Silicon Valley Bank Shares Halted After Plunge Deepens UPDATE: The Silicon Valley Bank has been shut down by regulators

[kwityurbeachn]

Ever hear the phrase "Hidden in Plain sight" ?

I don't know much about this bank but got this from a banker that understands all the data. According to him and a few other bankers this very thing could happen to any bank under the perfect storm(large depositors wanting to cash out at near same time).
Personally I trade quite often and have pulled large sums to go after stocks. Never really thought about the effect it has on the bank. Looks like during the covid trillions in new dollars that were thrown around, banks were flush with cash and nowhere to put it to earn interest. I have no knowledge of the banking markets. Luckily I am connected with some bankers and they have given a quick crash course.


From one of the bankers who said their deposits put them in shitty position with primarily business heavy deposits(out of insurance). Another said they should have paid out for supplemental insurance.

"Deposits grew from $49B at 12/18, to $175B at 12/22.
Loans grew from $28B at 12/18 to $73B at 12/22.
Investments grew from $26B at 12/18, to $129B at 12/22.
HTM at YE '22 were $91B.
AFS at YE '22 were $74B.

Knowing now that 90% of that deposit growth was uninsured...I mean...what could go wrong?

They were a pretty solid bank prior to this explosion of tech/VC money. Really, quite a shame."

 

[SilentStalkr]

Didn't Bush back in 2008 after that fiasco bailout, have some sort of corporate financial disclosure designed that the Federal Reserve or Treasury was to monitor these financial institutions so this would not occur again? Fast forward same shit different sellout in the White House!
The rich keep fucking up and making the poor even poorer, but when all is said and done they are still using a silver-spoon, while I'm hitting a Spam can with my prison spork, maybe crime pays after all.

Pretty much. Yes, the rich wil get richer, the little guy will get fucked, again. And we keep letting it happen.

It actually worse than that, they will make more money off of these losses and the tax payer will bail them out. The thing is if you have the funds you too could start to become rich. Unfortunately, for me it came to early and I am still paying off some debt. Will be done in September time frame, but that's too late to save enough to take advantage of the upcoming recession.

Are you advocating buying stocks at cheap prices? Ordinarily I’d agree with you but I’m not sure that is a good move currently. Then again, if it all collapses then it ain’t gonna matter anyways no matter where your money is parked.

On "Black 27"

Might as well...

 

[TheGerman]

Let them burn.

All.

Of.

Them.

 

[SilentStalkr]

Let them burn.

All.

Of.

Them.

Problem is, we gonna be the ones burning.

 

[Franko]

Problem is, we gonna be the ones burning.

Our money is already being burnt up by the inflation that the money printing for the bailout is causing.

 

[SilentStalkr]

Our money is already being burnt up by the inflation that the money printing for the bailout is causing.

Fair point!

 

[Emerson0311]

Our money is already being burnt up by the inflation that the money printing for the bailout is causing.

This. Once we stop trying to protect our illusions of solvency and swim strongly for the bottom, they lose their power over us. “If I don’t mind, it doesn’t matter”. USMC wisdom comes through again

 

[Hobo Hilton]

The Japanese know more about what is going on than the American's.

"Bank runs have started (and) interbank markets have become stressed," said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey.

Global equities gain, as rising bond yields pressure gold

Global shares stemmed a five-session rout on Tuesday as bank shares rebounded and closely-watched U.S. inflation data was in line with expectations, bolstering bets of a smaller interest rate hike by the Federal Reserve at its meeting next week.

www.reuters.com

 

[Hobo Hilton]

The $3.9 million BlackRock Future Financial and Tech ETF , meanwhile, held 3% of its assets in Signature and 1.7% in Silicon Valley Bank as of the end of December. The fund was down 3.9% in Monday afternoon trade.

