Silicon Valley Bank, the go-to bank for US tech startups, facing a sudden bank run and capital crisis, collapsed last week, leaving its high-powered customers and investors in limbo. It was taken over by federal regulators. It was the largest failure of a US bank since Washington Mutual in 2008. CNN’s Christine Romans reports. #CNN #News
Interest rates are just now normalizing. The bank making bad investment decisions should not justify going back to punishing the holders of cash accounts by paying no interest on cash which is really a tax on savers.
Thanks Biden .
Get a job Leroy
Rates are going up again. This is another Democrat pay off.
@tixximmi1 the average blue collar factory worker who has a 401k will be the loosers,not the powerful.People who barely get by to contribute each month hoping to be able to retire at 65 with a little…those will be the loosers..be ready to see alot of medicaid users in future…that once thought they were doing all they could to be self sufficient..
“This is not a bail out, its a special economic operation”
🤣🤣🤣🤣
No it’s a political pay off.
@Me Off Insurance paid by who? The taxpayer. Who do you think funds these government entities and funds? The taxpayer
@Me Off So I am confused. Who pays for this loss on large deposits supposedly if the FDIC only handles up to 250K. What insurance are you talking about.
Yet No student loan forgiveness, but give it to the CEOs and banks!
@Denny Pelczynski Before the war began the USA took tonnes of gold from Ukraine. Some Ukraininian custom officials tried to stop the loot from being hauled into an airplane but were stopped by their intelligence operatives. You have already taken Ukrainian gold. There won’t be anymore payback from Ukraine.
And some people will still be more upset about that then this
Exactly
@So Believer right you are
If you don’t want to pay off your loans to take one. It’s not complicated
The bank boss saw it coming, cashed in for $3.6 million ahead of the crash, which sounds similar to insider trading.
@Peter Bellingham I think where it gets close to insider trading is not that he knew and took out his own money, but not warning anyone or doing anything to stop the bank from failing.
@damnjustassignmeone nobody cares about the law. it’s America baby
He just took the money out to count it. Just happened to take longer then he thought.
@Ash J Warning people would have caused even more panic withdrawals, and they may not have been certain at that point how it would play out. They were more than likely doing everything they could to prevent the bank from failing, as evident by selling the government bonds for a loss to accommodate withdrawals. Had calmer heads prevailed, this could have all been avoided. At the end of the day though this is more evidence that the banking industry needs an overhaul. The limits of how much customer capital can be leveraged needs to be decreased, I think 80% is allowed to be leveraged, this should be reversed to 20%. This would give a much larger buffer that would hopefully halt any momentum in a bank run.
@damnjustassignmeone let’s hope so!
I admit I know nothing about banking but I’m sure I’m not alone in worrying that this could happen to other banks.
@Amarissimus Um, thanks I think. lol
I’m voting for Biden so this happens more and more😇
@Geoffrey schermerhorn Me too! God forbid Trump be in office if another pandemic hits!
I also worry about raining frogs.
I love how banks can run the way they want, blowing through millions and millions of dollars, giving away billions in bonuses and stock buybacks but the second they fall into financial hardship, they expect the fed to save them using tax payer money while the average american is expected to run their extremely tight budget like clockwork and the slightest unexpected expense can literally ruin lifes and make people go bankrupt, never being able to borrow money and tainting their credit history for life.
Yet Biden did just that
Why are people still trusting banks and hoarding fiyat currency? Buy gold and put it under your pillow or if your not a boomer grandpa, buy bitcoin.
Glossed over the whole other set of “investments” the bank had a hold of that were insanely over valued. Also the tiny little detail of Peter Thiel’s involvement telling all his minions to go withdraw all of their money thus setting off the run. So the guy that got rich off of the free money machine now directly plays a role in putting a bunch of companies over the edge…no way he and others end up picking them up for almost nothing, and also now can pay employees even less with even more unemployed in the tech sector after this thing gets down with the dominoes now set in motion.
That’s trump era deregulation. Whoops!
Imagine blaming the people for taking out money of a failing bank instead of blaming the bank and the cause of high interest rates in the first place
@N. James “Caleb” is a troll. One sentence triggered a copy-pasta for the ol’ armchair expert.
Exactly. The demons are those who desire to have their own money. What a fn joke!
