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SVB - Explain outside impact to me like I’m 5

Posted on 3/12/23 at 6:21 pm
Posted by Lsut81
Member since Jun 2005
80087 posts
Posted on 3/12/23 at 6:21 pm
With their failure, what implications does it have for other institutions? Like a Cap One, Chase, Etc?

Is there a broader red flag within the economy of just a bunch of frickups at one firm?
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
35285 posts
Posted on 3/12/23 at 6:23 pm to
On the surface it doesn’t appear to be a widespread AS LONG AS the general public doesn’t run to their banks and start lining up at the doors in the next 12 hours.


Could be much deeper than that, but so far it appears these banks COULD have survived if there wasn’t a run on them.
Posted by thelawnwranglers
Member since Sep 2007
38738 posts
Posted on 3/12/23 at 6:31 pm to
Could cut future profits

Maybe bigger reserve requirement

Maybe more aggressive mark to market
Posted by baldona
Florida
Member since Feb 2016
20385 posts
Posted on 3/12/23 at 6:39 pm to
Chances are nothing really noticeable outside of maybe a bad week in the stock market. But it also could be the rock that starts the avalanche to a major recession, but very unlikely.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51457 posts
Posted on 3/12/23 at 6:52 pm to
quote:

With their failure, what implications does it have for other institutions? Like a Cap One, Chase, Etc?

Is there a broader red flag within the economy of just a bunch of frickups at one firm?


It shouldn't have much more than other banks gaining new customers. There may be some other banks which have problems (Signature) but the real concern is panic driving people to run on banks.
Posted by Kjnstkmn
Vermilion Parish
Member since Aug 2020
10522 posts
Posted on 3/12/23 at 7:51 pm to




End the endless
This post was edited on 3/12/23 at 8:05 pm
Posted by Cdawg
TigerFred's Living Room
Member since Sep 2003
59439 posts
Posted on 3/13/23 at 9:48 am to
quote:

the real concern is panic driving people to run on banks.

Or large hedge fund managers and bank CEO concerned about stock price causing this mass panic.
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