Morgan Stanley, BlackRock funds among those exposed to regional bank failures

Mutual funds managed by Morgan Stanley , Fidelity, and BlackRock appear to be among the most exposed to the collapse of Silicon Valley Bank and Signature Bank, Morningstar data showed, as a market selloff has erased more than $100 billion of U.S. banks' value.

www.reuters.com

 

[Hobo Hilton]

Struggling to recover from a string of scandals, Switzerland's second-biggest bank has begun a major overhaul of its business, cutting costs and jobs and creating a separate business for its investment bank under the CS First Boston brand.

Credit Suisse shares hit new low

Credit Suisse shares hit a new record low in morning trading on Switzerland's stock exchange.

www.reuters.com

 

[Hobo Hilton]

Another one to watch as the fall out widens.

Is Santander a major bank?
Santander Bank, N.A. is one of the country's largest retail and commercial banks with $89.5 billion in assets.

https://www.santanderbank.com/documents/330001/372129/At+A+Glance+Flyer+Update.pdf/c5476a38-66b3-eef5-87d7-4b273893a73d

 

[Hobo Hilton]

Ok I haven't read the two middle pages but here is what I have heard as of now(pre regulators jumping into the books). This bank was not the typical institution. Many large account holders (that did not diversify amongst many banks). SVB top loaded somewhere around 70% in treasury notes(this is not a bad thing as it is income producing investment). Those were between 1 and 2% return. When Feds raised interest rates those same treasury notes now pay around 4.5%. The problem for SVB was they couldn't find a place to loan out much of their excess capital from the Feds printing frenzy during covid. SVB like many banks were cash heavy. Supposedly a group(various large deposit holders) moved their funds out of SVB. <Rumors around banking world...... Those funds are very secure if everything is on the up and up. Their problems started trying to unload long term investments(in our own federal debt). They were trying to unload those 1.5% Tnotes and got hammered because you can buy new ones for 4.5% return. It was a run on the bank and it can be done anywhere at any bank at any time. My info could be wrong but it sounds like the stock holders will get fucked and the bank will be sold off to other banks. I think the Feds have over 1 trillion in fees from banks to pay for this.

I think the Feds have over 1 trillion in fees from banks to pay for this.

Really ? Where are you getting this information ?

 

[rtB]

I read somewhere that approximately 40 BILLION was moved out of SVB in a matter of hours. So it was in essence a hit on the bank. That was about 25% of it's assets. No bank has 25% sitting around liquid. So they were forced to move a bunch of treasuries at a loss - which then meant their assets to liabilities were upside down.

The funny thing at the moment is, the "better managed" banks moved out of treasuries and put their money in - you guessed it - mortgage backed securities. I mean, why not, worked great last time.

And for extra credit - 40 billion is 400 million hundred dollar bills. At 1.37 μg of cocaine on average per 100 dollar bill, if you had 40 billion in cash you would also have over a pound of cocaine.

 

[kwityurbeachn]

I think the Feds have over 1 trillion in fees from banks to pay for this.

Really ? Where are you getting this information ?

One guy corrected the other and said about 125 billion. They both agreed on the surface this bank looks to have a solid investments you want to see. They don’t think much funds if any to bail out this bank. It’s wait and see but if they are 60 to 70% in tbils that portion is secured investment.

 

[Cardboard55]

Yikes!

Barney Frank under fire over role on board of doomed Signature Bank

Frank griped that regulators’ move to shut down Signature was overly aggressive — claiming that the bank could have survived.

nypost.com

 

[Cardboard55]

So Credit Suisse abandoned Swiss neutrality and froze Russian assets, this PO'ed the Chicoms, who thought twice about stashing cash in Credit Suisse, and possibly started withdrawing. CS also announced their reporting was, how shall we say, "accuracy challenged". Now the lawyers for CS investors are circling.

Random tweets:











By design or by accident, WWIII may be underway via financial doings.

We kicked Russia out of SWIFT, froze assets and confiscated stuff (rightly or wrongly) and the rest of the world is a little uneasy about it.





