"President Joe Biden created the perfect storm for what may become a string of banking busts. In 2021, he lied about inflation, saying it was temporary and "no serious economist" considered it a threat. Yellen and Federal Reserve Chairman Jerome Powell,whose first term was about to expire, went along with Biden and did nothing to bring down prices. It was the single biggest monetary policy mistake in half a century.
Then in March 2022, newly reappointed Powell launched aggressive rate hiking to cure what the Wall Street Journal called "a mess largely of the Fed's own making." As rates rose fast, startup companies could no longer afford to borrow, and insteadstarted withdrawing their bank deposits. Without regulatory intervention, the downfall of SVB was almost a foregone conclusion."
Irish Mike
"President Joe Biden created the perfect storm for what may become a string of banking busts. In 2021, he lied about inflation, saying it was temporary and "no serious economist" considered it a threat. Yellen and Federal Reserve Chairman Jerome Powell,whose first term was about to expire, went along with Biden and did nothing to bring down prices. It was the single biggest monetary policy mistake in half a century.
Then in March 2022, newly reappointed Powell launched aggressive rate hiking to cure what the Wall Street Journal called "a mess largely of the Fed's own making." As rates rose fast, startup companies could no longer afford to borrow, and insteadstarted withdrawing their bank deposits. Without regulatory intervention, the downfall of SVB was almost a foregone conclusion."
Irish Mike
"President Joe Biden created the perfect storm for what may become a
string of banking busts. In 2021, he lied about inflation, saying it was temporary and "no serious economist" considered it a threat. Yellen and Federal Reserve Chairman Jerome Powell, whose first term was about to
expire, went along with Biden and did nothing to bring down prices. It
was the single biggest monetary policy mistake in half a century.
Then in March 2022, newly reappointed Powell launched aggressive rate
hiking to cure what the Wall Street Journal called "a mess largely of the Fed's own making." As rates rose fast, startup companies could no longer afford to borrow, and instead started withdrawing their bank deposits. Without regulatory intervention, the downfall of SVB was almost a foregone conclusion."
Irish Mike
Irish Mike <irishra...@gmail.com> wrote:https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse
"President Joe Biden created the perfect storm for what may become a string of banking busts. In 2021, he lied about inflation, saying it was temporary and "no serious economist" considered it a threat. Yellen and Federal Reserve Chairman Jerome Powell, whose first term was about to expire, went along with Biden and did nothing to bring down prices. It
was the single biggest monetary policy mistake in half a century.
Then in March 2022, newly reappointed Powell launched aggressive rate hiking to cure what the Wall Street Journal called "a mess largely of the Fed's own making." As rates rose fast, startup companies could no longer afford to borrow, and instead started withdrawing their bank deposits. Without regulatory intervention, the downfall of SVB was almost a foregone conclusion."
Irish Mike
The bill that the GOP Congress passed with overwhelming Republican support and that was signed by president Trump in 2017 with a proud announcement that he was getting rid of unneeded regulations, which loosened federal supervision of banks with less than $250B in assets and exempted them from stress tests and requirements to have plans to wind down if they had a crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it.
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage because now that large depositors have realized the consequences of this bill, they are moving their money to bigger banks that are still subject to the regulations.
Btw other banks have competently managed interest rate risk. It’s not like rates are even historically high now. The combination of SVB incompetence and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian, liberal personality.” — Altie
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote:
Irish Mike <irishra...@gmail.com> wrote:https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse
"President Joe Biden created the perfect storm for what may become aThe bill that the GOP Congress passed with overwhelming Republican support >> and that was signed by president Trump in 2017 with a proud announcement
string of banking busts. In 2021, he lied about inflation, saying it was >>> temporary and "no serious economist" considered it a threat. Yellen and
Federal Reserve Chairman Jerome Powell, whose first term was about to
expire, went along with Biden and did nothing to bring down prices. It
was the single biggest monetary policy mistake in half a century.
Then in March 2022, newly reappointed Powell launched aggressive rate
hiking to cure what the Wall Street Journal called "a mess largely of the >>> Fed's own making." As rates rose fast, startup companies could no longer >>> afford to borrow, and instead started withdrawing their bank deposits.
Without regulatory intervention, the downfall of SVB was almost a foregone conclusion."
Irish Mike
that he was getting rid of unneeded regulations, which loosened federal
supervision of banks with less than $250B in assets and exempted them from >> stress tests and requirements to have plans to wind down if they had a
crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it.
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage
because now that large depositors have realized the consequences of this
bill, they are moving their money to bigger banks that are still subject to >> the regulations.
Btw other banks have competently managed interest rate risk. It’s not like >> rates are even historically high now. The combination of SVB incompetence
and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm
disgusted by the liberal establishment, lead by Joe Biden, bailing out
the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the
the consequences of their action. Just like everyone else who's not
wealthy has to. The wealthy crying about all the money they will lose because of their stupidity and nothing more. Fire Joe Biden for bailing
out the rich. It's not the banking system, just mismanaged bank, stop running your bank like a woke casino, which is an insult to casino's who
know how to run their business.
floaterjr <gpg...@gmail.com> wrote:Depositor's like this https://theintercept.com/2023/03/14/cheering-silicon-valley-bank-bailout-gavin-newsom-doesnt-mention-hes-a-client/
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote:
Irish Mike <irishra...@gmail.com> wrote:https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse
"President Joe Biden created the perfect storm for what may become aThe bill that the GOP Congress passed with overwhelming Republican support
string of banking busts. In 2021, he lied about inflation, saying it was >>> temporary and "no serious economist" considered it a threat. Yellen and >>> Federal Reserve Chairman Jerome Powell, whose first term was about to >>> expire, went along with Biden and did nothing to bring down prices. It >>> was the single biggest monetary policy mistake in half a century.
