Silicon Valley Bank: Prime example of when industry captures regulator

[Pavanonline]

32 minutes ago, Codemonkey said:

If there really is a problem as they are predicting, ripple effects will be there all over.

IMO SVB will be saved by the feds by a combination of bail out money + FDIC + selling assets. It will take some time but I think it will happen. Unlike in some of the other failures, there is no loss of capital, its just that the capital is tied up in low yield (but also low risk) mortgage backed securities.

yeah there's no loss of capital, that is what so peculiar about this. why did the run happen? Shorts probably triggered it, stock was in freefall as they knew the bank didn't have liquidity and could only get money by selling their treasuries at loss. That got the depositors worried. And another thing about this bank is they simply couldn't handle the amount of deposits they were getting, Out of their league and didn't have the experience needed.

The real problem is how many such banks are out there? This is the downside of rising rates at high pace and the blowback fed got because they waited so long to do it. No doubt there will be a recession if they continue the rate hikes and inflation will continue if they don't. 

[Pavanonline]

18 minutes ago, hunkyfunky2 said:

80% should be recoverable... It's not like MBS where underlying assets are worthless 

Agree, but what they don't have is time and there are no takers now for those as the current short term bonds are way more profitable. They actually tried and failed to get money to pay the depositors.

[Codemonkey]

2 minutes ago, Pavanonline said:

Agree, but what they don't have is time and there are no takers now for those as the current short term bonds are way more profitable. They actually tried and failed to get money to pay the depositors.

Like it happened in 2008, mostly news will be out by Sunday evening to clam down the markets Monday.

Just got a call from my ex-roomate, his start up funds (VC Founders Fund) also got locked.

[Pandubabu]

39 minutes ago, hunkyfunky2 said:

80% should be recoverable... It's not like MBS where underlying assets are worthless 

All those treasury bonds is loss no.. looks like they have long term bonds 

[hunkyfunky2]

5 minutes ago, Pandubabu said:

All those treasury bonds is loss no.. looks like they have long term bonds 

Loss, but not zero. 

[Pandubabu]

Just now, hunkyfunky2 said:

Loss, but not zero. 

Agree ..

[futureofandhra]

6 minutes ago, Pandubabu said:

All those treasury bonds is loss no.. looks like they have long term bonds 

why treasury bonds loss?

profit kadha unless -ve interest

[Pandubabu]

Just now, futureofandhra said:

why treasury bonds loss?

profit kadha unless -ve interest

They bought long term when rates were less 

[futureofandhra]

2 minutes ago, Pandubabu said:

They bought long term when rates were less 

ok

[Peruthopaniemundhi]

1 hour ago, macha said:

Ma company holds funds in this banks not sure we get paid 😢 hope they get funds to run the company…

I kind of understand the stress. Ma company also banked with them until Dec and moved to Chase from this year. But still very small percentage of money pettaru inka SVB lo..

[tom brady]

Printing machine ki oil pooyadam start malla ee stage nunchi save cheyadaniki...Maa vodu last year eh SVB nunchi JPM ki change ayyi brathikinchadu

[nokia123]

3 hours ago, bayarea said:

Anything over $250k is uninsured 

Accha 

[csrcsr]

2 hours ago, Codemonkey said:

Like it happened in 2008, mostly news will be out by Sunday evening to clam down the markets Monday.

Just got a call from my ex-roomate, his start up funds (VC Founders Fund) also got locked.

So will they get paid in timely manner or reserve cash a anna?

[AverageDesiGuy]

2 hours ago, csrcsr said:

So will they get paid in timely manner or reserve cash a anna?

Even if they get paid this month what about next month? I think they will some kind of ripple effect.

may be this is the start of soft landing FED was talking about.

[bayarea]

31 minutes ago, AverageDesiGuy said:

Even if they get paid this month what about next month? I think they will some kind of ripple effect.

may be this is the start of soft landing FED was talking about.

Em soft landing babaih? Average Joe who know nothing about FDIC or $250K insurance limit until yesterday and they are now panicking about thier money in other banks.

People losing trust in the system is ultimate risk for the economy. Govt should step in immediately and calm down the nerves.