Home Forums Miscellaneous Topics Stock Market and Investing Silicon Valley Bank

This bank (16th largest) out in the land of fruits and nuts is getting taken over by the FDIC. Evidently, the FED and Super Jerome have finally broken something.

When I heard the lady say "not necessarily systemic" I started having ptsd from 2008. Hope its "contained"......another PTSD triggering word.

https://finance.yahoo.com/news/fdic...ails-to-raise-new-capital-165322938.html

Yahoo is hard to believe. Assuming this bak was leveraged to the hilt in VC deals, a run on leveraged banks hurts.

Fdic protects individuals up to 250K. Not corporations.

And so it begins.......

Silicon Valley Bank opened in 1983 to service new startups in the tech industry. California's high taxation is causing new tech startups to locate in other areas.

Basically, Silicon Valley Bank lost its customer base.

It's California. The entire state is in decline. The California banks will fail along with everything else.

Jim Cramer killed SVB - called them a buy last month at 320.00

That is hilariously naive.

The management team was speculating, guessed wrong, and decided to exit scam. Their CEO sold $3.5MM of his stock in the company in the last 2 weeks.

On the 7th someone traded puts expiring 3/17 and exited the position at open yesterday. That trade would have returned ~30,000%, $4k to $1.2MM. 100% that was an insider.

Agreed.

Someone tweeted "this is what happens when you go balls deep on 10y treasuries at 1.87%"

How about 1980 ?? For those of us who were around, it was wholesale bank slaughter for the next 3 years.

kwg

yep

https://www.zerohedge.com/markets/silicon-valley-bank-crashes-65-halted-pending-news


*FDIC: SVB BANK CLOSED BY CALIFORNIA REGULATOR
*FDIC: SVB BANK IS FIRST INSURED INSTITUTION TO FAIL THIS YEAR
*FDIC CREATES A DEPOSIT INSURANCE NATIONAL BANK OF SANTA CLARA
*FDIC: NAMED FEDERAL DEPOSIT INSURANCE FDIC AS RECEIVER
*FDIC CREATES A DEPOSIT INSURANCE NATIONAL BANK OF SANTA CLARA
*SILICON VALLEY BANK INSURED DEPOSITORS TO HAVE ACCESS MONDAY

As we noted before, while the FDIC noted that SVIB had $175BN in deposits as of Dec 31, note that some $151.5BN of these are uninsured, which means they get exactly zero although a sizable number of them likely pulled their deposits in the past few days.

And just like that SVB is no more: a historic collapse which in many ways was faster than Lehman, and which has seen SIVB stock plunge from $763 to 0 in 16 months.

///////////////////////////

Epic comment from ZH:

"The FDIC cannot, was never intended to, insure against a massive, FED engineered, fractional reserve banking, ponzi, free money, wealth through debt, "monetary policy".

Big auto financers next?

https://finance.yahoo.com/news/tip-negative-equity-iceberg-record-173000474.html

Speculating on what?

That’ll get a man’s ass put in prison, no?

How many here remember Penn Square Bank Okla City, Failure in 1982 which took down banks from the East Coast To the West Coast, that bankrupted Many large company's and shut down three states Oklahoma, Texas, Louisiana, and put thousands of people out of work??

This is just the beginning of a major melt down, want to know when TSHTF?? Not long now.

Boy Scout Motto--- Be Prepared. Rio7

The tech sector? Their FWP that set off their depositors to withdraw said they were selling long term bonds at a loss due to the losses they'd suffered in the tech sector. It'll turn out they were betting on a turnaround that didn't happen and it evaporated all their liquidity.

The put guy will definitely get a call from the SEC. The CEO might get a slap on the wrist.

Kids playing loose and free with other people's money. Not much different than Sam Bankman-Fried.

Be vigilant!

Sounds like Senators and Congressman returns. AOC, Pelosi, Crenshaw, Waserman-Schultz and likely the same amount of jail expectancy

I am expecting a new spike in the high tech start up and big tech world...

Some 37,4xx accounts of 143,8xx (business accounts?) Are over the FDIC limit on average by $4.25m each meaning of the 176 or so billion of deposits only 21 billion is FDIC insured. If those are business accounts then expect at least 15,000 or so companies to hit the rocks.

https://www.netinterest.co/p/the-demise-of-silicon-valley-bank

The tech bro boom is a house of cards, and the layoffs and bank failure are just a sign of what is to come. Hello crypto.