Then in March 2022, newly reappointed Powell launched aggressive rate >>> hiking to cure what the Wall Street Journal called "a mess largely of the
Fed's own making." As rates rose fast, startup companies could no longer >>> afford to borrow, and instead started withdrawing their bank deposits. >>> Without regulatory intervention, the downfall of SVB was almost a foregone conclusion."
Irish Mike
and that was signed by president Trump in 2017 with a proud announcement >> that he was getting rid of unneeded regulations, which loosened federal >> supervision of banks with less than $250B in assets and exempted them from
stress tests and requirements to have plans to wind down if they had a
crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it.
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage >> because now that large depositors have realized the consequences of this >> bill, they are moving their money to bigger banks that are still subject to
the regulations.
Btw other banks have competently managed interest rate risk. It’s not like
rates are even historically high now. The combination of SVB incompetence >> and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian, >> liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm
disgusted by the liberal establishment, lead by Joe Biden, bailing out
the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the the consequences of their action. Just like everyone else who's not wealthy has to. The wealthy crying about all the money they will lose because of their stupidity and nothing more. Fire Joe Biden for bailing out the rich. It's not the banking system, just mismanaged bank, stop running your bank like a woke casino, which is an insult to casino's who know how to run their business.
The only people “bailed out” were bank depositors, who are not responsible
for this. Should employees of the bank’s customers be laid off from their jobs just because their employer banked with SVB? I say no.
Bank shareholders and bond holders were zeroed out, and all the executives lost their jobs…they were not bailed out.
--
“I usually skip over your posts because of your disguistng, contrarian, liberal personality.” — Altie
On Thursday, March 16, 2023 at 8:45:05 PM UTC-4, xyzzy wrote:
floaterjr <gpg...@gmail.com> wrote:Depositor's like this https://theintercept.com/2023/03/14/cheering-silicon-valley-bank-bailout-gavin-newsom-doesnt-mention-hes-a-client/
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote:The only people “bailed out” were bank depositors, who are not responsible
Irish Mike <irishra...@gmail.com> wrote:https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse
"President Joe Biden created the perfect storm for what may become a >>>>> string of banking busts. In 2021, he lied about inflation, saying it was >>>>> temporary and "no serious economist" considered it a threat. Yellen and >>>>> Federal Reserve Chairman Jerome Powell, whose first term was about to >>>>> expire, went along with Biden and did nothing to bring down prices. It >>>>> was the single biggest monetary policy mistake in half a century.The bill that the GOP Congress passed with overwhelming Republican support >>>> and that was signed by president Trump in 2017 with a proud announcement >>>> that he was getting rid of unneeded regulations, which loosened federal >>>> supervision of banks with less than $250B in assets and exempted them from >>>> stress tests and requirements to have plans to wind down if they had a >>>> crisis…. Because according to them there’s no way a bank that small can be
Then in March 2022, newly reappointed Powell launched aggressive rate >>>>> hiking to cure what the Wall Street Journal called "a mess largely of the >>>>> Fed's own making." As rates rose fast, startup companies could no longer >>>>> afford to borrow, and instead started withdrawing their bank deposits. >>>>> Without regulatory intervention, the downfall of SVB was almost a
foregone conclusion."
Irish Mike
a systemic risk…. might have had a bit more to do with it.
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage >>>> because now that large depositors have realized the consequences of this >>>> bill, they are moving their money to bigger banks that are still subject to
the regulations.
Btw other banks have competently managed interest rate risk. It’s not like
rates are even historically high now. The combination of SVB incompetence >>>> and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian, >>>> liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm
disgusted by the liberal establishment, lead by Joe Biden, bailing out
the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the >>> the consequences of their action. Just like everyone else who's not
wealthy has to. The wealthy crying about all the money they will lose
because of their stupidity and nothing more. Fire Joe Biden for bailing
out the rich. It's not the banking system, just mismanaged bank, stop
running your bank like a woke casino, which is an insult to casino's who >>> know how to run their business.
for this. Should employees of the bank’s customers be laid off from their >> jobs just because their employer banked with SVB? I say no.
Bank shareholders and bond holders were zeroed out, and all the executives >> lost their jobs…they were not bailed out.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
They all can buy extra insurance over the standard $250,000 but choose
not to. As for the employee's. I myself was laid off as were thousands
of other from Hostess because the management of the company choose to
take profits out of the company for year instead of revesting in the business. The company failed because of mismanagement and not the employee's. It happens to everyone else all the time.
