* Billionaire hedge fund manager Bill Ackman is predicting an economic meltdown following the collapse of Silicon Valley Bank
* Ackman is urging the US government to take action to protect all of the bank's depositors fearing there could be a ripple effect across other smaller banks
* Greg Becker, the CEO of SVB Financial Group, sent a video message to the bank's employees, acknowledging the bank's 'incredibly difficult' last 48 hours
Billionaire hedge fund manager Bill Ackman is forecasting 'economic meltdown' within hours of the banks opening up on Monday morning following the failure of Silicon Valley Bank.
Ackman is urging for the U.S. government to finally step in and protect all of the bank's depositors, warning inaction could lead to a ripple effect across other smaller banks within the industry.
The worry is that customers will rush to withdraw cash from their accounts fearing instability across the banking system with the very real possibility of a domino effect.
Read more ....
WNU Editor: The US government is sticking to the line that there will be no bail-out .... Yellen: No federal bailout for collapsed Silicon Valley Bank (AP). More here .... Treasury Secretary Janet Yellen says U.S. government won’t bail out Silicon Valley Bank (CNBC), and here .... Yellen Says Government Will Help SVB Depositors But "No Bailout" As Fed, FDIC "Hope" Talk Of Special Vehicle Prevents More Bank Runs (Zero Hedge).
Asked whether the government might bail out banks as it did during the 2008 crisis, @SecYellen says, “We’re not going to do that again.” But she adds, “We are concerned about depositors and are focused on trying to meet their needs.” pic.twitter.com/sg5WBFWfPj
— Face The Nation (@FaceTheNation) March 12, 2023
As to what is my take. I am nervous.
This could be the tip of the iceberg .... Silicon Valley Bank imploded in a single day. It could be just the tip of the iceberg. (Business Insider).
I saw first hand the collapse of the Russian banking system in 1992, and I am seeing the same factors at play today as I saw 31 years ago.
I do expect a massive intervention by the US government to stabilize the situation this week. And what will not be in the debate will be on how policies from the White House and the US government got us into this crisis.
Update #1: Are we going to see bank runs tomorrow? .... Contagion spreads: Desperate customers line up outside First Republic Bank to take their money out - after SVB bank collapsed and sent shockwaves through market (Daily Mail).
Update #2: This crisis is going global .... SVB Fallout Spreads Around World From London to Singapore (Bloomberg).
38 comments:
Another crisis brought to us by A-hole Democrats
This bank was big into ESG investing.
And now we will all pay directly or indirectly. Makes me wish I still had renminbi.
I wonder how much the Solyndra Boys got this time around?
If it happens, it will be biblical.
Or in other words
From Rocky
Mr. Lange, What do expect from tomorrow's fight?
PAIN.
A-Hole Demcorats
SVB had NO head of 'risk assessment' for nine months before it collapsed... as woke boss for Europe, Middle East and Africa was busy organizing a month-long Pride campaign and a 'Lesbian Visibility Day'
Home Depot founder Bernie Marcus warns Americans to 'wake up' after 'woke' Silicon Valley Bank goes bust - because it was 'more concerned about global warming than shareholder returns'
Low hanging fruit for Russian cyber warriors. All they have to do today is speak the truth.
^^^ ukie name caller, has Russian troll fettish/ phobia
this is the sort of anti Democrat remarks we get from those too ignorant to do some basic research! Whose fault? read this and see how fucking wrong you are once again
After successfully lobbying for the rollback of new rules applied to Wall Street in the wake of the financial crisis, lobbyists for Silicon Valley Bank immediately began pressing their case further to the federal authority that insures bank deposits in the event of another crisis, according to lobbying disclosures reviewed by The Intercept. The lobbying effort managed to exempt banks the size of Silicon Valley Bank from more stringent regulations, including stress tests aimed at uncovering the type of weaknesses that led to the bank’s implosion Friday. Two of the bank’s top lobbyists previously served as senior staffers for House Speaker Kevin McCarthy, who himself pushed for the repeal of significant pieces of the landmark Wall Street reform legislation known as Dodd-Frank.
The meltdown of Silicon Valley Bank represents the second-largest bank collapse in American history and the first since the 2008 financial crisis. Over 90 percent of the bank’s deposits exceed the amount federally guaranteed by the Federal Deposit Insurance Corporation, meaning that those people may either never see their money again or lose substantial amounts.
