Tag: SVB collapse

Houston – We Have a Serious Problem in Biden Administration

We have a MAJOR problem with this Biden Administration. It is so radically left, it is now endangering the entire economy, not just the banking system. Biden lied to the public claiming there were no buyers for the Silicon Valley Bank. In fact, in London, HSBC immediately stepped forward to strike a deal for SVB in London. Why was HSBC buying SVB’s overseas operation but Biden claimed there were “no buyers” for SVB in the USA? When I was told that it made no sense. Something was not panning out with the regulators who typically call in other banks immediately and work out their shot-gun weddings. I know, I got one of those calls from the Japanese government to buy a brokerage house in Tokyo when the French bank Palace went bust.

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The SVB Collapse: How financial crisis boosts the rise of CBDCs

Guest Post by Kit Knightly

Last Friday saw the total failure of the Silicon Valley Bank, the 16th biggest bank in the United States. The biggest bank failure since the 2008 financial crisis

By Sunday, the Silvergate Bank and Signature Bank had joined SVB in full collapse. All three are now safely under Federal Deposit Insurance Corporation (FDIC) control.

The FDIC has taken the unusual step of fully guaranteeing all deposits kept with the SVB – meaning the federal government will give taxpayer money out to compensate every SVB customer.

But the damage didn’t stop there. Naturally, this put pressure on other regional banks, with two more – First Republic Bank and PacWest Bank – coming close to collapsing themselves, following mini-runs.

The weekend saw Wall Street’s 4 biggest banks lose over 55 billion dollars in value. Bank stocks around the world are sliding in value.

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SVB Donated $73.4 Million To BLM And Related Entities

Via ZeroHedge

While Silicon Valley Bank execs may have failed to hedge against interest rate risk, they did signal $73.45 million in virtue donating to Black Lives Matter and related entities, according to a database maintained by the Claremont Institute which lists nearly $83 billion in donations to the Marxist organization.

Meanwhile, New York-based Signature Bank gave a total of $850,000 to the organization.

Both woke banks had touted their efforts to improve diversity among their staff – with SVB pledging in the summer of 2020 to increase its commitment to “diversity, equity and inclusion.’

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The Cover-up Begins

Guest Post by Paul Craig Roberts

The disinformation service, Bloomberg, takes the lead. Bloomberg points its finger at Donald Trump and “Trump era deregulation.” In Bloomberg’s rewriting of history, Trump is responsible because he signed a bill passed by Democrats and Republicans that allowed mid-sized banks to “skirt some of the strictest post-financial crisis regulations.” So, where was the federal reserve? Where were the bank regulators? Bloomberg doesn’t say.

Presidents don’t write financial legislation. Financial legislation that the Federal Reserve and the SEC don’t approve doesn’t get passed. A third world immigrant-invader, Ro Khanna, who somehow represents in Congress Silicon Valley says: “Congress must come together to reverse the deregulation policies that were put in place under Trump.”

What utter total bullshit.

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Biden’s Banking Crisis Resets

Guest Post by James Grundvig, American Media Periscope

Banks don’t lend money. They purchase securities.

When Silicon Valley Bank (SVB) suffered a short-lived run last Thursday, the feds had to step in and shut down the bank on Friday. With a 185:1 debt-to-asset ratio, with the three main executives dumping stocks weeks before in an insider trading scheme, and with senior executives receiving six-figure bonuses the day before the collapse, federal regulators had no choice but to shut the operation down.

[Credit: https://news.yahoo.com/president-joe-biden-addresses-silicon-132636325.html]

While SVB executives were lining their pockets on the West Coast, in its New York City branch the managers had to call the police to physically remove irate investors and startup CEOs from the premises. The bank run “drained a quarter—$42 billion—of SVB’s deposit in hours, leaving it with a negative $1 billion in cash,” according to Zero Hedge.

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Why the Banking System Is Breaking Up

Guest Post by Michael Hudson

The collapses of Silvergate and Silicon Valley Bank are like icebergs calving off from the Antarctic glacier. The financial analogy to the global warming causing this collapse of supporting shelving is the rising temperature of interest rates, which spiked last Thursday and Friday to close at 4.60 percent for the U.S. Treasury’s two-year bonds. Bank depositors meanwhile were still being paid only 0.2 percent on their deposits. That has led to a steady withdrawal of funds from banks – and a corresponding decline in commercial bank balances with the Federal Reserve.

Most media reports reflect a prayer that the bank runs will be localized, as if there is no context or environmental cause. There is general embarrassment to explain how the breakup of banks that is now gaining momentum is the result of the way that the Obama Administration bailed out the banks in 2008 with fifteen years of Quantitative Easing to re-inflate prices for packaged bank mortgages – and with them, housing prices, along with stock and bond prices.

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Sorry, No Empathy, No Bailouts And YES I MEAN IT

Guest Post by Karl Denninger

Oh but so many climate-related firms are going to fail to make payroll! – Any one of a thousand Internet scolds.

My answer: So what?

Next up – Republic, which apparently had lines out the door (if you believe the Internet) on Saturday. Again: So what?

Folks, bubbles attract stupidity. Stupidity is a constant in the universe; in fact it is likely the only thing that is truly infinite (with all due respect to the late Mr. Einstein.)

The so-called “Chief Risk Officer” at SVB had a masters in….. public administration. Anyone care to bet if she passed any form of advanced mathematics — you know, like for example Calculus or Statistics? Do you think she understood exponents and why this graph made clear that concentration of risk and duration was stupid and likely to blow up in everyone’s face — including hers?

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C-Level Executives Sold Shares Weeks Before SVB Failed

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.

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With big banks going under, CBDC’s can’t be far behind—and if we don’t STOP them, “lockdown” will be total, and eternal, for us all

Guest Post by Mark Crispin Miller

Once the economy has melted down, CBDC’s will be proffered as the ONLY way we can get “back to normal”—a “cure” that will turn out to be as catastrophic, in their way, as those “vaccines”

With two major US banks going under this past week, it’s more than likely that the Next Big Thing, deployed to change the subject (from the ever-growing toll of “vaccination,” the truth about “January 6,” and other inconvenient measures of reality), is going to be that economic crash which has been hurtling toward us ever since the last one 15 years ago—a catastrophic prospect that “our free press” often has discussed, and with all due solemnity.

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The Collapse Of SVB Portends Real Dangers

Authored by Jeffrey Tucker via The Epoch Times,

Thus far in this 3-year fiasco of mismanagement and corruption, we’ve avoided a financial crisis. That’s for specific reasons. We just had not traveled there in the trajectory of the inevitable. Are we there yet? Maybe. In any case, the speed of change is accelerating. All that awaits is to observe the extent of the contagion.

The failure of the Silicon Valley Bank (SVB), $212 billion in assets until only recently, is a huge mess and a possible foreshadowing. Its fixed-rate bond holdings declined rapidly in market valuation due to changed market conditions. Its portfolio crashed further due to a depositor run. And it all happened in less than a few days.

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