Author Topic: Silicon Valley Bank is shut down by regulators in biggest bank failure since glo  (Read 1651 times)

0 Members and 1 Guest are viewing this topic.

Offline Eupher

  • Hero Member
  • *****
  • Posts: 24894
  • Reputation: +2828/-1828
  • U.S. Army, Retired
Yellen is a complete flake. Or rather, she's a complete leftist and complicit with SharterJoe in all things ChiCom.  :whatever:
Adams E2 Euphonium, built in 2017
Boosey & Co. Imperial Euphonium, built in 1941
Edwards B454 bass trombone, built 2012
Bach Stradivarius 42OG tenor trombone, built 1992
Kanstul 33-T BBb tuba, built 2011
Fender Precision Bass Guitar, built ?
Mouthpiece data provided on request.

Offline Ptarmigan

  • Bunny Slayer
  • Hero Member
  • *****
  • Posts: 23702
  • Reputation: +943/-225
  • God Hates Bunnies
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

Quote
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.
Never interrupt your enemy when he is making a mistake.
-Napoleon Bonaparte

Allow enemies their space to hate; they will destroy themselves in the process.
-Lisa Du

Offline Ptarmigan

  • Bunny Slayer
  • Hero Member
  • *****
  • Posts: 23702
  • Reputation: +943/-225
  • God Hates Bunnies
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.
Never interrupt your enemy when he is making a mistake.
-Napoleon Bonaparte

Allow enemies their space to hate; they will destroy themselves in the process.
-Lisa Du

Offline Ptarmigan

  • Bunny Slayer
  • Hero Member
  • *****
  • Posts: 23702
  • Reputation: +943/-225
  • God Hates Bunnies
Connecting Dots: COVID to SVB and Beyond
https://amgreatness.com/2023/03/18/connecting-dots-covid-to-svb-and-beyond/

Quote
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.
Never interrupt your enemy when he is making a mistake.
-Napoleon Bonaparte

Allow enemies their space to hate; they will destroy themselves in the process.
-Lisa Du

Offline Ptarmigan

  • Bunny Slayer
  • Hero Member
  • *****
  • Posts: 23702
  • Reputation: +943/-225
  • God Hates Bunnies
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/

Quote
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?
Never interrupt your enemy when he is making a mistake.
-Napoleon Bonaparte

Allow enemies their space to hate; they will destroy themselves in the process.
-Lisa Du

Offline Eupher

  • Hero Member
  • *****
  • Posts: 24894
  • Reputation: +2828/-1828
  • U.S. Army, Retired
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
Adams E2 Euphonium, built in 2017
Boosey & Co. Imperial Euphonium, built in 1941
Edwards B454 bass trombone, built 2012
Bach Stradivarius 42OG tenor trombone, built 1992
Kanstul 33-T BBb tuba, built 2011
Fender Precision Bass Guitar, built ?
Mouthpiece data provided on request.

Offline Ptarmigan

  • Bunny Slayer
  • Hero Member
  • *****
  • Posts: 23702
  • Reputation: +943/-225
  • God Hates Bunnies
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

Quote
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.
« Last Edit: June 23, 2023, 08:39:59 PM by Ptarmigan »
Never interrupt your enemy when he is making a mistake.
-Napoleon Bonaparte

Allow enemies their space to hate; they will destroy themselves in the process.
-Lisa Du