Second Largest Bank Failure in U.S. History…

[Ingomike]

The FDIC ordered the closure of Silicon Valley Bank and immediately took position of all deposits at the bank Friday. The bank had $209 billion in assets and $175.4 billion in deposits as the time of failure, the FDIC said in a statement. It was unclear how much of deposits was above the $250,000 insurance limit at the moment.




Lots of nothing to see here being put out…

 

[DoggyDaddy]

Being discussed here...

Stock Market is ROCKING

18th largest bank in the US. https://www.zerohedge.com/markets/300-billion-reasons-why-svb-contagion-spreading-broader-banking-system Credit Suisse has fallen from the 9th largest bank in the world to below the top 50. The money from the Fed,US treasury,and IMF only purchased a few months of...

www.indianagunowners.com

 

[Ingomike]

Being discussed here...

Stock Market is ROCKING

18th largest bank in the US. https://www.zerohedge.com/markets/300-billion-reasons-why-svb-contagion-spreading-broader-banking-system Credit Suisse has fallen from the 9th largest bank in the world to below the top 50. The money from the Fed,US treasury,and IMF only purchased a few months of...

www.indianagunowners.com

That is not a thread about bank failures concerning survival and disasters. Mods can do as they wish…

 

[Lpherr]

It's just the beginning. Here we go...

 

[JTScribe]

How could it fail when it held more assets than deposits?

 

[DoggyDaddy]

How could it fail when it held more assets than deposits?

I'd imagine it has something to do with liquidity of those assets.

 

[snorko]

I'd imagine it has something to do with liquidity of those assets.

Or their actual value. I remember hearing horror stories from the S&L debacle of things like "gold" bars taken as collateral actually being painted or plated lead.

 

[indyjohn]

I'd imagine it has something to do with liquidity of those assets.

Not sure, I seem to remember the FDIC rules dictate percentages of cash on hand vs. deposits on record. So, liquidity.

Econ class was a long time ago.

 

[DoggyDaddy]

Not sure, I seem to remember the FDIC rules dictate percentages of cash on hand vs. deposits on record. So, liquidity.

Econ class was a long time ago.

Yeah, the buildings or other real estate they own would count as assets, but they're not liquid assets.

 

[stocknup]

You definitely put this thread in the right category .........
Major Disaster and Preparedness .
Sadly ......Quite a few INGO threads could fit in here .

 

[BigMoose]

Yes, perfect. Invest in Guns, Ammo, and Metals.. don't leave your money in the bank.

At least that is what I am telling the wife.

 

[ditcherman]

Pretty good summary of it here…

Analysis | What’s Going on With Silicon Valley Bank? — The Wall Street Journal

Here are some questions and answers to help explain what happened

apple.news

Has to do with the investment into high value (at the time, when interest rates were low) that turned into less value as interest rates rose, and their desire (but inability) to sell the intial investments, without causing a run on the bank.

TLDR; immediate greed over long term profitability/stability will separate different types of investors moving forward.

 

[asevans]

 

[movevio1]

I’m not really hoping for total economic failure but it might be fun for a weekend…

 

[Cameramonkey]

Apparently Patriot Software uses them for banking. (its a small-ish accounting/payroll company)

I didnt get paid for my side gig yesterday because of this. Luckily for all but one of us this is a side gig, and the one has plenty of cushion to last until Monday when they expect to be able to direct deposit our checks into our bank accounts.

So the money they drafted in last week to pay our payroll is tied up in this mess. Because of the takeover, our funds were locked and unable to transfer out before the FDIC took over and halted everything.

 

[Ingomike]

Is this the shot to the economy that the 2008 bank failures were?

 

[ditcherman]

Is this the shot to the economy that the 2008 bank failures were?

I can’t answer your question, but there is more talk of it over here…

Stock Market is ROCKING

The list of those exposed to SVB keeps growing. I am just rolling laughing because nearly every name are woke companies heavily invested in ESG and CRT. Shopify, ZipRecruiter...now added. The list is getting longer by the minute. Also a boat load of non-profits that have supported nothing but...

www.indianagunowners.com

 

[Lpherr]

Is this the shot to the economy that the 2008 bank failures were?

We're in for a ride. There's speculation of more banks collapsing and it carrying over to real estate.

They are dead set to fulfill their goal.

 

[BigRed]

I wonder what portion of their assets (loans) were with start up companies banking on the bull**** "green new deal" subsidies from state?

 

[ditcherman]

I wonder what portion of their assets (loans) were with start up companies banking on the bull**** "green new deal" subsidies from state?

Quite a bit, according to the other thread, invested in ESG tomfoolery.