Re: California bank regulators shutter the Silicon Valley Bank

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Silicon Valley Bank was CA state chartered. Once CA banking regulators seized SVB on Friday they put it into receivership with FDIC appointed receiver. The new "bridge bank" that FDIC created with SVB assets is federal. Signature Bank is NY state chartered. The British government announced that the UK branch of SVB will be taken over by HSBC (Hong Kong-Shanghai Banking Corp.) which is headquartered in London (6th largest bank in the world).

First Republic Bank that got an infusion of funds on the weekend is also CA chartered (HQ is in San Francisco). Their stock tumbled 67% today and trading was halted. 14th largest bank in the US per the FRS. SVB was the 16th largest bank.
https://www.federalreserve.gov/releases/lbr/current/
Other regional lenders also tumbled, with Western Alliance (WAL.N), KeyCorp (KEY.N), Comerica Inc (CMA.N), Huntington Bancshares Inc (HBAN.O) and PacWest Bancorp (PACW.O) down between 16% and 29%. There were multiple trading halts on bank shares as the KBW regional banking index (.KRX) fell 5.4%, and the S&P 500 banking index (.SPXBK) dropped 6%.
https://www.reuters.com/business/financ ... 023-03-13/
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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So, Sen. Warren had a whole op-ed in the NYTimes about explaining the failure and omitted one key fact that TRULY brought down the House of Cards:
For some reason that can be considered criminal negligence, SVB bought long-term ZERO INTEREST BONDS! Why the HELL would ANYONE with one gray cell do this? The price of bonds is directly inversely related to the interest rate. The higher the interest rate, the lower the price of the bond. They were courting disaster.
"Even if the bee could explain to the fly why pollen is better than shit, the fly could never understand."

Re: California bank regulators shutter the Silicon Valley Bank

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People forget that there were really three banks that failed, Silicon Valley Bank, Signature Bank and Silvergate Bank and all three banks were state chartered. Silvergate and Signature were into crypto. Silvergate Bank liquidated itself so it wasn't put into receivership.
The California Department of Financial Protection and Innovation announced today that Silvergate Bank, a state-chartered bank under the supervision of the DFPI, has voluntarily begun the process of liquidation. Silvergate Bank is based in La Jolla, California.
https://dfpi.ca.gov/2023/03/08/dfpi-sta ... quidation.

Frank is probably right that crypto was a large factor. YT is right that the loss on treasuries due to the interest rate rise was a big contributor, but that was their fatal business plans. The Trump era trimming of Dodd-Frank had some effect, if stress tests had been required for those banks they probably would have failed. Federal and state agencies will likely perform post-mortems on all three banks, so we'll get an official cause of death and the timeline of their deaths.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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Moody’s Investors Service placed six US banks on review for potential credit rating downgrades late Monday, in the wake of last week’s collapse of Silicon Valley Bank.

The credit ratings firm also downgraded Signature Bank deep into junk territory following that bank’s failure. Ratings downgrades can make it more expensive for companies to borrow money.

Moody’s warned it could similarly downgrade First Republic Bank (FRC), Zions (ZION), Western Alliance (WAL), Comerica (CMA), UMB Financial (UMBF) and Intrust Financial. The firm cited the “extremely volatile funding conditions for some US banks exposed to the risk of uninsured deposit outflows.”
https://www.cnn.com/2023/03/14/investin ... index.html

Moody's is one of the top three corporate credit rating agencies along with S&P and Fitch.

U.S. stocks rallied Tuesday as investors bet the risk of contagion to banks following the closure of Silicon Valley Bank and Signature Bank has been contained. Bank stocks rebounded after getting pummeled during Monday’s trading session as investors grew increasingly optimistic that other banks would not face the same fate as Silicon Valley and Signature. Regulators said Sunday that they created a plan to backstop all depositors in the two banks.

The SPDR S&P Regional Banking ETF (KRE) rose 8% in Tuesday’s session following a 12% decline the day prior. Shares of First Republic Bank popped more than 55% after closing down nearly 62% on Monday. KeyCorp shares added 16% in a relief bounce following a 27% slide.
https://www.cnbc.com/2023/03/13/stock-m ... dates.html

One of the things that federal agencies and Congress have been discussing is increasing the amount of depositor funds that are federally insured, to raise it above the $250,000 limit.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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The Federal Reserve is considering tougher rules and oversight for midsize banks similar in size to Silicon Valley Bank (SIVB.O), which collapsed suddenly last week, according to a source familiar with the matter. The bank's collapse set off fears across the financial system, drove an extraordinary government effort to reassure depositors and backstop the system, and set off debate about reversing previous rule easing for regional banks.

