Silicon Valley Bank: Largest bank failure of past decade occurs

Thanks for the tag.

How does one 'regulate' the economy? Communism?

I thought we discussed this already. I support (fair) regulation. Big corps are usually terrible.

Additionally there were many points of failure of this bank. Stop with the 'Repubs are evil, Democrats are pure' nonsense.

 

As long as a bailout isn't on the horizon I don't care...they did this to themselves.

 

yet you can't list some of them

 

The Dodd-Frank Banking Rule Rollback ( in 2018) Explained


The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed by the Obama administration in 2010 as a response to the 2008 financial crisis. The Dodd-Frank Act's numerous provisions were intended to decrease risks in the US financial system through the establishment of several new government agencies such as the Consumer Financial Protection Bureau. A key component of the Dodd-Frank Act, the Volcker Rule, regulates the way banks are able to invest by limiting speculative trading and eliminating proprietary trading.

the partial rollback of Dodd-Frank rules was signed into law by President Trump. This rollback follows years of Republican complaints regarding the financial burden placed on smaller financial institutions, specifically those with assets worth less than $250 million.

The tollback bill represents a significant dilution of the Obama-era rules, leaving fewer than 15 big banks in the United States subject to stricter federal oversight. Specifically, the bill raises the threshold under the Dodd-Frank Act for when new capital standards apply to financial institutions from a threshold of $50 billion in assets to $250 billion. Small and medium-sized banks will no longer be required to undergo "stress tests," a measurement that determines their ability to survive a severe economic decline.

Because SVB is not subject to the Dodd-Frank; they're not subject to the bank stress tests. which would have alerted banking authorities of SVB's uber risky profile

 

*fake SNAKE FLAG! Libertarians.

 

Usdc vs usdt

Which falls first?

 

CEO of SVB sold $3.6m in stock within the last two weeks.
Chief Administrative Officer was CFO of Lehman in 2007.
Chief Risk Officer was the MD at Deutsche Bank in 2007/2008 who led credit ratings.

Can't make this **** up.

That said, from what I hear, deposits will be recovered. FDIC actively working to find a buyer, might be announced as early as tomorrow.

 

USDC will fail first. Its too easy for US regulators to target. If SVB doesn't get rescued, USDC could fail very quickly.

I dont see USDT failing anytime soon

 

I'm missing nothing. You, however, missed the thread I started before yours.

 

This thread is better.

 

Define “fair regulation”…..

 

Would be funny, but more likely something like JPM.

 

Or the federal government not letting that bank fail, which is always what was going to happen.

Elon's just talking fanciful savior s**t. I'd love to watch him deal with federal bank regulators, though.

 

As I said in the other thread I’m still not clear why this even happened. From what I was hearing it doesn’t sound like what SVB was doing wasn’t particularly risky.

 

Here's a start: https://www.nytimes.com/2023/03/11/business/dealbook/silicon-valley-bank-collapse.html

The failure of Silicon Valley Bank was caused by a run on the bank. The company was not, at least until clients started rushing for the exits, insolvent or even close to insolvent. But banking is an enterprise that relies as much on confidence as on cash — and if that runs out, the game is over.

The collapse may have been an unforced, self-inflicted error: The bank’s management chose to sell $21 billion of bonds at a $1.8 billion loss, in large part, it appears, because many of those bonds were yielding an average of only 1.79 percent at a time when interest rates had risen drastically and the bank was starting to look like an underperformer relative to its peers. Moody’s was considering downgrading its rating. The bank’s management — with the help of Goldman Sachs, its adviser — chose to raise new equity from the venture capital firm General Atlantic and also to sell a convertible bond to the public.

It isn’t clear if the bond sale or the fund-raising, at least initially, had been made under duress. It was meant to reassure investors. But it had the opposite effect: It so surprised the market that it led the bank’s very smart client base of venture capitalists to direct their portfolio clients to withdraw their deposits en masse.

[more at the link, of course]