(great sarcasm about US policy):

 

[atepointer]

I don't know much about this bank but got this from a banker that understands all the data. According to him and a few other bankers this very thing could happen to any bank under the perfect storm(large depositors wanting to cash out at near same time).
Personally I trade quite often and have pulled large sums to go after stocks. Never really thought about the effect it has on the bank. Looks like during the covid trillions in new dollars that were thrown around, banks were flush with cash and nowhere to put it to earn interest. I have no knowledge of the banking markets. Luckily I am connected with some bankers and they have given a quick crash course.


From one of the bankers who said their deposits put them in shitty position with primarily business heavy deposits(out of insurance). Another said they should have paid out for supplemental insurance.

"Deposits grew from $49B at 12/18, to $175B at 12/22.
Loans grew from $28B at 12/18 to $73B at 12/22.
Investments grew from $26B at 12/18, to $129B at 12/22.
HTM at YE '22 were $91B.
AFS at YE '22 were $74B.

Knowing now that 90% of that deposit growth was uninsured...I mean...what could go wrong?

They were a pretty solid bank prior to this explosion of tech/VC money. Really, quite a shame."

I get where Theil was coming from when he pointed it out no question it was insane mismanagement by SIVB for a bank with a customer base such as theirs. Anyone in his position reviewing hold to maturity/available for sale on 2/24 not saying as much would be just dumb. I'm more shocked it took 3 weeks to transpire. Having said that as I went over the 10k I chuckled b/c I own several of the same in my portfolio, BUT the big difference is the 'HTM' you pointed out. I don't ever buy fixed income with the intention to sell for a cap gain it's for the interest payments and buying under par until they mature at par. If I can find a suitable comparable replacement there are times I'll take advantage of some sell and swap, but not the goal at outset. More importantly I don't have to worry about fulfilling depositors withdraws and having to sell bonds at a loss to fund it. I like the portfolio, but not in their situation and as you said 'quite a shame'.

 

[Cardboard55]

More on Credit Suisse problems

"At least a dozen private bankers at the managing director-level and above have left in Singapore and Hong Kong since September, or are planning to leave."

Credit Suisse Default Swaps Hit Record as SVB Failure Hits Banks

(Bloomberg) -- The cost of insuring the bonds of Credit Suisse Group AG against default climbed to the highest on record as the collapse of Silicon Valley Bank sparked concern about broader contagion in the banking industry.Most Read from BloombergBonds Soar, Stocks Gain as Fed Pause Weighed...

finance.yahoo.com

A full-spectrum war could easily involve poaching key people in critical companies.

Back to SVB

Biden’s rescue of ‘pro-Democrat’ SVB clients slammed: ‘They’re looking after their own’

“This is a bailout… it is,” a tech insider told The Post.

nypost.com

 

[lariat]

The Federal Reserve Just Made An Emergency Decision Which Will Fundamentally Change Banking In America Forever

Did you think that the Federal Reserve was just going to stand by and watch the U.S. banking system completely collapse? In response to the stunning failures of Silicon Valley Bank and Signature Bank, the Federal Reserve announced a rescue plan on Sunday evening that is going to radically...

endoftheamericandream.com

 

[lariat]

Couple of observations:

1. This bail-out will not cause banks to shore up their balance sheets. If bad practices are going to be backstopped by the government (and by extension, the taxpayer), then why wouldn't they keep pursuing risky strategies? This decision to fully backstop depositors is most defintiely not encouraging risk aversion with other people's money.

2. Printing money to cover this means MORE inflation, which means higher prices. The more bank failures the more inflation and the more assets that get pushed to the Fed balance sheet, a la 2008.


Anyone remember in the early 2000's the conversations about the stock market's Plunge Protection Team? Wanna bet they are in the mix?

