Silicon Valley Bank collapses after members make run, Other banks to follow?

originally posted by: carewemust

originally posted by: marg6043
a reply to: gb540

The stock market is a virtual game simulator that make people think they have real money, the biggest scam ever, that is what modern trading is about this days.

Silicone CEO sold $3.5 million of his stock 2 weeks ago.

www.newsweek.com...

Is there a way to see how much Pelosi sold?

I don't suggest you start taking money out of the banks *wink wink*. This is just the beginning.

What happens when you loan out 100% of deposits, keeping in mind people were buying houses at extremely elevated prices. New cars were hard to find and people were lining up for them. Credit card debt at all time highs at 1 TRILLION dollars with a record average interest rate AT 20%!

Folks, this house of cards is one fart in the wind away from complete collapse. Get your house in order.

a reply to: Violater1

If this "bank run" spreads, Americans and America are financially doomed.

“FDIC assets cover only 1.26% of deposits. About the size of Silicon Valley Bank. One bank… Let that sink in!”

See this graphic: truthsocial.com...

Silicon Valley Bank in New York City has people seeking to withdraw their money.

90% of SVB customers have over $250,000 deposited.

The maximum insured by the FDIC is $250,000.

Article: www.thegatewaypundit.com...

a reply to: carewemust

Your perceived wealth is a pipe dream. People are going to wake up soon.

I hope you have something of value in the morning.

a reply to: Violater1

That deserves jail time, for inside trading information, darn freaking crooks.

originally posted by: litterbaux
a reply to: carewemust

Your perceived wealth is a pipe dream. People are going to wake up soon.

I hope you have something of value in the morning.

JIM CRAMER (C-NBC TV Network) says now is the time to BUY Silicon Valley Bank Stock!

Source: www.foxnews.com...

Just do it!

This is the largest bank failure since WAMU back in the Financial Crisis back in the '08-'09 timeframe. That's actually the time that a dedicated forum for Global Meltdown was created. Silicon Valley Bank was a California based bank that was quite entangled with the Tech Industry. Some interesting things about this bank and it's failure.1) The bank took a $1.2 Billion loss on sales of assets earlier this week 2) There were 40+billion in withdrawals in the past 72 hours. 3) Many VC investors required those receiving funds to use this bank. 4) Several VC's and hedge funds told clients earlier this week to GET OUT. 5) Names you know have money here. 6) Bank closures due to State Regulator or FDIC action usually happen after market close on a Friday this one hit around lunch east coast. 7) A ridiculously large percentage of the accounts are larger that the FDIC insured max of $250K.

This bank is somewhere in the top 30 of US banks in terms of deposits. It has hit the MSM, but there seems to be a nothing to see here vibe. There is never just one cockroach, lots of folks have wondered what the first thing to snap would be for the next big financial crisis. This might be it. Back in the late aughts with the exotic mortgage products and the contagion from them. It went from the mortgage lenders, to Bear Sterns, to AIG (which no one saw coming), and culminated in Lehman and forced bailouts to most every bank above a certain size, and a ton of failures. This weekend and Monday should be interesting.

Also Wells Fargo, which now has a decade long history of criminality and incompetence experienced major problems today. There are interesting times ahead and I predict we'll have more to talk about in the Global Meltdown forum over the next few months.

So here is some great information below about why Silicon Valley Bank went insolvent today and was taken over by the FDIC. Pay careful attention to some words and phrases we are all familiar with from 2008 financial crisis:

“Back in 2021, the bank saw a massive influx in its deposits which jumped from $61.67 billion to almost $189.20 billion. As its deposits grew, it failed to generate its loan book fast enough to generate the yield it wanted to see on the deposited capital. To tackle this, the bank purchased a large mortgage-backed security (MBS) worth $80 billion for its hold-to-maturity (HTM) portfolio. Over 95 per cent of these MBS were for over 10 years, with an average yield of 1.56 per cent. “

The Federal Reserve 0% rates and QE to infinity the past 13 years caused this massive influx of capital and inflation. But I also blame Silicon Valley bank for holding onto these Mortgage backed securities at 1.5% hold to maturity for 10 years. Someone at the risk management department was either inept or asleep at the wheel. They knew J Powell was going to rapidly start raising interest rates right? I can’t believe they didn’t hedge better on the MBS portfolio.

Net interest margins fell too low below 2% and the Venture Capitalists started a bank run on Twitter and the Internet.

