|
Joined: Nov 2011
Posts: 4,971 Likes: 6
Campfire Tracker
|
Campfire Tracker
Joined: Nov 2011
Posts: 4,971 Likes: 6 |
Apparently SVB’s policy of making loans based on ESG scores, limited their ability to make loans forcing them to invest in bonds trying to make a return on their cash deposits. I see this as a good thing. Market forces are destroying the woke ESG lending criteria. Go woke - go broke! Works for me.
|
|
|
|
Joined: Nov 2009
Posts: 6,878 Likes: 3
Campfire Tracker
|
Campfire Tracker
Joined: Nov 2009
Posts: 6,878 Likes: 3 |
Bold and Woke and Broke. Rio7
|
|
|
|
Joined: Nov 2007
Posts: 29,653 Likes: 5
Campfire Ranger
|
Campfire Ranger
Joined: Nov 2007
Posts: 29,653 Likes: 5 |
Apparently SVB’s policy of making loans based on ESG scores, limited their ability to make loans forcing them to invest in bonds trying to make a return on their cash deposits. I see this as a good thing. Market forces are destroying the woke ESG lending criteria. Go woke - go broke! Works for me. Yep A banks job is to make loans that earn more than what they’re paying on deposits. Remember that in a bank deposits are liabilities while loans are assets. When your assets are worth less than your liabilities you’ve got a serious problem as a bank. You’ve got an even worse problem still when your assets are earning less than your liabilities and you’re carrying more liabilities than assets.
|
|
|
|
Joined: May 2001
Posts: 18,345 Likes: 1
Campfire Ranger
|
Campfire Ranger
Joined: May 2001
Posts: 18,345 Likes: 1 |
Again, I don't think it's ESG directly as I and others have posted. More high interest rates than anything. That said SVB didn't have a risk compliance officer for the better part of a year and a half. Just hired one in Jan. But they did have some BS diversity officer.
I think that ESG is a canary, kinda like when companies buy naming rights to a stadium. It's a sign they are not laser focused on their business. Company starts touting ESG and you can bet they aren't focusing on the bottom line.
Carpe' Scrotum
|
|
|
|
Joined: Jan 2012
Posts: 67,215 Likes: 41
Campfire Kahuna
|
Campfire Kahuna
Joined: Jan 2012
Posts: 67,215 Likes: 41 |
So when’s the housing bubble going to pop All available Cessna 152s have to fly into all of the tater chip and cheeto plants And all the trains derail Their go call was when the china balloon #1 flew over and all of the sleeper cells awakened
|
|
|
|
Joined: Sep 2003
Posts: 23,483 Likes: 10
Campfire Ranger
|
Campfire Ranger
Joined: Sep 2003
Posts: 23,483 Likes: 10 |
So when’s the housing bubble going to pop It would take high employment for a true “pop”. Slow decent back to earth might be what happens. Affordability issues.
|
|
|
|
Joined: May 2015
Posts: 2,112 Likes: 1
Campfire Regular
|
Campfire Regular
Joined: May 2015
Posts: 2,112 Likes: 1 |
Not fact checked, but Foss is a former bond trader.
FOSS - #forthekids @FossGregfoss · 11m The FDIC is working 24/7 on this deposit “insurance” issue.
24 hours a week
7 months of the year.
They know the #math and it doesn’t work. The FDIC has enough “insurance” to cover less than 2% of all deposits in America’s banks
@jameslavish
If you work 40 hrs/wk: at 5% inflation and after 5 years, you need a 28% pay raise or to work 44 more hours (*one full extra week* per month+) to make up the difference.
This is inflation
|
|
|
|
Joined: Apr 2011
Posts: 12,172 Likes: 5
Campfire Outfitter
|
Campfire Outfitter
Joined: Apr 2011
Posts: 12,172 Likes: 5 |
When a bank goes under that you owe money to, what happens to your dept to them? Does it disappear? Negative... Had that situation in Cincinnati in the 1980's. Bank went belly up. Closed it's doors. One coworker just started having his monthly paycheck electronically deposited to his checking account. Check was deposited the day of or day before the bank folded. He had to borrow money from another bank to cover expenses until next payroll ... INCLUDING ... funds to pay his mortgage at the failed bank. And NO, they would not accept a check from his fully funded checking account at the failed bank to cover his mortgage obligation at the same failed bank... Despite what the spin doctors spin, banking laws are designed to protect the banks, not the consumer...
|
|
|
|
Joined: Feb 2001
Posts: 373 Likes: 1
Campfire Member
|
Campfire Member
Joined: Feb 2001
Posts: 373 Likes: 1 |
Though believing in free markets, I think the government out to announce a backstop of the depositor's shortfall at SVB. Estimated in the 10-20% range, it would cost the taxpayers 10-20B.
