Cali Closes Silicon Valley... Bank

[lurk]

Financial regulators have closed Silicon Valley Bank
and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago.

The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money.

According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.

The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB’s branch offices will also reopen at that time, under the control of the regulator.
According to the press release, SVB’s official checks will continue to clear.

The FDIC’s standard insurance covers up to $250,000 per depositor, per bank, for each account ownership category. The FDIC said uninsured depositors will get receivership certificates for their balances. The regulator said it will pay uninsured depositors an advanced dividend within the next week, with potential additional dividend payments as the regulator sells SVB’s assets.
Whether depositors with more than $250,000 ultimately get all their money back will be determined by the amount of money the regulator gets as it sells Silicon Valley assets or if another bank takes ownership of the remaining assets. There were concerns in the tech community that until that process unfolds, some companies may have issues making payroll.

As of the end of December, SVB had roughly $209 billion in total assets and $175.4 billion in total deposits, according to the press release. The FDIC said it was unclear what portion of those deposits were above the insurance limit.
The last U.S. bank failure of this size was Washington Mutual in 2008, which had $307 billion in assets.

SVB was a major bank for venture-backed companies, which were already under pressure due to higher interest rates and a slowdown for initial public offerings that made it more difficult to raise additional cash.
The closure of SVB would impact not only the deposits, but also credit facilities and other forms of financing. The FDIC said loan customers of SVB should continue to make their payments as normal.
The move represents a rapid downfall for SVB. On Wednesday, the bank announced it was looking to raise more than $2 billion in additional capital after suffering a $1.8 billion loss on asset sales.

The shares of parent company SVB Financial Group fell 60% Thursday, and dropped another 60% in premarket trading Friday before being halted.
CNBC’s David Faber reported Friday morning that the efforts to raise capital had failed and that SVB had pivoted toward a potential sale. However, a rapid outflow of deposits was complicating the sale process.
While many Wall Street analysts have argued that the struggles for SVB are unlikely to spread to the broader banking system, shares of other midsized and regional banks came under pressure Friday.
Treasury Secretary Janet Yellen said during testimony before the House Ways and Means Committee on Friday morning that she was “monitoring very carefully” developments at a few banks. Yellen made her comments before the FDIC announcement.
Shortly after leaving Capitol Hill, Yellen convened a meeting of top officials at the Fed, the FDIC and the Comptroller of the Currency specifically to discuss the situation at SVB.

please don't plan a mass bank run guise, that would be *ahem* unfortunate.

 

[Call Me Tim]

explains why all the crypto has tanked recently

 

[TinFoilHatGuy]

 

[Dildo Baggins]

I pray this kills off tik tok.

 

[minty]

plz mass banker suicide plz c'mon blackrock n goldman sachs suicide pact

 

[Call Me Tim]

plz mass banker suicide plz c'mon blackrock n goldman sachs suicide pact

They never suffer. It's always the account holders. However, 50B lost is nothing to sneer at. However, why would any of the bank CEO's off themselves. It's not their money. Adn they have their own golden parachute anyways.

 

[Dildo Baggins]

They never suffer. It's always the account holders. However, 50B lost is nothing to sneer at. However, why would any of the bank CEO's off themselves. It's not their money. Adn they have their own golden parachute anyways.

Yea but these are rich autistic silicon valley executives who deserve to be gassed.

 

[minty]

They never suffer. It's always the account holders. However, 50B lost is nothing to sneer at. However, why would any of the bank CEO's off themselves. It's not their money. Adn they have their own golden parachute anyways.

i KNOW... i have been the one bitching about this system for years while you've been like "bUt I lIkE mY cHeAp wAlMaRt StUfF"

 

[minty]

every time a chinese billionaire goes missing i jack off til i bleed

 

[Dildo Baggins]

every time a chinese billionaire goes missing i jack off til i bleed

actually a lot of the CFO's and other important corporate bearcats of Chinese tech companies are either retired PLA generals or mid to high level Communist party members. Its how the gov maintains control of the entities.

 

[minty]

actually a lot of the CFO's and other important corporate bearcats of Chinese tech companies are either retired PLA generals or mid to high level Communist party members. Its how the gov maintains control of the entities.

and when they get too uppity n start runnin' their hoe mouf they still go "missing"
it's like you never watched fredo get his fishin' boat exploded in the godfather

 

[Dildo Baggins]

and when they get too uppity n start runnin' their hoe mouf they still go "missing"
it's like you never watched fredo get his fishin' boat exploded in the godfather

 

[TinFoilHatGuy]

Y’know those Silicon Valley bankers are really just a bunch of boobs

 

[benos]

More like the sillyicon. HAHAHAHAHAHAHAHAHAHAHAHHAHAHAHHA.

