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Of course with incompetent management how could they survive.
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Wait untill the Fed hikes rates again on Wednesday, might be a few more banks failing.
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We could use a good solid recession about now.
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Yep, cleanup all the shit at the bottom and suck it up to the top
I hear ya.
As she gently,
Sucked the shaft,
I blushed, no I didnt, I cummed.
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@GBD, that will show that the Dem policies are working. Better yet how about a depression! 👍 🤗
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^No, it’s the repeal of the laws and safeties and lack of oversight from the previous admin that led to this.
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^No, it’s the repeal of the laws and safeties and lack of oversight from the previous admin that led to this.
You're absolutely correct! this shit even happened in Switzerland resulting in the collapse of their 2nd largest bank - Credit Suisse.
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fuck'n trump with the millions killed with china virus, train disasters, probably blamed for the potential nuke war (that's where the secrets sold come in play?)...now the billions and billions withdrawn from a bank
this is going to be a great book
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chase swoops in
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When the banks start looking at investments with a critical eye instead of focusing on what gives them a better DEI score, they might fare better.
If you look closely at the investments, they are trying to show how woke they are, not how sound they are with investment and economic sense. Loan to qualified borrowers, don't invest in shady tech or green companies.....and hire the most qualified people not just those who check the 'boxes'.
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saw the OP btw....not many can read it
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I saw this and thought:
"Somehow, Shitcan will find a way to blame Trump for this. And sure enough:
SHITCAN: "^No, it’s the repeal of the laws and safeties and lack of oversight from the previous admin that led to this."
So Biden trashes the economy, borrows too much, chokes the economy with his energy policies, raises taxes, causes economic malaise, and banks start to fail...but it's Trump's fault.
Go fuck you mother, Shitcan.
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The Democrats will be blaming Trump for the next 20 years....
Heck, maybe even longer.
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Standard political playbook, blame the other administration.
Brain Dead Biden learned from Obama - which Obama blamed Bush for 6 years.
Seriously, he blamed Bush for any and everything for two years into his second term.
There hasn't been a democrat that has accepted responsibility for their decisions since Truman
You know his famous line: "the buck stops here"
JFK would not be welcomed in today's DNC.
Today's Democrats want people to suffer, as to increase their own power due to people relying on government for handouts.
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And that is why history is lost to you, Remo.
Most of the trouble began in 2018 for all three of these banks.
Who was in the White House then?
your Fuhrer.
“ Rapid growth can be an indicator of risk in a bank’s business. Regulators like the Federal Reserve System (the Fed) and the Federal Deposit Insurance Corporation (FDIC) were concerned about whether the banks’ risk management practices maintained pace with their rapid growth. Funding rapid growth with uninsured deposits—deposits that exceed the $250,000 FDIC insurance limit—increased risks to the banks. Customers with uninsured deposits may be more likely to withdraw their funds, or “run” on the bank, during times of economic uncertainty.
From 2018-2022, SVB’s uninsured deposits ranged from 70-80% of its total assets, and Signature Bank’s uninsured deposits ranged from 63-82% of total assets. By comparison, banks of similar size had median uninsured deposits ranging from 31-41%. At the same time, Federal guidelines signed in 2018 by then-President Donald Trump eased regulations for all but the largest banks, including institutions like Silicon Valley Bank.
“No one should be mistaken about what unfolded over the past few days in the U.S. banking system,” said Sen. Elizabeth Warren of MA, in an op-ed in The New York Times. “These recent bank failures are the direct result of leaders in Washington weakening the financial rules.”
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Biden’s America. Killing it again while crying about Trump because somehow Trump has complete power from them out of office. 😂😂😂
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Trump’s America.
You were warned what his legacy would be when all the rules and norms were stripped away, but you didn’t listen. You were conned by short term gains over the health of the nation, and now Biden is fighting the Trumptards to fix the pieces of Trump’s mess.
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Gloom guy, you see but you don't understand.
Read any of the 10K reports of SVB, in there you will see, as discussed here previously that they had a concentration of riks.
Not Trump's doing, but theirs.
The concentration of risk was with high tech companies many of which their "assets" were IP, and grossly overvalued at that.
Oh, let me help you IP = Intellectual Property
Patents, trade marks, copyrights etc.
Most of which had no real value.
You borrow against shit assets, you get shit results.
you want to blame someone, blame the SEC that allowed crappy asset valuation.
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they just look for ANY lil bump to hang their hat on
i like it though...so keep it coming
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maybe put the fucking thing up for a few bids
sure their will be perks and favors given out for this cluster fuck opportunity...funny how this all works
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looks like they had bidders
The bank was able to land First Republic’s assets in an auction that included a number of rival bidders.
