Guest Post by Martin Armstrong
A bank failure of this proportion has not been seen since 2008 when Washington Mutual failed. The majority of deposits in Silicon Valley Bank (SVB) are uninsured, meaning the FDIC’s $250,000 protection does not apply. Uninsured depositors will be provided receivership certificates and should receive an advanced dividend this week. The FDIC must sell off the remaining assets of SVC to determine how much it can provide to those uninsured depositors. The FDIC is encouraging borrowers to continue paying their existing loans. The bank was said to host $209 billion in assets and $175.4 billion in deposits as of December 2022. Washington Mutual held around $307 billion in assets when it went down.
Tons of people and businesses will be completely screwed over. Who could have seen it coming? Silicon Valley Bank CEO, CFO, and CMO sold off millions in stock over the past two weeks. President and CEO Greg Becker sold 12,451 shares on February 27 for $3.6 million at $287.42 per share. Later that day, he purchased options for the same amount of shares at $105.18 a piece. He did the same thing in December 2021, as this is not an uncommon albeit unethical practice. Banks commonly trade against their own clients. Becker sold about $3.57 million worth of SVB stock over the past two weeks and is now making TV appearances saying he did not see this coming.
There were signs of trouble, but the talking heads said otherwise. Forbes even listed SVB Financial Group as #20 on its list of America’s Best Banks in an article published on February 14, 2023. Talking/screaming head Jim Cramer came out last month to say that SVB Financial would become one of the top performers on the S&P. This is why you cannot listen to information based on biased opinions. I hesitate to call this negligence technical analysis.
Companies are now at a complete loss, many cannot make payroll, and this situation will only worsen once the uninsured depositors realize their IOUs are worthless.
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List of banks with the same issues as the ones that failed.
Confirmation of the old sage saying: “There is never just one cock roach.”
https://www.marketwatch.com/story/20-banks-that-are-sitting-on-huge-potential-securities-lossesas-was-svb-c4bbcafa?mod=home-page
If one is in trouble, they are all in trouble. If I owe you money and I don’t pay you, Then you don’t pay your lender either and he doesn’t pay his. This is how the game of bubble finance finally ends.
The first people out are going to be fine. The 99% will be caught in the building or trampled at the exit.
“Never let a crisis go to waste” is still operative.
No bail-outs.
No bail-ins.
No digital currency.
No more emergency legislation or EO’s.
As the wheels fall off, the Trump supporters need to explain why having a New Yorker as POTUS again will be in anyone’s interest.
Either the financial system fails or the dollar dies. Take your pick.
The powers that be were trying to walk a fine line but they have now chosen to temporarily save the system and kill the dollar.
A deflationary depression would solve many problems.
Say adios to millions emigrating back to their countries of origen.
Government, across the board, getting smaller and less powerful is only a good thing.
Goodbye, Zelensky. Russia, can we be friends again?
There is no downside to people, everywhere, being taught the law of cause and effect. Zero.
The over-leveraged and irresponsible lose it all. Whoop de do.
C’est la vie.
The status quo that privatizes gains and socializes losses needs to be jettisoned. Who can argue with that?
The pain will be worth it. And it will be painful.
The people who have led us to this point must be resisted, stopped in their tracks, and defeated. End of story, no exceptions.
The road does not go on forever, and the party does in fact end.
It is about 15 years too late. ’08 should have been the crash that was let happen, rather than the crash that was inflated like a balloon to pop another day.
Totally above board.
They are shitlib woke so insider trading laws do not apply.
“The FDIC is encouraging borrowers to continue paying their existing loans.” LOL. Yes, please keep pretending that those contracts are real while we tell you about the various ways in which we just made all the other contracts at the bank unreal so we can keep the whole fake and gay casino afloat.
The head of the bank is selling all his shares while the loudmouth Jew on television is telling everyone to buy.
Another day, another scam.
Rats always know when to leave a sinking ship
If I didn’t know any better(and I don’t) this looks like another money grab set up to help the powerful and the connected. The govt removed the cap on FDIC in the recent bank bailout, so taxes from poorer people will go to help save the accounts of the rich. Are we seeing anacyclosis in action?