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Silicon Valley Bank failure followed by PacWest Bank go woke go broke, Yellen says ho bailout

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FredH

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All you that ignored the problems raising interest rates during a recession sure missed this one.

The Silicon Valley Bank crisis will force the Fed to slash rates by 100 basis points to prevent contagion, market guru says

"In essence, the Fed is causing this bank run," said Larry McDonald, founder of The Bear Traps Report.
markets.businessinsider.com

The Silicon Valley Bank crisis will force the Fed to slash rates by 100 basis points to prevent contagion, market guru says​

SIVB Stock | News | SVB FINANCIAL GROUP SHS Stock Price Today | Analyst Opinions | Markets Insider

SIVB: Get the latest SVB Financial Group Shs stock price and detailed information including SIVB news, historical charts and realtime prices.
markets.businessinsider.com

Silicon Valley Bank is a particularly scary failure. Here's why.

The FDIC is supposed to prevent bank runs. SVB is a special case that left most of its deposits uninsured and the bank vulnerable to a panic.
markets.businessinsider.com

Why Bank Stocks Like PacWest and First Republic Are Falling Hard (Again) on Friday | The Motley Fool

Investors are even more panicked after Silicon Valley Bank failed to raise capital and is now being taken over by regulators.
www.fool.com

What happened​

Here we go again. Following serious drubbings on Thursday, several bank stocks are losing lots of ground again today. Shares of PacWest Bancorp (PACW -37.91%), Signature Bank (SBNY -22.87%), and First Republic Bank (FRC -14.84%) are down 33%, 24%, and 23%, respectively, as of as of 1:31 p.m. ET Friday, with trading of all three tickers halted at one point this morning in an effort to curb runaway selling
 
Trump took regulations away = bank goes broke
 
tshade said:
Trump took regulations away = bank goes broke
Click to expand...
No this is not Trump's fault. You might note the different response to fending off a recession, which was also caused by bad monetary policy. They cut interest rates in 2008 and now they are raising interest rates. Shell game? It is time you leftists start trying to fix problems rather than constantly spewing the bullshit blaming Trump or racism. Doing so make you look less than thoughtful.




2008 Fed Rate Cuts: The Great Recession​





FOMC Meeting DateRate Change (bps)Federal Funds Rate
Dec. 16, 2008-1000% to 0.25%
Oct. 29, 2008-501.00%
Oct. 8, 2008-501.50%

The Great Recession officially began in December 2007 and lasted until June 2009. But the Fed paused rate cuts between April 2008 and October 2008, as the global financial crisis deepened.


American families saw their home values collapse, and the stock market didn’t reach its bottom until early 2009. The unemployment rate grew from 5% in December 2007 to 10% by October 2009.


“Since the Committee’s last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined,” noted the FOMC in its statement accompanying the December 16, 2008 decision. “Financial markets remain quite strained and credit conditions tight.”

Fed Rate Hikes 2022-2023: Taming Inflation​




FOMC Meeting DateRate Change (bps)Federal Funds Rate
Jan 31 to Feb 1+254.50% to 4.75%
Dec 14, 2022+504.25% to 4.50%
Nov 2, 2022+753.75% to 4.00%
Sept 21, 2022+753.00% to 3.25%
July 27, 2022+752.25% to 2.50%
June 16, 2022+751.5% to 1.75%
May 5, 2022+500.75% to 1.00%
March 17, 2022+250.25% to 0.50%
 
Didn't you already post this?

Are you disappointed that no one really cares?
 
How many times has the malignant narcissist scumbag piece of shit liar grifter and seditionist declared bankruptcy?
 
Now you made TWO mistakes.
I am a Republican = you talking out of your butt......
Trump was responsible for rolling back the Dodd-Frank Act........mistake # 2 on your part
 
tshade said:
Now you made TWO mistakes.
I am a Republican = you talking out of your butt......
Trump was responsible for rolling back the Dodd-Frank Act........mistake # 2 on your part
Click to expand...
What part of the Dodd-Frank Act, if preserved, would have kept SVB from this fate? Please be specific.
 
Why is the OP
talking about a “Ho Bailout” ?

It’s kind of creepy.
 
SVB stupidly managed their interest rate risk. Lots of idiots deposited WAY too much of their money, well over the FDIC insured amount, in this small bank as a condition of getting loans. How in the hell does that relate to "woke" anything?
 
JasperL said:
SVB stupidly managed their interest rate risk. Lots of idiots deposited WAY too much of their money, well over the FDIC insured amount, in this small bank as a condition of getting loans. How in the hell does that relate to "woke" anything?
Click to expand...
@FredH is hoping to develop some MAGA street cred but hasn’t yet learned how, so he’s still in the phase where young MAGA throws
everything within reach at a wall to learn what sticks. He’s going to need at least another six months of seasoning before his MAGA starts working smoothly. Until then we’ll all have to endure threads about “ho bailouts” and conservative fiscal institutions being “woke.”

Fresh MAGA takes time to find its footing.
 
JasperL said:
SVB stupidly managed their interest rate risk. Lots of idiots deposited WAY too much of their money, well over the FDIC insured amount, in this small bank as a condition of getting loans. How in the hell does that relate to "woke" anything?
Click to expand...
Can SVB be considered a small bank? They were ranked at # 16 or 18 depending upon what source one uses.
$211.0 billion in assets at the time, DEC2022


These Are The 15 Largest Banks In The US | Bankrate

Even the smallest of these big banks has enormously deep pockets. See which firms are in the money.
www.bankrate.com
 
OK, fair enough. They're 1/15th the size of the biggest banks, but they are not small.

