Financial Institutions

[Foxx]

There are problems with etsy moms. Apparently etsy used SVB for payments and a number of transactions failed to process before the bank was shuttered.

 

Also, seeing rumblings about a run on First Republic going on with Main Street today and businesses lining up for Monday.

[devnull]

5 hours ago, Nouseforaname said:

We’re all cheering for you.

 

 

[Foxx]

Khosla concerned about their portfolio of companies.

 

 

[Foxx]

... for insured depositors.

 

... for uninsured depositors.

 

[Foxx]

23 hours ago, Nouseforaname said:

The FDIC is there as a guarantee and it’s based on the faith and credit of the government that backs it. If ever it runs out of cash, the government will provide liquidity until the mess clears.

 

 

 

Print moar!

 

[Nouseforaname]

11 minutes ago, Foxx said:

 

Print moar!

 

This has more to do with providing confidence to prevent more runs on banks than anything that will actually happen.

 

 

[Foxx]

11 minutes ago, Nouseforaname said:

This has more to do with providing confidence to prevent more runs on banks than anything that will actually happen.

 

 

Let's hope anyways.

[Nouseforaname]

8 minutes ago, Foxx said:

Let's hope anyways.

Quite a few of the risk geeks I follow on LinkedIn seem to indicate that this is due to piss poor ALM management.  
 

Either way, signaling is the most important thing now if you’re in government.

[Ann]

8 minutes ago, Nouseforaname said:

Quite a few of the risk geeks I follow on LinkedIn seem to indicate that this is due to piss poor ALM management.  
 

Either way, signaling is the most important thing now if you’re in government.

Romney was out immediately with shareholders lost it all, depositors get their money back. 

[Foxx]

1 minute ago, Ann said:

Romney was out immediately with shareholders lost it all, depositors get their money back. 

In my post above, the FDIC has come out and said that uninsured depositors (over $250K) are going to get an advance dividend by the end of next week. Meaning, they are going to get a haircut.

I'd be willing to bet that the FED emergency meeting is going to significantly raise that limit.

[snafu]

On 3/11/2023 at 7:48 AM, Foxx said:

A pretty good article on the overall situation with SVB.

 

From Reuters:

SVB is largest bank failure since 2008 financial crisis

I think they lost something like $1.8bn on those treasury sales.

 

And then there is this in the article...

 

Let's hope cooler heads prevail.

 

 

WSJ article asks what I’ve been wondering: where were the regulators?

https://apple.news/A8Oy9CQrVS2SraJUL_0aJ2g

And the problem is whether SVB’s practices were widespread and whether the regulators weren’t looking at them as a potential disaster.

 

 

[Foxx]

12 minutes ago, snafu said:

 

 

WSJ article asks what I’ve been wondering: where were the regulators?

https://apple.news/A8Oy9CQrVS2SraJUL_0aJ2g

And the problem is whether SVB’s practices were widespread and whether the regulators weren’t looking at them as a potential disaster.

 

 

Moody's got it wrong too (again). They were giving SVB an "A" rating right up until they were seized.

This is a distinct echo of 2008.

 

Moody's Failed to Warn About Silicon Valley Bank's Problems

[Ann]

1 hour ago, Foxx said:

In my post above, the FDIC has come out and said that uninsured depositors (over $250K) are going to get an advance dividend by the end of next week. Meaning, they are going to get a haircut.

I'd be willing to bet that the FED emergency meeting is going to significantly raise that limit.

Hubby said the meeting was scheduled. He agrees they will be talking about it.  He also said that the tying is illegal, and he thought those people/businesses should be made whole. They had no interest rate swaps to protect their portfolio (which he called "unbelievable").
 

[Cinga]

[Cinga]

Everything in the cards so far looks like more may be coming and we will have another massive bank bailout while the public is assured the banks will pay back, just failing to tell you that it will be by raising rates on you 

 

Rinse - repeat

[Foxx]

Have to get it ironed out before the Asian markets open later tonight.

 

[Nouseforaname]

1 hour ago, Ann said:

Hubby said the meeting was scheduled. He agrees they will be talking about it.  He also said that the tying is illegal, and he thought those people/businesses should be made whole. They had no interest rate swaps to protect their portfolio (which he called "unbelievable").
 

Which are the basics of ALM.

 

Of course hedging is expensive.

[B-Man]

 

[devnull]

Get ready for the bailout

 

https://www.washingtonpost.com/us-policy/2023/03/12/silicon-valley-bank-deposits/

[Nouseforaname]

48 minutes ago, devnull said:

Get ready for the bailout

 

https://www.washingtonpost.com/us-policy/2023/03/12/silicon-valley-bank-deposits/

An honest question, why does anyone keep anything over the insured amount in a bank?