@ANTHONY WANJALA Geez. A ruskie bot maybe?
Love how the media makes excuses for financial institutions when they screw up
@Sword Monkey We need these people to understand that there will be a consequence if they decide to prioritize personal greed over ethics. At least penalize the people who caused this to happen maybe fire everyone on the executive boards without severance. Over regulation does not work and we are sending the message that the government will always cover your greed because you are too important. We could bail out the people who are the victims of these banks and let them fizzle into nothing.
Peter Theil pulled his money out and told several the VC firms to pull out of SVB, that is why there was a run on the bank. SVB, had a loss, but that happens. It was not a major loss. I think Peter Theil will be investigated by the SEC, to see how much he created a bank run.
They better address the insider trading before a bailout
Agree. Congresspersons should not be allowed to make millions while in office. That’s how we get terrible leaders, who are only loyal to their portfolios.
Nah. That’s regulations you’re talking about. That’s literally socialist communism.
Confidence in the system??? I’m 31 and this is the 3rd financial crisis of my lifetime and I’m watching the wealthy elites/ corporations getting bailed out expense of the little guy AGAIN. How is that feeling in anyway reassuring?!
Your age group suffers for home ownership and my age group can’t retire when needed…it’s a mess
Move to Cuba , North Korea or maybe China.
The worst part of this nonsense back system is that all banks are at risk of going through the same, if everybody panicked and rushed to get their money out of their banks I bet roughly half will be able to do it. This is a wreck waiting to happen.
“The best way to rob a bank is to own one”
This happened because, “interests rates rose so dramatically, and something was going to break.”
Interest rates rose dramatically in the early Eighties (also due to the Fed), but I don’t remember banks failing back then.
You’re completely wrong. in 1987 alone, there were 180 bank collapses. And 1987 is said to be a sharp but relatively harmless recession
A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It’s all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
@Geoffrey schermerhorn I’m coping fine. I don’t need a president to make something of myself. Maybe in a year and a half you can try again
@Richard Olson lmfao 🤣😂🤣
@Robert Blane for a collapse to work in the best interest of banks, they need uniformed investors to hold the bag. Be careful and do extra due diligence if you plan on buying in at this time
Your lucky…we don’t even hope to make anything.We lost 60 grand last summer.We are elated to just not loose our contributions each month..at this point retirement is iffy..
So predictable, how many fools fall for this?
I still blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).
@Richard Olson lmaoo explain to me how this is related to dodd frank mr economical.
@Richard Olson lmao good comeback but got nothing huh? Dont got work today old sport get snowed out? Dont put your profile pic if youre gonna @ people 😭
@Rich Hoyle I’m right. Sorry you peaked in high school
@Richard Olson lmao incorrect. But again with the comebacks and no substance to your argument huh
this just shows how much value people can put into something. The prices depends on the person.
The wisest thing that should be on every wise individual’s list is to invest in different stream of income and don’t depend on the government to bring in money especially now the pandemic is hitting the economy
@So Believer 😆😉
What pandemic?
@BackYard Science 2000 you must have stock in the funeral home business
@Tim knepper that’s some real “I quit” energy right there
Tbh, with the whole global crisis, I’m quite unsure about getting in the market. I had planned to
earlier before retirement and the clocks ticking really fast. I don’t mind a passive return but has to be long term with a vision.
@Gregory P. Freeman How to get in touch?
@Gregory P. Freeman Hold on, the portfolio manager with Morgan stanley? Was recently on a finup with Tate?
@Gregory P. Freeman Sure sounds wild averaging a 15%. Though records seem detailed on her webpage
Same was going to do more but no thank you
The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I’m at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?.
I think it’s brilliant to use a brokerage advisor for investing. Prior to speaking with an advisor in the heat of the 2008 financial crisis, I was actually experiencing terrifying nightmares. In summary, with the assistance of my advisor, I have grown my initial $120k investment to over $550k.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Credits to CHRISTINE ANN PODGORNY, one of the best portfolio manager;s out there. she’s well known, you should look her up.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before engaging her services. She seems proficient considering her résumé.
is this a serious question? the obvious answer is bitcoin and crypto but if you have been living under a rock or your super old you probably dont really understand technology so maybe buy some gold?