Bank Crash
Game Over: FDIC Shutters Silicon Valley Bank, Appoints Receiver | ZeroHedge
https://www.zerohedge.com/markets/silicon-valley-bank-crashes-65-halted-pending-news
CNBC and other news outlets are covering what they can of this. Payroll going through this bank may be a problem.
Inverse Cramer says JP Morgan is going down after the real Jim Cramer tweeted JP Morgan is a fortress!
This afternoon they were shut down by the Feds.
https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html
So there will be a bank run on Monday until they run out of cash then they'll lock the doors again?
Or the doors will reopen under FDIC management and they'll lock the doors when the FDIC runs out of money before 12 pm?
Insured depositors are those who had $250,000 or less in an account. If they had more than that, they get a voucher for some of the proceeds when assets are sold. These seem to be referred to as the 'uninsured'Quote: ChumpChangeI keep misinterpreting this line - "The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning."
So there will be a bank run on Monday until they run out of cash then they'll lock the doors again?
Or the doors will reopen under FDIC management and they'll lock the doors when the FDIC runs out of money before 12 pm?
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The insured will get their money Monday, or leave it in the bank knowing it's FDIC insured ... at a different bank now
Quote: ChumpChangeI keep misinterpreting this line - "The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning."
So there will be a bank run on Monday until they run out of cash then they'll lock the doors again?
Or the doors will reopen under FDIC management and they'll lock the doors when the FDIC runs out of money before 12 pm?
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Usually,when the FDIC seizes a bank, the FDIC seizes on a Friday, finds another bank to buy the seized bank over the weekend, and reopens on Monday under new ownership and business as usual. Otherwise, if there is no buyer, the depositors get paid up to their insured amounts by the FDIC within a few days. With FDIC and SIPC and other depsoit insurance mechanisms in place, there's no need for bank runs like in the Great Depression years or what happened to Washington Mutual.
https://www.fdic.gov/consumers/banking/facts/payment.html
Someone genuinely concerned about this might suggest raising the FDIC limit to $5 billion per account.
Quote: odiousgambitInsured depositors are those who had $250,000 or less in an account. If they had more than that, they get a voucher for some of the proceeds when assets are sold. These seem to be referred to as the 'uninsured'
The insured will get their money Monday, or leave it in the bank knowing it's FDIC insured ... at a different bank now
I don't believe that is correct. The FDIC insures deposits up to $250,000. If you had more you are still insured for the first $250k.
Quote: ChumpChangeNobody can really imagine what would buy this bank, maybe Elon Musk?
Someone genuinely concerned about this might suggest raising the FDIC limit to $5 billion per account.
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A bank will buy SVB for pennies on the dollar in a distress sale.
correct, if I seem to say something else i don't mean toQuote: DRichQuote: odiousgambitInsured depositors are those who had $250,000 or less in an account. If they had more than that, they get a voucher for some of the proceeds when assets are sold. These seem to be referred to as the 'uninsured'
The insured will get their money Monday, or leave it in the bank knowing it's FDIC insured ... at a different bank now
I don't believe that is correct. The FDIC insures deposits up to $250,000. If you had more you are still insured for the first $250k.
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in any case 'uninsured' is being used, though it seems to mean the amount not insured, not a person, yet I saw that usage
MANY WELLS FARGO CUSTOMERS ARE COMPLAINING THAT MONEY HAS MYSTERIOUSLY DISAPPEARED FROM THEIR ACCOUNTS AND THEIR ACCOUNTS NOW HAVE A NEGATIVE BALANCE $WFC
RT: BREAKING: Many Wells Fargo customers reportedly say their direct deposits and scheduled paychecks were missing from their online accounts this morning.
Wells Fargo Customers Complain About Missing Deposits, Fresh off the Silicon Valley Bank Collapse – RedState
https://redstate.com/jenniferoo/2023/03/10/wells-fargo-customers-complain-about-missing-deposits-fresh-off-the-silicon-valley-bank-collapse-n714672
Payroll will be a complete train wreck very soon.
it is the 2nd biggest bank failure in the history of the U.S.
customers withdrew $42 billion by the end of Thursday
https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html
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Quote: lilredrooster.
it is the 2nd biggest bank failure in the history of the U.S.
customers withdrew $42 billion by the end of Thursday
https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html
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Per Motley Fool the big thing is they have a lot of low interest mortgage instruments on their books that cannot be cashed until they pay off. They cannot sell any because if they sell even one they have to mark the rest to market which would cause a huge paper loss. Cost of capital has gone up so they are locked in to ongoing losses.
