Silicon Valley Bank (SVB) Collapses

[SC Maintenance]

Are the feds even talking about this??? That was a rumor from GS.

With the fed meeting next week they shouldn't be talking about much. I presume the odds makers have dropped the 50 BPS hike chances considerably.

I figure the fed will continue raising rates until something breaks. Wonder if this is big enough to qualify.

 

[joekingcorvette]

All my accounts are up today.

One of my cash accounts, since open: View attachment 144839

Yes but most likely down yesterday and Friday. It will be interesting to see what happens but probably a buyer's market now but I would be cautious especially with CD rates that are over 4.5% APR which is safe.

 

[JeffKeryk]

Precisely why I don't invest in a single company. But what do I know? I remember being in a computer store in 1998 laughing at this little section of iMacs thinking Apple was going out of business while the rest of the store was picking up all the Windows PCs they could.

You're not the only one who thought this way.

 

[alarmguy]

I think it' too bad the Feds are talking about slowing the interest rate hikes. The hikes are what slows down the inflation and 5% CD rates are nice. I do want the Dow to go up too.

Yeah, I agree, and I dont think they will back off. I THINK they messed up last time by only raising .25% I am certain they will hold to .25%

Dont worry though, no matter what they do, they will get it wrong over time, after all its why we have the insane inflation right now.

 

[JeffKeryk]

Yes, which decreased in value when interest rates increased and they had to sell them for a loss to cover outflows - that is what precipitated all of this...

This plus bad management plus deregulation. All tied together at the hip. And all preventable.

 

[JeffKeryk]

Any of you ever heard of Silicon Valley Bank before this? Because I haven't. Just curious.

You would if you lived around here.

 

[Pablo]

Yes but most likely down yesterday and Friday. It will be interesting to see what happens but probably a buyer's market now but I would be cautious especially with CD rates that are over 4.5% APR which is safe.

My various retirement/trading accounts did not fare too badly Thursday-Friday. I have a few market funds and specialty items that were down a bit, but offset by inverse funds. My cash and muni accounts did fine.

CD's are great for tying money up, just lock away. Well as long as a good bank!

 

[SC Maintenance]

So you really can't make this up. On Sunday Yahoo finance published an article that GS was saying buy the dip on banking stocks, and one of the two names is Charles Schwab. I guess 18% in a day is a pretty good dip.

Goldman Sachs Analysts See Opportunity in These 2 Beaten-Down Bank Stocks

Last week ended with the worst day for bank stocks since the financial crisis of 2008. The collapse of Silicon Valley Bank, the country’s 16th largest banking firm and the lender of first resort for the start-ups of California’s tech world, has sparked fears of a larger bank run, or even a...

finance.yahoo.com

 

[PimTac]

So you really can't make this up. On Sunday Yahoo finance published an article that GS was saying buy the dip on banking stocks, and one of the two names is Charles Schwab. I guess 18% in a day is a pretty good dip.

Goldman Sachs Analysts See Opportunity in These 2 Beaten-Down Bank Stocks

Last week ended with the worst day for bank stocks since the financial crisis of 2008. The collapse of Silicon Valley Bank, the country’s 16th largest banking firm and the lender of first resort for the start-ups of California’s tech world, has sparked fears of a larger bank run, or even a...

finance.yahoo.com

View attachment 144841

View attachment 144842

If you could. The shares were halted for a short time probably to allow GS to buy in then reopened. Now they are only down 9% or so.

 

[Pablo]

If you could. The shares were halted for a short time probably to allow GS to buy in then reopened. Now they are only down 9% or so.

Pretty sure they are regulated.

 

[BMWTurboDzl]

Yeah, that is what I mean't by not bailing out the bank. All deposits are whole, not just the insured and it's not costing the taxpayers anything except for the government wages paid for handling this. I agree with you but honestly as far as "the system" I see nothing extraordinary here. Meaning the investors lost their investment and the deposits were saving because the assets are there.
Much like HSBC took over SVB EU operations.

I imagine it does cost taxpayers because the rescuing bank is going to want a discount on the acquisition of the uninsured deposits.

 

[PimTac]

Pretty sure they are regulated.

 

[MParr]

Bank stocks are getting pummeled today. I told you yesterday that this would happen.

Trading Halts Explained

In rare circumstances, it has been necessary to suspend trading in a particular stock, or in even rarer occasions, the entire market.

www.marketbeat.com

 

[joekingcorvette]

Bank stocks are getting pummeled today. I told you yesterday that this would happen.

Trading Halts Explained

In rare circumstances, it has been necessary to suspend trading in a particular stock, or in even rarer occasions, the entire market.

www.marketbeat.com

Wow that does not look good.

 

[MParr]

Interesting that the announced bailout goes above and beyond what is allowed by the FDIC. A complete bailout by going around Congress. I hope there are some plans to get Congressional approval before going any further.

 

[dadto2]

I want to know if the armored "bailout" truck is running Devac or Rotella, and the OCI.

 

[alarmguy]

I imagine it does cost taxpayers because the rescuing bank is going to want a discount on the acquisition of the uninsured deposits.

Ohhh I won’t be surprised if some creative accounting gets traced back to the taxpayer

 

[alarmguy]

Call me crazy, just jumped into the fire and purchased Charles Schwab SCHW
Moment of insanity

 

[Pablo]

WSJ News Exclusive | FDIC Planning Another Silicon Valley Bank Auction

The auction comes after a failed attempt to find a suitor on Sunday.

www.wsj.com

I just upped my bid to $3.01

 

[GMFan]

Everyone just relax. This is probably just the start of the second “once in a lifetime financial crisis” like 2008/2009 to occur in our lifetimes. At this rate, in another 15yrs, we’ll have another. Now back to your Netflix binging.