Silicon Valley Bank (SVB) Collapses

[GON]

We sweep cash all the time but nowhere to the level required to keep say 10M at 250 or below.

A company with 10M in the bank would have to split it between 40 banks to stay at 250.

I have all kinds of bills that are above 250K.

A corp pays out obligations with a line of credit, and then pays off the line of credit from its multiple federally insured accounts.

Having the American taxpayer bailout high tech corporations because the corporation choose not to have a strategy to pay obligations and keep funds insured is awkward- and many of these corporations had payouts to executives of eight figures of more. Seems that CEO might have taken enough salary and bonus to pay off the loss out of his own pocket, like small businesspeople often do. But instead, the American taxpayer will pay off the loss, while the high-tech executive keeps every penny of his eight-nine figure earnings.

I can promise you one thing. Every key executive of the high-tech organizations that are exposed to significant losses from SVB, will be at the finest ski-in, ski-out accommodations Christmas 2023, or be in the finest accommodations in Hawaii, Barbados, etc. at Christmas.

 

[JeffKeryk]

People and financial institutions like that don't deserve any kind of "bail outs". Let them fail and learn a lesson IMO.

They aren't the ones who suffer! Well, maybe their poor reputation... Boo hoo.

 

[JeffKeryk]

Uh they violated laws. Why are you saying they didn't?

Which laws? I have not heard about that.

 

[GON]

I had no idea anyone or any company had $100million + in a bank account that was ever at risk of failing. I just assumed there was something special that was done with all that cash.

Small business owners go deep into their own pocket when something like this happens to keep the business afloat and payroll on-time.

Why are the executives of these organizations that have received eight-nine figure payouts not reaching into their pockets to make payroll? Easy answer, and a very sad answer. Instead of that CEO making 350 million in cash and bonus over five years, maybe he should have made 3.5 million over five years and had the organization he led place the difference, 346.5 million, in supplemental reserves, for a catastrophic like event.

 

[Pablo]

https://www.wsj.com/articles/federa...y-measures-to-prevent-banking-crisis-ba4d7f98

"Federal regulators rolled out emergency measures Sunday night to stem potential spillovers from Friday’s swift collapse of Silicon Valley Bank, including measures to backstop all depositors.

Regulators announced the action in a joint statement from Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corp. Chair Martin Gruenberg. The group said that depositors at SVB will have access to all of their money on Monday."

"The regulators also said that Signature Bank was closed Sunday. The New York bank’s depositors will be made whole, they said."

 

[ZeeOSix]

They aren't the ones who suffer!

If a financial institution like a bank goes out of business they would suffer. Too many banks have been bailed out. If they weren't, they might operate differently.

 

[Pablo]

Which laws? I have not heard about that.

Insider trading at the very least.

 

[MParr]

Just In: Signature Bank has joined Silicon Valley Bank. Bloodbath tomorrow.
https://home.treasury.gov/news/press-releases/jy1337

 

[JeffKeryk]

If a financial institution like a bank goes out of business they would suffer. Too many banks have been bailed out. If they weren't, they might operate differently.

The point is, there are no rules/laws in place. @Pablo mentioned insider trading; we'll see.
I seriously have my doubts and have heard nothing about this. But it is early.

 

[PWMDMD]

Just In: Signature Bank has joined Silicon Valley Bank. Bloodbath tomorrow.

I'm surprised a bank that specializes in crypto took this long...

 

[GON]

Just In: Signature Bank has joined Silicon Valley Bank. Bloodbath tomorrow.

Treasury stated they will make everyone "whole". Stock futures now very green for Monday morning opening.

No more recessions or like bad events to come to the USA- money will be printed- until an event happens that mirrors the event that began in 1929.

 

[PWMDMD]

Treasury stated they will make everyone "whole". Stock futures now very green for Monday morning opening.

No more recessions or like bad events to come to the USA- money will be printed- until an event happens that mirrors the event that began in 1929.

What's another $175B?

 

[miden851]

Treasury stated they will make everyone "whole". Stock futures now very green for Monday morning opening.

No more recessions or like bad events to come to the USA- money will be printed- until an event happens that mirrors the event that began in 1929.

all of it and everything is ARTIFICIAL out there!

 

[GON]

What's another $175B?

Good and sad point.

 

[leadcounsel]

Bloodbath tomorrow.

I've been telling friends since the bailout mistakes of 2008, the next one will cripple us. Here we are.

 

[GON]

I've been telling friends since the bailout mistakes of 2008, the next one will cripple us. Here we are.

No bloodbath tomorrow. Just a transfer of wealth from some individual investors to a handful of organizations like Goldman Sachs. Billions of dollars will be netted by organizations like Goldman Sachs from the SVB event. And not because Goldman Sachs is smarter or better than others; being an insider to a very exclusive club pays so very well.

 

[ZeeOSix]

The point is, there are no rules/laws in place.

Are there any rules/laws that says banks or other financial institutions, etc have to be "bailed out" if they get into trouble because they don't know how to not get in trouble?

 

[Dave Hess]

Anybody making some trades tomorrow due to all the bad news ?

If so, what ?

 

[Pablo]

Futures and gold are currently up.

Dollar is down.

 

[Pablo]

Just In: Signature Bank has joined Silicon Valley Bank. Bloodbath tomorrow.
https://home.treasury.gov/news/press-releases/jy1337

Well, see post #206.

No bloodbath. Yet.