No normal bank can withstand a 30-40% run on deposits. If the large depositors (uninsured by definition) lose confidence and start taking their money out of other regional banks, the dominos begin to fall and it will cost the taxpayers trillions. Best to try and nip it in the bud, imo. The shareholders of SVB are already screwed, of consequence to them and whatever ripple effect comes from it. If the depositors are screwed and the dominos start falling, it will affect everyone.
|
|
|
|
Joined: Apr 2008
Posts: 17,163 Likes: 4
Campfire Ranger
|
Campfire Ranger
Joined: Apr 2008
Posts: 17,163 Likes: 4 |
When EM tweeted “these are the good old days frens “. That should get people’s attention.
|
|
|
|
Joined: Mar 2010
Posts: 24,281 Likes: 11
Campfire Ranger
|
Campfire Ranger
Joined: Mar 2010
Posts: 24,281 Likes: 11 |
Again, I don't think it's ESG directly as I and others have posted. More high interest rates than anything. That said SVB didn't have a risk compliance officer for the better part of a year and a half. Just hired one in Jan. But they did have some BS diversity officer.
I think that ESG is a canary, kinda like when companies buy naming rights to a stadium. It's a sign they are not laser focused on their business. Company starts touting ESG and you can bet they aren't focusing on the bottom line. bingo.
|
|
|
|
Joined: Dec 2013
Posts: 13,127 Likes: 7
Campfire Outfitter
|
Campfire Outfitter
Joined: Dec 2013
Posts: 13,127 Likes: 7 |
They know the #math and it doesn’t work. The FDIC has enough “insurance” to cover less than 2% of all deposits in America’s banks What happens if we have 1930s style bank runs? I don't think FDIC could cover 10 cents on the dollar with all the fractional banking practiced by necessity by every bank. Wonder what happens to the money in all the paper gold and silver funds? They don't have the gold or the money. Do they?
Patriotism (and religion) is the last refuge of a scoundrel.
Jesus: "Take heed that no man deceive you."
|
|
|
|
Joined: May 2011
Posts: 56,326 Likes: 9
Campfire Kahuna
|
Campfire Kahuna
Joined: May 2011
Posts: 56,326 Likes: 9 |
They know the #math and it doesn’t work. The FDIC has enough “insurance” to cover less than 2% of all deposits in America’s banks What happens if we have 1930s style bank runs? I don't think FDIC could cover 10 cents on the dollar with all the fractional banking practiced by necessity by every bank. Wonder what happens to the money in all the paper gold and silver funds? They don't have the gold or the money. Do they? No offense Hastings, but even this ^^^^ is deeper than most peoples ability to process information. The government cracks down on ponzi schemes, except their own of course.
_______________________________________________________ An 8 dollar driveway boy living in a T-111 shack
LOL
|
|
|
|
Joined: Oct 2010
Posts: 7,727 Likes: 8
Campfire Outfitter
|
Campfire Outfitter
Joined: Oct 2010
Posts: 7,727 Likes: 8 |
How does the fed interest rate increase , lower the value of bonds? Depends on the bond but for most of the ones banks tend to buy their interest rate is fixed at the time of purchase. These bonds can be sold at any time on the market, but when the Fed raises interest rates the price the market is willing to pay for a given bond goes down because an institution can choose to put their money elsewhere (mortgages., for example) for higher returns. This makes for less demand for bonds. The bond itself is still worth exactly what it was bought for once it matures but buyers are looking to maximize returns and won't pay as much for it today. SVB, for example, took a balance sheet hit because they had to sell their bonds to cover withdrawals at a time when prices were down. They carry them on their books at their purchase value but if they have to sell them at a time when their value is low, they have to take the loss. That and their having extended themselves speculating on BS tech companies and ESG initiatives took them down.