As for individuals, you shouldn't normally have that much in cash. A married couple with a joint account could have a $500,000 account insured. But if a life event would change that, you would want to open accounts in different banks
Quote: linkThe FDIC adds together all single accounts owned by
the same person at the same bank and insures the total
up to $250,000... if a person has a ... deposit at Bank A and has a
... deposit at Bank B, the amounts would each
be insured separately up to $250,000. Funds deposited
in separate branches of the same insured bank are not
separately insured ...
https://www.fdic.gov/resources/deposit-insurance/brochures/documents/your-insured-deposits-english-hr.pdf
A *MASSIVE* Bank Run *JUST* Started | DO THIS NOW | The 2023 Financial Collapse. - Meet Kevin - YouTube
what happened? How can a company that's on s&p 500 go from $300+/share to zero in 2 days?Quote: ChumpChangeThere's a bank that the FDIC closed today, 85% of the deposits are uninsured and it's worth over $200 billion (2nd largest bank failure, behind WaMu in 2008). Contagion is spreading to several other banks with stocks dropping 50%.
Game Over: FDIC Shutters Silicon Valley Bank, Appoints Receiver | ZeroHedge
https://www.zerohedge.com/markets/silicon-valley-bank-crashes-65-halted-pending-news
CNBC and other news outlets are covering what they can of this. Payroll going through this bank may be a problem.
Inverse Cramer says JP Morgan is going down after the real Jim Cramer tweeted JP Morgan is a fortress!
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from the linked article:
"So far, most large banks are taking the news in stride.
The Financial Select Sector SPDR select ETF (XLF) is down just 2.1%"
and remember, if there are massive losses the U.S. Government can step in and ease the situation by just borrowing another trillion dollars
ˢᴬᴵᴰ ᴼᴺᴸʸ ᴴᴬᴸᶠ ᴶᴼᴷᴵᴺᴳᴸʸ
the Nasdaq March 23 futures that many traders believe are an indicator of the next trading day's opening performance are down only about 1% from the last trading day
the same is true for the EMini S&P 500 March 23 futures
https://www.investors.com/etfs-and-funds/etfs/silicon-valley-bank-panic-crashes-other-bank-stocks/
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Quote: ChumpChangeTrying to save the financial sector a couple months before the US defaults on the national debt is like throwing flaming money after nuked money.
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the U.S. has never in its entire history defaulted on its debt obligations
the MCSI - a highly regarded investment research firm on March 3 stated that the implied probability of the U.S. defaulting was 11.3% as of Feb. 24 up from 3.3 % probability at the beginning of the year
the probability - according to them - is still very low
it's not time to panic as you seem to be constantly suggesting
https://www.msci.com/www/blog-posts/will-the-us-government-default/03685813408
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google news which prioritizes its placement of stories based on some complex algorithm does not even have the bank crash story on its front page right now
the New York Times does have it on its front page but its way down from the top - and the story is about who is to blame - not about future repercussions except for its likely effect on Crypto
and why in the world is this thread in the Betting Systems section - 5 step martingale on a financial collapse maybe___________ 😃
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That’s good, but there’s a first time for everything. Don’t think it can’t happenQuote: lilredrooster[
the U.S. has never in its entire history defaulted on its debt obligations
What, how, why does this effect Crypto? Up perhaps?Quote: lilredrooster.
the New York Times does have it on its front page but its way down from the top - and the story is about who is to blame - not about future repercussions except for its likely effect on Crypto
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Quote: AxelWolfWhat, how, why does this effect Crypto? Up perhaps?Quote: lilredrooster.
the New York Times does have it on its front page but its way down from the top - and the story is about who is to blame - not about future repercussions except for its likely effect on Crypto
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Bitcoin is down about 10% in the last five days. I have no idea if it is related or not.
Quote: AxelWolfWhat, how, why does this effect Crypto? Up perhaps?Quote: lilredrooster.
the New York Times does have it on its front page but its way down from the top - and the story is about who is to blame - not about future repercussions except for its likely effect on Crypto
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here - you can read the story - whether you like their bias (every newspaper has one) or not - no newspaper is close to being the equal of the NYT imo
https://www.nytimes.com/2023/03/11/technology/silicon-valley-bank-crypto-investing.html
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So do all these Roku TV's and Roku streaming devices go dark in a week?
iAllegedly - This is the Start of the Bank Crash - YouTube
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If the FDIC has $125 billion, it can handle 500,000 customers claiming the full $250K. Congress would have to give it unlimited reserves.