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
floaterjr <gpgmga@gmail.com> wrote:
On Thursday, March 16, 2023 at 8:45:05 PM UTC-4, xyzzy wrote:
floaterjr <gpg...@gmail.com> wrote:Depositor's like this
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote:The only people “bailed out” were bank depositors, who are not responsible
Irish Mike <irishra...@gmail.com> wrote:https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse
"President Joe Biden created the perfect storm for what may become a >>>>>>> string of banking busts. In 2021, he lied about inflation, saying it wasThe bill that the GOP Congress passed with overwhelming Republican support
temporary and "no serious economist" considered it a threat. Yellen and >>>>>>> Federal Reserve Chairman Jerome Powell, whose first term was about to >>>>>>> expire, went along with Biden and did nothing to bring down prices. It >>>>>>> was the single biggest monetary policy mistake in half a century. >>>>>>>
Then in March 2022, newly reappointed Powell launched aggressive rate >>>>>>> hiking to cure what the Wall Street Journal called "a mess largely of the
Fed's own making." As rates rose fast, startup companies could no longer
afford to borrow, and instead started withdrawing their bank deposits. >>>>>>> Without regulatory intervention, the downfall of SVB was almost a >>>>>>> foregone conclusion."
Irish Mike
and that was signed by president Trump in 2017 with a proud announcement >>>>>> that he was getting rid of unneeded regulations, which loosened federal >>>>>> supervision of banks with less than $250B in assets and exempted them from
stress tests and requirements to have plans to wind down if they had a >>>>>> crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it.
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage >>>>>> because now that large depositors have realized the consequences of this >>>>>> bill, they are moving their money to bigger banks that are still subject to
the regulations.
Btw other banks have competently managed interest rate risk. It’s not like
rates are even historically high now. The combination of SVB incompetence
and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm
disgusted by the liberal establishment, lead by Joe Biden, bailing out >>>>> the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the >>>>> the consequences of their action. Just like everyone else who's not
wealthy has to. The wealthy crying about all the money they will lose >>>>> because of their stupidity and nothing more. Fire Joe Biden for bailing >>>>> out the rich. It's not the banking system, just mismanaged bank, stop >>>>> running your bank like a woke casino, which is an insult to casino's who >>>>> know how to run their business.
for this. Should employees of the bank’s customers be laid off from their
jobs just because their employer banked with SVB? I say no.
Bank shareholders and bond holders were zeroed out, and all the executives >>>> lost their jobs…they were not bailed out.
--
“I usually skip over your posts because of your disguistng, contrarian, >>>> liberal personality.” — Altie
https://theintercept.com/2023/03/14/cheering-silicon-valley-bank-bailout-gavin-newsom-doesnt-mention-hes-a-client/
They all can buy extra insurance over the standard $250,000 but choose
not to. As for the employee's. I myself was laid off as were thousands
of other from Hostess because the management of the company choose to
take profits out of the company for year instead of revesting in the
business. The company failed because of mismanagement and not the
employee's. It happens to everyone else all the time.
Also depositors like this:
https://twitter.com/lcmichaelides/status/1634654751479541760?s=46&t=8JSx04y3Si-iAMMSSjqvqA
(read her whole thread).
A lot of businesses (like hers) didn’t have a choice because their VC
investors made banking at SVB a condition of their investment.
Still choices they made.
What I don't understand is the lack of a haircut. I can see providing
some backstop, i.e. floating immediate recovery of 70% of their deposit, which would allow most of these businesses to function. But to ensure
*one hundred percent* of deposits coming back? That's a bailout, and sends the signal to bankers "Oh, we don't have to have robust risk management".
What should happen is that the depositors should get some percentage back, the amount covered by sale of the securities they screwed up with. If
they want, they could transfer the underlying securities themeslves so
the depositors could hold those to maturity and recover more. If not,
they take a haircut.
floaterjr <gpgmga@gmail.com> wrote:
On Thursday, March 16, 2023 at 8:45:05 PM UTC-4, xyzzy wrote:
floaterjr <gpg...@gmail.com> wrote:Depositor's like this
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote:The only people “bailed out” were bank depositors, who are not responsible
Irish Mike <irishra...@gmail.com> wrote:https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse
"President Joe Biden created the perfect storm for what may become a >>>>>> string of banking busts. In 2021, he lied about inflation, saying it was >>>>>> temporary and "no serious economist" considered it a threat. Yellen and >>>>>> Federal Reserve Chairman Jerome Powell, whose first term was about to >>>>>> expire, went along with Biden and did nothing to bring down prices. It >>>>>> was the single biggest monetary policy mistake in half a century.The bill that the GOP Congress passed with overwhelming Republican support
Then in March 2022, newly reappointed Powell launched aggressive rate >>>>>> hiking to cure what the Wall Street Journal called "a mess largely of the
Fed's own making." As rates rose fast, startup companies could no longer >>>>>> afford to borrow, and instead started withdrawing their bank deposits. >>>>>> Without regulatory intervention, the downfall of SVB was almost a
foregone conclusion."
Irish Mike
and that was signed by president Trump in 2017 with a proud announcement >>>>> that he was getting rid of unneeded regulations, which loosened federal >>>>> supervision of banks with less than $250B in assets and exempted them from
stress tests and requirements to have plans to wind down if they had a >>>>> crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it.
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage >>>>> because now that large depositors have realized the consequences of this >>>>> bill, they are moving their money to bigger banks that are still subject to
the regulations.