 

[SuperChongus]

I smell government bailout. Your tax dollars bailing out another poorly run company.

 

[minty]

I smell government bailout. Your tax dollars bailing out another poorly run company.

yep, smells like pyramid scheme...
"they took the risk by investing so they should get the dividends/profits"
/investment bank fails
"this is too big to fail (because we let them monopolize)"

"if you want the big bucks you gotta play the stock market, big risk = big reward"
/big investment firms fail while nobodies on reddit with the username 'buttcheekfreak69' throw money at gamestop and make bank
"we gotta freeze the stocks for a day or two (this wasn't supposed to happen. you're supposed to stay poor)"

 

[Lovecraft]

Bankers argue that regulation to prevent banks from tipping over like a house on cards is too restrictive, lobbies to have it removed - predictably falls over like a house of cards. Bankers destroy the economy yet again.

 

[lurk]

Bankers argue that regulation to prevent banks from tipping over like a house on cards is too restrictive, lobbies to have it removed - predictably falls over like a house of cards. Bankers destroy the economy yet again.

thats just it, it literally is a house of cards. from keynesian economics to fractional banking and more, the banks have been gaming the entire economic system turning what is essentially monopoly money into hard assets that they own and leaving us to pay the tab.

 

[Lovecraft]

thats just it, it literally is a house of cards. from keynesian economics to fractional banking and more, the banks have been gaming the entire economic system turning what is essentially monopoly money into hard assets that they own and leaving us to pay the tab.

Add to it a persistent refusal to learn from history.
Cull bankers.
Cull lobbyists.
Cull legislators that deregulate financial institutions.

 

[lurk]

Add to it a persistent refusal to learn from history.

its not a "refusal" to learn from history so much as they aren't held accountable and still get to keep their profits.

Cull bankers.
Cull lobbyists.
Cull legislators that deregulate financial institutions.

this is what needs to be done.

 

[SuperChongus]

I certainly hope this isn't one of many warning signs of an upcoming nasty recession.
USA is already teetering on edge thanks to spergs like this.

 

[lurk]

I certainly hope this isn't one of many warning signs of an upcoming nasty recession.
USA is already teetering on edge thanks to spergs like this.

it's not like this is coming on the heels of the FTX fraud.

 

[Call Me Tim]

i KNOW... i have been the one bitching about this system for years while you've been like "bUt I lIkE mY cHeAp wAlMaRt StUfF"
View attachment 71111

Banking rules have nothing to do with retail store prices. But you go on.

 

[Call Me Tim]

FYI everyone stock market crash is looking eminent.

 

[Call Me Tim]

Yea but these are rich autistic silicon valley executives who deserve to be gassed.

No argument here.

They are also the same ones who say:
The world is over populated,
the middle class should be forced to live with the poors
take the vax or you're stupid
vote for me because you're smart
you cant trust the cops, BUT give up your guns because only the cops deserve to have guns

and
chop your little boys' cocks off and stich up the vags' of your little girls BUT we need to import these people because we're going to have a population implosion.

And so much more.

 

[Call Me Tim]

it's not like this is coming on the heels of the FTX fraud.

Nah this is different from the FTX shell game.

SVB is an investor's bank. The money lost is from "real people." No one cares if MeMa Floyd loses her entire savings of 20K (FDIC) But if Wells Fargo loses so much money that they cannot pay their employees' paychecks last Friday (actually happened) then this is really serious. (greater than 250K)

 

[Likeicare]

FYI everyone stock market crash is looking eminent.

Yep. I think most people in the thread don't realise what's going on

 

[Call Me Tim]

Yep. I think most people in the thread don't realise what's going on

They will when there is a run on wheelbarrows or handcarts.

 

[SuperChongus]

FYI everyone stock market crash is looking eminent.

In the immediate future (a month or two), I see another sharp correction. Then a rally before the crash.

 

[Dildo Baggins]

Yep. I think most people in the thread don't realise what's going on

Do you tho? The only immediate fallout from this is alot of California wineries might shutter because one of the banks claims to fame was they were THE financier of Nappa Valley, because rich tech assholes love drinking their merlot via enema.

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