Democrats are evil. Look at what they did to America and the world.
do tell us!
the one good thing? they dumped Trump!!!
^^^ FRL special.
The SVB risk manager in Europe is all about LGBTQIA++. When did she have time to look at risk?
"might have weakened SVB's ability to manage risks associated with interest rate"
- Newsweek
Love that weasel word "might"
Silicon Valley. Gives money to Democrats. SVB left the risk manager position unfilled for 7 months.
Tell me what is a stress test suppose to do? They could pencil whip it. It is what they do in auditing all the time. I knew an auditor who quite a multinational CPA auditing firm. He did not want to lie. So he quit to get a masters in mathematics so he could teach.
It just occurred to me with SEC, IRS and other information, the government could connect the dots and conduct a stress test from afar.
What is funny is that the innumerate one could bleat stress test over and over, but could never conduct one and therefore could not comprehend the results.
I saw pictures of the risk managers. I think the job requirements are female, young, attractive (>=7), and no STDs.
Let's get real Mr. I'M SCREAMING @ YOU BOLD FONTdoesn't know the first thing about stress tests. there will be high, low and medium risk scenarios. There will be percentage attached to loans and overall risk. Right there is your fudge factor. They can say anything.
What the banks need is something like admiralty insurance, which is private. The reinsurer can audit their books. If they can't get insurance they go out of business. A private reinsurer will audit the books much better than the government.
I love 12:55 Al he know is to look for the D and pull the lever and also to burn incense in front of the proper fanes.
12:55. Oh , I agree with you 100% on the banking isxue. It is your goofy anti Russian sentence that was actionable.
You still have not figured out what team you are supporting , have you?
All the Dems leading this country down the road or perdition all back the ukies. How do you reconcile this?
You never have answered this question.
Just remember, it's a big club, and you are not in it.
A banking crises could mean gold going parabolic in the coming weeks to months if this isn’t resolved. Got 16 ounces on stand by.
"When the Senate earlier passed the legislation by a 67-to-31 vote. Some Democrats in smaller or more rural states reliant on smaller banks cheered the legislation and said it removed a burden on those lenders." - CNBC
Lobbying started in 2015. 3 years later the house and Senate approved the law.
But Yellow said "But Trump"
Nicholas Maduro, the gays and fluoridated ice cream companies must be held
accountable for destroying silicon valley.
I am not a crackpot.
President Trump on Friday moved to chisel away at the Obama administration’s legacy on financial regulation, announcing steps to revisit the rules enacted after the 2008 financial crisis and to back away from a measure intended to protect consumers from bad investment advice.
After a White House meeting with executives from Wall Street, Mr. Trump signed a directive aimed at the Dodd-Frank Act, crafted by the Obama administration and passed by Congress in response to the 2008 meltdown. He also signed a memorandum that paves the way for reversing a policy, known as the fiduciary rule, that requires brokers to act in a client’s best interest, rather than seek the highest profits for themselves, when providing retirement advice.
The executive order affecting Dodd-Frank is vague in its wording and expansive in its reach. It never mentions the law by name, instead laying out “core principles” for regulations that include empowering American investors and enhancing the competitiveness of American companies. Even so, it gives the Treasury the authority to restructure major provisions of Dodd-Frank, and it directs the Treasury secretary to make sure existing laws align with administration goals.
Mr. Trump’s action on the fiduciary rule, which Democrats and consumer groups immediately denounced as a gift to Wall Street, could have a more concrete impact.
Those who live in gasoline houses will continue to demand expanded war and the subservience of the world. There is only one exit to this ride and it ends in flames.
the gays did not do away with banking regs but trump and cohorts did. cut the stupid name calling and confront reality and facts and data and laws made and laws done away with.
And Fred Lapides keeps at it at 2:39 /2:41
Has Fred ever heard of Arthur Anderson? Consulting/CPA/Auditing firms can always gundeck an audit. It has happened before (Does Enron ring a bell?), is happening now and will happen in the future.
"Seventeen Senate Democrats voted with Republicans to ease regulations on some banks." 0 CNBC
17 is a lot in the Senate. It means it was bipartisan.
