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re: Why Signature Bank was seized this weekend in the 3rd biggest bank failure in US history
Posted on 3/13/23 at 12:13 pm to frequent flyer
Posted on 3/13/23 at 12:13 pm to frequent flyer
quote:
But why did they do this? What spooked them specifically with SVB, since that's where it seemed to start.
SVB had a much larger % of balance sheet in securities with a much bigger unrealized loss than peers -- this has been public for quite a while...they announced they sold bonds last qtr which caused peope to "notice" the huge losses in bonds classified as HTM (these losses don't go against regulatory capital) - some dudes went on twitter and said they are insolvent if you include HTM losses (they were, but it still wouldn't have mattered) which then caused a huge run of deposits
0
Posted on 3/13/23 at 12:17 pm to frequent flyer
quote:
But why did they do this? What spooked them specifically with SVB, since that's where it seemed to start.
Sure, but that same question is pertinent to why they left SVB. What isn't pertinent is the type of business they had.
Posted on 3/13/23 at 12:19 pm to frequent flyer
quote:
What if your house burns down then? Honestly it's safer in a bank - just watch the FDIC limits. Put your eggs in multiple baskets.
You think a guy suggesting everyone pull their money out of banks has close to 250k? He doesn’t have to worry about his money not being insured
Posted on 3/13/23 at 12:27 pm to joshnorris14
SVB HTM bond holdings
cost basis
Dec '22 Sept '22 Dec '21
91,321 93,286 98,195
Market Value
Dec '22 Sept '22 Dec '21
76,169 77,370 97,227
Loss
Dec '22 Sept '22 Dec '21
15,152 15,916 968
Equity not taking into account those marks
Dec '22 Sept '22 Dec '21
16,295 15,810 16,609
the bank run took place because ingorant people made this a bigger deal than it really is
cost basis
Dec '22 Sept '22 Dec '21
91,321 93,286 98,195
Market Value
Dec '22 Sept '22 Dec '21
76,169 77,370 97,227
Loss
Dec '22 Sept '22 Dec '21
15,152 15,916 968
Equity not taking into account those marks
Dec '22 Sept '22 Dec '21
16,295 15,810 16,609
the bank run took place because ingorant people made this a bigger deal than it really is
Posted on 3/13/23 at 12:34 pm to frequent flyer
Bawney Fwank
adult lisp = undeveloped brain.
The architect of the 2008 Financial Crisis has done it again
He has a unique talent - NO ONE has ever failed up with the magnitude of catastrophe he has personally orchestrated.
He's the Dahmer of banking
adult lisp = undeveloped brain.
The architect of the 2008 Financial Crisis has done it again
He has a unique talent - NO ONE has ever failed up with the magnitude of catastrophe he has personally orchestrated.
He's the Dahmer of banking
Posted on 3/13/23 at 12:38 pm to frequent flyer
quote:
said board member and former congressman Barney Frank.
Oh yeah, it’s all making sense now. You definitely want that goofball on your bank’s board.
Posted on 3/13/23 at 12:41 pm to winkchance
My wife is a CPP who runs payroll for a lot of companies based in Silicon Valley. She asked me on last Wednesday morning if I had seen anything on that Tigerdroppings site about some kind of banking collapse at SVB. Some of her clients were trying to run their payroll and were having problems. I told her that I would look on TD but at that time it was still a day away from being huge news. She is talking to a client this afternoon who is going to have to fund payroll from his personal account.
Posted on 3/13/23 at 12:44 pm to frequent flyer
quote:
board member and former congressman Barney Frank
Will he run for congress again and sponsor another reform bill for an industry he has enriched himself with and attempt to create another agency without oversight?
This post was edited on 3/13/23 at 12:48 pm
Posted on 3/13/23 at 12:44 pm to Cheese Grits
quote:
SVB was similar, a Richy Rich bank that most never heard of because we are too poor to be customers.
It's a B2B bank. Literally create an LLC and you can get an account with like $200 in it.
Posted on 3/13/23 at 12:45 pm to joshnorris14
Peter Thiel played a pretty significant role in this situation. When one of the most famous and successful entrepreneurs in America tells his companies to pull their money, it's going to cause some problems.
I haven't seen anything that would suggest he had an axe to grind with the bank or anything like that, and the data shows an ability to justify the decision with reasonable points financial points, but that doesn't change his role.
I haven't seen anything that would suggest he had an axe to grind with the bank or anything like that, and the data shows an ability to justify the decision with reasonable points financial points, but that doesn't change his role.
Posted on 3/13/23 at 12:54 pm to GRTiger
Anyone else sitting here watching th is and thinking “huh, isn’t that interesting that banks collapse when people ask for their money back?”
I understand the point of fractal reserve banking and the ease of credit has essentially allowed home ownership, business creation, and a multitude of other universally considered good things for the quality of life in America, but I just find it really interesting that banks are allowed to take your money and do just about anything and everything they want with it.
I understand the point of fractal reserve banking and the ease of credit has essentially allowed home ownership, business creation, and a multitude of other universally considered good things for the quality of life in America, but I just find it really interesting that banks are allowed to take your money and do just about anything and everything they want with it.
Posted on 3/13/23 at 12:56 pm to Oilfieldbiology
quote:
I just find it really interesting that banks are allowed to take your money and do just about anything and everything they want with it.
I mean no, they aren't. Especially with publicly traded banks.
This post was edited on 3/13/23 at 12:57 pm
Posted on 3/13/23 at 1:22 pm to frequent flyer
If they would have stuck to oil, gas, energy stocks their balance sheet would have looked great. Oh well see where activist investing gets you. Unfortunately there will be no real lessons learned here
Posted on 3/13/23 at 2:03 pm to Dirk Dawgler
quote:
She is talking to a client this afternoon who is going to have to fund payroll from his personal account.
All deposits were made whole this morning.
Either your wife / client is behind on the news or there is something else happening.
Posted on 3/13/23 at 2:07 pm to Oilfieldbiology
quote:
Anyone else sitting here watching th is and thinking “huh, isn’t that interesting that banks collapse when people ask for their money back?”
As I said in another thread, banking is about the careful management of cash inflows and outflows. If that balance gets out of whack, bad things happen in a hurry.
The problem is that most bank investments are set up for a very long run, so if you need to cash them out in the short term, it's going to create problems.
Posted on 3/13/23 at 2:13 pm to theRealJesseD
Actually Cuomo and Gorelick bear equal responsibility
Posted on 3/13/23 at 2:34 pm to prplhze2000
Posted on 3/13/23 at 2:49 pm to frequent flyer
quote:
Why Signature Bank was seized this weekend in the 3rd biggest bank failure in US history
Turns out it’s not sound business for a bank to base its investment strategy on woke politics.
Who knew?
Posted on 3/13/23 at 2:53 pm to LSUFanHouston
quote:
The problem is that most bank investments are set up for a very long run, so if you need to cash them out in the short term, it's going to create problems.
So basically banks are using statistics to hold just enough of its customer’s money on hand to provide physical currency upon demand. It’s not gambling on people not needing it, but it’s close.
Posted on 3/13/23 at 2:54 pm to nicholastiger
quote:
apparently it's trump's fault since he rolled back some of obama's controls in place
and that rule he added that prevented the biden admin from changing anything for the last 26 months
How dare they?
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