Plunge Protection Team (PPT): Definition and How It Works

The Plunge Protection Team is a nickname for the Working Group on Financial Markets, which makes recommendations to the U.S. president.

www.investopedia.com

Working Group on Financial Markets - Wikipedia

en.wikipedia.org

"Former Federal Reserve Board member Robert Heller, in the Wall Street Journal, opined that "Instead of flooding the entire economy with liquidity, and thereby increasing the danger of inflation, the Fed could support the stock market directly by buying market averages in the futures market, thereby stabilizing the market as a whole." Author Kevin Phillips wrote in his 2008 book Bad Money that while he had no interest "in becoming a conspiracy investigator", he nevertheless drew the conclusion that "some kind of high-level decision seems to have been reached in Washington to loosely institutionalize a rescue mechanism for the stock market akin to that pursued...to safeguard major U.S. banks from exposure to domestic and foreign loan and currency crises."[12] Phillips infers that the simplest way for the Working Group to intervene in market plunges would be through buying stock market index futures contracts, either in cooperation with major banks or through trading desks at the U.S. Treasury or Federal Reserve.[12]"


Speaking of PPT:

First Republic shares jump 50% as regional banks try to rebound from Monday’s sell-off

Regional bank stocks rebounded on Tuesday as investors digested the fall-out from the collapse of Silicon Valley Bank and stabilization efforts from regulators.

www.cnbc.com

 

[Hobo Hilton]

One guy corrected the other and said about 125 billion. They both agreed on the surface this bank looks to have a solid investments you want to see. They don’t think much funds if any to bail out this bank. It’s wait and see but if they are 60 to 70% in tbils that portion is secured investment.

That is a big IF....

 

[Cardboard55]

Unusual metric:

https://www.cnn.com/markets/fear-and-greed

 

[forrestgump01]

Unusual metric:

https://www.cnn.com/markets/fear-and-greed

I'm going to go print that out so I can wipe my ass with it !

 

[Shooter McGavin]

I'll give it two weeks and this shit house will start crumbling down. The media for the next two weeks will do everything in its powers to keep people in the dark all the while trying to make Biden look good.

By the way I hope you all have a victory garden this year or stocked up on can goods for next winter because hyper inflation is going to make food and energy cost go sky high.

 

[Longshot231]

Biden Assures Americans Their Bank Deposits Are Safe In Ukraine

Full story here:
https://babylonbee.com/news/biden-assures-americans-their-life-savings-is-safe-in-ukraine

 

[Shooter McGavin]

Biden Assures Americans Their Bank Deposits Are Safe In Ukraine

Full story here:
https://babylonbee.com/news/biden-assures-americans-their-life-savings-is-safe-in-ukraine

Funny and not funny at the same time. Shits gonna get real bad soon.

 

[BLEE]

The Federal Reserve Just Made An Emergency Decision Which Will Fundamentally Change Banking In America Forever

Did you think that the Federal Reserve was just going to stand by and watch the U.S. banking system completely collapse? In response to the stunning failures of Silicon Valley Bank and Signature Bank, the Federal Reserve announced a rescue plan on Sunday evening that is going to radically...

endoftheamericandream.com

The bank failures of the past week are just the tip of the iceberg. The bailouts will slow the sinking of the ship long enough to get through the 2024 elections. They know these bailouts will collapse the USD. It's what the globalists desire and have been pushing for. Digital currency will be the solution.

 

[Cardboard55]

Obama official, Hillary donors, improv actor: Meet SVB’s board of directors

Among the 12 directors who were supposed to oversee fallen Silicon Valley Bank — and prevent the catastrophic errors on Friday threw the entire banking system into jeopardy — there’s only one…

nypost.com

 

[RUTGERS95]

anyone see her full resume or linkedin background? Beck too? both have been scrubbed

 

[sirhrmechanic]

Obama official, Hillary donors, improv actor: Meet SVB’s board of directors

Among the 12 directors who were supposed to oversee fallen Silicon Valley Bank — and prevent the catastrophic errors on Friday threw the entire banking system into jeopardy — there’s only one…

nypost.com

Everything they touch they destroy. Which is their intent.

Sirhr

 

[UKDslayer]

I'll give it two weeks and this shit house will start crumbling down. The media for the next two weeks will do everything in its powers to keep people in the dark all the while trying to make Biden look good.

By the way I hope you all have a victory garden this year or stocked up on can goods for next winter because hyper inflation is going to make food and energy cost go sky high.

