd-Frank Act to tighten bank regulations after the 2008 financial crisis — is under fire over his role in the latest US banking disaster.
The 82-year-old Democrat is on the board of directors at Signature Bank — a New York lender that was shut down by state regulators over the weekend, becoming the industry’s third major casualty since Silicon Valley Bank was abruptly shuttered on Friday and the crypto-focused Silvergate Capital shut down a week earlier.
In an interview with Bloomberg late Sunday, Frank partly blamed cryptocurrencies, which hadn’t existed when he and fellow lawmakers in Washington were grappling with the collapse of Lehman Brothers in 2008.
“Digital currency was the new element entered into our system,” Frank told Bloomberg. “A new and destabilizing — potentially destabilizing — element is introduced into the financial system. What we get are three failures.”
Barney Frank co-authored the Dodd-Frank Act. He sits on board of directors of Signature Bank, which shut down.
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" I'd like to solve, Pat... "
" Go ahead. "
" 'No banks collapsed when Trump was President.' "
Democrats blame deregulation, even though these banks collapsed after the Biden administration has had two years to restore whatever regulations they see fit.
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'Another Scandal': Biden Admin 'Radicals' Blocked SVB Sale, Nationalized It, Then Blamed Trump For Collapse
https://www.zerohedge.com/political/another-scandal-biden-admin-radicals-blocked-svb-sale-nationalized-it-then-blamed-trump
Instead of spending taxpayer dollars to nationalize Silicon Valley Bank, a private buyer favored by the Treasury and the Federal Reserve had emerged, only to be nixed by FDIC Chairman Martin Gruenberg, according to the Wall Street Journal, citing a source with knowledge of the situation.
Instead the regulators offered solutions that bail out even uninsured bank depositors and other banks at unknown costs that Mr. Biden isn’t acknowledging. -WSJ
Kevin Hassett, former Chairman of the Council of Economic Advisers under Trump, told Fox Business that "there were buyers who were willing to step in & buy [SVB, but] the radicals at the @FDICgov basically weren’t going to allow that to happen ... the Biden Admin had a whitelist of companies that were allowed to buy the failed bank & companies that weren’t."
"If this is true," said Grabien founder Tom Elliott, "then this is another Biden scandal."
A private buyer was going to buy Silicon Valley Bank, but the FDIC said no. In regards to Signature Bank.
Something deeper afoot?
Biden's blame game aside, crypto VC Nic Carter has some very interesting thoughts on what went down in regards to the shuttering of Signature Bank, calling it a "Colossal scandal."
Dear God. Barney Frank openly admits that Signature was arbitrarily shuttered despite no insolvency because regulators wanted to kill off the last major pro-crypto bank. Colossal scandalhttps://t.co/Sa25w6Au7b pic.twitter.com/gLuiybHepS
— nic carter 🌠 (@nic__carter) March 13, 2023
Continued;
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“Try Not To Cringe As You Watch This”: Woke Signature Bank Videos Go Viral After Fed Shut Down
https://summit.news/2023/03/14/try-not-to-cringe-as-you-watch-this-woke-signature-bank-videos-go-viral-after-fed-shut-down/
After New York state regulators shut down Signature Bank Sunday, a series of woke videos produced by the company has gone viral, with critics noting it’s no wonder the bank went under if this was what they were concentrating on.
Grit Capital founder Genevieve Roch-Decter shared the videos, asking “Is it surprising that Signature Bank failed?”
“Their executive team spent millions of dollars to produce music videos & TV shows about themselves,” she continued, adding “Try not to cringe as you watch this.”
Signature Bank is woke.
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Wall Street bank stocks plunge after Credit Suisse chaos rattles US market
https://nypost.com/2023/03/15/regional-bank-stocks-plunge-as-credit-suisse-moodys-downgrade-rattle-us-market/
The nation’s largest banks got walloped Wednesday — showing they weren’t immune to the crisis that has hammered regional lenders — after Credit Suisse reignited fears of a contagion in global banking.
Shares of JPMorgan Chase and Citigroup slid more than 4%, while Wells Fargo and Goldman Sachs fell more than 3% and Bank of America sank 0.9%.