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I don't often have to point out that Gloomy can be a complete idiot
But, when you start quoting Warren
You've gone full retard
No doubt Trump killed the Swiss bank somehow or other too, lol
Short memory droolers
This shit started with the Alan Greenspan "Put"
The Fed is the Lode star of all things monetary
Negative real interest rates for 10 years and you didn't think shit would break when it returned to normal?
Not a one of you mongrel brain-deads have a clue what I'm talking about, do you?
It's no wonder we're circling the drain, education is dead in this shithole
Somebody call Randi Weingarten, pronto!
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Let's try to make this simple, k?
SVB borrowed short and loaned long, that's it.
The Fed's SFO office went to sleep while it happened. Quite a number of audits were done, people at SVB were warned but the FED did NOTHING til depositors began the run. The run reduced equity at the point in time when the long term assets were under water by a significant amount due to higher interest rates over the last 12 months. NO politician had anything to do with this mess, including Trump or Biden, unless you want to go back the the clusterfuck law called Dodd-Frank. The regulations that were supposed to back-stop our mortgage market are garbage and when you keep rates artificially low for 10 years.......then raise them 500 basis points in a year, SHIT WILL BREAK.
First Republic?
Made loans to rich people at phony rates, Zuckerberg got a $6m loan at a teaser rate of 1.07%. Put a lot of those loans on your books, then have your depositors take all the money out looking for higher yields..........voila, no equity base to back the loans..........bye bye First Republic.
Chickenshits at the Fed double down on the punch bowl every time there's the slightest wiggle in financial markets
Rule #1
The Fed, The Fed, The Fed
Rule #2
See rule #1
Gloomy still won't understand any of this but he'll fart in his bathtub and think he's spoken sage words
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Was SVB really a bank "failure" or was it just a change in ownership. No depositors lost any money whether their deposits were insured or not. The ownership of the bank changed but that was it. What's all the hoopla about? Is this Chicken Little Syndrome? And even though I think is was a good thing to do, why did the FDIC get involved in a state chartered bank's liquidity problem? Yes, I know - Who says size doesn't matter!
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Oh no girl, they most definitely failed due to what's called "duration risk", mismatch of assets and liabilities.
The FDIC arranged a bailout and, of course, fucked it up.
You and every taxpayer end up with the bill, as usual.
Some idiot will tell you that the banks are being dinged but that just passes thru to everybody anyway.
You couldn't write a fictional story about more fucked up regulators and politicians than this one.
Always screaming at the dangers of companies getting too big?
So they arranged for the largest bank (JP Morgan) in the country to get even bigger....
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To answer your other question....
The FDIC decided to break their own rules and declare SVB a systemic risk to the system.
No surprise that they decided to bail out a bunch of super-rich venture capitalists in Silicon Valley........who just happen to be Dems and large donors to Biden et al.
But, I doubt there's any connection there, right?
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GOV shoulda probably guaranteed all the money for 2years while they wound down the contracts that created the timing difference
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Next contestant : PacWest bank
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pshhhh..........
I'll call your 1 and raise you 185
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Good opportunity for the Gloom Master to learn something about duration risk, mismatch between assets and liabilities.
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Ok, so to play devil's advocate.
Brain Dead Biden has been in office for over two years.
There are people sounding the alarm bells on bank failures & more to come.
Ok.
Biden.
Fix it.
You the man!
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^ ).gif)
Biden's a drooling moron and has no clue what's happening in the real world.
His admin has been usurped by some of the foulest fucked up people in existence.
Case in point.....
"A policy contradiction is that the Dodd-Frank Act expressly prohibits bank mergers if more than 10% of U.S. deposits would be concentrated at any bank. This would have barred JPMorgan from purchasing First Republic had the latter not failed. But by putting First Republic into receivership, the FDIC let JPMorgan CEO Jamie Dimon sweep in and scoop up its wealthy depositors."
Meanwhile the same imbeciles scuttled a merger between two regionals trying to compete against the monsters, like JP Morgan. TD Bank and First Horizon, which stock promptly plummeted 33%.
The Biden gang, along with fellow henchmen, Gruenberg, Chopra and Powell are hell bent to destroy wealth as fast as possible. It's the Progressive way, my man.
Another more local example, a San Francisco office bldg. is going to sale for $60 million. That's an 80% haircut from 2019 value of $300 million. Couldn't happen to a nicer bunch of asshole Progs.
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Fucking idiots... not even considering the fact that govt securities are getting 5% and regional bank customers are buying those instead of getting the paltry return the bank would give ... that has NOTHING to do with it right?
It's Yellen and Powells mismanagement nothing more ... have a nice day idiots.
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This is the free market at play here and yet somehow still blame Joe Biden.
Not government’s fault that First Republic Bank over leverage themselves. The big rich depositors started a run on the bank very much what happened to Silicon Valley Bank. These rich dudes fulfilled their own doom prophecy. This is people doing what they want with their money…..free market.
