Oh gotcha. Yeah those guys need to take a lap. Some of their comments have been outrageously irresponsible imo. Not sure in California. Its not the case here in the free state of Florida. The fdic said they’d honor all deposits, so probably no longer the case, but myself and my partners were going to defer our own pay to make sure payroll went uninterrupted for everyone else. We pulled together resources to make it 90 days or so under worst case and started making phone calls to raise money to replenish. We typically float between 8 and 18 months runway (when cash gets high we spend, when low we cut - we treat out balance kind of like a speedometer) Hopefully by end of week everything we came up with will be seen as overkill. I choose optimism.
Honoring deposits isn’t bailing out a bank. It’s literally the purpose of FDIC. $250k is guaranteed but they almost always recover more. Someone told me it’s been like 30 years since any depositor wasn’t able to made whole. Propping the bank back up and letting it continue operations and allowing execs to make out like bandits and etc. Thats a bailout.
I think the correct way to think about all of this is we, as a society, have the tools and and interconnectivity to implement a bank run far faster than any regulator ever dreamed possible. I can’t argue this is the right tool to fix it, but the world is an infinitely better place without bank runs.
It really sounds like the processes that the government has in place for things like this were pretty quick and effective in this event
i wonder if we have enough juice with tmb for a bank run maybe a pump and dump? ok how about a crypto rug pull?
I heard from someone that they took it over kind of preemptively. They were guessing all the funds would be recoverable because it hadn’t been allowed to keep going. kind of fascinating if that’s true
He is very good in regards to the mechanics of the Fed as he was a former employee there during covid. But he does lean more conservative on financial issues. Take your bits and pieces.
not only did he get ratioed into orbit, he's making a considerable amount of replies which are also being ratioed into orbit. I genuinely want to know the dollar amount of realized wealth where you lose touch with the hoi polloi because it really seems like that number does exist.
USDC is a stablecoin and doesn’t even pretend to be defi. It’s truly remarkable how you find this ignorant stuff.
insurance tmb would like to state for the record that we support getting rid of the insurance industry
So now will companies not put all their money in one bank? Are there going to be more smaller banks now? Will be interesting to see how it plays out.
Apparently the Basel Accords may have saved a broader panic in that there is so much visibility on bank’s balance sheets. That’s the ying to the Yang of tech connectivity and bank runs I guess.
And don’t have the ability to view anything with an ounce of nuance. just a bunch of 6th graders who get their news from YouTube
Regulators seize Signature Bank in third-largest US Bank faulure https://finance.yahoo.com/news/regu...-third-largest-us-bank-failure-231404695.html Regulators seized New York regional bank Signature Bank (SBNY) two days after shutting down Silicon Valley Bank as overseers of the banking system try to restore calm before markets open Monday. Signature becomes the third-largest bank to ever fail in the U.S., behind Silicon Valley Bank and Washington Mutual in 2008, if its assets haven't changed significantly since the end of 2022. Signature had $110 billion in assets as of Dec. 31, ranking 29th among U.S. banks. It had $88 billion in deposits as of that date. A joint statement from the Treasury Department Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and FDIC Chair Martin Gruenberg said that all deposit holders would be made whole, citing a "systemic risk exemption" that is also being applied to Silicon Valley Bank, but that shareholders and certain unsecured debtholders will not be protected. Senior management, they said, had been removed. Any losses to the FDIC's Deposit Insurance Fund to support depositors who exceeded the $250,000-protected limit, they added, "will be recovered by a special assessment on banks, as required by law." The FDIC maintains the fund with regular contributions from banks. Signature served clients in the cryptocurrency world. Like Silvergate Bank, another crypto-friendly bank that said last week it would voluntarily wind itself down, it had been suffering from an outflow in deposits in the aftermath of the collapse of crypto exchange FTX. The value of some of its securities had also dropped in value due to a rise in interest rates.
Great system we have here folks where we can count on massive banking failures every 10 years +/- a couple.
Banks have always failed historically, even when regulations were better (I think internationally they’ve never been better though). It’s a This Time Is Different mentality except to the negative side to think we can eliminate bank failures and that it might be just one regulation repealed that causes a bank crash. I’d blame Presidents for systemic failure.
On Wednesday, SVB proposed to issue a new round of stock, with the sale to increase its liquidity. On Friday, they were under federal receivership. They moved quickly and decisively.
Jamie Dimon has made a career of getting banks on the cheap while letting the government foot the bill on the bad pieces
"Scoreboard!" is not exactly a winning argument against btc. Against crypto, sure I guess against some of them, but even a top 10 basket there has almost certainly massively outperformed from cycle bottom to cycle bottom (or top to top) versus whatever you think you're super smart investment strategy is.
This would make sense if the public stock price (or any investment really) was truly indicative of the value and health of a thing and not a result of irrational human emotional swings
Name P. Redacted you have to have that Gary V mindset and look at the macro and stop focusing on the micro If you had a Determined Donut NFT you'd know this. Available exclusively on Bitcoin. ZOOM OUT!!!
Lol wtf is this word salad? The stock price is indicative of that bank having zero value to the equityholders. In what world is that not reflective of the value and health of the business?