US banks got slammed as Zurich-based Credit Suisse plunged 24% after its biggest shareholder, Saudi National Bank, said it wouldn’t pour more money into the troubled institution.
Market experts are increasingly fearful that Credit Suisse will require a bailout due to a rapid loss of confidence in its stability — potentially accelerating a chain reaction that began with Silicon Valley Bank’s implosion and could upend other struggling firms.
The stock market dropped largely due to Credit Suisse.
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Silicon Valley Bank reckless with risk, ESG push: State Financial Officers
https://www.foxbusiness.com/economy/silicon-valley-bank-reckless-with-risk-esg-push-state-financial-officers
The failure of Silicon Valley Bank is being cited by the State Financial Officers Foundation as an example of what can go wrong when financial institutions prioritize political agendas over basic risk management.
The State Financial Officers Foundation — a group of Republican state auditors, chief financial officers, controllers, and treasurers — released a statement that said Silicon Valley Bank (SVB) "should have focused on safeguarding their depositors’ money and making sound investments, but it’s clear their focus was on pushing a progressive agenda."
"Environment, Social, and Governance (ESG) prioritization is about pushing a progressive political agenda even when it is at odds with sound financial or business decision-making," the financial officers wrote. "Instead of placing an emphasis on hiring qualified candidates for critical positions within the company and making prudent financial decisions, SVB focused on ESG, particularly diversity and inclusion initiatives, and courting China while the bank left its chief risk officer position open for eight months."
Not surprised.
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Chuck Schumer, Dems rush to give back donations from Silicon Valley Bank CEO
https://www.foxbusiness.com/politics/chuck-schumer-dems-rush-give-back-donations-silicon-valley-bank-ceo
Democrats on Capitol Hill rushed to donate or return donations they received from Silicon Valley Bank (SVB) after its dramatic collapse last week.
Senate Majority Leader Chuck Schumer gave back a total of $8,500 to charity on Tuesday after receiving the sum in donations from SVB and its former CEO, Greg Becker. Becker had donated $5,800 to Schumer's campaign in 2021, and the bank's PAC had offered up $2,700 in 2015.
Schumer's office did not immediately respond to a request for comment, nor did it detail which charities the funds had been sent to.
Meanwhile, Rep. Maxine Waters, D-Calif., also plans to return donations she received from the PAC. The SVB's political arm gave Waters $2,500 in late 2020.
Chuck Schumer and Maxine Waters got donation from SVB.
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Rep. Warren Davidson says regulators are pushing people out of banks
https://justthenews.com/politics-policy/finance/rep-warren-davidson-says-regulators-are-pushing-people-out-banks
GOP Ohio Rep. Warren Davidson says that regulators are pushing people out of banks in the midst of recent bank failures.
"It does seem like the regulators are kind of in what is known as 'Operation Choke Point,' which is the regulators are pushing people out of banks," Davidson told the "Just the News, No Noise" TV show.
"We're concerned that what really caused the run on these banks was regulatory pressure for people to move their money," Davidson continued.
More banks could fail.
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Gavin Newsom Kept SVB Ties Secret While Lobbying For Bailout
https://www.zerohedge.com/political/gavin-newsom-kept-svb-ties-secret-while-lobbying-bailout
Multimillionaire California Governor Gavin Newsom failed to disclose his ties to Silicon Valley Bank while lobbying the White House and the Treasury Department over a pending bailout, The Intercept reported on Tuesday.
The White House “acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system,” Newsom said in a statement. What Newsom didn’t mention is that it also protected his own companies if they held over $250,000 in deposits.
CADE, Odette, and PlumpJack, three wineries owned by Newsom, are listed as clients of SVB on the bank’s website. Newsom also maintained personal accounts at SVB for years, according to a longtime former employee of Newsom’s who handled his finances, and who requested anonymity to avoid professional reprisal.
Newsom also failed to mention his wife's professional ties to the bank. In 2021, SVB gave $100,000 to a charity founded by Jennifer Siebel Newsom, the California Partners Project, at the request of Newsom. SVB Capital President, John China, sits on the Board of Directors of the charity.
California Governor Gavin Newsom has ties with Silicon Valley Bank. Not surprised.
