Author Topic: Banks Failing: Is It 2008 Again?  (Read 31893 times)

Offline avromie7

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Re: is it 2008 again?
« Reply #40 on: March 10, 2023, 04:12:51 PM »
The billion dollar question is, What will be the fallout from this? Will we see many startups go bust because they lost all their cash?
I wonder what people who type "u" instead of "you" do with all their free time.

Offline WayBackMachine

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Re: is it 2008 again?
« Reply #41 on: March 10, 2023, 04:54:55 PM »
guys dont worry it was just for purim, the meshulochim will make their deposits shortly and everything will stabilize iy"H

Offline dm123

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Offline liosac

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Re: is it 2008 again?
« Reply #43 on: March 10, 2023, 05:08:14 PM »
At least one bank with a lot of heimishe floating rate commercial RE exposure is under a lot of pressure from withdrawals today. Could have significant broader implications if not contained.

Offline haltkup

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Re: is it 2008 again?
« Reply #44 on: March 10, 2023, 05:11:05 PM »
SPV has unique business model that did make it more vulnerable compared to other banks. clientele is almost entirely corporates and not retail establishments or personal. Loan portfolio smaller than other banks and they have more traditional investments in treasuries.
Cash outflows has been a major issue driven by 1) cash burn of these startups with very little new debt raised in the last year, & 2) corps are more opportunistic and will move deposits out of bank to Tbills that are paying nice coupons these days.
Also being blamed is mismanagement of announcement of afs sale and capital raised.
As of now consensus is that it will not have spillover effect on traditional banks (I do have some doubts about that given that we are seeing significant tightening and distressed assets in almost all industries)

Offline aygart

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Re: is it 2008 again?
« Reply #45 on: March 10, 2023, 05:16:23 PM »
At least one bank with a lot of heimishe floating rate commercial RE exposure is under a lot of pressure from withdrawals today. Could have significant broader implications if not contained.
Lots of high balance deposit accounts too
Feelings don't care about your facts

Offline avromie7

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Re: is it 2008 again?
« Reply #46 on: March 10, 2023, 05:18:18 PM »
At least one bank with a lot of heimishe floating rate commercial RE exposure is under a lot of pressure from withdrawals today. Could have significant broader implications if not contained.
Why is this relevant?
Lots of high balance deposit accounts too
Thats a bigger issue
I wonder what people who type "u" instead of "you" do with all their free time.

Offline aygart

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Re: is it 2008 again?
« Reply #47 on: March 10, 2023, 05:24:31 PM »
Why is this relevant? Thats a bigger issue
And not only RE, also Healthcare and consumer  product. Not only floating but also fixed. They have niche in relationship based banking.
Feelings don't care about your facts

Offline liosac

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Re: is it 2008 again?
« Reply #48 on: March 10, 2023, 05:26:15 PM »
Why is this relevant? Thats a bigger issue
Similar to marking securities to market, there’s a risk (albeit smaller) of being forced to call the loans/reprice the assets backing the loans. That would be Armageddon.

Offline ExGingi

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Offline CountValentine

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Re: is it 2008 again?
« Reply #50 on: March 11, 2023, 08:06:31 PM »
If you have to tell me that makes me wonder why.  :)

I am writing today in response to the sudden closure of Silicon Valley Bank (“SVB”) and to provide you with an added level of assurance regarding the strength of our credit union and our capacity to preserve and protect your funds at First Tech. We have close friends and associates at SVB, and at firms served by SVB, and we are proud to stand shoulder-to-shoulder in support of them and those SVB customers that may experience a short-term disruption in their banking services.

Strength and Stability:
For more than 60 years, First Tech has served as a beacon of safety, stability and service by investing in the financial well-being of members like you while also protecting your trust and funds through the application of strong risk management practices.
First Tech is the nation’s eighth largest credit union with assets of $16.7 billion.
First Tech is very well-capitalized with more than $1.4 billion in equity. This capital, combined with more than $2.0 billion of available liquidity, serves to protect our members while providing First Tech with the capacity to absorb severe shocks in U.S. or global markets.
As a result of our member-owned structure, First Tech maintains some of the most attractive share rates in the nation. This benefit permits us to maintain a highly diversified funding base that serves to insulate from significant liquidity challenges like those facing SVB.
Take comfort in knowing that First Tech is strong, secure and growing for you and your family for generations to come. As a community of members/owners united in service to each other, we will continue to build and secure a strong future for America’s most admired credit union.

Sincerely,

Greg Mitchell
President and CEO
First Tech Federal Credit Union
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Online AsherO

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Re: is it 2008 again?
« Reply #51 on: March 11, 2023, 08:12:32 PM »
With banking supposedly regulated, how did SVB get away with that?
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Offline CountValentine

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Re: is it 2008 again?
« Reply #52 on: March 11, 2023, 09:30:34 PM »
Only on DDF does 24/6 mean 24/5/half/half

Offline GEMARAKOP

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Re: is it 2008 again?
« Reply #53 on: March 11, 2023, 09:34:17 PM »
If you are invested in Brex you are very happy.

Offline ah giten

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Re: is it 2008 again?
« Reply #54 on: March 11, 2023, 10:01:12 PM »
Rumors about signature bank going next?

Offline EliJelly

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Re: is it 2008 again?
« Reply #55 on: March 11, 2023, 10:03:19 PM »
Rumors about signature bank going next?

At least one bank with a lot of heimishe floating rate commercial RE exposure is under a lot of pressure from withdrawals today. Could have significant broader implications if not contained.

Likely just rumors

Offline aygart

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Re: is it 2008 again?
« Reply #56 on: March 11, 2023, 10:06:13 PM »
Rumors about signature bank going next?
For quite some time and mostly connected to crypto.
Feelings don't care about your facts

Offline dm123

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Re: is it 2008 again?
« Reply #57 on: March 11, 2023, 10:07:11 PM »
With banking supposedly regulated, how did SVB get away with that?

https://www.wsj.com/articles/where-were-the-regulators-as-svb-crashed-35827e1a

https://archive.is/dCRcW

Not sure this really answers but seems to have some points included I’ld like to hear more about.

Offline avromie7

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Re: is it 2008 again?
« Reply #58 on: March 11, 2023, 10:14:57 PM »
The core of the issue for both Silvergate and SVB was being hyper focused on a single type of client (Silvergate was Crypto and SVB was Startups). When their target industries tightened, they didn't have a large alternative customer base to keep them afloat. All the other issues ultimately brought them down, but this is what caused them to begin unraveling. At this point, the same can happen to any bank, because we now have a run on banks perceived to be at risk.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline ah giten

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Re: is it 2008 again?
« Reply #59 on: March 12, 2023, 12:09:18 AM »
Likely just rumors
Rumors can put a bank to sleep. If people pull out based on the rumors.