Btw other banks have competently managed interest rate risk. It’s not like
rates are even historically high now. The combination of SVB incompetence >>>>> and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian, >>>>> liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm
disgusted by the liberal establishment, lead by Joe Biden, bailing out >>>> the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the >>>> the consequences of their action. Just like everyone else who's not
wealthy has to. The wealthy crying about all the money they will lose
because of their stupidity and nothing more. Fire Joe Biden for bailing >>>> out the rich. It's not the banking system, just mismanaged bank, stop
running your bank like a woke casino, which is an insult to casino's who >>>> know how to run their business.
for this. Should employees of the bank’s customers be laid off from their >>> jobs just because their employer banked with SVB? I say no.
Bank shareholders and bond holders were zeroed out, and all the executives >>> lost their jobs…they were not bailed out.
--
“I usually skip over your posts because of your disguistng, contrarian, >>> liberal personality.” — Altie
https://theintercept.com/2023/03/14/cheering-silicon-valley-bank-bailout-gavin-newsom-doesnt-mention-hes-a-client/
They all can buy extra insurance over the standard $250,000 but choose
not to. As for the employee's. I myself was laid off as were thousands
of other from Hostess because the management of the company choose to
take profits out of the company for year instead of revesting in the
business. The company failed because of mismanagement and not the
employee's. It happens to everyone else all the time.
Also depositors like this: https://twitter.com/lcmichaelides/status/1634654751479541760?s=46&t=8JSx04y3Si-iAMMSSjqvqA
(read her whole thread).
A lot of businesses (like hers) didn’t have a choice because their VC investors made banking at SVB a condition of their investment.
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
floaterjr <gpgmga@gmail.com> wrote:
On Thursday, March 16, 2023 at 8:45:05 PM UTC-4, xyzzy wrote:
floaterjr <gpg...@gmail.com> wrote:Depositor's like this
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote:The only people “bailed out” were bank depositors, who are not responsible
Irish Mike <irishra...@gmail.com> wrote:https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse
"President Joe Biden created the perfect storm for what may become a >>>>>>>> string of banking busts. In 2021, he lied about inflation, saying it wasThe bill that the GOP Congress passed with overwhelming Republican support
temporary and "no serious economist" considered it a threat. Yellen and
Federal Reserve Chairman Jerome Powell, whose first term was about to >>>>>>>> expire, went along with Biden and did nothing to bring down prices. It >>>>>>>> was the single biggest monetary policy mistake in half a century. >>>>>>>>
Then in March 2022, newly reappointed Powell launched aggressive rate >>>>>>>> hiking to cure what the Wall Street Journal called "a mess largely of the
Fed's own making." As rates rose fast, startup companies could no longer
afford to borrow, and instead started withdrawing their bank deposits. >>>>>>>> Without regulatory intervention, the downfall of SVB was almost a >>>>>>>> foregone conclusion."
Irish Mike
and that was signed by president Trump in 2017 with a proud announcement
that he was getting rid of unneeded regulations, which loosened federal >>>>>>> supervision of banks with less than $250B in assets and exempted them from
stress tests and requirements to have plans to wind down if they had a >>>>>>> crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it.
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage >>>>>>> because now that large depositors have realized the consequences of this
bill, they are moving their money to bigger banks that are still subject to
the regulations.
Btw other banks have competently managed interest rate risk. It’s not like
rates are even historically high now. The combination of SVB incompetence
and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm
disgusted by the liberal establishment, lead by Joe Biden, bailing out >>>>>> the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the >>>>>> the consequences of their action. Just like everyone else who's not >>>>>> wealthy has to. The wealthy crying about all the money they will lose >>>>>> because of their stupidity and nothing more. Fire Joe Biden for bailing >>>>>> out the rich. It's not the banking system, just mismanaged bank, stop >>>>>> running your bank like a woke casino, which is an insult to casino's who >>>>>> know how to run their business.
for this. Should employees of the bank’s customers be laid off from their
jobs just because their employer banked with SVB? I say no.
Bank shareholders and bond holders were zeroed out, and all the executives
lost their jobs…they were not bailed out.
--
“I usually skip over your posts because of your disguistng, contrarian, >>>>> liberal personality.” — Altie
https://theintercept.com/2023/03/14/cheering-silicon-valley-bank-bailout-gavin-newsom-doesnt-mention-hes-a-client/
They all can buy extra insurance over the standard $250,000 but choose >>>> not to. As for the employee's. I myself was laid off as were thousands >>>> of other from Hostess because the management of the company choose to
take profits out of the company for year instead of revesting in the
business. The company failed because of mismanagement and not the
employee's. It happens to everyone else all the time.
Also depositors like this:
https://twitter.com/lcmichaelides/status/1634654751479541760?s=46&t=8JSx04y3Si-iAMMSSjqvqA
(read her whole thread).
A lot of businesses (like hers) didn’t have a choice because their VC
investors made banking at SVB a condition of their investment.
Still choices they made.
What I don't understand is the lack of a haircut. I can see providing
some backstop, i.e. floating immediate recovery of 70% of their deposit,
which would allow most of these businesses to function. But to ensure
*one hundred percent* of deposits coming back? That's a bailout, and sends >> the signal to bankers "Oh, we don't have to have robust risk management".
