Bank Failures

**BustOfPallas** · 03-12-2023, 11:12 AM

Anyone else a little worried about the failure of Silicon Valley Bank and that we may be on the precipice of some sort of financial calamity?

**jonboy79** · 03-12-2023, 11:29 AM

Originally Posted by BustOfPallas

Anyone else a little worried about the failure of Silicon Valley Bank and that we may be on the precipice of some sort of financial calamity?

My bank literally called me out of the blue to mention their new offers for CD’s and Money Market accounts, which admittedly have dramatically improved rates compared to the even mid-range past.

But that was a MAJOR player(Truist) and this strategy screams liquidity issues to me…

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**Flacco's_Haircut** · 03-12-2023, 12:57 PM

Reading into these guys, sounds like their Risk Management totally blew it. Didn't understand their duration exposure between their assets, liabilities, and their clientele. From a pure financials perspective, shouldn't affect the big guys. The smaller and more regional banks may be under more scrutiny for their asset/liability exposure. Biggest danger is a crisis in confidence that could have contagion elsewhere, particularly the smaller enterprises.

For the market as a whole, the S&P is offering yields that you can get through treasuries (last time we saw that was the dotcom bubble), plus are offering low quality of earnings and red-lining on their margins. We are more than overdue for a correction in equity prices.

**2bynight** · 03-12-2023, 01:51 PM

This screams one-off to me.

**darb72** · 03-12-2023, 04:15 PM

Originally Posted by BustOfPallas

Anyone else a little worried about the failure of Silicon Valley Bank and that we may be on the precipice of some sort of financial calamity?

Nope. My wife is a VP for a multi-billion dollar bank and they're doing great. SVP's problem, aside from the terrible Risk Management being completely incompetent, was that they didn't have a very diversified client base. Deliciously ironic, that.

**MacMunin** · 03-12-2023, 09:15 PM

Orchestrated

**BustOfPallas** · 03-13-2023, 10:57 AM

So no one else can see the parallels in how our government is forcing the people that safeguard our retirement savings to similarly invest our money, our hard earned 401K money in schemes based on meritless DEI, green, social governance criteria and how that will similarly end up in catastrophe.

This sort of thing, the ideology driven decisions of deep importance detached from reason and economic reality are how you end up having millions of people starve to death.

See the cultural revolution in China or the Russian revolution.

**ddr_jr** · 03-13-2023, 11:40 PM

Originally Posted by BustOfPallas

So no one else can see the parallels in how our government is forcing the people that safeguard our retirement savings to similarly invest our money, our hard earned 401K money in schemes based on meritless DEI, green, social governance criteria and how that will similarly end up in catastrophe.

This sort of thing, the ideology driven decisions of deep importance detached from reason and economic reality are how you end up having millions of people starve to death.

See the cultural revolution in China or the Russian revolution.

Had nothing to do with the boogie man DEI. That's just a distraction like everything else. The posters above seemed to have a better pulse of what happened with them.

Have a read:
https://www.vice.com/en/article/xgwq...s-on-its-board

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**darb72** · 03-14-2023, 12:48 AM

Originally Posted by ddr_jr

Had nothing to do with the boogie man DEI. That's just a distraction like everything else. The posters above seemed to have a better pulse of what happened with them.

Have a read:
https://www.vice.com/en/article/xgwq...s-on-its-board

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I just read a Vice article. I am now fluent in absolute dumb-fuckery. That makes four foreign languages; this is a very proud moment for me.

Normally I would take a few moments to dissect whatever ignorant shit Sparky has seen fit to foist upon us, but this is some damned good coffee.

Nobody thinks having a non-white person on the board of directors caused SVB to collapse. It was a failure by their Risk Management, and their lack of Risk Management.

