Stock Market is ROCKING

[Ark]

Treasury Secretary Janet Yellen says U.S. government won't bail out Silicon Valley Bank

Treasury Secretary Janet Yellen says U.S. government will not bail out Silicon Valley Bank

www.cnbc.com

I remember the "no bailouts, we're not doing bailouts, don't say bailout" phase of 2008.

What about when it's JP Morgan or BofA or a regular person bank not full of techie money?

 

[nra4ever]

 

[nra4ever]

Well that bailout was fast For both banks

U.S. government steps in and says people with funds deposited at SVB will be able to access their money

Banking regulators devised a plan Sunday to shore up deposits at Silicon Valley Bank, a critical step in stemming a feared panic.

www.cnbc.com

 

[Ark]

Well that bailout was fast For both banks

U.S. government steps in and says people with funds deposited at SVB will be able to access their money

Banking regulators devised a plan Sunday to shore up deposits at Silicon Valley Bank, a critical step in stemming a feared panic.

www.cnbc.com

I would really like to hear how they can guarantee all the deposits of a bank with more liabilities than deposits, without taxpayer money ultimately being used.

We've solved the political unpopularity of bailouts, guys! Just lie!

 

[Leadeye]

Has anything been said about the markets Signature bank served, similar to SVB?

 

[Destro]

I would really like to hear how they can guarantee all the deposits of a bank with more liabilities than deposits, without taxpayer money ultimately being used.

We've solved the political unpopularity of bailouts, guys! Just lie!

If there is still a balance remaining after selling the assets, the FDIC makes a special assessment on member institutions to make up the difference. The equity & bond holders are wiped out here so not quite a "bailout"

 

[Route 45]

SVB, Signature Bank Depositors to Get All Their Money as Fed Moves to Stem Crisis

The Fed said it would make additional funding available to banks to ensure they have “the ability to meet the needs of all depositors.”

www.wsj.com

"The government’s bank-deposit insurance fund will cover all deposits at the two banks, rather than the standard $250,000. Federal regulators said any losses to the government’s fund would be recovered in a special assessment on banks and that the U.S. taxpayers wouldn’t bear any losses."

 

[Destro]

Do you really believe the 80 billion they had in MBS in 2022 was making money and not already a loss? Some people understood they where losing money hence the withdraws. People started shorting them before Q4's report even came out, because there was zero chance they were not losing money on those MBS.

They like loads of banks had losses they were hiding with the Repo window and off their balance sheet. Does not matter for them now though, those losses were realized and they lost 80 billion in value between Thursday and Friday.

It was a very poorly run bank that used accounting gimmicks and the repo window to show a profit when they had already lost billions just on their MBS alone. The reason they had to show the loss of that 1.8 billion selling MBS is because they needed actual cash to try and cover deposits and outgoing funds. No one wanted them at mark to market as a 2 year treasury paid more interest with none of the risk. Showing that loss spooked a bunch of uninsured depositors, as it should have.

EPS has been pretty much meaningless for a long time, especially for banks when you as an investor can not see what is really on their books. They were beyond leveraged, hence not able to meet regulators 4.5% reserve requirement and failed. To say they could not even meet the reserve requirements is an understatment. Almost 1 billion in wire transfers failed because they did not have the funds on Friday. Hence the mid day regulator take over. So less than 0 reserves.

Page 11 of the Q4 report. What percentage of total funds were off balance sheet? 49% of the total. Pretty easy to hide losses when you keep them off your balance sheet. 4% of that being REPO.
https://s201.q4cdn.com/589201576/files/doc_financials/2022/q4/Q4_2022_IR_Presentation_vFINAL.pdf

View attachment 261905

So they used mark-to-maturity on the MBS and treasuries. Its still a GAAP. I don't have any information they didn't intend to hold to maturity so I am not going to speculate they were committing fraud. How many banks are underwater mark-to-market bonds? Probably a lot and for most it won't matter because they will hold till they mature.

This whole idea that some ESG/Woke investments caused this is absurd as the left saying Trump era changes to Dodd-Frank caused this. Neither did.

 

[Ark]

If there is still a balance remaining after selling the assets, the FDIC makes a special assessment on member institutions to make up the difference. The equity & bond holders are wiped out here so not quite a "bailout"

Is "special assessment" bankerspeak for a tax?

One would expect share- and bondholders to be last in line after depositors. That's just market risk same as buying equity or bonds in any other company.

 

[Leadeye]

Some phone calls were made to dc. No woke going broke..

 

[Destro]

Is "special assessment" bankerspeak for a tax?

One would expect share- and bondholders to be last in line after depositors. That's just market risk same as buying equity or bonds in any other company.

I guess it depends on what you consider a tax?

If I waste money on something I call it a "stupid tax"...doesn't necessarily make it a "tax" under the law

 

[Destro]

Some phone calls were made to dc. No woke going broke..

I hear Klaus Schwab and Soros called in favors to Schumer and McCarthy....

 

[BugI02]

Has anything been said about the markets Signature bank served, similar to SVB?

I read Signature was a prominent lender to cryptocurrency firms

So the similarity to SVB would be underperforming investments I imagine

 

[nra4ever]

 

[Ark]

"How can we stop the American people from seeing how Democrats have destroyed the economy?"

 

[Pepi]

Our country in going down the sh|thole

 

[nra4ever]

This is a bad start to the day.

 

[smokingman]

well...good luck.FF to 15:46

The British went a different route. HSBC paid $1 Euro for the branch and accepted all deposits,assets,and liabilaty. US...here is a pile of money, hand it out.

HSBC Pays £1 For Silicon Valley Bank's UK Unit In Rescue Deal | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[nra4ever]

Bitcoin is on fire right now as people move their money out of banks into assets.

 

[MCgrease08]

"How can we stop the American people from seeing how Democrats the Uniparty has destroyed the economy?"

FTFY. Plenty of blame to go around. Democrats aren't the only ones responsible.