What should happen is that the depositors should get some percentage back, >> the amount covered by sale of the securities they screwed up with. If
they want, they could transfer the underlying securities themeslves so
the depositors could hold those to maturity and recover more. If not,
they take a haircut.
I just don’t think it’s reasonable to expect bank depositors to have to analyze the books of every bank they do business with. That would not be
good for our banking system or economy.
Also people can split their deposits across accounts to stay under the
$250k limit but businesses can’t do that with their working capital.
I think the FDIC did the right thing and that’s not political. I’m confident they would have done the same thing no matter who’s President. The only difference would be who’s complaining about it.
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
floaterjr <gpgmga@gmail.com> wrote:
On Thursday, March 16, 2023 at 8:45:05 PM UTC-4, xyzzy wrote:
floaterjr <gpg...@gmail.com> wrote:Depositor's like this
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote: >>>>>>>> Irish Mike <irishra...@gmail.com> wrote:The only people “bailed out” were bank depositors, who are not responsible
https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse"President Joe Biden created the perfect storm for what may become a >>>>>>>>> string of banking busts. In 2021, he lied about inflation, saying it wasThe bill that the GOP Congress passed with overwhelming Republican support
temporary and "no serious economist" considered it a threat. Yellen and
Federal Reserve Chairman Jerome Powell, whose first term was about to >>>>>>>>> expire, went along with Biden and did nothing to bring down prices. It
was the single biggest monetary policy mistake in half a century. >>>>>>>>>
Then in March 2022, newly reappointed Powell launched aggressive rate >>>>>>>>> hiking to cure what the Wall Street Journal called "a mess largely of the
Fed's own making." As rates rose fast, startup companies could no longer
afford to borrow, and instead started withdrawing their bank deposits.
Without regulatory intervention, the downfall of SVB was almost a >>>>>>>>> foregone conclusion."
Irish Mike
and that was signed by president Trump in 2017 with a proud announcement
that he was getting rid of unneeded regulations, which loosened federal
supervision of banks with less than $250B in assets and exempted them from
stress tests and requirements to have plans to wind down if they had a >>>>>>>> crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it.
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage
because now that large depositors have realized the consequences of this
bill, they are moving their money to bigger banks that are still subject to
the regulations.
Btw other banks have competently managed interest rate risk. It’s not like
rates are even historically high now. The combination of SVB incompetence
and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm
disgusted by the liberal establishment, lead by Joe Biden, bailing out >>>>>>> the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the
the consequences of their action. Just like everyone else who's not >>>>>>> wealthy has to. The wealthy crying about all the money they will lose >>>>>>> because of their stupidity and nothing more. Fire Joe Biden for bailing >>>>>>> out the rich. It's not the banking system, just mismanaged bank, stop >>>>>>> running your bank like a woke casino, which is an insult to casino's who
know how to run their business.
for this. Should employees of the bank’s customers be laid off from their
jobs just because their employer banked with SVB? I say no.
Bank shareholders and bond holders were zeroed out, and all the executives
lost their jobs…they were not bailed out.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
https://theintercept.com/2023/03/14/cheering-silicon-valley-bank-bailout-gavin-newsom-doesnt-mention-hes-a-client/
They all can buy extra insurance over the standard $250,000 but choose >>>>> not to. As for the employee's. I myself was laid off as were thousands >>>>> of other from Hostess because the management of the company choose to >>>>> take profits out of the company for year instead of revesting in the >>>>> business. The company failed because of mismanagement and not the
employee's. It happens to everyone else all the time.
Also depositors like this:
https://twitter.com/lcmichaelides/status/1634654751479541760?s=46&t=8JSx04y3Si-iAMMSSjqvqA
(read her whole thread).
A lot of businesses (like hers) didn’t have a choice because their VC >>>> investors made banking at SVB a condition of their investment.
Still choices they made.
What I don't understand is the lack of a haircut. I can see providing
some backstop, i.e. floating immediate recovery of 70% of their deposit, >>> which would allow most of these businesses to function. But to ensure
*one hundred percent* of deposits coming back? That's a bailout, and sends >>> the signal to bankers "Oh, we don't have to have robust risk management". >>>
What should happen is that the depositors should get some percentage back, >>> the amount covered by sale of the securities they screwed up with. If
they want, they could transfer the underlying securities themeslves so
the depositors could hold those to maturity and recover more. If not,
they take a haircut.
I just don’t think it’s reasonable to expect bank depositors to have to >> analyze the books of every bank they do business with. That would not be
good for our banking system or economy.
Also people can split their deposits across accounts to stay under the
$250k limit but businesses can’t do that with their working capital.
They don't, as long as they keep under the FDIC limit. If they are
depositing many millions of dollars, it would behoove them to watch the monitoring agencies. Of course the San Francisco Fed is the one most
at fault, with its SVB board member working to lobby the Fed to loosen capital requirements. Yeah, great move, Fed.
I think the FDIC did the right thing and that’s not political. I’m
confident they would have done the same thing no matter who’s President. >> The only difference would be who’s complaining about it.
Again, I think they should have made accomodations to allow businesses
to operate. But for those customers to pay nothing while making the
general banking customer pay? That is just wrong, wrong, wrong. There
should be a haircut involved. Looks like that would be about 12-20%.