If any adults want actual explanations for what happened, here.
https://www.ft.com/content/63dc908c-...a-9a9ba3e38b31

https://fortune.com/2023/03/13/risk-...n-valley-bank/

https://www.forbes.com/sites/noahbar...h=cce81191e7b9

**Terpsfan82** · 03-14-2023, 09:56 AM

Originally Posted by darb72

I just read a Vice article. I am now fluent in absolute dumb-fuckery. That makes four foreign languages; this is a very proud moment for me.

Normally I would take a few moments to dissect whatever ignorant shit Sparky has seen fit to foist upon us, but this is some damned good coffee.

Nobody thinks having a non-white person on the board of directors caused SVB to collapse. It was a failure by their Risk Management, and their lack of Risk Management.

If any adults want actual explanations for what happened, here.
https://www.ft.com/content/63dc908c-...a-9a9ba3e38b31

https://fortune.com/2023/03/13/risk-...n-valley-bank/

https://www.forbes.com/sites/noahbar...h=cce81191e7b9

It was greed, pure and simple. They took on additional risk to maximize profit. It worked. Until it didn't.

**BustOfPallas** · 03-15-2023, 07:43 AM

Originally Posted by darb72

I just read a Vice article. I am now fluent in absolute dumb-fuckery. That makes four foreign languages; this is a very proud moment for me.

Normally I would take a few moments to dissect whatever ignorant shit Sparky has seen fit to foist upon us, but this is some damned good coffee.

Nobody thinks having a non-white person on the board of directors caused SVB to collapse. It was a failure by their Risk Management, and their lack of Risk Management.

If any adults want actual explanations for what happened, here.
https://www.ft.com/content/63dc908c-...a-9a9ba3e38b31

https://fortune.com/2023/03/13/risk-...n-valley-bank/

https://www.forbes.com/sites/noahbar...h=cce81191e7b9

Well, yeah, risk management is banking. It's part of running a bank. I'm not a banker but I would imagine it's one of the core fundamental things banks do or should be doing. If you don't do that or get that right you shouldn't be in business.

So if you are not doing that what are you doing?

I watch mostly cooking and Ukraine war videos on YT these days but youtube picked this out for me ths morning and I thought it was interesting.

My weekly slice of outrage.

The period of time we are in just feels a lot to me like the late 90s and early 2000s when we started seeing a push on making loans more accessible based on factors other than the traditional measure of credit worthiness. Ideology/socially based banking in other words.

I don't think that works.

I wouldn't care if my money was managed by some luggage stealing Sluggo in red pumps if Sluggo is guarding my money and doing the job of keeping my bank solvent.

I'm updating this to add I am also worried about the ESG 401K rules Biden is pushing. I had a very liberal boss in the early 2000s. I worked with him 14 years and we were friends and started a company together. He was about as far left as they come. When we finally set up our company retirement savings he chose an ESG fund manager before ESG was a thing. The returns sucked. It was the poorest performing IRA I had. I don't think left ideology, particularly the current flavor, and banking/finance mix. I'm just an engineer though so what do I know.

**Iamjacks** · 03-16-2023, 06:40 PM

Originally Posted by jonboy79

My bank literally called me out of the blue to mention their new offers for CD’s and Money Market accounts, which admittedly have dramatically improved rates compared to the even mid-range past.

But that was a MAJOR player(Truist) and this strategy screams liquidity issues to me…

Sent from my iPhone using Tapatalk

That's everyone, both my banks, neighbors, friends. This has been happening for a few months now.

The dollar is dead. Has been for a while, we're just in the death throws.

Right now they are imploding selected banks that they want to take over. SVB WAS NOT insolvent, they took it over anyway. They also deliberately caused the bank run.

Ripple/XRP-US Nationalize Banking System?,US debt Clock/Fed Note Missing?,SEC v Ripple 4/5yr SCOTUS?
https://www.youtube.com/watch?v=2ahoT-pXAYI

What the plan is, is to implement CBDCs which are digital currency but they ARE NOT crypto. CBDCs have a high potential to be slave systems, they could have high privacy but they are not by default.

Hopefully XRP will wind up as the neutral bridge currency that it was designed to be.