When 5 or 10 Republicans vote with Democrats in the house they call it bipartisan.
What is sauce for the goose is sauce for the gander.
Stress Test what could go wrong?
gundeck
2 of 2
transitive verb
slang
: to fake or falsify especially by writing up (as a series of official reports) as if meeting requirements but actually without having carried out the required procedures
https://www.merriam-webster.com/dictionary/gun%20deck
No matter how much lipstick you put on this pig, it still comes down to the top 3 in charge took the money and ran. Facts. They are big time friends of some powerful Dems. Facts. They will never be charged with a crime. MORE FACTS. Just another day in the life of your typical Democrat Elite Communist Party.
Now, now kids, enough of the playground bickering, eh? This bank collapse could quickly turn into a bona fide systemic crisis, regardless of whose "fault" it was. If that happens, EVERYONE--Repub, Dem, lib, conservative, young, old, whatever--will feel the heat, and fast. Instead of bickering, use the next few days to get your personal shit (finances, preps) IN ORDER. 'Cause if a global bank run occurs, it'll already be too late.
"regardless of whose "fault" it was. If that happens, EVERYONE--" (Blah blah blah)
Dems hold the power in the country. PERIOD. Republican holding the house is more of a rear guard action. You can see this in things large and small. Jane Fonda can say certain people should be murdered and nothing happens to her. Next day she explains it was a joke.
The bank is headquartered in California, Republicans are blacklisted in Hollywood and are outvoted in the State legislature for years now. Most of (all?) the Silicon Valley media companies are liberal to the max.
Who did SVB loan to? Which loans turned sour? They do not loan the money to conservatives. They loaned it to flaming liberals.
Everyone is stuck? Libs are. I can move to Asia or Europe.
Democrat communists are real and control the banking sector.
That, not lack of diversified investments by SVB bank managers, led to a run on deposits.
I am not a crackpot.
Democrat banking interests have been trying to stamp out the 1st & 2nd amendments. That is how much power the Fuckercrat party has.
Don't like getting shut out of social media, libtards say start your own. Star your own social media company and libtards, they to deny you banking services. In addition to that they try to deny renting servers or server time to you. Deny access to IT regardless of if you have the money and they have ample supply.
This is a good example of how identity fascism can destroy an entire civilization. Way to go liberal identity fascists AKA Democrats/Liberals
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I would like to see to whom SVB loaned their money. Was it along the lines for a Door Dash. copy cat. If several no performing loans came due at the same time for lame ideas, how would a stress test catch that?
If they are deluded to loan money for bad business plans because they like or have worked with those people in the past, how would a stress test catch anything until the loans actual start coming do? Probably a lot of loans based on who you know and not on business plans.
Really after all the left has put everyone through I do not care if there is a market melts down. It will give them an excuse to go full Mussolini and take control. They keep trying anyway. Sooner is better than later. I have commie spouse, who grew up in commie land. It will just be another day.
More ass hattery from Democrats
CHICK-FIL-A BOOTED FROM GROUP OF PROPOSED RESTAURANTS OPERATING AT MISSOURI AIRPORT: NOT INCLUSIVE
https://www.svb.com/private-bank/help/resources/wealth-access/portfolio-dashboard
SVB Doubled Its Canada Loan Book in Year Before Collapse
https://www.bloomberg.com/news/articles/2023-03-10/svb-doubled-its-canada-loan-book-in-year-before-collapse
https://seekingalpha.com/article/4586033-svb-financial-blew-up-even-faster-than-i-expected'
Seems like a good article. Does not list specific loans or companies.
"The second was potential losses in the loan portfolio. 21% of the ~$70 billion loan portfolio was to early stage companies. Any losses in just that part of the loan book would hurt equity almost dollar for dollar."
How would a stress test catch that?
"Biden’s Budget Director Unable to Answer Basic Question About US Banking System"
But qualified, because she is at least a double whammy.
https://thesportsgrail.com/who-is-jay-ersapah-svb-head-of-financial-risk-management-biography-education-career-linkedin/
a very simple quiz:
who was the president and with his party got rid of the banking regulations that Obama had in place, which, if not removed would probably have prevented the bank mess that is here from turned in a dumbing ground for silly shit that has no bearing on a simple fact: Trump got rid of regs that were in place. Now show that not to be true.
n the fallout of Friday's run on the bank, some reports noted that a rollback of banking regulations by former President Donald Trump might have weakened SVB's ability to manage risks associated with interest rates. In 2018, according to The New York Times, Trump signed a bill that axed regulatory requirements for regional banks with less than $250 billion in assets.
