Some rumours that the tech tycoons (Thiel cough cough ) did a run on the banks to force the fed to consider stopping rate hikes
It’s really just a liquidity issue and timing of assets valuation/maturity issue
The bonds don’t loose money unless the bank is forced to sell - so it’s very different from the mortgage financial crises where the asset truely devalued
The issue is having to borrow money at 6% to cover withdrawals when your bonds are paying 1.5%.
And if you didn’t want the thread to be a joke , try having a proper thread title and a first post with some substance
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Some rumours that the tech tycoons (Thiel cough cough ) did a run on the banks to force the fed to consider stopping rate hikes
It’s really just a liquidity issue and timing of assets valuation/maturity issue
The bonds don’t loose money unless the bank is forced to sell - so it’s very different from the mortgage financial crises where the asset truely devalued
The issue is having to borrow money at 6% to cover withdrawals when your bonds are paying 1.5%.
And if you didn’t want the thread to be a joke , try having a proper thread title and a first post with some substance
Yes, these guys are being predatory on an overleveraged bank, and then are playing the federal system to hopefully lower interest rates. It was a calculated play by 3 big hedge funds, as they all pulled funds on the same ####ing day. That's shady as ####, and I hope someone goes after them in an antitrust suit.
This #### has real ramifications on the entire economy. I'm more than a little pissed about it.
__________________
"You know, that's kinda why I came here, to show that I don't suck that much" ~ Devin Cooley, Professional Goaltender
Yes, these guys are being predatory on an overleveraged bank, and then are playing the federal system to hopefully lower interest rates. It was a calculated play by 3 big hedge funds, as they all pulled funds on the same ####ing day. That's shady as ####, and I hope someone goes after them in an antitrust suit.
This #### has real ramifications on the entire economy. I'm more than a little pissed about it.
Well no, people started pulling money because there was a run on the bank. The problem is, when you have a bank run you have to pull your money or you’re going to be out of luck.
In this case the Federal Reserve and FDIC came together to make sure that the depositors are made whole. This doesn’t extend to shareholders.
Well no, people started pulling money because there was a run on the bank. The problem is, when you have a bank run you have to pull your money or you’re going to be out of luck.
In this case the Federal Reserve and FDIC came together to make sure that the depositors are made whole. This doesn’t extend to shareholders.
I don't think you get it. Those hedge fund STARTED the run on the bank. They did it in a coordinated manner. Everyone else just responded after the fact.
__________________
"You know, that's kinda why I came here, to show that I don't suck that much" ~ Devin Cooley, Professional Goaltender
I don't think you get it. Those hedge fund STARTED the run on the bank. They did it in a coordinated manner. Everyone else just responded after the fact.
Which ones? I saw it being pushed by some VCs, but not hedge funds. I did see that a few hedge funds have some losses as a result of the failure though.
Oh no, all the VC fratboys and hedge fund managers were at risk of losing their startup to provide handbags for dogs.
Park your socialist agenda for a moment. This is about to affect real people with modest savings. You like to speak out about ghoulish behavior on the right, but this is pretty ghoulish in its own right.
__________________
"You know, that's kinda why I came here, to show that I don't suck that much" ~ Devin Cooley, Professional Goaltender
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Park your socialist agenda for a moment. This is about to affect real people with modest savings. You like to speak out about ghoulish behavior on the right, but this is pretty ghoulish in its own right.
How much of the US population do you think had 250k+ in SVB?
How much of the US population do you think had 250k+ in SVB?
I'm going to guess less than .0001%
It’s not just individuals though, it was start ups and small businesses. When those companies lose that cash, they can’t pay employees, and that’s a problem. But the bigger issue isn’t just SVB. It’s the loss of confidence and contagion that sparks others with accounts at smaller regionals to withdraw, and then those banks fail. It goes from a liquidity issue, to a systemic issue and you’ve got a catastrophe on your hands.
How much of the US population do you think had 250k+ in SVB?
I'm going to guess less than .0001%
How many have 250k+ in any bank across all of America?
You don't seem to understand, it's causing a systemic run that is crippling bank deposits and undermining the ability to lend money to small businesses and homeowners.
You know, #### you seem to care about.
__________________
"You know, that's kinda why I came here, to show that I don't suck that much" ~ Devin Cooley, Professional Goaltender
No, very few people had a lot of money. SVB had about 140K deposit accounts and 37K of those had uninsured funds. Other banks of similar size (like Citizens Bank or Keybank) have 4-5 million deposit accounts with over 90% of their account holders being under the $250K FDIC insurable limit.
Because of that and the fact that 97% of their deposit funds were uninsured, SVB was clearly more susceptible to a bank run than comparably sized banks.
How many have 250k+ in any bank across all of America?
You don't seem to understand, it's causing a systemic run that is crippling bank deposits and undermining the ability to lend money to small businesses and homeowners.
You know, #### you seem to care about.
Considering the Average American Savings account has less than $20k in it, and the Median Savings account has under $5k, your point isn't quite as effective as you think.
Let's not get all Reagan and faint because No One Cares About The Job Creators
Canada has a pretty strong banking system I wouldn't worry about Canadian banks.
The US banking system is broke and this isn't new it's just on a larger scale. The feds continued rate hikes to combat inflation pretty much led to this.