|
|
|
|
Joined: Dec 2013
Posts: 13,127 Likes: 7
Campfire Outfitter
|
Campfire Outfitter
Joined: Dec 2013
Posts: 13,127 Likes: 7 |
They know the #math and it doesn’t work. The FDIC has enough “insurance” to cover less than 2% of all deposits in America’s banks What happens if we have 1930s style bank runs? I don't think FDIC could cover 10 cents on the dollar with all the fractional banking practiced by necessity by every bank. Wonder what happens to the money in all the paper gold and silver funds? They don't have the gold or the money. Do they? No offense Hastings, but even this ^^^^ is deeper than most peoples ability to process information. The government cracks down on ponzi schemes, except their own of course. Henry Ford "It's a good thing people don't even know how the banking system works, because that would lead to a revolution"
Patriotism (and religion) is the last refuge of a scoundrel.
Jesus: "Take heed that no man deceive you."
|
|
|
|
Joined: Jul 2006
Posts: 4,843 Likes: 3
Campfire Tracker
|
Campfire Tracker
Joined: Jul 2006
Posts: 4,843 Likes: 3 |
Seeing from several sources that the US Govt is gonna back the depositors in SVB and they can get their dough tomorrow. Market futures open up, Bitcoin up 7% for now as I type anyway.
"Men must be governed by God or they will be ruled by tyrants". --- William Penn
|
|
|
|
Joined: Feb 2006
Posts: 43,928 Likes: 12
Campfire 'Bwana
|
Campfire 'Bwana
Joined: Feb 2006
Posts: 43,928 Likes: 12 |
I know some people that are spreading cash in savings to new accounts in different banks.
We don't have that problem!
|
|
|
|
Joined: Aug 2007
Posts: 12,071
Campfire Outfitter
|
Campfire Outfitter
Joined: Aug 2007
Posts: 12,071 |
Another bank falls today and this one will be the 3rd largest bank ever to fail. Regulators close Signature bank, say depositors will be made whole.
The U.S. Treasury Department and other bank regulators said in a joint statement on Sunday that all depositors of Signature Bank will be made whole, and "no losses will be borne by the taxpayer."
New York banking regulators appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of the bank's assets. Signature Bank reported deposit balances totaling $89.17 billion as of March 8. https://finance.yahoo.com/news/york-state-regulators-close-signature-223852687.html
Last edited by rrroae; 03/12/23.
|
|
|
|
Joined: Nov 2005
Posts: 2,409
Campfire Regular
|
Campfire Regular
Joined: Nov 2005
Posts: 2,409 |
Some billionaires and analysts have noted that SVB bank’s collapse should serve as a warning to Americans that the U.S. economy may be sliding into a downturn. One billionaire hedge fund investor, Bill Ackman, wrote a lengthy Twitter thread Saturday saying the U.S. government has only 48 hours to fix the problem, suggesting that the contagion could spread.
Illegitimi non carborundum
|
|
|
|
Joined: Nov 2005
Posts: 2,409
Campfire Regular
|
Campfire Regular
Joined: Nov 2005
Posts: 2,409 |
Some folks say.....
This is all part of the Democrats and RINOs plan to seize and replace all US currency with crypto-currency. It will give them control over knowing what you purchase and gives records of the purchase, how much you can spend on a particular item or if you will be allowed to spend on something (such as a firearm or monies you gave to your church) it also gives the government the power to punish those who protest or criticize the government. If you want to give away your rights, just give the government financial control and knowledge over your family and business. This has nothing to do with the economy and everything to do with seizing the ability to deny you anything it wants. It basically means you won’t own anything. The government will own it all. Your business will make money directly for the government, and the government will allow you to be paid by the government if you remain a good and quiet subject.
Illegitimi non carborundum
|
|
|
|
594 members (16penny, 10gaugeman, 1936M71, 17Hunter, 163bc, 1234, 69 invisible),
2,075
guests, and
1,197
robots. |
Key:
Admin,
Global Mod,
Mod
|
|
Forums81
Topics1,192,827
Posts18,496,581
Members73,979
|
Most Online11,491 Jul 7th, 2023
|
|
|
|