Saw some economist on that said something to the opposite - things will quiet down in two weeks but at two months things will tank widespread.

 

[Hobo Hilton]

Saw some economist on that said something to the opposite - things will quiet down in two weeks but at two months things will tank widespread.

Just moving the recession into 2024

 

[Franko]

Saw some economist on that said something to the opposite - things will quiet down in two weeks but at two months things will tank widespread.

The take that makes the most sense I have seen so far is that we will see the banks settle down as the Fed just bailed out the entire sector and promised them 1 year bridge loans "at face value" for their securities and bonds. The Fed just essentially nationalized the entire banking sector and is going to pay for it by debasing our currency even more.

Where I expect to see the pressure is going to be where the Fed and Government wants it; on the poor and middle class. Inflation will be tamed by destroying small businesses and forcing the middle class to accept wage stagnation and rising prices.

 

[lariat]

And another shoe just dropped. Pensions were invested in SVB. Not deposited, invested. Biden said no to investors getting a bailout, so here we are.

MSN

 

[atepointer]

And another shoe just dropped. Pensions were invested in SVB. Not deposited, invested. Biden said no to investors getting a bailout, so here we are.

MSN

At least the US based pension fund managers mentioned had the sense to diversify and make sure when a blowup happens it's small. Their exposure is peanuts when you are talking about CalPERS with a $77m investment b/t the two in a $440b portfolio. They have daily portfolio fluctuations that move more money than that total loss.

If just one of these board member yo yos had made sure they were not all out on the long end of the curve with Treasuries this story never even happens. No idea what they were doing with that book given most of their client base is a cash hungry machine. Just stupidity of ESG board members.

 

[Shooter McGavin]

 

[Mr.BR]

Unfortunately this shit show at woke silicon bank will likely boost the digital central bank currency push and CCP style social score will not be far behind , ''you will own nothing and you will be happy'' , WEF is so winning this thing.

By the way silicon valley bank being nationalized also fulfills a secondary role, holding lots of tech start-ups and business money adds leverage to make them dance to their tune when needed

 

[Hobo Hilton]

And another shoe just dropped. Pensions were invested in SVB. Not deposited, invested. Biden said no to investors getting a bailout, so here we are.

MSN

BlackRock holds a lot of that "Pension Money".... BlackRock has been bold while playing with other people's money.
Another interesting shake out.

 

[Mr.BR]

BlackRock holds a lot of that "Pension Money".... BlackRock has been bold while playing with other people's money.
Another interesting shake out.

Easy to be bold when you literally hold the reins, FED had Black Rock contracted to handle things for last couple of years, can they have it any easier?

 

[Cardboard55]

Signature Bank boss hosted company seminar on gender-neutral pronouns

Signature Bank boss Scott Shay (left) hosted a seminar on gender-neutral pronouns in October with critics questioning the companies priorities after it was shut down at the weekend by regulators.

www.dailymail.co.uk

 

[Cardboard55]

SVB, Signature and Credit Suisse donated $1.2M to Dems since 2017

The data is laid bare in an outline of the donations done up by government transparency group OpenSecrets - and shows that all three big banks spent big to ensure their candidates took office.

www.dailymail.co.uk

Cheaper than insuring their deposits/investments, I'd imagine.

 

[Mr.BR]

It might not all be what is seems like at first glance

 

[clcustom1911]

Oops looks like Sweden's largest retirement fund for over 2 million citizens might be out over $1,000,000,000

 

[Hobo Hilton]

In the aftermath of the catastrophic collapse of the Silicon Valley Bank (SVB), new details have emerged revealing just how much the bank continued to double down on far-left “diversity” policies despite previously suffering losses to the tune of hundreds of millions of dollars.

Silicon Valley Bank Doubled Down on Far-Left Policies Despite Hundreds of Millions in Losses › American Greatness

In the aftermath of the catastrophic collapse of the Silicon Valley Bank (SVB), new details have emerged revealing just how much the bank continued to double down on far-left “diversity” policies…

amgreatness.com

 

[Hobo Hilton]

Ripple Effect... Worldwide

Credit Suisse was down as much as 21% around 10.33 a.m. London time, followed by Societe Generale, which dropped 9.9%.

