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

[Mussolini’s Merkin]

You can fix these shit by:

1. At least a 6 month prison term to any corporate executive in a financial company worth more than let's say 1 billion dollars, that accepts a bailout plan by the federal government, including non standard FDIC insurance payouts
2. Completely and utter SEC ban on working in the financial industry ever again
3. A system similar to the sex offender registry, but for crimes against the economy and financial system

Obviously it would never happen but it would be a good start.
Or just be like China or Russia and arrest/throw from a window any oligarch who fucks things up and appropriate their wealth.

A rope and a lamppost would work just as well though

 

[reptile baht spaniard rid]

Dear Clients,

Earlier this week, we expressed our commitment to being as transparent as possible as we navigate the future for Silicon Valley Bridge Bank, N.A. (SVBB).

We are reaching out today regarding an announcement made by SVB Financial Group on March 17, 2023. SVB Financial Group is no longer affiliated with Silicon Valley Bridge Bank, N.A., or the bank's private banking and wealth management business. Silicon Valley Bridge Bank, SVB Securities and SVB Capital's Funds and General Partner Entities are not included in or impacted by SVB Financial Group’s Chapter 11 filing.

Silicon Valley Bridge Bank is a separate entity. All deposits and substantially all the assets of Silicon Valley Bank were transferred into Silicon Valley Bridge Bank on Monday, March 13, 2023. Silicon Valley Bridge Bank, N.A. is open for business and we are hard at work bringing solutions back online to support you in the way you’ve come to expect from us. We are making new loans and fully honoring existing credit facilities.

Looking ahead, we will continue providing you with the same high-quality services and support you have come to expect. We will update you as more information becomes available about Silicon Valley Bridge Bank. If you have additional questions, please reach out to your SVBB team with any questions.

Best regards,

Tim Mayopoulos, CEO
Silicon Valley Bridge Bank, N.A.

I am really loving this saga, I don't know how I ended up on their mailing list but this shit is kino

 

[Socrates]

Nah they're gonna go green like they always do when the regulators get backed into a corner and have to give the banks tons of free cash. Bet it'll be Friday when the post money infusion elation wears off and the reality of continued rate hikes set in.

I was right btw lol. This shit is so stupid and predictable that even a retard like me can call it. Literally the same script every single time since the pandemic started.

 

[AN/ALR56]

View attachment 4802482

I am really loving this saga, I don't know how I ended up on their mailing list but this shit is kino

Honest, we should gather and archive all the cope "don't pull your money plz" emails from banks.

 

[reptile baht spaniard rid]

Honest, we should gather and archive all the cope "don't pull your money plz" emails from banks.

I don't want to list too many (I received one other but it's a smaller credit onion) for the doxing, but I do laugh how many of them were like "also fuck cryptoshit" heh.

 

[ATI Escapee]

Exclusive: Credit Suisse CFO teams to hold talks this weekend on scenarios for bank - sources

Credit Suisse AG will be holding meetings over the weekend to assess scenarios for the bank as it struggles to regain confidence from the market, people with knowledge of the matter told Reuters on Friday.

www.reuters.com

Lol

 

[Foghotten]

Reminder that SVB's main clientele was this:

Gee, I wonder why this bubble burst.

 

[Cpl. Long Dong Silver]

Reminder that SVB's main clientele was this:

Gee, I wonder why this bubble burst.

We should hang the tech bros ahead of the bankers

 

[Elämällä on väliä]

A LOT of nations would immediately jettison the US Dollar in favor of their regional suzerain like Russia, China, India or maybe Brazil, Mexico or Chile.

Mexico - country that didn't controll own territory, great.
Chile - country with two currencies, because one that is in daily-use is going into toilet regulary and is changed after each 30 years or so.
India - you have no clue how Idnia rupee system works. In few rods: it didn't. They used to have a pretty big offshore usage of rupee few decades ago in Arab states and India was actively fighting with that. And will fight any other attempt like Gulf rupee shit. Also, they aren't very into selling anything for rupee, so rupee outside India is more like problem, not an asset.
China - mixed case, some like India, some like Chile.
Russia - have fun with currency frozen in most systems and where is only one trader of that shit.

The energy consumption is arguably a good thing, because it gives bitcoin (and to a degree other crypto) an actual basis since it's converting watt/hours into a medium of exchange.

Resources wasted to produce something didn't give that shit any value.

digital currency is superior because you can give it traits of being backed by the energy expended

If currency is backed by anything that means you can give currency to someone and demand (and: receive) that think. You cannot convert BTC into energy used to produce it.

Something similar to crypto will be the future, but still not now. BTC lacks of flexibility and resue way to reposes it in case of mistake in address when sending. Fiat sended by on-line banking can be retrived if wrongly sended and also will not go into invalid/unused bank account.