While the Treasury is doing extraordinary measures because of the debt ceiling crisis, the FDIC reserves cannot be raised.
Quote: AxelWolfWhat, how, why does this effect Crypto? Up perhaps?Quote: lilredrooster.
the New York Times does have it on its front page but its way down from the top - and the story is about who is to blame - not about future repercussions except for its likely effect on Crypto
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One possibility.
A lot of new tech is big on crypto. If they had their cash reserves in Silicon Valley Bank,for payroll and expenses, they were only insured for $250,000. If they have to sell cyrpto to raise money to cover the next few weeks or months expenses, that should lower prices. I'm sure there will be some who think this is good for CC but I'd love to hear them explain why in a couple of sentences.
For those of us who keep less than 250,000 per bank, I don't see any problem.
That was probably related to the Silvergate Bank thing. I'm not sure if there's any correlation, I will have to read the suggested links.Quote: DRichQuote: AxelWolfWhat, how, why does this effect Crypto? Up perhaps?Quote: lilredrooster.
the New York Times does have it on its front page but its way down from the top - and the story is about who is to blame - not about future repercussions except for its likely effect on Crypto
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Bitcoin is down about 10% in the last five days. I have no idea if it is related or not.
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Interesting.Quote: billryanQuote: AxelWolfWhat, how, why does this effect Crypto? Up perhaps?Quote: lilredrooster.
the New York Times does have it on its front page but its way down from the top - and the story is about who is to blame - not about future repercussions except for its likely effect on Crypto
.
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One possibility.
A lot of new tech is big on crypto. If they had their cash reserves in Silicon Valley Bank,for payroll and expenses, they were only insured for $250,000. If they have to sell cyrpto to raise money to cover the next few weeks or months expenses, that should lower prices. I'm sure there will be some who think this is good for CC but I'd love to hear them explain why in a couple of sentences.
For those of us who keep less than 250,000 per bank, I don't see any problem.
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Many of the big things people claimed would make Cypto move one way or the other seems to have been just the opposite. Obviously, when placed like Silvergate bank fold, it's going to have a negative effect.
IIRC you said it was not a buy when it hit its last low back when it was around 15k. It has since been up to around 25k.Quote: billryanI've concluded there is a small base for bitcoin, but I don't see it growing. There is support in the 16,000-23,000 range, which is horrible compared to its year old and two-year-old range. It's certainly not taking the world by storm. If I were a speculator, I'd be comfortable buying below 18 and selling at 22 a couple of times a year, but I'm not.
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Quote: billryanI want to stay inside, so the sky doesn't fall on me, but most fatal falls happen in the house. I guess we are all screwed.
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billryan,
Simple solution: stay in a hotel! ;-)
Dog Hand
Quote: lilredrooster.
google news which prioritizes its placement of stories based on some complex algorithm does not even have the bank crash story on its front page right now
the New York Times does have it on its front page but its way down from the top - and the story is about who is to blame - not about future repercussions except for its likely effect on Crypto
and why in the world is this thread in the Betting Systems section - 5 step martingale on a financial collapse maybe___________ 😃
.
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I think google news has moved from prioritizing stories on a complex algorithm to prioritizing paid advertisers who grift retail businesses now. Their search engine certainly moved to that model anyway.
Quote: AxelWolf
IIRC you said it was not a buy when it hit its last low back when it was around 15k. It has since been up to around 25k.
imagine that
a WOV member made a wrong prediction about the direction of Crypto
color me - TOTALLY SHOCKED_______________________________________________________ 😃 😃 😃
also, look how ethereum has outperfomed bitcoin from 2018 thru the end of 2022 in %
bitcoin - -73, 95, 301, 90, -81
ethereum - -82.7, -8, 464, 401, -67.5
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Quote: lilredrooster
and why in the world is this thread in the Betting Systems section - 5 step martingale on a financial collapse maybe___________ 😃
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Betting Systems does seem like a marginally more appropriate heading than either Strip Clubs or Bill's Gambling Hall & Saloon.
JUST IN: Coinbase $COIN says it holds $240 million in now-collapsed Signature bank.
Coinbase just moved to Signature Bank after Silvergate imploded. Now Signature is no more. Who will bank the unbanked?
90% of Signature Bank’s deposits were uninsured
BREAKING: The Treasury, the Federal Reserve, and the FDIC have wisely chosen to ensure that ALL depositors at Silicon Valley Bank and Signature Bank are made whole.
“Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed”
New York Signature Bank, the second big bank to fail
bought $25B in bonds that pay only 2.04% interest
They owed $88B in deposits, and only had $5 B in cash.
Demolished.
Bitcoin up 9% today. Scratches head*Quote: ChumpChangeBREAKING Regulators close New York's Signature Bank due to "Systemic Risk"
JUST IN: Coinbase $COIN says it holds $240 million in now-collapsed Signature bank.
Coinbase just moved to Signature Bank after Silvergate imploded. Now Signature is no more. Who will bank the unbanked?
90% of Signature Bank’s deposits were uninsured
BREAKING: The Treasury, the Federal Reserve, and the FDIC have wisely chosen to ensure that ALL depositors at Silicon Valley Bank and Signature Bank are made whole.
“Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed”
New York Signature Bank, the second big bank to fail
bought $25B in bonds that pay only 2.04% interest
They owed $88B in deposits, and only had $5 B in cash.
Demolished.
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Quote: AxelWolf
Bitcoin up 9% today. Scratches head*
there is news that regulators are backstopping depositors and making additional funding available to other banks
and we all know the U.S. Government has an unlimited money supply and can simply borrow trillions more whenever necessary - smirk, smirk
this news caused the futures markets to rally and also crypto
https://decrypt.co/123276/usdc-regains-dollar-peg-crypto-market-rallying-fdic-silicon-valley-bank-signature
https://www.nytimes.com/live/2023/03/13/business/silicon-valley-bank
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The Forbes article is dated Feb. 10thQuote: lilredroosterQuote: AxelWolf
Bitcoin up 9% today. Scratches head*
there is news that regulators are backstopping depositors and making additional funding to other banks
as we all know the U.S. Government has an unlimited money supply and can simply borrow trillions more whenever necessary - smirk, smirk
this news caused the futures markets to rally and probably also crypto
https://www.cnbc.com/2023/03/12/stock-market-futures-open-to-close-news.html
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nonetheless the markets generally feel they have gotten good news, as the next hike is not going to be more than 25 pts, almost for sure, while until the bank collapse the betting favored going to 50 pts.
Quote: odiousgambitThe Forbes article is dated Feb. 10thQuote: lilredroosterQuote: AxelWolf
Bitcoin up 9% today. Scratches head*
there is news that regulators are backstopping depositors and making additional funding to other banks
as we all know the U.S. Government has an unlimited money supply and can simply borrow trillions more whenever necessary - smirk, smirk
this news caused the futures markets to rally and probably also crypto
https://www.cnbc.com/2023/03/12/stock-market-futures-open-to-close-news.html
.
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nonetheless the markets generally feel they have gotten good news, as the next hike is not going to be more than 25 pts, almost for sure, while until the bank collapse the betting favored going to 50 pts.
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yes, I saw that mistake and deleted it and adjusted my post and posted the relevant current articles
please refer to my OP which has been edited and is now correct
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⚠️BREAKING:
*WESTERN ALLIANCE BANKCORP SINKS A RECORD 75%; HALTED FOR VOLATILITY
#BREAKING 🚨
Investors in the failed banks will "not be protected,” Biden says
Get ready folks.. investors are going to start pulling out their money.. more are set to fail...
Breaking news !! $SCHW halted.
Some of these banks stocks are down over 50% before 10 AM on Monday. Bank holiday by noon?
The rout in the bank #stocks, as reported by the WSJ:
Western Alliance Bancorp plunged 68%
PacWest Bancorp tumbled 44%
Comerica cracked 23%
Zion Bancorporation fell 27%
Fifth Third Bancorp lost 10%
Charles Schwab lost 11%
Bank stocks are being halted every few seconds with over 30 coming directly from the NASDAQ.
It’s a complete bloodbath! #Bankcollapse #BankRun
Yup, I bought some Western Alliance stock this morning at $10.24...just sold it for $24.82. Good day to pick up some money on bank stocks.Quote: ChumpChange
⚠️BREAKING:
*WESTERN ALLIANCE BANKCORP SINKS A RECORD 75%; HALTED FOR VOLATILITY
Some of these banks stocks are down over 50% before 10 AM on Monday. Bank holiday by noon?
The rout in the bank #stocks, as reported by the WSJ:
Western Alliance Bancorp plunged 68%
PacWest Bancorp tumbled 44%
Comerica cracked 23%
Zion Bancorporation fell 27%
Fifth Third Bancorp lost 10%
Charles Schwab lost 11%