Government swooped in to save people’s money. Sounds exactly like a government success story. Thanks Biden and Trump!
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Biden Is Gonna Finish The Job
The Obama Administration consolidated the weaponization of destroying the middle class in America. Now Joe Biden is attacking the middle class from all sides. Creating the perfect petri dish of economic collapse to usher in a digital currency that will reduce the population to serfs under technocratic totalitarianism.
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" This is the free market at play here and yet somehow still blame Joe Biden."
I didn't blame Joe.
How can you blame someone who doesn't know what's going on.
Trust me that nobody went in to ask Joe what to do.
Also, this is Mos Def not the "free market" at work.
First Republic is not "too big to fail".
Let them go BK.
Like throwing the occasional virgin in the volcano to sober up the villagers.
Stupid fucking depositors might be a little more careful where they put their money next time.
Your idiot government has essentially removed any "moral hazard" risk from the equation.
Google it, since it's obvious once again that you have absolutely no clue.
I've added one link but from all your previous posts and being a Progressive Socialist......
You'll never get it
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"No, it’s the repeal of the laws and safeties and lack of oversight from the previous admin that led to this."
Sherkahn,
I know that Trump took credit for cutting a lot of red tape and relaxing some regulation. He has been blamed by people on this board for the lax rail regulations causing the derailment in East Palestine and now for the banking failures. I thought most of his red tape cutting was done via the various government departments rather than by changes to laws that needed to be passed by Congress.
If I am wrong please let me know but otherwise Biden has been in office for over two years and he could have added back any rules that Trump dumped and added 25 new ones.
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Here ya go.
“May 23, 2018, 4:08 AM PDT / Updated May 23, 2018, 4:08 AM PDT
By Erik Sherman
The House voted late on Tuesday to pass a bill that will change significant aspects of Dodd-Frank, the banking reform bill introduced after loose lending and risky maneuvers by financial institutions led to the country's worst recession since the Great Depression.
Since it passed in 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act has been the target of animosity by many conservatives and the banking industry. Given President Donald Trump's animosity toward Dodd-Frank, it seems likely the bill will become law, having already passed in the Senate in March.”
Since then Senator Elizabeth Warren and other have wanted of the consequences of the changes, and has fought to have the cha ges to Dodd-Frank repealed. These are but some of the consequences.
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“Your idiot government has essentially removed any "moral hazard" risk from the equation. “
Well I agree in theory and this is why people brought up the regulation roll back. Regulations are there for this specific reason. And really the go did allow the bank to fail but rescued the people who had deposits in the bank.
And certainly would agree that these rich fucks should pay the consequences but I do believe government needs to keep confidence in our overall banking system. Regular middle class folks would have seen their paychecks disappear. If one average Joe were to see his deposits wiped out here every average Joe would have concerns about putting money in any bank.
It’s obvious the free market will not insure confidence as banks will continue to gamble your savings to profit a dollar in short term.
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I'm with GBD and AFMadness on this. More misery to come for many, but in the
long run, these government policies will fail. The elites think they are the gods
and think they can conrol the universe. There are plenty of people just as sharp
as the elites who will rise up and make this world a better place for everyone.
This has already been prophesized in Revelations. And if you don't believe
in the unseen, you are a fool.
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People on the left generally thing (by and large) that government is here to save us from ourselves.
People on the right tend to think that government is the problem, and individuals left to their own devices can make better decisions than government would for them.
In this context, big banks - people can move their money if they so choose - individual choice.
To my point earlier - for those on the left, if government is here to save it - Brain Dead Biden has been in office long enough to either a) fix what trump "broke", or  use that crystal ball to fix all the ills of society
You expect the republicans to see into the future, now that your brain dead boy is in charge, fix it.
Simple, right?.
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Dodd-Frank was a loser from Day 1
All this admin did was extend "too big to fail" to every bank in the country
Now they know they can take any risk they like, knowing they'll be bailed out by the taxpayer or be forced to sell to a bigger bank. Might as well go for broke, quite literally.
Nothing like an idiot Progressive to bemoan how every bank/company is too big, then proceed to use regulations to guarantee they'll get bigger.
First it was Tech, now it's the big banks.
Meanwhile, due to Fed keeping rates at zero for 10 years, hell is coming to get paid it's due.
This feels a lot like 1969 to me.
Adjusted for inflation, the stock market essentially went sideways for 15 years until 1982.
Mo' misery, mo' misery
Anybody who's got half a brain should pay attention to the recent talk with Stanley Druckenmiller, we are now in uncharted waters. Housing market is in lock-down, rate increases have caused HUGE damage to every long-term fixed income portfolio and that's why 186 banks could fail.
Basically, Progs are always trying to regulate risk out of the system but consistently ADD more risk at every turn. They're fucking idiots in training to be retards..........Warren leading the parade.
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