I smell a rat and a conspiracy by JP Morgan to destroy its competition and get all the business at pennies on the dollar and to also force the Fed to pivot and turn the printing presses on!

we've been hitting hitting crash points about once a month to 6 weeks... each time a new black swan appears..

its not a question of if but rather how long can this trend continue until they fail to avert the crisis and pretend this is healthy/good..

i struggle to see us making it through Q2 let alone Q3..

china continues to build its multipolar world at some point one or more us allies are going to pivot.. as we've seen with the recent saudi iran deal..

Iran-Saudi ties: China-brokered ‘win-win’ deal could bring Yemen war to a close, analysts say

some are already suggesting both sides in ukraine could be financially exhausted by Q3 to let china step into to make a peace deal.. this lines up with an expected economic crisis..

as both russia and us expect the other to crash it happening simultaneously hands the world to China..

eta: this is where the us state protecting china/wuhan to oust trump could backfire as it leaves the us little wiggle room to confront china as it build its multipolar world.. this is the kind of failure led to the collapse of democrat red lines in syria as allies walked away from their coalition building

the chinese are already on a diplomatic charm offensive in europe to build a new consensus.

originally posted by: marg6043
a reply to: gb540

The stock market is a virtual game simulator that make people think they have real money, the biggest scam ever, that is what modern trading is about this days.

i personally believe 100% that insider trading is very common, i know dimwits will say "but datZ ILLLegal!!"
not illegal if you can't get caught

there was a twitter account that followed all the investment made by nancy pelosi
old hag made profits on majority if not all of her trades, she's either 600 iq investor or has insider knowledge take your pick.

originally posted by: jefwane
This bank is somewhere in the top 30 of US banks in terms of deposits.

It was in the top 50 but had previously been much higher. The issue was lack of diversification which lead to selling off assets at a loss, A.K.A. poor leadership.

a reply to: Brassmonkey

Another housing market bubble bursting?, The bank purchased a large mortgage-backed security (MBS) worth $80 billion for its hold-to-maturity (HTM) portfolio. Over 95 per cent of these MBS were for over 10 years, with an average yield of 1.56 per cent. , JP Morgan and other globalist bank came out with flying colors after the last market crash at the expenses of the taxpayer, these entities made bets on the US housing market, they all get inside trading and that is how they make themselves filthy rich.

a reply to: spartan002

They all get inside trading darn filthy corrupted elite, they do not give two rat asses to anybody else but themselves, that had never help anybody in this country and never will, but will go to the grave penniless, because you can not take your corrupted money with you when you die.

a reply to: nickyw

China main purpose was to make US manufacturing dependent to them and kill US as the leading nation in the world, you think the corruption we call politicians in the US care? no a darn thing, because they are all in it to make themselves filthy rich.

Seems like Monday may not be a nice day to wake up to for many people.

not everyone got out in time obviously, there is a long line of depositors who are over the $250,000 FDIC insured limit (in fact only somewhere between 3 and 7% of total deposits are insured). The following list, while incomplete, is approximately sorted by size of exposure:

USDC - Crypto Stablecoin run by Circle - Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.

ROKU - Roku had 26% of its cash, $487 million with Silicon Valley Bank

BLOCKFI - BlockFi has $227 million in "unprotected" funds in Silicon Valley Bank, according to a bankruptcy document, and may be in violation of U.S. bankruptcy law.

RBLX - Roblox said 5% of its $3b cash and securities balance is held at SVB.

DNA - Gingko Bioworks: Only the cash balance of the company's wholly-owned subsidiary Zymergen Inc. is held in deposit accounts at SVB, representing approximately $74M or 6% of the company's cash and cash equivalents as of December 31, 2022

RKLB - RocketLab USA had about $38 million in its accounts with the bank, representing about 7.9% of the startup’s cash and equivalents

LC - Lending Club warned about potentially losing funds on deposit at SVB of $21 million, said amount isn't material to its liquidity position or capital levels, and doesn't pose a risk to the group's business or operations.

PAYO - Payoneer: Of the company's approximately $6.4B in total cash balances as of December 31, 2022, less than $20M is held at SVB

PTGX - Protagonist Therapeutics considers its exposure to any liquidity concern at SVB to be limited, given that cash held at SVB is approximately $13 million as of March 9, 2023.

ACHR - Archer Aviation entered into a $20 million loan with SVB in 2021, $10 million of which is due for repayment in 2023

COHU - Cohu announced that it has deposit accounts with SVB with an aggregate balance of approximately $12.3M, which is approximately 3.8% of the company's total cash and investments.

