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Started By
Message
SVB Auction underway
Posted on 3/12/23 at 12:59 pm
Posted on 3/12/23 at 12:59 pm
If a buyer can be found, would be best solution to stabilize the situation and reduce the likelihood of a bank run tomorrow and calm the equity markets.
That said, depositors like Oprah and Prince Harry are likely going to take a 40-50% haircut on their deposits. Meghan likely recommended the woke bank to Prince Harry.
LINK
That said, depositors like Oprah and Prince Harry are likely going to take a 40-50% haircut on their deposits. Meghan likely recommended the woke bank to Prince Harry.
LINK
3
Posted on 3/12/23 at 1:05 pm to Geauxldilocks
Posted on 3/12/23 at 1:10 pm to Geauxldilocks
I was listening to a report on SVB earlier, apparently the bank gave out bonuses to their employees just before the shite hit the fan. That's not going to play well at all with viewers.
Posted on 3/12/23 at 1:11 pm to Bard
nice....
Posted on 3/12/23 at 1:12 pm to Bard
quote:
was listening to a report on SVB earlier, apparently the bank gave out bonuses to their employees just before the shite hit the fan. That's not going to play well at all with viewers.
Not at all, but we do need a solution. A JP Morgan purchase at $10 share and covering depositors at $0.50-.80 on the dollar for companies to make payroll is in the best interest of the US.
Posted on 3/12/23 at 1:12 pm to Geauxldilocks
quote:
Meghan likely recommended the woke bank to Prince Harry.
Maybe they soon will actually know what poor really is
Posted on 3/12/23 at 1:23 pm to Bard
I thought I read those bonuses were in the works for 2022 performance and were due to be paid out anyway.
Posted on 3/12/23 at 1:25 pm to Shepherd88
quote:
thought I read those bonuses were in the works for 2022 performance and were due to be paid out anyway.
Sure, but does that matter? 3 weeks ago? I’d allow it. The day of this? Come on.
These guys don’t give a frick as it’s not their money and ultimately they’ll all be back together somewhere else.
ETA: let’s put it this way, if that was customers money that was overdue to be paid out they sure as hell would have found a reason not to.
This post was edited on 3/12/23 at 1:27 pm
Posted on 3/12/23 at 1:26 pm to Geauxldilocks
quote:
Not at all, but we do need a solution. A JP Morgan purchase at $10 share and covering depositors at $0.50-.80 on the dollar for companies to make payroll is in the best interest of the US.
I disagree. What we need is an example.
SVB's biggest problem was not paying attention to the environment. They should have gotten rid of those low-interest bonds long ago and repurchased at the higher rates. As the fed continued hiking interest rates they should have been buying shorter-term bonds in order to maintain a growing need for liquidity.
Letting a bank like SVB fail serves as a giant, neon warning sign to other banks to make sure they avoid such calamity. Covering SVB, even at such a low mark, underscores that dangerous "too big to fail" philosophy.
Posted on 3/12/23 at 1:28 pm to Bard
quote:
SVB's biggest problem was not paying attention to the environment. They should have gotten rid of those low-interest bonds long ago and repurchased at the higher rates. As the fed continued hiking interest rates they should have been buying shorter-term bonds in order to maintain a growing need for liquidity. Letting a bank like SVB fail serves as a giant, neon warning sign to other banks to make sure they avoid such calamity. Covering SVB, even at such a low mark, underscores that dangerous "too big to fail" philosophy.
I agree with needing them to fail and allowing them to, frick them.
But I disagree that their issue was not seeing this, that’s impossible, and many insiders agree this had to have been well known in the board room and no one did shite for some reason. There has to be a reason why as it should have been clear this was going to be an issue?
Posted on 3/12/23 at 1:31 pm to Shepherd88
quote:
I thought I read those bonuses were in the works for 2022 performance and were due to be paid out anyway.
It doesn't matter. The point is, if things are so bad that you are choosing between not giving earned bonuses versus the business folding, you don't give the bonuses.
Posted on 3/12/23 at 1:33 pm to Bard
SVB was going down whether they paid out bonuses or not.
Posted on 3/12/23 at 1:37 pm to Bard
quote:
disagree. What we need is an example.
If reports are true that Oprah had $600M and tomorrow gets $300M at what’s left of the bank isn’t an example?
Philosophically I agree on let everything there rot and fail, but a run on banks contagion could topple the financial system if real fear spreads.
Posted on 3/12/23 at 1:39 pm to baldona
quote:
But I disagree that their issue was not seeing this, that’s impossible, and many insiders agree this had to have been well known in the board room and no one did shite for some reason. There has to be a reason why as it should have been clear this was going to be an issue?
If this wasn't an issue with their internal lack of vision, why aren't we seeing this happening among the majority of banks? My belief is because they have been paying attention (and if they weren't, they damned sure are now).
Over the years I've learned to not underestimate the ego of some people at high levels which causes them to ignore warning signs when problems could put those people in a slightly negative light. As times go on and those signs grow stronger, they double-down on ignoring them by trying to hide them as by that time any acknowledgement that these problems have been brewing makes them look even worse. If this goes on long enough, it snowballs into an inevitability.
Time will ultimately tell the tale, but I think it's going to be something very near this.
Posted on 3/12/23 at 1:47 pm to Bard
quote:
If this wasn't an issue with their internal lack of vision, why aren't we seeing this happening among the majority of banks? My belief is because they have been paying attention (and if they weren't, they damned sure are no
I think you are likely right in ego’s were the major issue.
But what I’m trying to explain is that I’ve read multiple places that they generally have 3rd party audits that help to point these type of issues out. Not to mention internal risk analysis and other depts meant to find these issues.
I don’t think their problem was not knowing, their problem was purposefully not fixing a known issue. Likely due to ego? Idk.
Posted on 3/12/23 at 1:50 pm to baldona
quote:
I don’t think their problem was not knowing, their problem was purposefully not fixing a known issue. Likely due to ego? Idk.
We're on the same page, I was thinking more along the lines of how they will attempt to defend themselves. "We couldn't have possibly known..." as opposed to their thinking they could cover it up long enough that something would happen to fix it without their ever having to admit it happened in the first place.
Posted on 3/12/23 at 3:20 pm to Bard
quote:
Letting a bank like SVB fail
It has failed. It's over.
quote:
Letting a bank like SVB fail serves as a giant, neon warning sign to other banks to make sure they avoid such calamity.
This already exists.
SVB has died. The equity in their stock is gone.
JP Morgan or Capital One (or whatever) buying their assets is the normal course of business and how these things are done.
That's not the same as government insuring the deposits.
Posted on 3/12/23 at 3:22 pm to Bard
quote:
." as opposed to their thinking they could cover it up long enough that something would happen to fix it without their ever having to admit it happened in the first place.
I think it's more they expected to be able to sell shares and get investment to cover the losses but didn't read THAT room.
Once their stock started to trickle down, it was a feeding frenzy.
I don't think they were covering anything up. They just thought they could raise capital like it was 2022 instead of 2023. THAT is the lesson for banks moving forward.
Posted on 3/12/23 at 3:53 pm to SlowFlowPro
quote:
don't think they were covering anything up. They just thought they could raise capital like it was 2022 instead of 2023. THAT is the lesson for banks moving forward.
This would make sense. But this also don’t happen overnight and they easily could have prevented this with communication to their clients and a plan to change their assets. So idk, I still think Ego or something else happened here.
It may simply be that they had some plays in the back room for VC help and it all fell through? Going back to your original point?
Posted on 3/12/23 at 3:57 pm to SlowFlowPro
(no message)
This post was edited on 3/12/23 at 3:58 pm
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