I sold a bunch into this rally. On the tax free side of course.
Silicon Valley Bank (SVB) Collapses
- Thread starter The Critic
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The depositors with less than 250K at risk will be fine: covered by FDIC. The big depositors (many of which are companies) are being saved by the US Treasury (you and me).
Someone mentioned privatizing profits and socializing risks/loses. Probably the best portrayal of the corporate world today.
The SVB collapse has plenty of blame to go around. Plenty.
Execs who apparantly cannot read a balance sheet. Greed?
Internet frenzy that leads to $42B withdrawls crushing liquidity.
Raising rates that make long term assets less valuable requiring discounted sales.
Risky asset allocation putting bank into a position of weakness. Regulators asleep at the wheel?
Easing bank regulations that removed stress test and cash requirements. Regulators handcuffed?
This was preventable.
Execs who apparantly cannot read a balance sheet. Greed?
Internet frenzy that leads to $42B withdrawls crushing liquidity.
Raising rates that make long term assets less valuable requiring discounted sales.
Risky asset allocation putting bank into a position of weakness. Regulators asleep at the wheel?
Easing bank regulations that removed stress test and cash requirements. Regulators handcuffed?
This was preventable.
But not desirable.
Oh, they could read. 10 months ago there risk officer took a demotion. My guess is she walked in and said "all this trash you bought is going south, you better liquidate" and they said "the fed will pivot any minute, were good" - remember that narative.
So she said I aint going down with this ship and took a demotion, then left completely in October. Smart lady.
They knew full well almost a year ago. They just figured the fed had there back.
Accordingly, the Company and Ms. Izurieta entered into a separation (without cause) agreement pursuant to which she ceased serving in her role as Chief Risk Officer as of April 29, 2022 and moved into a non-executive role focused on certain transition-related duties until October 1, 2022.”
Silicon Valley Bank Proxy Shows Board’s Secret Yearlong Risk Panic
Lax risk oversight fueled the collapse of the 16th largest U.S. bank. What did the board know and when did they know it?
www.forbes.com
Regardless, we are experiencing an epic recovery.
My point is, there is plenty of blame to go around.Oh, they could read. 10 months ago there risk officer took a demotion. My guess is she walked in and said "all this trash you bought is going south, you better liquidate" and they said "the fed will pivot any minute, were good" - remember that narative.
So she said I aint going down with this ship and took a demotion, then left completely in October. Smart lady.
They knew full well almost a year ago. They just figured the fed had there back.
Accordingly, the Company and Ms. Izurieta entered into a separation (without cause) agreement pursuant to which she ceased serving in her role as Chief Risk Officer as of April 29, 2022 and moved into a non-executive role focused on certain transition-related duties until October 1, 2022.”
Silicon Valley Bank Proxy Shows Board’s Secret Yearlong Risk Panic
Lax risk oversight fueled the collapse of the 16th largest U.S. bank. What did the board know and when did they know it?
Regarding a C level abruptly leaving a Silicon Valley firm under questionable circumstances, welcome to Silicon Valley.
This is a brutal place; I love it here!
bank´s profit goes to their pockets.
bank´s loss goes to... hello dear taxpayers, how ya doin today ??
bank´s loss goes to... hello dear taxpayers, how ya doin today ??
2008 the bailout was shouldered by the tax payers.bank´s profit goes to their pockets.
bank´s loss goes to... hello dear taxpayers, how ya doin today ??
Banks will pay to make the SVB depositers whole.
How ya doin' today? If you ain't making money today you ain't in the game.
She was gone almost a year, and wasn't replaced. They didn't want a risk officer.
Its being reported that a whitelisted bank (one the fed has deemed able to acquire failed banks) was blocked by the FDIC from buying SIVB, and instead they wanted to let the taxpayer bail it out. I can't post it here - but you can find it pretty easily.
Sure. But if you are looking for a perfect world, we ain't in it.
In business, it is not so much about the desirable things, rather it is how you manage the undesirable things.
I've dealt with some pretty powerful Silicon Valley execs. 20 years ago I asked our President, "What if I make a mistake?" regarding my corporate forecast application that drove and measured the multi billion dollar company. He looked down at me with those cold steel eyes and stated, "We will fix it and move forward."
Then let silicon valley bail out there own bank, since the rest of us ignorant hicks are of no value to them.
I should’ve been more clear, from my point of view the prevention was not desirable.
Hence now we focus on who to blame. Like you said, lots of blame to go around.
But there is hardly any thought that perhaps that was exactly the outcome desired. Milking the system and then looking for a bailout. It’s quite a common theme.
Of course now we are delving into conspiracy theory realms, an we all know it’s crazy talk. No one would orchestrate these type of failures on purpose.
The Dow was up over 400 and I went to the store. Just got back and it’s a lot less.
One day.
I guess I don't follow. Why is prevention not desirable? Ya got me there!
The banking system fund is making the depositers whole; that's what it is for. I am not sure what you mean here.
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