IGMS - IMG Biosciences: 'As of March 10, 2023, the Company holds less than $5.0 million in deposits at SVB. Therefore, the Company believes it does not have any material exposure to any liquidity concerns at SVB.'

RYTM - Rhythm Pharmaceuticals announced that it has deposit accounts with SVB with an aggregate balance of approximately $3.4 million, which is approximately 1.1% of the Company's total cash and cash equivalents.'

SYRS - Syros Pharmaceuticals discloses that, as of March 10, 2023, it has two deposit accounts at Silicon Valley Bank. One of these accounts has a balance of less than $250,000, and the other has a balance of approximately $3.1 million pursuant to a letter of credit that the Company was required to provide to its landlord in connection with the execution of the lease for its corporate headquarters...

EYPT - EyePoint Pharmaceuticals currently maintains a de minimis amount of cash, in the single digit millions of U.S. dollars, with Silicon Valley Bank (SIVB)

ATRA - Atara Biotherapeutics currently maintains an account at Silicon Valley Bank (“SVB") holding cash deposits of approximately $2 million, which amount the Company considers to be immaterial to its liquidity.'

ISEE - Iveric Bio currently maintains a de minimis amount of cash and cash equivalents, in the low single digit millions of U.S. dollars, with Silicon Valley Bank ("SVe").'

VERA - Vera Therapeutics currently holds approximately 1.2% of its cash and investments with SVB. Accordingly, the Company considers its risk exposure relating to SVB to be minimal.

XFOR - X4 Pharmaceuticals had approximately 2.5% of its cash deposits with SVB.

CTMX - CytomX Therapeutics does not consider its exposure to any liquidity concern at SVB to be significant. The cash held at SVB in CytomX’s operating CTMX account is at or near the FDIC-insured limit of $250,000. CytomX also maintains a deposit account at SVB under a standby letter of credit issued pursuant to its office lease for approximately $917,000.'

AXSM - Axsome Therapeutics has material cash deposits with SVB.

WVE - Wave Life Sciences aggregate amount of the company's cash and restricted cash held at SVB is approximately $1.5M.

JNPR - Juniper Networks maintains operating accounts at SVB with a minimal cash balance of less than 1% of the company's total cash

QS - QuantumScape has very limited exposure to SVB, with only a low single digit percentage exposure relative to both the Company's total liquidity and total assets.

And now the 64 trillion dollar question: was the bank run sparked by the bank's attempted capital raise - which followed a modest $1.8 billion in losses as the bank sold off its AfS holdings to boost its liquidity - or was it the result of an external influence?

Record Bank Run

originally posted by: burntheships
a reply to: Ravenwatcher

Linky?


___________


This is part FTX, part ESG, and 100% Democrat caused.

Buckle up!

Link

a reply to: marg6043

Like I said, I've been half watching a series on YouTube that has been saying the housing market is ripe to crash and is crashing. They've also been saying that prices have been falling sharply now several months. It's the same pattern that led into 2008, and just like with 2008, some markets are out ahead in the tread - leading indicators. Want to guess where these are now? If you said all the West Coast, you'd be right.

That's been prompted by a massive out-migration of people. Not only are they keeping markets everywhere else, urban and rural, stable, but they are letting the inventory crash in those West Coast markets. Where are we seeing the crashes? On the West Coast where there just isn't the investment left to keep those banks floating. The West Coast is going to shrink, and painfully.

The question now is - How painful is this going to get for the rest of the country?

a reply to: jefwane

Strange how financial crisis today do not seem to affect the economy much overall.

You referenced the 2008 financial crisis, and I have to really think hard to remember it and it's effects on the economy... if there were any.

But there are lots of stories of people jumping off roofs and bridges during the financial crisis of 85 years ago.

a reply to: carewemust

The financial crisis in 2008 had its effects. It was just more of a slow motion train wreck. It took time for that to trickle all through the economy.

We felt it where we were at with our housing situation. I lost my job and had trouble picking something else back up. So we nearly lost our house. Meanwhile, husband's job was doing well, but stagnated enough that while it was stable, it was just picking him up an annual cost of living raise. Most of his gains during the Obama years happened when he moved into new positions, not through raises.

You could see the relative decline in people's fortunes just by looking at the outside of their homes. Homes that used to look neat and tidy started to look ramshackle. Either they couldn't live in them anymore so they were vacant or they couldn't afford the time to care for them.

There were a lot more empty retail spaces in little strip malls. That sort of thing.