Possible banking collapse in progress

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Mikah
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10 Mar 2023, 2:54 pm

The collapse of Silicon Valley Bank is triggering fears of contagion through the banking sector globally.

https://www.theguardian.com/business/20 ... s-sell-off

Some are worried about Wells Fargo in particular, bad timing to have missing deposits and "technical issues".

https://www.nbcdfw.com/news/business/we ... w/3211427/

Strap yourselves in for 2008 Part 2: Electric Boogaloo. Or not, you never know with these things.

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DeathFlowerKing
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10 Mar 2023, 4:11 pm

Does this mean we might have another Great Depression? Evil Tim has beckoned them!! !

https://youtu.be/15SAUy3TJ0k

stratozyck
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10 Mar 2023, 9:58 pm

Nah, don't worry.

I promise you that what will happen is the FRB will put together a buyout and they'll get absorbed by another bank.

DeathFlowerKing
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10 Mar 2023, 10:28 pm

stratozyck wrote:

Nah, don't worry.

I promise you that what will happen is the FRB will put together a buyout and they'll get absorbed by another bank.

...darn.

Yaaaay capitalism.

Pepe
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10 Mar 2023, 10:52 pm

Mikah wrote:

The collapse of Silicon Valley Bank is triggering fears of contagion through the banking sector globally.

The Australian stock market has taken a big hit on Friday.

Texasmoneyman300
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11 Mar 2023, 5:12 am

I guess now is a good time to buy more Bank stocks.

ASPartOfMe
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12 Mar 2023, 10:19 pm

Treasury, Fed and FDIC announce steps to ensure deposits will be paid in full

Quote:

The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation announced Sunday that they will make additional funding available to ensure all Silicon Valley Bank deposits, both insured and uninsured, will be paid in full.

"After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary [Janet] Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors," the said in a joint statement. "Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."

he Fed also announced it will make additional funding available to "to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors."

Silicon Valley Bank, the 16th largest bank in the country, failed on Friday and was taken over by the FDIC, after a run on the bank Wednesday and customers withdrew $42 billion of deposits by the end of Thursday. SVB mostly served technology workers and startups, including some of Silicon Valley's biggest names, such as Roku.

The trio also announced Sunday a "similar systemic risk exception" for New York-based Signature Bank, "which was closed today by its state chartering authority," according to the joint statement. "All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer."

"Shareholders and certain unsecured debtholders will not be protected," the statement read. "Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law."

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ASPartOfMe
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13 Mar 2023, 8:52 am

Dow falls more than 150 points Monday as pressure from bank shares mounts: CNBC Live updates

Quote:

Stocks fell on Monday as traders remained skittish despite a plan to backstop all the depositors in failed Silicon Valley Bank and make additional funding available for other banks.

The Dow Jones Industrial Average
were down 166 points, or 0.5%. The S&P 500
lost 1.2%, while the Nasdaq Composite
shed 1.3%.

The Sunday evening announcement of the banking rescue by regulators prompted oscillations in Monday’s premarket. The Chicago Board Options Exchange’s volatility index reached a level not seen since late 2022 and neared territory considered highly risky.

Bank stocks were under pressure, with JPMorgan Chase
and Citigroup falling. Regional banks fell even more, led by a 65% drop in First Republic.

All Silicon Valley Bank depositors will have access to their money starting Monday, according to a joint statement from the Treasury Department, Federal Reserve and the Federal Deposit Insurance Corporation.

The Federal Reserve also said it is creating a new Bank Term Funding Program aimed at safeguarding deposits. The facility will offer loans of up to one year to banks, saving associations, credit unions and other institutions.

President Joe Biden said shortly before the market opened on Monday that Americans can trust the U.S. banking system.

“Your deposits will be there when you need them,” he said. “Small businesses across the country with deposit accounts at these banks can breathe easier knowing they’ll be able to pay their workers and pay their bills.”

goldfish21
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13 Mar 2023, 3:38 pm

Aaah yes, the direct result of trumplestiltskin's deregulation of banks.. allowing them to play fast & loose and take risks w/o having to pass stress tests that ensure things like this can't happen.

Apparently the orange moron's repeal of the Dodd Frank act is what enabled this mess.

First train brakes, now banks.. any more trump era regulation rollbacks just waiting to blow up in everyone's faces?