Now, a review of the $209 billion bank's failure being conducted by Fed Vice Chair for Supervision Michael Barr could lead to strengthened rules on banks in the $100 billion to $250 billion range, the source told Reuters. That review of Fed supervision and regulation of the bank will be released by May 1, and augments a review of bank capital rules by Barr already underway. Currently, the toughest capital and liquidity requirements are reserved for the nation's largest banks, after a 2018 deregulation law from Congress and Fed rule-making under prior leadership eased those rules for smaller firms. Larger firms also face more frequent and rigorous stress testing and accounting requirements.
https://www.reuters.com/business/financ ... 023-03-14/

U.S. prosecutors are investigating the collapse of Silicon Valley Bank, according to a source familiar with the matter, as scrutiny mounts over the firm's sudden collapse and regulators scramble to contain the fallout. The U.S. Justice Department is probing the sudden demise of the bank, which was shuttered on Friday following a bank run, the source said, declining to be named as the inquiry is not public. The Securities and Exchange Commission has launched a parallel investigation, according to the Wall Street Journal, which first reported the probes. Spokespeople for the SEC, SVB and the Justice Department declined to comment.

The investigation is in early stages and may not result in allegations of wrongdoing or charges being filed, the source said. Officials are also examining stock sales by officers of SVB Financial Group (SIVB.O), which owned the bank, the WSJ reported, citing people familiar with the matter. SEC Chair Gary Gensler on Sunday said in a statement the agency is particularly focused on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors during periods of volatility.
https://www.reuters.com/business/financ ... 023-03-14/


A list of the companies around the world that banked with Silicon Valley Bank:
https://www.reuters.com/business/financ ... 023-03-13/
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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NEW YORK (AP) — Stocks are back to falling on Wall Street Wednesday as worries worsen about the strength of banks on both sides of the Atlantic.

The S&P 500 was 1.1% lower in early trading, while markets in Europe fell more sharply as shares of Switzerland’s Credit Suisse tumbled to a record low. The Dow Jones Industrial Average was down 418 points, or 1.3%, at 31,737 as of 9:45 a.m. Eastern time, while the Nasdaq composite was 0.8% lower.

Credit Suisse has been fighting troubles for years, including losses it took from the 2021 collapse of investment firm Archegos Capital. Its shares in Switzerland sank more than 28% following reports that its top shareholder won’t pump more money into its investment.

Wall Street’s harsh spotlight has intensified across the banking industry recently on worries about what may crack next following the second- and third-largest bank failures in U.S. history last week. Stocks of U.S. banks tumbled again Wednesday after enjoying a brief, one-day respite on Tuesday.
https://www.huffpost.com/entry/financia ... 3e6071273d

The Dow Jones Avg. fell 600 points on opening now at 11 AM EDST it is down 478 points.
https://www.google.com/search?client=sa ... 8&oe=UTF-8
Facts do not cease to exist because they are ignored.-Huxley
"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis Brandeis,

Re: California bank regulators shutter the Silicon Valley Bank

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Yes, not a good day so far for NYSE and Nasdaq and bank stocks.
Stocks fell Wednesday as pressure on the financial sector increased with shares of Credit Suisse, a Swiss Bank that has large U.S. and global operations, tumbling more than 15%.
Saudi National Bank, Credit Suisse’s largest investor, said Wednesday it could not provide any more funding, according to a Reuters report. This comes after the Swiss lender said earlier this week it had found “certain material weaknesses in our internal control over financial reporting” for the years 2021 and 2022.

As Credit Suisse dragged down the European Bank sector, U.S. big bank shares declined in sympathy. Citigroup and Wells Fargo shed nearly 6% and 5%, respectively. Goldman Sachs and Bank of America fell around 5.5% and 2.5%, respectively.
Regional banks, which rebounded Tuesday to lift sentiment for the broader market, fell back into the red again. The SPDR S&P Regional Banking ETF (KRE) was down 2.2%, pushed down by losses of more than 10% in First Republic Bank and PacWest Bancorp.
https://www.cnbc.com/2023/03/14/stock-m ... dates.html

US big banks will whether this storm.
https://www.bankrate.com/banking/bigges ... n-america/

Credit Suisse is #45 on the international banking list.
https://www.spglobal.com/marketintellig ... 2-69651785
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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featureless wrote: Wed Mar 15, 2023 12:37 pm Looks like Newsom had some financial connections to SVB. What a surprise he personally petitioned Biden for the bailout.
https://www.businessinsider.com/gavin-n ... ing-2023-3
Crooks on both sides of the political spectrum, what a surprise…not.
Image
Image

"Resistance is futile. You will be assimilated!" Loquacious of many. Texas Chapter Chief Cat Herder.

