Bank Run Watch 2023 after Silicon Valley Bank shutdown - Over 97% of SVB's assets were not FDIC insured

[BelUwUga]

Well let’s be realistic here - the bank has assets that will be sold so it’s not like there’s no money.

The fed is going to have to consider taking a drastic step with other banks that have too many treasury bonds that have lost value and consider literally buying them back and giving them new ones.

It’s a can kick but hey…

Money months/years from now is worthless to people that didn't make payroll yesterday. They're getting their $250K and certificates, in the eyes of the government they're being made whole. It's literally only the dipshits that lost their shirts over this that stand to benefit from a bailout. Whichever megabank would absorb them likely doesn't want it even at subsidized rates. Anyone with the good sense not to lock in historic low interest rates stands to benefit from them hanging SVB out to dry.

 

[tehpope]

Bank run at First Republic Bank branch in LA

https://twitter.com/CitizenFreePres/status/1634690669079035904

 

[MadStan]

Money months/years from now is worthless to people that didn't make payroll yesterday. They're getting their $250K and certificates, in the eyes of the government they're being made whole. It's literally only the dipshits that lost their shirts over this that stand to benefit from a bailout. Whichever megabank would absorb them likely doesn't want it even at subsidized rates. Anyone with the good sense not to lock in historic low interest rates stands to benefit from them hanging SVB out to dry.

There are thousands of other banks stuck with trillions of bonds paying low rates that have now poor security because today I can get a 5% yield bond.

Many banks are sitting on “security” that is worth less than half what they paid. If the fed doesn’t swap their bonds then I’d expect a number of banks to be in real trouble shortly.

If they get squeezed hard enough, they will pop.

 

[BelUwUga]

There are thousands of other banks stuck with trillions of bonds paying low rates that have now poor security because today I can get a 5% yield bond.

Are banks supposed to just be sitting on bonds though? I thought the whole impetus behind the leeway they get is they lend that money out for the economy to grow.

Many banks are sitting on “security” that is worth less than half what they paid. If the fed doesn’t swap their bonds then I’d expect a number of banks to be in real trouble shortly.

Relevant scripture. Perhaps they shouldn't have metaphorically buried their funds in low-interest bonds that don't give them any real security?

If they get squeezed hard enough, they will pop.

Good. Volatility is necessary. Let the people who stockpiled like scrooge mcduck go broke.

 

[Sweeter and Savoury]

Hah ahahahahaha

SVB Bank President Greg Becker sold off 36 million in bank shares two days before the bank announced it's liquidity crisis.

Hahahaaha...the fucker is so going to jail for this.

hahaha

 

[MadStan]

Are banks supposed to just be sitting on bonds though? I thought the whole impetus behind the leeway they get is they lend that money out for the economy to grow.

Relevant scripture. Perhaps they shouldn't have metaphorically buried their funds in low-interest bonds that don't give them any real security?

Good. Volatility is necessary. Let the people who stockpiled like scrooge mcduck go broke.

Good points you raise.

Banks came under fire for not lending and taking the easy road of buying bonds. Then loaning on margins for traders rather than lending to small
Businesses and families.

But also a shit load of retirement funds did the same thing so they can could “bank on “c” percent payout in the future.

All I’m saying is a lot of people and a lot of banks are holding bonds that cost them a dollar and they might get 75 cents for it today. Or less.

If these people or institutions get squeezed and they have to sell “what was supposed to be there most liquid asset” and we are hundreds of billions of bonds being sold off there will be a devastating cascade effect.

It should not happen; but all we need is one black swan event now to trigger it and the party is crashed.

 

[870EVO]

https://twitter.com/unusual_whales/status/1634663064166621184

 

[BelUwUga]

Hah ahahahahaha

SVB Bank President Greg Becker sold off 36 million in bank shares two days before the bank announced it's liquidity crisis.

Hahahaaha...the fucker is so going to jail for this.

hahaha

View attachment 4756896

https://twitter.com/unusual_whales/status/1634663064166621184

They really were surprised by the bank run. Those bonus transactions are getting reversed and Becker just ensured any bank account he has access to is going into deep freeze. lmao

 

[Darkholme's Dungeon]

I'm seriously beginning to wonder if I should just forget about tech altogether and get a head start now in moving out to some remote mountains in the wilderness where I'll live out the rest of my days hunting, foraging, and growing my own food as I watch society burn to the ground...

Too late already, it's been taken by the roaches fleeing California and fucking boomers.

 

[George Lucas]

Chase is offering $600 to people who can park several thousands of dollars into a new account. American Express is also aggressively trying to get people to open savings and checking accounts.

These banks need cash from something other than the Fed.

 

[Shadfan666xxx000]

Wait, I thought FDIC kept things insured in case of these things. I know it would be a bitch to deal with the government handing out money but thats what's supposed to happen eventually, right?

 

[X Prime]

I don’t know about you all... but this is the first time since college since I’ve felt alive. I have lots of silver and been waiting for this to happen for 10 years. The point where 1 silver Roosevelt dime buys me a blowjob from a formerly well to do housewife and her 18 year old daughter at the same time. I’ve been waiting in the shadows laughing at these cuck husbands who buy their wives range rovers instead of buying silver bullion... knowing that I’ll be face fucking their wives mouths for the 1.30$ it cost me to buy that silver dime.