 

[Meat Target]

Reminder that SVB's main clientele was this:

Gee, I wonder why this bubble burst.

I already love that channel's quality content.

 

[nostalgiasorrow]

So my credit union sends the 'your money is safe' but not Bank of America.
Huh, apparently my CU only has 5 branches, not sure how that bit of information in their email instills any confidence

 

[Weppers]

I already love that channel's quality content.

View attachment 4803332
View attachment 4803340
View attachment 4803336

Stanford's finest, ladies and gentlemen. He's Asian so you know he had to actually be one of the smart ones to get in.

 

[Ancient Pioneer]

Mexico - country that didn't controll own territory, great.
Chile - country with two currencies, because one that is in daily-use is going into toilet regulary and is changed after each 30 years or so.
India - you have no clue how Idnia rupee system works. In few rods: it didn't. They used to have a pretty big offshore usage of rupee few decades ago in Arab states and India was actively fighting with that. And will fight any other attempt like Gulf rupee shit. Also, they aren't very into selling anything for rupee, so rupee outside India is more like problem, not an asset.
China - mixed case, some like India, some like Chile.
Russia - have fun with currency frozen in most systems and where is only one trader of that shit.

These currency are useless and failing because there is a limited use case for them. Breaking up the petrodollar, putting all currency on equal footing will mean they have use beyond just trade with their mediocre state. Kazakhstan has extremely limited trade with the US, but it has to keep a reserve of US Dollars, breaking up the petrodollar means they could dump that shit for currency they're more likely to trade with, like Rubles or Yuan. Same with Norway, their currency would benefit as they could focus more on the Euro and mandate their petroleum products be purchased in krone.

Its absolute hell for the US but beneficial for every other currency in the world.

 

[Darkholme's Dungeon]

Thread tax article (a).

Just a few short hours ago, Bloomberg reported that UBS and Credit Suisse were both against any merger scenario.

Citing sources close to the matter, Bloomberg said UBS would prefer to focus on its own wealth-centric standalone strategy and is reluctant to take on risks related to Credit Suisse.

Well since then things haven't gone so well.

First, at least four major banks including Societe Generale and Deutsche Bank have placed restrictions on their trades involving Credit Suisse or its securities, Reuters reports, citing five unidentified people with direct knowledge of the matter.

Another source at a major global bank, who deals directly with Credit Suisse in Asia, said their bank had started asking the Swiss lender to gross settle, a trading scenario where the counterparty demands upfront payment from Credit Suisse instead of collecting later any money the Swiss lender might owe them as a result of the trade.

Another global bank has reduced its unsecured exposure to Credit Suisse, which includes all lending with no collateral, according to a person with knowledge of the matter. The bank is still providing repurchase agreements, which is secured lending.

This likely explains why the classic counterparty-risk hedge (1Y CDS) has barely budged despite the $50 billion liquidity injection from the SNB...

And second, given the continued collapse in Credit Suisse shares today (despite the billions from the SNB... and maybe even more from the ECB)...

...it appears a deal between the two Swiss banks could be on.

The Financial Times reports that, according to multiple people briefed on the talks, UBS is in discussions to take over all or part of Credit Suisse, with the boards of Switzerland’s two biggest lenders set to meet separately over the weekend to consider Europe’s most consequential banking combination since the financial crisis

The Swiss National Bank and regulator Finma are orchestrating the talks in an attempt to shore up confidence in the country’s banking sector.

Swiss regulators told their US and UK counterparts on Friday evening that merging the two banks was their “plan A” to arrest a collapse in confidence in Credit Suisse, a person familiar with those discussions told the FT.

UBS has a market value of $65bn (CHF60bn), while shares in Credit Suisse closed on Friday with a value of $8bn (CHF7.4bn).

Will this be bank mega-merger weekend?

* * *

As we detailed earlier, we knew this was the endgame more than two weeks ago when we reported that "Credit Suisse Crashes To All Time Low After Boosting Deposit Rates To Reverse Bank Run" in which we reported that after a quarter of "staggering" bank runs, the second largest Swiss bank - clearly panicking - was offering a 6.5% annual rate on new three-month deposits of $5 million or above - and a rate as high as 7% for one-year deposits - far above matched maturity Bills, and suggesting that to attract a client, the bank is forced to eat a loss.

The hope, we explained, "was that after it attracts enough new clients, the bank will then be able to quietly lower the rates and make the new accounts profitable, however as the various DeFi blow ups of 2022 showed, it never quite works out that way."

