In an extraordinary action to restore confidence in America’s banking system, the Biden administration on Sunday guaranteed that customers of the failed Silicon Valley Bank will have access to all their money starting Monday. #siliconvalleybank #CNN #ArletteSaenz
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Bring back and Implementing The Glass-Steagall Act effectively separated commercial banking from investment banking.
Yes!
@D P Except that the bank’s failure was due to their investment portfolio being heavily concentrated in a single asset type… kinda like MBS during the recession. Sensitivity to Market Risk is a thing that banks have been required to mitigate since 1996.
This shouldn’t have happened.
@Andrew yes they did not hedge out the low rates. But that is not investment banking. SVB has some investment banking operations but it is small and their trading desks don’t take any risk
Everyone gets bailed out, Except the working poor.
@adam many companies, investment funds would go under. the employees would lose their jobs. the companies that got paid by those companies would have to let people go. There would be big ripple effects.
@arizjones Talking points aside. SVM got bailed out, and it shouldn’t have gotten bailed out.
@Pavan Katepalli That is what the bank would have us believe. But, I simply don’t think that is true.
@adam the bank just bought bonds. the fed made them do it. they didn’t do anything risky. The fed shouldn’t have raised rates so fast. Sure they could have hedged against interest rates rising fast, but historically bonds are great safe investments.
Never underestimate the power of the wealthy. They will always get bailed out, always. 2008 taught us that, and not one of these bank CEO’s or managers will pay a price for their failure that lead to this.
@Garry you’re projecting your own energy here 😏
@toeknee in fact, you can thank him directly for helping cause this mess. He also deregulated the railroad industry which helped cause the derailment in Ohio. Super great dude, right?
@toeknee by the way, feel free to continue commenting, but I will not give you any more of my time. I don’t talk to conspiracy theorists, it’s a waste of time.
That money didn’t just disappear. Someone got rich.
They call it “bad investiments”
@Eddie Gardner not true at all, the CEO and CFO sold out, and the super deal they gave somebody selling their mortgage package out. How many other insiders do you think there were, and what happened to all this money to create the situation of being short
Before the collapse they gave out huge bonuses and the CEO sold his stock holding two week before the bank closure
Staff at SVB got their bonuses just before the meltdown.
2008 all over again.
@Butterfly Girl There wasn’t in 2008, and there won’t be now.
Bonuses had already been processed. Not a conspiracy. Please check your facts.
@Randy Hollinger If the government is going to bail them out, they should do so in an amount less employee bonuses paid out.
This sounds good if true. I have a feeling some shenanigans will get pulled though.
it’s called PR
A bank’s most valuable asset is the public’s trust. Once that has been lost, or compromised in any way, it becomes very difficult to continue as a viable player in the financial services sector….
@enriqueali lehmann brothers executives is ceo of sbv. no joke.
Fantastic. They had established trust for 40 plus years. They were making good-faith financial moves which went viral on social media, resulting in a run on a very trusted bank.
If you do that bad then you should no longer have a business much less a bank.
@1andonlybre Just leave your money and then wait for how ever long. Not many people like that plan for some strange reason.
They try to prevent bank panic.
Too late
@Arcadia Hopefully not
Yea sure, or they’re just protecting their own class.
So they privatize thier profits and at the same time socialize thier losses.
But they can’t socialize student loan debt, or massive medical bills for low income families. 🤔
@T. R. Campbell So we now define thieves and grifters politically now? Another gift from the grifter in chief who keeps on giving.
@What doesn’t Exactly!!!!
this definitely won’t encourage bad behaviors by banks
This had nothing to do with bank bad behavior, more like big liberal government bad behavior, printing money!!
@Andrew it failed because they bought government bonds cheap when interest rates where low, and know they’re high and the bonds are worthless all because Brandon printed money causing inflation.
@Bill Russian troll
@Bill ‘Nother troll.
@Vera Mae you can call me narc because your gonna get reported.
Yellen: we will not bail you out! But we will guarantee your deposits ! Lol 😆 🤣 😂 😹 😆 🤣 😂 😹
The FDIC will get paid back over time. The FDIC fund is paid for by banks. Plus if the FDIC can sell the bank for a decent amount they may not have to front anything
Why not disclose where are the funds coming from. They claim the funds are coming from FDIC reserves, and where did that money come from? Taxpayers.
@isabel metzger Banks pay fees to the FDIC which end up in the reserves.
Trying to stabilize others so everyone doesn’t go trying to make withdrawals Monday from other banks across the country
Lmao not only does this give too big to fail energy but a bank run is practically guaranteed now. Markets shook to their core. Gotta love fractional reserve banking
SVB’s execs need to return every dollar they made.
It’s not “resilient” if the government has to step in to come up with one-ff schemes to bridge the gap. The government’s circuit breakers were broken.
Making money is an action. Keeping money is behavior. Growing money is knowledge..
I’m glad to see Mr Michael Burry mentioned here, my spouse recommended him to Me after investing $4000 and he has really helped us financially in times of COVID -19 lockdown here in Australia 🇦🇺.
Very wise Grasshopper 🙄
scamming is a tech culture 🙂
All other Banks: “Its open season boys! We can do whatever we like, won’t be liable for a dime of it! Yeeehaw!”
This sure goes to show the prominence of financial management. I can only wonder what sort of analyst they hired.
@Tom Fisher Hold on, the portfolio manager with Morgan stanley? Was recently on a finup with Tate?
@Tom Fisher insha allah
@Cory Miller how to reach?
@Ali Yunko you could basically look her up
@Tom Fisher a 15 m-roi sure sounds impressive
The annual rate of price growth cooled to 6% in February, according to a U.S. Bureau of Labour, Interest rate is currently at 4.75%(8th rate hike since March last year) Inflation at 7% and mortgage rates is at over 7.5% but yet minimum wage remains the same and my retirement portfolio has suffered tremendously these past years, so my question is how do senior citizens retire and live off such unstable economy. The long term game is obviously not for me at this point.
Since the crash, I’ve been in the red. I’m playing the long term game, so I’m not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really look to know how to go about this.
@Dr.SienaHoyt There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor.
@Moore I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?
@Garciá I have stayed away from all of the issues that the erratic market presents. Today, reading, research, patience, and seeking guidance when necessary are the greatest ways to break into the market. I merely copy Susan Bauer Normansell a CFA, whose actions I witnessed on Bloomberg Business News because I am unable to handle my portfolio owing to the nature of my profession. Ever since, everything has been easy.
@Moore Thank you so much for this tip! Finding your coach was a breeze and I was really impressed with all the research I did on her credentials before scheduling a call. It’s clear from her résumé that she’s extremely knowledgeable and skilled, and I’m so excited to have the chance to talk to her!
The average person has never been so poor. Millions of families are struggling financially as living expenses hit the highest levels in more than four decades with the banking system collapsing. Over 60% of our country lives paycheck to paycheck and about 40% earns poverty wages. Even after working all their lives, more than a quarter of older people have no savings and many believe they will never be able to retire in dignity, while around 55% of elderly people try to survive on an income of less than $25,000 a year. My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains.
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Well just blame the current president