When Silicon Valley Bank, the 16th (or 18th depending on how you count) largest bank in the country based on assets but with only 16 retail branches, suddenly fails, it means a lot of people are going to be hit with losses. According to Zerohedge, a lot of those assets are left with no protection….
Silicon Valley Bank, aka SIVB, the 18th largest bank in the US with $212 billion in assets of which $120 billion are securities (of which most or $57.7BN are Held to Maturity (HTM) Mortgage Backed Securities and another $10.5BN are CMO, while $26BN are Available for Sale, more on that later )…
… funded by over $173 billion in deposits (of which $151.5 billion are uninsured), has long been viewed as the bank at the heart of the US startup industry due to its singular focus on venture-capital firms. In many ways it echoes the issues we saw at Silvergate, which banked crypto firms almost exclusively.
…and without even the phony “insurance” provided by the FDIC, it looks like a lot of powerful people are about to get a major financial haircut. Never fear, that isn’t going to happen. The propaganda is already starting…..
Entrepreneur and Dallas Mavericks owner Mark Cuban has demanded the Federal Reserve take action and assume responsibility following the collapse of Silicon Valley Bank (SVB) Friday.
“The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits,” Cuban wrote as part of a lengthy Twitter chain Friday. “Any losses paid for in equity and new debt from the new bank or whoever buys it. The Fed knew this was a risk. They should own it.”
“If the Fed doesn’t own it, trust in the banking system becomes an issue,” Cuban argued. “There are a ton of banks with more than 50 pct uninsured deposits.”
Billionaire investor Bill Ackman wrote a lengthy analysis of the Silicon Valley Bank failure on Saturday, arguing that the U.S. government needs to protect all of the bank’s depositors.
The financial expert says that the government needs to take action by Monday to avoid an economic meltdown.
Stories like this, dutifully posted by Fox, are priming the pump for the Federal government to take action. It is straight up propaganda on behalf of the elites.
The depositors at this bank are not little old ladies who direct deposit their Social Security checks, they are venture capitalists and the type of people who run in the same circles as billionaires like Mark Cuban and Bill Ackman. That is why I keep pointing out how few branches SVB operated. They are not funded by regular retail depositors, they get their money from people with deep pockets to provide capital to start-ups.
You probably won’t see it but I suspect that Congress will act to make these well connected depositors whole, using made up “money” that will get tossed onto the national debt dumpster fire and increase inflation for the rest of us. What is the point of buying politicians unless you can rely on them to protect your shekels when someone screws up?
Now if your local actual bank goes under? Tough shit peasant, you might never be made whole.
All bank customers are equal but some are more equal than others.
That was my thinking too after checking Fox news this morning. Rich guys moaning about how normal Americans will lose trust in the banking system if the govt doesn’t step in immediately and make sure other rich guys don’t lose their money. Sure, tax me more so I’ll trust the banking system enough to keep using it.
Remember when FDR was trying to push his type of socialism/fascism programs? He assured the peasants that the debts wouldn’t be bad because they would “owe it to themselves”. Via the “Federal” Reserve. A privately held consortium.
And Cuban and Ackman are…..??
“Oy veh! Ya just gotta bail out my chavers. What would the 6 million think of you shabbos goys if ya didn’t?”
I was trying to find a cute little hyphenated euphemism for kikes, similar to the “Basketball Americans”, “Looter Americans” used to describe the nigs here, but why bother. Jews are not Americans nor are they white.
Maybe after they bring it all down upon everyone’s head for the last time, “the chosen” will become chosen for extinction – for real!!
Now back to ‘niggers done this today’.
Saoirse – many Years ago, when “Zerohedge” was an Independent Website, one of their regular Commenters (don’t remember his Name) coined the term “Cheesepopes” for (((them))) and it caught on and was regularly used on that Blog. At the Time, it allowed rather brutal putdowns of “God’s chosen people” ™ and many Links to older Books and Articles that pointed out (((their))) Crimes against Humanity.
SVB was Woke Rainbow Banking Central. It has no lack of friends in the regime. Rumors going around that the Pelosis, Oprah, and Prince Harry had lots of money there.
And truth be told it’s going to be difficult to muster a lot of resistance to making depositors whole. That is, after all, what the FDIC was created to do. Here they will just be following the spirit, if not the letter, of that.
Solid assessment. Those with the shekels take care of their own – and do so with other people’s money. As I noted per your previous post, I’m not particularly bothered by the depositors at SVB losing whatever they lose. But they and their friends are bothered, and are essentially threatening to cause a mass panic and bank run if they’re not made whole. Since people are sheep and unhealthily fascinated by what the mutants in California do, I believe such a panic could very easily be started. Guaranteed the fedgov will ‘blink’ first, because the money men controlling them will demand the goy masses communally pay for the losses of all the jevv, subcon, oriental, and sexually perverse depositors.
Pursuant to above – over at Zerohedge (yes, sky is always falling) is a copy of a tweet from some money guy called “Lawrence Lepard.” Photo of line of depositors in Wellesley, Mass trying to get money from Boston Private Bank, recently acquired by SVB. So once again, the relatively affluent self-styled ‘elites’ will not quietly accept losing their shekels. Even if the government does not call it a bailout, there will be a de facto bailout. Because some people are more special than others.
Much as you may hate the idea, it’s way safer to have your money at Chase or BA (NOT Wells Fargo) because of their size…
Joe Slovo Brandon is behind schedule on burning it all down better and Barry is not pleased with the pace of the new West South Africa Fundamental Transformation?
Keep calm Long March comrades of the CPUSA/Grand Old Politiburo Uniparty, there is a lot of ruin left in a third world turd banana republic.
The CBDC will be worldwide by June? (a little birdy)
6pm EST the f*(&king government just bailed out the banks and wall street AGAIN.
all depositors in SVB and Signature (another bank that went bust sunday) to be made whole, so all the billionaires who are too stupid to learn about FDIC limits get made whole. And tons of new programs to provide ‘liquidity” to other banks (read “free” money)
Inflation is really going to get roaring now.
Why even bother playing, the entire game is completely rigged.
Feds just closed Signature Bank. Asian markets opened and gold went back up over $1900 an ounce. Interesting times.
This is where the money is going to make the depositors ‘whole’ –
I’m betting the haircut won’t be very short – remember whose hair we’re talking about.
It didn’t even take an act of Congress.
The Fed with Treasury support can do it on their own.
The Bank Term Funding Plan will loan cash against book value (par) of assets, not market value.
It’s a Fed printing press buy up of distressed assets.
Profits are privatized but losses are socialized. If you repeat this mantra everything makes sense.