Under the new rules, such institutions no longer had to submit to "stress testing" by the Federal Reserve and were no longer required to keep a certain amount of cash on hand to protect against the effects of financial shocks, the newspaper reported.
The Times noted in its report that the bill was championed by SVB CEO Greg Becker. Becker had pressed lawmakers in Congress to lessen regulation that placed higher scrutiny on certain banks, claiming that SVB had a "low risk profile of our activities and business model." By 2018, his bank had spent roughly $500,000 to lobby for the changes that Trump ultimately signed into law, according to The Lever, an investigative news outlet.
"a very simple quiz:" - a ___ ___ __ ______ ___
Bills start in the House go through the senate and end at the presidents desk.
It is a 3 stage process. The Democrats could have easily filibustered the legislation.
Also ___ has not looked at the loan portfolio of SVB or answered how stress testing would have caught anything.
I realize ___ can't count as high as 3 and so cannot comprehend the 3 stages a bill must pass through.
Nor has ___ studied auditing or conducted an audit. ___ has not answered how a stress test would prevent gundecking.
Does ___ understand that when a consulting firm has audited a company that often times people take it with a grain of salt?
When Arthur Anderson went out of business did that make auditing better? Well. Did it? Their people went to other companies. So is it the same old same old?
Company personnel can fudge the numbers, but they can also mis-estimate risks, Sometimes the Delphi method has to be used. When it is used and things go wrong are you going to prosecute? Would that be fair?
Another question for the illogical, innumerate, illiterate one.
There was a 50 billion dollar threshold. Should it not be indexed to inflation or if not automatically increased, then congress should updated it every 3, 4 or 5 years?
Especially whenever Democrats force 50% increase over spend year over year and create massive inflation?
50 Billion 2010 dollars would be 68.5 billion dollars today.
Did you know the Dirty Democrats added emergency COVID spending to the budgeting baseline.
Which means if you increase the budget 10% or 20% from the previous years budget, they will call it a cut. The regular budget amount plus the added COVID amount to the current budget is suicidal.
If ___ had read some instead of looking at pretty headlines, part of the reason for the collapse of SVB is Democrats via the Federal Reserve. Raising interest rates or tightening is way for trying to sop up all the cash the Democrats threw out there like the had explosive diarrhea.
Fed rate went up. Return on bonds went down for SVB and then customers had to withdraw cash due to the feds raising rates.
When you do a stress test how do you model the Fed setting rates. there has to be an answer, because a stress test is a model. That is date a model would need.
Does ___ have answer?
"SVB is battling cash burn due to declining deposits from startups struggling with a venture capital funding drought."
- US News and World Report.
Why is there a capital funding drought? Could it be that the Fed is aggressively raising rates?
How do you model that?
How do you model the government's actions, when they can spend more than they collect and raise interest rates at a whim?
Lets ask the mavens at Yokel U.
sad to say, if you truly believe that Trump removing those regs had nothing to do with it then you are missing out what is being said, even said in MSM, and by those professionally aware of banking and its regulations.
fact is, you simply can not accept the fact that Trump and the WSJ and the lobby groups wanted to do away with many of the regs put back after the Big Recession, Dobbs regs, and Trump did get rid of those regulations, though there were not even as strong as the ones that used to be in place and then having been removed (Clinton went along with this too) we had the Big Recession.
sad to say that you do not know what a stress test is. It is magical 2 words for you.
The greatest current here were the action of Congress in spending money.
there is the whole thing called orders of magnitude. But you do not get numbers, so the concept of orders of magnitude are lost on you, You could get extra money for being disabled, You should get tested. You have a brain deficit.
Overtime: SVB was lending to Chinese startups. What if a bunch of them out of the blue and against past performance said they were like you? Tits up?
The Chinse government takes no action against the Chinese startups because that was the plan, it is hybrid warfare.
Go back to watching you basketball game and stand up in your home, when they play the Chinese national anthem
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