This time was no different, and as the bank run accelerated, the Swiss bank ended up getting an (interim) $50 billion rescue financing from the SNB to cover the most recent deposit run, and it will get much more before it's all said and done. To underscore this point, two days ago - in our post summarizing the SNB bailout - we said that "this is a last-ditch liquidity infusion, and all it does is prevent forced asset liquidations (a la SVB). Meanwhile it does nothing to halt the depositor flight because once confidence is gone, it rarely returns."

Again we were right, and one day after the failed bailout attempt, Bloomberg writes that while the $54 billion lifeline won by Credit Suisse on Thursday gives it a fighting chance to rebuild its business, "some clients aren’t waiting around to find out how that goes." To wit:

• In Asia, several ultra-wealthy clients continued to cut back their exposure amid the tumult this week.
• In the Middle East, some customers asked the bank to convert cash deposits into treasury bills and bonds.
• An executive at a rival European bank said they’re seeing some deposits shifting from Credit Suisse, although the amount isn’t yet sizable.

Such attrition, Bloomberg notes redundantly, "will make the overhaul that Chief Executive Officer Ulrich Koerner and his team are overseeing that much harder." Because, at its heart, a successful bailout of Credit Suisse means halting the record historic run. Recall, the bank saw net outflows hit 110.5 billion francs ($119 billion) in the fourth quarter...

... and despite this week's rescue, the bank run is once again picking up, setting up the bank for another bailout because unless the SNB and the Swiss government want a historic bank implosion on their hands, they now have no choice but to keep throwing good money after bad.
For the CEO, hope still lives: “We want to get back all what we lost,” Koerner said at an investor conference on Tuesday. “And once we are there, we go beyond and grow the business again.”
The problem is getting "there." And while the bank has consistently said it has sufficient liquidity, "it isn’t yet clear what the overall flows are or whether the backstop is helping attract clients back." Actually, it's clear it is not, which begs the question: if an SNB rescue isn't enough, what else can the bank do to restore confidence?
Not much: bankers are calling round clients to reassure them, primed with talking points sent out by executives or communicated at town halls. The lender is offering deposit rates that are significantly higher than rivals to win back funds, and even that is not working.
And as Bloomberg reports today, "some ultra-wealthy families booking out of Asia accelerated their retreat from the Swiss bank this week, according to three large single family offices that collectively manage billions and multiple private bankers based across Hong Kong and Singapore."
One family office in the region is planning to cut back as much as 30% of its money parked with the embattled bank after the wealth manager was unable to assure it that non-Swiss clients would be protected in the event of a collapse, Bloomberg reports citing an unnamed person.

Some clients in the Middle East asked the bank to convert their cash deposits into fixed income securities, giving them more comfort to keep money with the firm, according to another person familiar with the matter. In Germany, a wealth manager received inquiries from Credit Suisse clients looking to shift deposits to his firm

To be sure, some clients are still optimistic:

Others are less concerned, with one adviser to several trusts saying he’s recommended they keep their deposits at Credit Suisse even though they far exceed the amounts covered by the country’s deposit insurance. He said he’s convinced there’s no risk because the Swiss government will never let the firm fail.

Then again, SVB's corporate clients were also optimistic the bank would never fail.... until it did.
The bottom line for CS: "outflows haven’t reversed as of this month, though they have stabilized at much lower levels, according to the bank’s annual report released Tuesday, the same day Koerner said on Bloomberg Television that the bank had seen inflows on Monday."
A day later, his bank’s shares plunged after its biggest shareholder ruled out adding to its stake, unnerving investors already on edge after three regional US banks failed in a span of days. It's not like the bank won't lie to restore confidence. Last month Reuters reported that Switzerland’s financial regulator is reviewing comments by Credit Suisse Chairman Axel Lehmann made in December on outflows from the company having "stabilized", on the basis that they may have been misleading. In other words, the bank's highest official was lying on the record, just to slow down the bank run.
The support of Credit Suisse’s counterparties will also be critical, and here too cracks are emerging: the biggest banks in the US have been paring down their direct exposure to Credit Suisse for months as it stumbled from one crisis to the next. Firms including JPMorgan, Bank of America and Citigroup have told regulators their exposures are now minimal. And then, earlier this week, Paris-based BNP Paribas also moved to trim its exposure telling clients that it will no longer accept so-called novations where BNP is asked to step in on derivatives contracts where Credit Suisse is a counterparty, Bloomberg reported.
And with every passing day, doubts grow. JPMorgan. analyst Kian Abouhossein wrote in a note (available to pro subscribers) that the "status quo is no longer an option," laying out three possible scenarios for Credit Suisse and saying that a takeover is the most likely. However, shortly after Bloomberg reported that "both lenders are opposed to a forced combination."
Any such move could be followed by a listing or spinoff of the Swiss unit. Other possibilities mooted in the note included the Swiss National Bank stepping in with a full deposit guarantee or Credit Suisse’s entire investment bank being shuttered.
While executives insist such drastic solutions aren’t needed now the backstop is in place, they are dead wrong since the deposit run is once again picking up. Meanwhile, the bank is claiming that its strategic revamp announced in October remains the core plan to turn around the bank, they say, with the bank’s offer to buy back debt underlining its core strength.
“We see it as preventive liquidity so that we can carry out the transformation of Credit Suisse and continue to work well in this turbulent situation,” Swiss bank head Andre Helfenstein said in an interview with national broadcaster SRF on Thursday.
It adds up to a finely balanced situation. With camera crews gathering Thursday outside of Credit Suisse’s stone-clad headquarters on Zurich’s moneyed Paradeplatz, CEO Koerner urged staff to stay focused.
“Effective communication is key to ensure that our clients and external stakeholders understand the strengths of the bank, our strategy and the accelerated progress we are making to create the new Credit Suisse,” he said in a memo.
So far the only thing the bank has communicated clearly is that it has no clear vision of how it will emerge from the current crisis while preserving depositor confidence.