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MuddRM
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13 Mar 2023, 6:54 pm

goldfish21 wrote:

It’s not the Drumpf that started this mess (although he and his ilk are partly the result of this mess). Blame the neoliberal of the 1990’s (specificly Clit-tongue, Gore(d), (N)Obama and “Let’s go Brandon”, as well as the reThuglican party for this mess. That whole gang, in addition to the Drumpf family should be drug in front of a firing squad and shot.

honeytoast
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13 Mar 2023, 11:11 pm

Boy do I sure love to witness a major historical event :lol:

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Mikah
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14 Mar 2023, 4:15 am

https://www.dailymail.co.uk/news/articl ... -fold.html

A Wall Street expert who accurately predicted the 2008 Lehman Brothers' collapse has revealed which bank he believes is set to go under next.

In the wake of Silicon Valley Bank's disastrous plummet, Robert Kiyosaki predicted the next bank to fold is Credit Suisse as the volatile bond market crashes.

He made the prediction just hours before Credit Suisse itself admitted it has a 'material weakness' as the cost of insuring its bonds from defaulting reached the highest level since the bank's creation.

Speaking on Cavuto: Coast to Coast, Kiyosaki said: 'The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse, because the bond market is crashing.'

He explained, while holding up a dollar bill: 'The U.S. dollar is losing its hegemony in the world right now. So they're going to print more and more and more of this...trying to keep this thing from sinking.'

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aspiemike
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14 Mar 2023, 8:05 am

Mikah wrote:

https://www.dailymail.co.uk/news/article-11857123/Wall-Street-expert-predicts-Credit-Suisse-bank-fold.html

A Wall Street expert who accurately predicted the 2008 Lehman Brothers' collapse has revealed which bank he believes is set to go under next.

In the wake of Silicon Valley Bank's disastrous plummet, Robert Kiyosaki predicted the next bank to fold is Credit Suisse as the volatile bond market crashes.

He made the prediction just hours before Credit Suisse itself admitted it has a 'material weakness' as the cost of insuring its bonds from defaulting reached the highest level since the bank's creation.

Speaking on Cavuto: Coast to Coast, Kiyosaki said: 'The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse, because the bond market is crashing.'

He explained, while holding up a dollar bill: 'The U.S. dollar is losing its hegemony in the world right now. So they're going to print more and more and more of this...trying to keep this thing from sinking.'

Germany printed a lot if deutchmarks in the 1920s to try and pay off the penalties for WW1. This lead to hyperinflation for them as their currency essentially became worthless.

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DeathFlowerKing
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14 Mar 2023, 8:13 am

aspiemike wrote:

Mikah wrote:

Germany printed a lot if deutchmarks in the 1920s to try and pay off the penalties for WW1. This lead to hyperinflation for them as their currency essentially became worthless.

The same sort of thing happened with Rome when the Romans began mixing their gold coins with cheaper metals.

Funny how history really DOES repeat itself...

https://youtu.be/OuOcnGAv4oo

RoadRatt
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15 Mar 2023, 10:06 am

Warren and Porter Lead SVB Act to Repeal Trump-Era Bank Deregulation Law

Sen. Elizabeth Warren said a 2018 law backed by Republicans and dozens of Democrats allowed banks to "load up on risk to boost their profits," endangering "our entire economy."

https://www.commondreams.org/news/warre ... regulation

Quote:

Notably absent from the list of co-sponsors were the Democrats who helped Republicans usher the bill through Congress in 2018, often misleadingly arguing that the measure was chiefly about providing relief for "community banks."

In the Senate, 16 Democrats and Sen. Angus King (I-Maine) supported the bill, giving Republicans the votes they needed to overcome the chamber's legislative filibuster.

One of the Democratic supporters, Mark Warner of Virginia, defended the 2018 law over the weekend, telling ABC News that he believes it "put in place an appropriate level of regulation on mid-sized banks" and that "these mid-sized banks needed some regulatory relief."

16 democrats sided with Trump and the republicans in this deregulation. Therefore, this was in fact, bipartisan deregulation.

I don't care for Trump at all, but blaming him and the republicans only for this, is simply wrong. Democrats had a hand in this too.

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funeralxempire
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15 Mar 2023, 10:11 am

aspiemike wrote:

Mikah wrote:

Germany printed a lot if deutchmarks in the 1920s to try and pay off the penalties for WW1. This lead to hyperinflation for them as their currency essentially became worthless.

Weimar papiermarks weren't the dominant international reserve currency like the USD.
It'll take a lot longer for the American dollar to be in a similar boat, right now they're not even in a similar looking boat.

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