European shares close down 3% as Credit Suisse leads banking stocks on a wild ride lower

European stock markets plunged as banks fell 7% on an announcement from troubled Credit Suisse.

www.cnbc.com

 

[DarnYankeeUSMC]

Sounds like it was a great ponzi scheme.
Spending other people's money on their special interests. Taking large salaries and living large. Except the government (taxpayers) cover for their scam.
Almost like that crypto fucker

 

[Cardboard55]

Signature Bank execs starred in cringey Broadway-style musical sketch video

A song in the musical video, branded the doomed bank “the stupidest idea I ever heard” and even quipped that it could “diminish and fail.”

nypost.com

 

[Short-bus]

The bank failures of the past week are just the tip of the iceberg. The bailouts will slow the sinking of the ship long enough to get through the 2024 elections. They know these bailouts will collapse the USD. It's what the globalists desire and have been pushing for. Digital currency will be the solution.

Who wants to bet they'll prop up the sinking ship, and then 'allow' a conservative to win the 2024 election, and on their way out, pull out everything proving everything up, and as everything is going to shit, they're going to be on every news outlet saying "look what they did, it's all their fault! This is why you vote blue!"

It's a long shot for sure....but it's just a random theory.

Branden

 

[brianf]

I get where Theil was coming from when he pointed it out no question it was insane mismanagement by SIVB for a bank with a customer base such as theirs. Anyone in his position reviewing hold to maturity/available for sale on 2/24 not saying as much would be just dumb. I'm more shocked it took 3 weeks to transpire. Having said that as I went over the 10k I chuckled b/c I own several of the same in my portfolio, BUT the big difference is the 'HTM' you pointed out. I don't ever buy fixed income with the intention to sell for a cap gain it's for the interest payments and buying under par until they mature at par. If I can find a suitable comparable replacement there are times I'll take advantage of some sell and swap, but not the goal at outset. More importantly I don't have to worry about fulfilling depositors withdraws and having to sell bonds at a loss to fund it. I like the portfolio, but not in their situation and as you said 'quite a shame'.


View attachment 8096161
View attachment 8096162

exactly, the financial strat they were using was "personal" not financial institution

but thats what you get when you only hire like-minded people on the board none of which had served in that capacity before

what a lot of people dont understand is that a bank is a business run by regular people, like every other business

because your desk sits in a bank doesn't make you any smarter

just like companies go out of business, banks can go out as well

2 sides of the coin;

1. bail them out so people dont lose money (250K and below)

2. let them burn and the clients get cooked (250k and above)

if you dont let them burn, there are no consequences for poor decisions

if you let them burn, the regular guy loses his money

sucks all the way around...but they were leaning woke with investments in europe so..let them burn

 

[atepointer]

exactly, the financial strat they were using was "personal" not financial institution

but thats what you get when you only hire like-minded people on the board none of which had served in that capacity before

what a lot of people dont understand is that a bank is a business run by regular people, like every other business

because your desk sits in a bank doesn't make you any smarter

just like companies go out of business, banks can go out as well

2 sides of the coin;

1. bail them out so people dont lose money (250K and below)

2. let them burn and the clients get cooked (250k and above)

if you dont let them burn, there are no consequences for poor decisions

if you let them burn, the regular guy loses his money

sucks all the way around...but they were leaning woke with investments in europe so..let them burn

Why on earth someone on that board didn't say 'guys we need to have a good chunk of short maturities to give us access to cash in case one of these VC's says they need $100m real quick'. I don't even have any securities licenses, but I'd have the sense to keep the lion's share in short maturity when I cater to cash hungry tech/VC clientele. This is just flipping common sense.....I do wonder if someone brought it up and was just overruled.. All of them can't be *that* dumb. I'm probably giving them way too much credit....on the same token of why I shit canned Merrill Lynch in 2008 and started managing my own money.