If they bailout and they still fail I'm going to laugh all while getting drug to the concentration camp. What does everyone think of the UBS-CS merger chances?

https://twitter.com/spectatorindex/status/1636853457511645185?s=20

The Spectator Index on Twitter: "BREAKING: Wall Street Journal report…

archived 18 Mar 2023 00:16:27 UTC

archive.is

BREAKING: Wall Street Journal reports economists found 186 banks that could be prone to similar risks as Silicon Valley Bank

... Lol.

The US dollar is backed by the most precious metal of all: American lead.

American uranium you mean. No leader wants a nuclear winter yet.

Stanford's finest, ladies and gentlemen. He's Asian so you know he had to actually be one of the smart ones to get in.

His videos hit close to home for me. The one about wearing glasses and getting shit on by your parrents (despite them wearing glasses) was spot on. I still remember when my father beat me for becoming near-eyesighted in 2nd grade lol...

Edit: Part of post missed.

 

[Male Idiot]

There's an entire cross-section of the populace that won't believe that's possible though, due to the logic of "it hasn't happened before, or yet, and would be disastrous so you can't say it's possible or you're an unhinged doomsayer", and you'll get plenty of shit just for pointing this out here I'm sure.

Explain then in detail how fiat is better when by rights it just runs on hopes, dreams, and bullshit shell-games.

The US dollar is backed by the most precious metal of all: American lead.

This. The US dollar is worthless funny money like Bitcoin. But unlike bitcoin, if a person refuses to accept it on US soil, than the local cop can beat your ass up. And if it is a country level, Uncle Sam is ready to drop explosive freedom. Saddam I heard wanted off the petrodollar.

A dollar in your pocket also won't ruin your video card nor need any electrictity at all. But that is just a little bonus. The big reason is, the US will bomb you. It is IOU, but by a very trigger happy bully. The bully is retarded, more than a little mutted, but he can still bash heads together for now.

The only value of fiat is the state's monopoly on violence. Which crypto lacks.

 

[Darkholme's Dungeon]

The only value of fiat is the state's is monopoly on violence

FTFY

 

[Weppers]

His videos hit close to home for me. The one about wearing glasses and getting shit on by your parrents (despite them wearing glasses) was spot on. I still remember when my father beat me for becoming near-eyesighted in 2nd grade lol...

Yeah, I'm just being smartassed. It is funny to see that a Stanford CS undergraduate has the exact same complaints about their curriculum as the CS students at shitkicker schools. It isn't funny to see how completely he's absorbed the catastrophizing language of modern colleges, calling anyone with a job oppressed by capitalism and saying 'mental health' when he means stress.

 

[Free the Pedos]

How do I, a mere retard with low tens of thousands in an investment account, avoid getting fucked hard?

 

[mindlessobserver]

My experience with poor work life balance is companies with shitty management leading miserable lives with no families of their own and/or managed by out and proud homosexuals.

Current company I work for is a private corporation run by the son of the founder, and the senior managers say the same thing. "I worked for X company in this Y field, and I just couldn't take not seeing my kids anymore, so now I work for the company I also work for".

Most of the people around here have been with the corporation for over a decade and nobody has any intention of leaving. Quite a few of them are openly based too.

It's a private company though, so it's an entirely different Animal. It's doesn't need an ESG score, and could give less of a shit what venture capital in California or New York wants.

 

[Socrates]

How do I, a mere retard with low tens of thousands in an investment account, avoid getting fucked hard?

You don't. They win. They always win and you always lose. It's like playing a game of monopoly against somebody but they can just reach into the bank and take money out whenever they want.

Eat shit and die, peasant.