The ordinary man is taking hits to his wallet that are in that region, accounting for both inflation and the market.
As far as political, you are damned straight it's political, just like
when GM went belly-up and bondholders had their money stolen to give
to the UAW. This is political too. Yes, I am aware that has cut both
ways over time. But since the Democrats caused this crisis with
trillions of stimulus to an overheated economy along with
intentionally raising the price of energy, against the advice of their
most sane economists, it is particularly galling that it is
largely Democrats being bailed out.
I am sure you're paying for inflation; I know damn well I'm paying. Everyone's paying. And it is the poor among us who are paying the
most dearly; some millions are paying for it worldwide with their
lives. Hundreds of millions more are dropping back into abject < $2
per day poverty. It's going to get worse before it gets better, too.
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
floaterjr <gpgmga@gmail.com> wrote:
On Thursday, March 16, 2023 at 8:45:05 PM UTC-4, xyzzy wrote:
floaterjr <gpg...@gmail.com> wrote:Depositor's like this
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote: >>>>>>>>> Irish Mike <irishra...@gmail.com> wrote:The only people “bailed out” were bank depositors, who are not responsible
https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse"President Joe Biden created the perfect storm for what may become a >>>>>>>>>> string of banking busts. In 2021, he lied about inflation, saying it wasThe bill that the GOP Congress passed with overwhelming Republican support
temporary and "no serious economist" considered it a threat. Yellen and
Federal Reserve Chairman Jerome Powell, whose first term was about to
expire, went along with Biden and did nothing to bring down prices. It
was the single biggest monetary policy mistake in half a century. >>>>>>>>>>
Then in March 2022, newly reappointed Powell launched aggressive rate
hiking to cure what the Wall Street Journal called "a mess largely of the
Fed's own making." As rates rose fast, startup companies could no longer
afford to borrow, and instead started withdrawing their bank deposits.
Without regulatory intervention, the downfall of SVB was almost a >>>>>>>>>> foregone conclusion."
Irish Mike
and that was signed by president Trump in 2017 with a proud announcement
that he was getting rid of unneeded regulations, which loosened federal
supervision of banks with less than $250B in assets and exempted them from
stress tests and requirements to have plans to wind down if they had a
crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it. >>>>>>>>>
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage
because now that large depositors have realized the consequences of this
bill, they are moving their money to bigger banks that are still subject to
the regulations.
Btw other banks have competently managed interest rate risk. It’s not like
rates are even historically high now. The combination of SVB incompetence
and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm >>>>>>>> disgusted by the liberal establishment, lead by Joe Biden, bailing out >>>>>>>> the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the
the consequences of their action. Just like everyone else who's not >>>>>>>> wealthy has to. The wealthy crying about all the money they will lose >>>>>>>> because of their stupidity and nothing more. Fire Joe Biden for bailing
out the rich. It's not the banking system, just mismanaged bank, stop >>>>>>>> running your bank like a woke casino, which is an insult to casino's who
know how to run their business.
for this. Should employees of the bank’s customers be laid off from their
jobs just because their employer banked with SVB? I say no.
Bank shareholders and bond holders were zeroed out, and all the executives
lost their jobs…they were not bailed out.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
https://theintercept.com/2023/03/14/cheering-silicon-valley-bank-bailout-gavin-newsom-doesnt-mention-hes-a-client/
They all can buy extra insurance over the standard $250,000 but choose >>>>>> not to. As for the employee's. I myself was laid off as were thousands >>>>>> of other from Hostess because the management of the company choose to >>>>>> take profits out of the company for year instead of revesting in the >>>>>> business. The company failed because of mismanagement and not the >>>>>> employee's. It happens to everyone else all the time.
Also depositors like this:
https://twitter.com/lcmichaelides/status/1634654751479541760?s=46&t=8JSx04y3Si-iAMMSSjqvqA
(read her whole thread).
A lot of businesses (like hers) didn’t have a choice because their VC >>>>> investors made banking at SVB a condition of their investment.
Still choices they made.
What I don't understand is the lack of a haircut. I can see providing
some backstop, i.e. floating immediate recovery of 70% of their deposit, >>>> which would allow most of these businesses to function. But to ensure
*one hundred percent* of deposits coming back? That's a bailout, and sends >>>> the signal to bankers "Oh, we don't have to have robust risk management". >>>>
What should happen is that the depositors should get some percentage back, >>>> the amount covered by sale of the securities they screwed up with. If
they want, they could transfer the underlying securities themeslves so >>>> the depositors could hold those to maturity and recover more. If not,
they take a haircut.
I just don’t think it’s reasonable to expect bank depositors to have to >>> analyze the books of every bank they do business with. That would not be >>> good for our banking system or economy.
Also people can split their deposits across accounts to stay under the
$250k limit but businesses can’t do that with their working capital.
They don't, as long as they keep under the FDIC limit. If they are
depositing many millions of dollars, it would behoove them to watch the
monitoring agencies. Of course the San Francisco Fed is the one most
at fault, with its SVB board member working to lobby the Fed to loosen
capital requirements. Yeah, great move, Fed.
I think the FDIC did the right thing and that’s not political. I’m
confident they would have done the same thing no matter who’s President. >>> The only difference would be who’s complaining about it.