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Investor who called Lehman collapse predicts the next big US bank failure
https://www.foxbusiness.com/markets/investor-called-lehman-collapse-predicts-next-big-us-bank-failure
The Wall Street analyst and investor who called the 2008 Lehman Brothers’ collapse has revealed what bank he thinks will hit insolvency next amid Silicon Valley Bank (SVB) closure shockwaves.
"The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse," the Rich Dad Company co-founder Robert Kiyosaki said on "Cavuto: Coast to Coast" Monday, "because the bond market is crashing."
Just days after SVB, the California-based bank primarily used by tech industry companies and startups, declared bankruptcy, New York-based Signature Bank announced it would be shutting down to protect consumers and the financial system.
Similarly to SVB, Signature Bank was popular among crypto companies. The institution provided deposit services for its clients’ digital assets but did not make loans collateralized by them.
Robert Kiyosaki predicted Lehman Brothers collapse. He thinks Credit Suisse is next.
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SVB's Chinese depositors will get their money back as part of U.S. intervention plan
https://justthenews.com/world/asia/svbs-chinese-depositors-will-get-their-money-back-part-us-intervention-plan
Treasury Secretary Janet Yellen confirmed this week that Chinese depositors with Silicon Valley Bank will have their deposits fully insured as part of the government's intervention in the bank's collapse.
Testifying before the Senate Finance Committee, Yellen fielded questions from Oklahoma Republican Sen. James Lankford, who asked whether banks is Oklahoma would pay fees to help remunerate SVB's Chinese investors.
"Uninsured investors will be made whole in that bank," Yellen confirmed, per the Washington Times. "I suppose that could include foreign depositors, but I don’t believe there’s any legal basis to discriminate among [the] uninsured."
Silicon Valley Bank and Signature Bank failed last Friday and Sunday, respectively. The industry volatility has spelled trouble for other financial institutions, such as First Republic, which received a rescue plan of $30 billion from other banks. Across the ocean, major firms such as Credit Suisse have struggled to cope with the turmoil.
More proof that banks should never be bailed out. History repeats itself.
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Yellen is a complete flake. Or rather, she's a complete leftist and complicit with SharterJoe in all things ChiCom. :whatever:
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Democrats Deserve Plenty of Blame for the Bank Crisis
https://www.creators.com/read/david-harsanyi/03/23/democrats-deserve-plenty-of-blame-for-the-bank-crisis
The United States recently suffered the second largest bank failure in the country's history. The consensus view is that Silicon Valley Bank made a huge mistake by borrowing short term and then parking money in long-term bonds. When interest rates rose, assets lost value, and SVB was put in a perilous position.
President Joe Biden promises there will be a "full accounting" of the situation and that everyone will be held "accountable." But that would mean the president taking responsibility for the reckless governance that helped create the environment that made this possible. The Fed wouldn't have been compelled to aggressively raise interest rates if Biden had acted more like a responsible statesman rather than a cynical partisan.
Let's recall that virtually the entire left-wing political infrastructure — media, politicians and expert class — was activated to dismiss the concerns of those who warned that inflation was a threat. The reason was obvious: Democrats wanted to cram through as many long-term spending proposals as possible while they held both houses. That had to be done in two years' time. And it had to be done with the support of Joe Manchin, a senator who would occasionally feign concern about spending.
In 2021, Biden signed the $2 trillion so-called American Rescue Plan, indiscriminately sending checks to millions even as COVID lockdowns were winding down. This, after issuing a number of presidential edicts limiting affordable fossil fuels. (With some Republican help, Democrats would later pass a $715 billion green "infrastructure" bill.) The Fed, meanwhile, kept rates at zero, pumping an already hot post-lockdown with billions. Inflation began spiking.
Low interest rates and too much money. It is on top of government spending.
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Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4387676
190 banks are at risk for a Silicon Valley Bank-like collapse.
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Connecting Dots: COVID to SVB and Beyond
https://amgreatness.com/2023/03/18/connecting-dots-covid-to-svb-and-beyond/
Acollection of seemingly random crises can spell out a sinister “conspiracy theory” when you consider their connections and where they are leading. An overplayed plot? Perhaps, but how many so-called conspiracy theories have proven to be reality recently?
First, the world economy shut down with the COVID lockdown. Manufacturing stopped and capital construction projects were put on hold. No one was making anything, and consumers were buying very little.
