The Return of FDIC Friday

For Immediate Release

Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.

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. I honestly can't believe I'm the first one posting this in this sub-forum of ATS. 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.

I'm wondering if this will be the first brick in the collapse of the West Coast.

Posted earlier here
www.abovetopsecret.com...

Closed