Again, I think they should have made accomodations to allow businesses
to operate. But for those customers to pay nothing while making the
general banking customer pay? That is just wrong, wrong, wrong. There
should be a haircut involved. Looks like that would be about 12-20%.
The ordinary man is taking hits to his wallet that are in that region,
accounting for both inflation and the market.
As far as political, you are damned straight it's political, just like
when GM went belly-up and bondholders had their money stolen to give
to the UAW. This is political too. Yes, I am aware that has cut both
ways over time. But since the Democrats caused this crisis with
trillions of stimulus to an overheated economy along with
intentionally raising the price of energy, against the advice of their
most sane economists, it is particularly galling that it is
largely Democrats being bailed out.
I am sure you're paying for inflation; I know damn well I'm paying.
Everyone's paying. And it is the poor among us who are paying the
most dearly; some millions are paying for it worldwide with their
lives. Hundreds of millions more are dropping back into abject < $2
per day poverty. It's going to get worse before it gets better, too.
You’ve just become a Boomer blaming “those damn dimmycrats” for everything,
haven’t you?
"President Joe Biden created the perfect storm for what may become a string of banking busts. In 2021, he lied about inflation, saying it was temporary and "no serious economist" considered it a threat. Yellen and Federal Reserve Chairman Jerome Powell,whose first term was about to expire, went along with Biden and did nothing to bring down prices. It was the single biggest monetary policy mistake in half a century.
Then in March 2022, newly reappointed Powell launched aggressive rate hiking to cure what the Wall Street Journal called "a mess largely of the Fed's own making." As rates rose fast, startup companies could no longer afford to borrow, and insteadstarted withdrawing their bank deposits. Without regulatory intervention, the downfall of SVB was almost a foregone conclusion."
Irish Mike
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
floaterjr <gpgmga@gmail.com> wrote:
On Thursday, March 16, 2023 at 8:45:05 PM UTC-4, xyzzy wrote:
floaterjr <gpg...@gmail.com> wrote:Depositor's like this
On Thursday, March 16, 2023 at 11:39:01 AM UTC-4, xyzzy wrote: >>>>>>>>> Irish Mike <irishra...@gmail.com> wrote:The only people “bailed out” were bank depositors, who are not responsible
https://www.npr.org/2023/03/13/1163164107/former-congressman-barney-frank-on-silicon-valley-bank-collapse"President Joe Biden created the perfect storm for what may become a >>>>>>>>>> string of banking busts. In 2021, he lied about inflation, saying it wasThe bill that the GOP Congress passed with overwhelming Republican support
temporary and "no serious economist" considered it a threat. Yellen and
Federal Reserve Chairman Jerome Powell, whose first term was about to
expire, went along with Biden and did nothing to bring down prices. It
was the single biggest monetary policy mistake in half a century. >>>>>>>>>>
Then in March 2022, newly reappointed Powell launched aggressive rate
hiking to cure what the Wall Street Journal called "a mess largely of the
Fed's own making." As rates rose fast, startup companies could no longer
afford to borrow, and instead started withdrawing their bank deposits.
Without regulatory intervention, the downfall of SVB was almost a >>>>>>>>>> foregone conclusion."
Irish Mike
and that was signed by president Trump in 2017 with a proud announcement
that he was getting rid of unneeded regulations, which loosened federal
supervision of banks with less than $250B in assets and exempted them from
stress tests and requirements to have plans to wind down if they had a
crisis…. Because according to them there’s no way a bank that small can be
a systemic risk…. might have had a bit more to do with it. >>>>>>>>>
SVB had $212 billion in assets
Signature Bank had $112 billion
And the current pain of regional banks is part of the collateral damage
because now that large depositors have realized the consequences of this
bill, they are moving their money to bigger banks that are still subject to
the regulations.
Btw other banks have competently managed interest rate risk. It’s not like
rates are even historically high now. The combination of SVB incompetence
and Trump deregulation are a toxic stew.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
Barney Frank a liberal former congressman says it's crypto, I'm >>>>>>>> disgusted by the liberal establishment, lead by Joe Biden, bailing out >>>>>>>> the rich liberal woke buddies. Woke is broke. Let the wealthy suffer the
the consequences of their action. Just like everyone else who's not >>>>>>>> wealthy has to. The wealthy crying about all the money they will lose >>>>>>>> because of their stupidity and nothing more. Fire Joe Biden for bailing
out the rich. It's not the banking system, just mismanaged bank, stop >>>>>>>> running your bank like a woke casino, which is an insult to casino's who
know how to run their business.
for this. Should employees of the bank’s customers be laid off from their
jobs just because their employer banked with SVB? I say no.
Bank shareholders and bond holders were zeroed out, and all the executives
lost their jobs…they were not bailed out.
--
“I usually skip over your posts because of your disguistng, contrarian,
liberal personality.” — Altie
https://theintercept.com/2023/03/14/cheering-silicon-valley-bank-bailout-gavin-newsom-doesnt-mention-hes-a-client/
They all can buy extra insurance over the standard $250,000 but choose >>>>>> not to. As for the employee's. I myself was laid off as were thousands >>>>>> of other from Hostess because the management of the company choose to >>>>>> take profits out of the company for year instead of revesting in the >>>>>> business. The company failed because of mismanagement and not the >>>>>> employee's. It happens to everyone else all the time.