Anyway, they failed because they made dumb decisions, and way too many VCs advised startups to keep way too much of their cash in uninsured deposits in this one 'not small' bank. Has nothing to do with "woke" anything. Greed and stupidity or both (always a good option) explains this failure.
 
JasperL said:
SVB stupidly managed their interest rate risk. Lots of idiots deposited WAY too much of their money, well over the FDIC insured amount, in this small bank as a condition of getting loans. How in the hell does that relate to "woke" anything?
Click to expand...
SVB had no idea that the fed would raise interest rates as fast or as high as it did. As far as the FDIC insured amount goes that puts the government responsible for the practices of the bank forcing a bailout for bad behavior. The fed monetary policy in the last 15 years led up to this. Cheap low interest money borrowed easily through subprime loans. I feel it is idiocy to more than 4 points in ten months, something never done before. This must have been known that it would cause bank failures. It would be better to let inflation run it's course, prices would stabilize and start going down as soon as Pete Buttigieg fixes the supply chain(hah!). Even sooner if we let our own energy sector move into full production.
 
No they failed because interest rates were raised 4 points in 10 months. Being the 16th largest bank does not mean 1/15th the size of the largest banks. Try not to miss the point about insured deposits, a bank failure leaves the government responsible for that money, meaning more inflation due to the printing of unsecured money which is the real reason for inflation in the first place. Money supply too large.
 
So are you living in some delusion MAGA has anything to do with this issue? Have you not noticed Biden in the WH for 2 years? When are you going to take responsibility for Biden and his idiot minions?
 
FredH said:
No they failed because interest rates were raised 4 points in 10 months.
Click to expand...
And they had shitty, incompetent bank managers.
FredH said:
Being the 16th largest bank does not mean 1/15th the size of the largest banks.
Click to expand...
JP Morgan - $3,200 billion in assets.
SVB - $211 billion in assets
Divide 3,200 by 211. What do you get? 15, rounded.
Goodness, I know what insured deposits mean.... I'm not even going to start explaining why you're all wrong on that. My point is one big problem is that there are lots of deposits at SVB that exceed the FDIC insured amount. That's in part why there was a bank run - those with balances over the insured amount yanked them out at the first sign of trouble, because failing to get them out in time risks them losing those deposits over the insured amount.
 
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What does any of this have to do with being "woke."

I frankly don't care about rando internet dudes who use the term "woke" explaining why SVB failed, or what optimal Fed policy should be in the presence of inflation caused by COVID supply chain issues. I can find actually competent explanations of those topics in other places, and hopefully they don't poison the entire analysis by calling what they believe to be sub-optimal policies "woke" for some stupid reason.
 
FredH said:
So are you living in some delusion MAGA has anything to do with this issue? Have you not noticed Biden in the WH for 2 years? When are you going to take responsibility for Biden and his idiot minions?
Click to expand...
See, this is what I was referring to. Your MAGA is still quite unsophisticated. Biden? You should have played that card in the OP and also strung along a China Joe accusation in the same sentence. By this point in the thread a proper MAGA would have have moved on to drag shows in schools and also tried trying them to Mayor Pete. I realize you’re just getting started but if you want to stand out from the field, you’ll have to up your game.

So many posts and you haven’t even referred to the Leftist Filth yet.

Sad.
 
So what does MAGA have to do with the issue we are discussing. We both know the Biden family has grifted millions from China. Interesting you bring up drag shows, are they special to you? Leftist filth? Are you accepting reality?
 
FredH said:
So what does MAGA have to do with the issue we are discussing. We both know the Biden family has grifted millions from China. Interesting you bring up drag shows, are they special to you? Leftist filth? Are you accepting reality?
Click to expand...
See, this is better. What you should do is bake more of this into your starting post. Don’t hold back, let loose your full MAGA in the thread starter. Imagine how many more accolades you might have received from Don Jr. If the thread opener referenced China Joe’s grifting, vaguely associated it with the SVB collapse, then segued to the Radical Left and their love of drag shows. Hell, even Marjorie might have turned an eye.

Instead we got this.

We got yours.
 
Seek help, TDS is a serious affliction. You may be the next mass shooter if you are not medicated. SVB's collapse is directly related to the Biden administration. Are you aware Biden is president?
 
Woke is all about themselves, creeps and crooks, no ethics and their only concerns are peoples pronouns, sexual preferences and race. SVB is filled with SJW jackasses and obviously they were not paying attention, I mean other than to sell all the stock they had in SVB before it crashed.
 
FredH said:
Woke is all about themselves, creeps and crooks, no ethics and their only concerns are peoples pronouns, sexual preferences and race.
Click to expand...
OK, I see, woke is everything BAD!!! So "woke" caused the Great Depression, the collapse of the internet bubble in 2000, the real estate bubble and collapse, etc.... Who knew?
FredH said:
SVB is filled with SJW jackasses and obviously they were not paying attention, I mean other than to sell all the stock they had in SVB before it crashed.
Click to expand...
Well, I guess while they were growing at leaps and bounds, and the stock was selling at $700/sh, they weren't woke, but became woke before they collapsed!
 
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