Just this morning at Whole Foods I seamlessly entered a conversation with a roastie milf with a ring about SVB in the water aisle... and I said it’s the canary in the coal mine signalling the complete economic collapse of the US. She was looking at me in amazement like she wanted me to paint her lips in cum. At the end of the conversation I’m like take my number, maybe I can help you out if you are in a jam and she took it from me.

I'm going to help you out here before you commit some kind of consent accident.

Have you perhaps considered she just wanted to get away from the crazy person?

 

[Gar For Archer]

Wait, I thought FDIC kept things insured in case of these things. I know it would be a bitch to deal with the government handing out money but thats what's supposed to happen eventually, right?

The FDIC only insures up to 250k per account. That’s fine for normal people, who will probably never have anywhere close to 250k in the bank at any given time (even upper middle class rich people probably have most of their money parked in assets or investments), but SVB was not a normal bank, it dealt primarily with companies that could easily have accounts in the tens of millions. Too lazy to pull up the actual figure but it’s in this threat somewhere, I think something like 95%+ of their customer funds were over the FDIC limit.

 

[870EVO]

Meanwhile.... people in the real world:

 

[SiccDicc]

View attachment 4757204

Meanwhile.... people in the real world:

View attachment 4757213

Not gonna lie, I really hope they keep hammering how progressive the bank was so that it really nails in that DEI did this shit.

Not that it necessarily did, but if one good thing can come out of this it's everyone blaming ESG and DEI for the crisis.

 

[Cpl. Long Dong Silver]

Chase is offering $600 to people who can park several thousands of dollars into a new account. American Express is also aggressively trying to get people to open savings and checking accounts.

These banks need cash from something other than the Fed.

Yeah I get that 600$ email every few weeks bc I have a line of credit with them.

The thing is it isn't a straight 600. It's only if you meet two criteria. One is if you open a checking account with direct deposit that holds over a certain balance you get 300. The other 200 comes from opening a high yield savings but the kick is you have to deposit 15k. Not 1500. 15 thousand. Then they give you another 100 bucks if you do both for the 500.

I don't know about you guys but I'm fairly liquid but even I don't have just 15000 to throw around for just 200.

If they wanted more liquidity these cocksuckers would lower the thresholds and increase the payouts but Jews gotta Jew.

 

[spinal gas chamber]

Well let’s be realistic here - the bank has assets that will be sold so it’s not like there’s no money.

The fed is going to have to consider taking a drastic step with other banks that have too many treasury bonds that have lost value and consider literally buying them back and giving them new ones.

It’s a can kick but hey…

It’s the Treasury, not the Fed and the Treasury should not do that as it will signal that bonds (backed by future tax revenues) are a no-risk investment. You take this step and the next step is to say “well, T-bonds are losing compared to stocks so we need to make our bond buyers whole”, and then we are in the equivalent of a company town. Only the company is the lunatics that run DC.

E: I should qualify the “no risk investment” line before I get taken apart. They are no risk per the terms they offer when you buy; the risk is that they aren’t the best deal for the lifetime of the bond. Taking that risk away is the road to hell.

 

[Standardized Profile]

Not good enough, I legit want to just pay someone to take my money..put it in a box in a vault and never fucking touch it unless I write a physical check or come get it out of my account personally. No Debit Card, no Electronic Checks.

You don't want a bank, you want a safe. They don't come with checkwriting privileges, but no one wants to take your checks anyway. I recommend at least RSC-II, though if you have sprinklers to mitigate fire risk (and you should) you can probably make do with a good B- or C-rate. Remember to bolt it down, a safe on its back is much easier to crack. And it goes without saying, you'll need a home security system.

If you need more space than a safe provides and can't afford to build your own vault, a FEMA safe room with a residential-grade vault door might do the trick. They don't have enough steel to keep out a prepared thief, but the junkie with a screw driver won't get in. If you live in tornado alley, the government might pick up part of the tab.

 

[mlanguishi]

I don't know about you guys but I'm fairly liquid but even I don't have just 15000 to throw around for just 200.

Well, it's better than a free toaster and even Aunt May got gipped out of that.

 

[TowinKarz]

Wait, I thought FDIC kept things insured in case of these things. I know it would be a bitch to deal with the government handing out money but thats what's supposed to happen eventually, right?

Key word - "eventually"

They don't cut you a check the day the bank fails, it'll be months, years, later when the corpse has been legally dissected that you'll get your check.

Imagine going through the motions of car insurance after a wreck, except, 10,000 people, including you, were on the title.

Also, the primary goal of FDIC is to just stop bank runs by assuring everyone with a simple checking account who can't afford the loss of what's probably their life's savings or practical sole source of money that they will be made whole if they just remain calm and don't all charge the vault - it doesn't (nor was it ever intended) to protect billion-dollar investments from evaporating due to mismanagement. Which is why the FDIC caps protection at $250,000 - anyone with more than that amount of worth is assumed to be able to financially fend for themselves or know better than to invest it all, all at once.

The FDIC will eventually be cutting that aforementioned check to regular folks whose money was insured, and any number of reputable banks will be happy to honor a Fed IOU on it in the meantime to both get another customer for themselves and the fact that unlike all the other business and personal loans on their books, this one is practically guaranteed to pay off .