Silicon Valley Bank (SVB) Collapses
- Thread starter The Critic
- Start date
- Status
I am talking about next week's paychecks due to comapnies who bank there. Month-to-month cash flow is pretty high around here.
I went through a startup failure; I believe everyone ultimately got paid but many had to wait. Rent was due. It was scary for many, especially single mom admins, etc.
GON
$150 Site Donor 2025
I think Mark Cuban statement is slightly off when he states "The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits,". The (word )"Fed" should be replaced with US Taxpayers. I think it is disingenuous to state governmental bailout, etc. All payments by any government agency is a payment from US taxpayers, not the governmental agency.
Entrepreneur and Dallas Mavericks owner Mark Cuban has demanded the Federal Reserve take action and assume responsibility following the collapse of Silicon Valley Bank (SVB) Friday.
"The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits," Cuban wrote as part of a lengthy Twitter chain Friday. "Any losses paid for in equity and new debt from the new bank or whoever buys it. The Fed knew this was a risk. They should own it."
"If the Fed doesn’t own it, trust in the banking system becomes an issue," Cuban argued. "There are a ton of banks with more than 50 pct uninsured deposits."
"What would be best practices to protect from a future run if your company writes millions in checks weekly?"
https://www.foxbusiness.com/markets...e-mark-cuban-says-fed-immediately-take-action
Entrepreneur and Dallas Mavericks owner Mark Cuban has demanded the Federal Reserve take action and assume responsibility following the collapse of Silicon Valley Bank (SVB) Friday.
"The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits," Cuban wrote as part of a lengthy Twitter chain Friday. "Any losses paid for in equity and new debt from the new bank or whoever buys it. The Fed knew this was a risk. They should own it."
"If the Fed doesn’t own it, trust in the banking system becomes an issue," Cuban argued. "There are a ton of banks with more than 50 pct uninsured deposits."
"What would be best practices to protect from a future run if your company writes millions in checks weekly?"
https://www.foxbusiness.com/markets...e-mark-cuban-says-fed-immediately-take-action
That money should be clawed back, wages frozen, and a court date set. Their 95% commitment to a particular asset class is criminally negligent. They need to be held accountable.
Scott
Oh sweet!
So account holders will recover the first $250,000 in their SVB accounts. Should be good enough, right?
But not if your company had $55 million in an SVB account - which was just over 89% of your company's total cash reserves (as reported in today's Globe and Mail). I suppose your company gets to keep the first $250,000 of that account, just like everyone else. That's a 0.4% recovery.
But there were winners too. You might feel "fortunate" if you had transferred your company's "high 8 figure account" to a major Canadian bank the day before the SVB collapse (as also reported in today's Globe and Mail).
But not if your company had $55 million in an SVB account - which was just over 89% of your company's total cash reserves (as reported in today's Globe and Mail). I suppose your company gets to keep the first $250,000 of that account, just like everyone else. That's a 0.4% recovery.
But there were winners too. You might feel "fortunate" if you had transferred your company's "high 8 figure account" to a major Canadian bank the day before the SVB collapse (as also reported in today's Globe and Mail).
While I agree with you in principle, and Mark Cuban is a useless arrogant tool of the highest order, the federal reserve bank was set up to be the lender of last resort, so there is no bank run. All the other stuff like interest rates and full employment came later. If big companies feel they can't put their money in the bank, then there will be a bank run the likes has never been seen.
Note I am not advocating bailing out the bank, but bailing out depositors while seizing all bank assets - including the above listed executive "bonuses", might be overall the lowest cost way to manage this problem.
The way this bank failed really amazed me, and no one talks about it. Usually the fed swoops in at night, and before the problem is known. This one went down in the middle of the day while the world watched. There is way more to this story than we know.
GON
$150 Site Donor 2025
SCM,
The argument I have with Cuban's statement was the fed is making the depositors whole. The US taxpayers will be making the depositors whole.
If the US dollar is no longer the world's trusted and reserve currency, the fat lady will sing.
The Fed was doing nightly bank repos back in 2019 that kept increasing daily and it got very little attention.
Then Covid happened and everything change.
I don’t like Mark Cuban and I agree with you.
This article lists twenty or so banks that are showing red flags and may be affected by this latest bank fall.
https://www.marketwatch.com/story/2...otential-securities-lossesas-was-svb-c4bbcafa
https://www.marketwatch.com/story/2...otential-securities-lossesas-was-svb-c4bbcafa
Owen Lucas
$100 Site Donor 2023
- Joined
- Sep 5, 2021
- Messages
- 3,605
So we are having a bank run on Monday and the market deep in the red?
Sounds like a good time to use some of that cash on the sidelines to buy some discounted stocks over the next few days.
Sounds like a good time to use some of that cash on the sidelines to buy some discounted stocks over the next few days.
Yes, people will be waiting in line Monday morning to get their money out.
Yeah makes a great media story adding up unrealized worth but that is the market value that day. Meaning he could sell those assets for what they are worth on paper.
As if the other day it was only 180 billion it used to be over 300 billion but his stock in Tesla has been trashed over the last two years.
However, his private companies, I’m sure are worth more money to him
Yeah, Monday will be an entertaining day for sure.
As far as buying stock, I would say may be a good day if you have a stock already well valued. If not, I would be wary enough to ask if this is the catalyst to reality, or as you say, may be a good buying opportunity.
Like the first sentence, it’s going to be an interesting day. I’m not sure what I’ll do with my cash on the side sometimes when things like the scariest. Oh well.
There’s also a saying, I learned a long time ago, don’t fight the market and wow, Kramer in that video was certainly doing that.
In my long life so far, I have found in many cases when the stock is getting hammered over a period of time there is a reason
This stuff makes me so angry I cant even post about it. All I can say is I completely agree.
Mark Cuban has been injecting himself more and more into statements like this, I tune him out. I wonder how many start ups his "companies" money is in there.
(no politics allowed though)
- Status
Similar threads
- Locked
- Locked