The government injected huge amounts of cash to stimulate spending, even though there wasn’t much to spend it on: witness supply chain issues. This cash was created out of thin air by the Federal Reserve. Household savings rates rose to new highs. Personal and commercial bank deposits soared.
Consider banks, a confounding inversion of logic for most consumers. While it seems odd to think that a loan is an asset and a deposit is a liability, it makes sense when you realize that making loans is the method banks use to make money. Every time a bank takes in a deposit, they try to loan that money out as quickly as possible to put it to work making income for the bank. If no one is applying for loans, the bank invests the money in bonds to earn a little interest.
How COVID lockdowns contributed to the economic problems and bank failure.
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GOP Rep. Meuser: Fed Knew About SVB Problems in 2019, Let Them Double in Size
https://www.breitbart.com/clips/2023/03/21/gop-rep-meuser-fed-knew-about-svb-problems-in-2019-let-them-double-in-size/
On Monday’s broadcast of the Fox Business Network’s “Evening Edit,” Rep. Dan Meuser (R-PA) reacted to reporting from The Wall Street Journal that was confirmed by ABC News that the Federal Reserve knew of problems with Silicon Valley Bank (SVB) back in 2019 by pointing out that SVB doubled in size after these warnings and stating that Federal Reserve regulators failed to do their jobs.
The Federal Reserves knew SVB was in trouble back in 2019. What did they know? How much did they know?
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Yesterday, the Federal Reserve issued its report on the causes for Silicon Valley Bank's failure. Linked is the 118-page report with a cover letter, signed by the "Vice Chair of Supervision" of the Federal Reserve, a Mr. Michael S. Barr.
Surprisingly, the report cites not only the failure of SVB's management to do its job, especially in managing risk (virtually nonexistent) but also the Fed itself for shoddy supervision of banks with far too many uninsured depositors.
In this day and age of the government looking to blame everything and anything other than itself, it's kind of refreshing to see this. Of course, no heads at the Fed will roll due to a fundamental lack of supervision over banks with over $100 billion in assets. Gotta protect them jobs, after all, right Mr. Barr?
https://www.federalreserve.gov/publications/files/svb-review-20230428.pdf
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FDIC Mistakenly Releases List Of Top Firms Bailed Out By Biden Admin's Backstop Of SVB Deposits
https://zerohedge.com/markets/fdic-mistakenly-releases-list-top-firms-bailed-out-biden-admins-backstop-svb-deposits
A document released by the Federal Deposit Insurance Corp (or FDIC) which the agency said it mistakenly released unredacted in response to a Bloomberg News Freedom of Information Act request, has provided the most detailed glimpses yet into biggest Silicon Valley Bank customers who were bailed out when the Biden administration decided to backstop all the bank's deposits.
As a reminder, when regulators stepped in to backstop all of Silicon Valley Bank’s deposits back in March, they saved thousands of small tech startups to prevent what many (especially those whose money was tiled up with SVB) said would have been a catastrophic blow to a tech sector that relied heavily on the lender.
But the stunning decision to guarantee all accounts above the $250,000 federal deposit insurance limit helped bigger companies that were in no real danger. Among them was Sequoia Capital, the world’s most prominent venture-capital firm, which ended up recovering the $1 billion it had with the lender courtesy of taxpayers. Another was Kanzhun Ltd., a Beijing-based tech company that runs mobile recruiting app Boss Zhipin, which received a backstop for more than $900 million.
While the incompetent buffoons at the FDIC - which has been selling off pieces of the bank since its failure and which absurdly ended up giving JPMorgan a $50 billion loan in Jamie Dimon's taxpayer-funded rescue of First Republic Bank...
... asked that Bloomberg destroy and not share the depositor list, saying the agency intended to “partially” withhold some details from the document “because it included confidential commercial or financial information,” according to a letter from an attorney for the regulator. The agency subsequently declined to comment on the substance of the information in the document.
Bloomberg, however, refused to comply. The list - whose contents were largely known already except for a handful of names - mistakenly sent by the FDIC is below:
The Federal Deposit Insurance Corp (FDIC) released list who were bailed out by the Biden administration. Sequoia Capital and Kanzhun Ltd got bailed out. History repeats itself.