Re: California bank regulators shutter the Silicon Valley Bank

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sikacz wrote: Wed Mar 15, 2023 12:59 pm
featureless wrote: Wed Mar 15, 2023 12:37 pm Looks like Newsom had some financial connections to SVB. What a surprise he personally petitioned Biden for the bailout.
https://www.businessinsider.com/gavin-n ... ing-2023-3
Crooks on both sides of the political spectrum, what a surprise…not.
Yes, hope some reporters start doing some digging to see how blind his "blind trust" actually is and how much did he have in SVB. Did he make exceptions and not put all of his assets into a blind trust? Two of the three banks were California chartered and regulated by his administration.

In 2020 a SF TV station investigated how much Newsom's companies got of COVID funds.
https://abc7news.com/plumpjack-manageme ... n/8618229/
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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sikacz wrote: Wed Mar 15, 2023 10:08 pm
featureless wrote: Wed Mar 15, 2023 8:59 pm Crocked slimy fuck. Absolutely presidential material.
Just another reminder that I had the correct opinion of him already. LoL. Good description.
Definitely slimy, he reminds me of the old big city machine politicians that were often Democrats. The type that you count your fingers after shaking their hand, Slick Newsom. He's not doing well in the Democratic presidential polls, he's at the bottom.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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CDFingers wrote: Thu Mar 16, 2023 7:01 am He's said he's not going to run, so we'll keep him here where he's contained. We'll take one for the country.

CDFingers
Wish you good folk had kept Gov Regan and Representative/Senator Nixon. If you had kept them the US would be quite different today.
To be vintage it must be older than me!
The next gun I buy will be the next to last gun I ever buy. PROMISE!
jim

Re: California bank regulators shutter the Silicon Valley Bank

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The biggest banks in the U.S. are discussing a joint rescue of First Republic Bank to shore up the beleaguered lender, people familiar with the matter said. JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp. and Wells Fargo & Co. are in talks to deposit billions of dollars of their own money into First Republic, the people said. Morgan Stanley and Goldman Sachs Group Inc. are also involved, as well as giant regional banks U.S. Bancorp and PNC Financial Services Group Inc., the people said.
Any rescue deal could solve First Republic’s immediate issues of a falling stock price and fleeing depositors. But the bank will still have to grapple with a tougher business environment in a world of higher interest rates and depositors suddenly aware of the pitfalls of large uninsured balances. The rescue would be an extraordinary effort to protect the entire banking system from widespread panic by turning First Republic into a firewall. Two banks have already failed in the past week after depositors withdrew billions, and fears have grown that First Republic could be next.
Customers yanked billions of deposits out of First Republic and the bank over the weekend sought to stem the tide with a deal, announced Sunday, involving additional funding from the Federal Reserve and JPMorgan that gave the bank a total of $70 billion in available liquidity. The bank has maintained it is stable and that deposit losses aren’t overwhelming, people familiar with the matter have said. But S&P Global Ratings on Wednesday downgraded the bank’s bonds to junk status and investors continued selling, adding more uncertainty. The bank’s stock is down more than 60% this week. Its market capitalization has fallen from $21 billion on March 8, when the
First Republic’s business and stock-market valuation were long the envy of the banking industry. Its customers are wealthy individuals and businesses, primarily on the coasts. Its lending business revolves around making huge mortgages to clients like Mark Zuckerberg. Few of those loans ever went bad. The bank had about $213 billion in assets as of the end of 2022. The bank’s profits rose in 2022, but the Fed’s aggressive rate increases took a toll. First Republic’s wealthy customers were no longer as content to leave huge sums of money in bank accounts that earned no interest.
https://archive.fo/tlax3

Shares of First Republic reversed their losses and regional bank stocks pushed higher after CNBC’s David Faber reported that major U.S. banks are discussing a rescue plan for the bank that could include deposits totaling about $20 billion or more. First Republic shares were up 10% and halted for volatility after the news. The bank stock had been down more than 30% earlier in the day.
https://www.cnbc.com/2023/03/16/first-r ... -sink.html
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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https://www.npr.org/2023/03/16/11639585 ... k-bank-run

A group of 11 lenders says they will deposit $30 billion in the beleaguered midzied lender in an effort to prop it up.

Bank of America, Citigroup, J.P. Morgan Chase, and Wells Fargo will deposit $5 billion each. Goldman Sachs and Morgan Stanley will deposit $2.5 billion each. An additional $5 billion will come from five other lenders.

The rescue comes after confidence in smaller banks cratered following the collapse of Silicon Valley Bank and Signature Bank, in what has been an extraordinary week for U.S. lenders.

"This action by America's largest banks reflects their confidence in First Republic and in banks of all sizes, and it demonstrates their overall commitment to helping banks serve their customers and communities," the lenders said in a statement.
https://www.npr.org/2023/03/16/11639585 ... k-bank-run

Stopgap measures to protect their own asses assets.
Facts do not cease to exist because they are ignored.-Huxley
"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis Brandeis,

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