Banks Failing: Is It 2008 Again?

[Dan]

is Signature also going to be 100% covered?

https://www.dansdeals.com/points-travel/banking/93-silicon-valley-banks-deposits-didnt-fdic-coverage-dont-forget-make-sure-funds-insured/

[Abey]

is Signature also going to be 100% covered?

Yes and every bank with potential problems

[ExGingi]

if they don’t force Mark to market of assets this will repeat. I hope they are wise.

https://twitter.com/nntaleb/status/1635034897109909505

A little tighter regulation and risk management (which was apparently virtually non-existent at SVB) could help.

[savvydigz]

it's a disgrace that that their bailing out these banks! Where do you think this money is coming from?
Piling up onto our national debt, when will the us default?
Everyone who puts into a bank knows of this risk, what is the threshold for bailing people out, would not wanting the stock market to crash also a reason for a bailout?
Because of this administrations failures and the political fallout risk of a bank collapse they are taking taxpayers money and bailing these people out!
it's ludicrous

[ExGingi]

it's a disgrace that that their bailing out these banks! Where do you think this money is coming from?
Piling up onto our national debt, when will the us default?
Everyone who puts into a bank knows of this risk, what is the threshold for bailing people out, would not wanting the stock market to crash also a reason for a bailout?
Because of this administrations failures and the political fallout risk of a bank collapse they are taking taxpayers money and bailing these people out!
it's ludicrous

They are not bailing out banks. The shareholders (and most bondholders) will be wiped clean. They are protecting depositors, so that there is trust (which is essential) in the banking system.

[Abey]

not of this size, not due to non obvious negligence , not in the Information Age.

[chevron]

was not expected for every depositor to know that. Contagion starts with one idiot

Due diligence should be done if you're depositing billions in a bank no?

[liosac]

it's a disgrace that that their bailing out these banks! Where do you think this money is coming from?
Piling up onto our national debt, when will the us default?
Everyone who puts into a bank knows of this risk, what is the threshold for bailing people out, would not wanting the stock market to crash also a reason for a bailout?
Because of this administrations failures and the political fallout risk of a bank collapse they are taking taxpayers money and bailing these people out!
it's ludicrous

It’s unlikely to cost taxpayers much if anything.

[Abey]

https://twitter.com/MacroAlf/status/1635048190566346753

what are the second and third order affects ? Powell’s levers have been severely cut back now

[Abey]

Due diligence should be done if you're depositing billions in a bank no?

not every depositors is billions , your local shoe store can have a half million cash in the bank

[Moshe123]

Thank God for the Fed saving the heimishe economy on Signature Bank.

[savvydigz]

They are not bailing out banks. The shareholders (and most bondholders) will be wiped clean. They are protecting depositors, so that there is trust (which is essential) in the banking system.

Again where is this money coming from?
Do we taxpayers have to pay, for someone who was aware of this risk?
you want to trust your bank? look at their balance sheets and do some research. buy treasuries or diversify your holding to under 250k
This is a political move to try to cover up this state of the economy.

[EliJelly]

Again where is this money coming from?
Do we taxpayers have to pay, for someone who was aware of this risk?
you want to trust your bank? look at their balance sheets and do some research. buy treasuries or diversify your holding to under 250k
This is a political move to try to cover up this state of the economy.

https://twitter.com/byHeatherLong/status/1635050087029284865

[chevron]

not every depositors is billions , your local shoe store can have a half million cash in the bank

I'm no financial expert but I'd spread my accounts out . Not even from a bank run but mostly any issue freezing an account will affect a business.

I understand the average normal person not doing Ms isn't worried.. I have cards from every major bank and various checking and savings accounts etc .

I always split deposits between 2 banks in my online business...

[ExGingi]

not every depositors is billions , your local shoe store can have a half million cash in the bank

And a large school or mid-size business can have several million.

[savvydigz]

https://twitter.com/byHeatherLong/status/1635050087029284865

Sivb themselves i believe had close to 200b in assets but regardless this won't be refilled?
Where will that come from? it al boils down to taxpayers

[Abey]

I'm no financial expert but I'd spread my accounts out . Not even from a bank run but mostly any issue freezing an account will affect a business.

I understand the average normal person not doing Ms isn't worried.. I have cards from every major bank and various checking and savings accounts etc .

I always split deposits between 2 banks in my online business...

do you think that is a solution for the main street?
Businesses expect stability

[YitzyS]

Sivb themselves i believe had close to 200b in assets but regardless this won't be refilled?
Where will that come from? it al boils down to taxpayers

Does SIVB have ZERO left in the bank? Or they are just a little short, but cannot support a run on the bank?

If the government can pay for the hype today, it will recoup almost all the money later. No?

[yuneeq]

Sivb themselves i believe had close to 200b in assets but regardless this won't be refilled?
Where will that come from? it al boils down to taxpayers

See tweet above about 100b fund that the government has handy, paid by the banks after 2008. And if depositors at all banks know their money is backed by the government there won't be a run on the banks and not much money will be needed to cover potential bank runs. Furthermore, any money needed to cover today will be paid back with liquidated assets, but they won't be forced to sell them all in one shot.

[Abey]

Does SIVB have ZERO left in the bank? Or they are just a little short, but cannot support a run on the bank?

If the government can pay for the hype today, it will recoup almost all the money later. No?

after all assets sold at par I believe there’s supposed to be 6 B left unsure how much of that can actually be sold at par besides the treasury debt. Even good debt can’t support such a big influx to the market and some of those debt is not great