Also depositors like this:
https://twitter.com/lcmichaelides/status/1634654751479541760?s=46&t=8JSx04y3Si-iAMMSSjqvqA
(read her whole thread).
A lot of businesses (like hers) didn’t have a choice because their VC >>>>> investors made banking at SVB a condition of their investment.
Still choices they made.
What I don't understand is the lack of a haircut. I can see providing
some backstop, i.e. floating immediate recovery of 70% of their deposit, >>>> which would allow most of these businesses to function. But to ensure
*one hundred percent* of deposits coming back? That's a bailout, and sends >>>> the signal to bankers "Oh, we don't have to have robust risk management". >>>>
What should happen is that the depositors should get some percentage back, >>>> the amount covered by sale of the securities they screwed up with. If
they want, they could transfer the underlying securities themeslves so >>>> the depositors could hold those to maturity and recover more. If not,
they take a haircut.
I just don’t think it’s reasonable to expect bank depositors to have to >>> analyze the books of every bank they do business with. That would not be >>> good for our banking system or economy.
Also people can split their deposits across accounts to stay under the
$250k limit but businesses can’t do that with their working capital.
They don't, as long as they keep under the FDIC limit. If they are
depositing many millions of dollars, it would behoove them to watch the
monitoring agencies. Of course the San Francisco Fed is the one most
at fault, with its SVB board member working to lobby the Fed to loosen
capital requirements. Yeah, great move, Fed.
I think the FDIC did the right thing and that’s not political. I’m
confident they would have done the same thing no matter who’s President. >>> The only difference would be who’s complaining about it.
Again, I think they should have made accomodations to allow businesses
to operate. But for those customers to pay nothing while making the
general banking customer pay? That is just wrong, wrong, wrong. There
should be a haircut involved. Looks like that would be about 12-20%.
The ordinary man is taking hits to his wallet that are in that region,
accounting for both inflation and the market.
As far as political, you are damned straight it's political, just like
when GM went belly-up and bondholders had their money stolen to give
to the UAW. This is political too. Yes, I am aware that has cut both
ways over time. But since the Democrats caused this crisis with
trillions of stimulus to an overheated economy along with
intentionally raising the price of energy, against the advice of their
most sane economists, it is particularly galling that it is
largely Democrats being bailed out.
I am sure you're paying for inflation; I know damn well I'm paying.
Everyone's paying. And it is the poor among us who are paying the
most dearly; some millions are paying for it worldwide with their
lives. Hundreds of millions more are dropping back into abject < $2
per day poverty. It's going to get worse before it gets better, too.
You’ve just become a Boomer blaming “those damn dimmycrats” for everything,
haven’t you?
On 2023-03-18, xyzzy <xyzzy.dude@gmail.com> wrote:
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:As far as political, you are damned straight it's political, just like
when GM went belly-up and bondholders had their money stolen to give
to the UAW. This is political too. Yes, I am aware that has cut both
ways over time. But since the Democrats caused this crisis with
trillions of stimulus to an overheated economy along with
intentionally raising the price of energy, against the advice of their
most sane economists, it is particularly galling that it is
largely Democrats being bailed out.
I am sure you're paying for inflation; I know damn well I'm paying.
Everyone's paying. And it is the poor among us who are paying the
most dearly; some millions are paying for it worldwide with their
lives. Hundreds of millions more are dropping back into abject < $2
per day poverty. It's going to get worse before it gets better, too.
You’ve just become a Boomer blaming “those damn dimmycrats” for everything,
haven’t you?
Republicans are to blame for the underlying stuff, too, in that they
spent too much money and continued the easy money from the Fed. But Republicans been in charge of the Fed 4 years of the last 14.
For inflation, the Democrats are at fault for the trigger. It was
stupid to take measures to increase energy prices. It was unwise to
lockdown and stimulate for COVID, but it was batshit-insane to spend
the money in ARP. Larry Summers knew that, and told Dems so. They
did it anyway. I'm pretty sure inflation would have happened anyway, in
a couple more years, but those things accelerated the process.
https://www.duxmail.com/meme/toobig.jpg
On 2023-03-18, Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-18, xyzzy <xyzzy.dude@gmail.com> wrote:
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:
On 2023-03-17, xyzzy <xyzzy.dude@gmail.com> wrote:
Con Reeder, unhyphenated American <constance@duxmail.com> wrote:As far as political, you are damned straight it's political, just like >>>> when GM went belly-up and bondholders had their money stolen to give
to the UAW. This is political too. Yes, I am aware that has cut both
ways over time. But since the Democrats caused this crisis with
trillions of stimulus to an overheated economy along with
intentionally raising the price of energy, against the advice of their >>>> most sane economists, it is particularly galling that it is
largely Democrats being bailed out.
I am sure you're paying for inflation; I know damn well I'm paying.
Everyone's paying. And it is the poor among us who are paying the
most dearly; some millions are paying for it worldwide with their
lives. Hundreds of millions more are dropping back into abject < $2
per day poverty. It's going to get worse before it gets better, too.
You’ve just become a Boomer blaming “those damn dimmycrats” for everything,
haven’t you?
Republicans are to blame for the underlying stuff, too, in that they
spent too much money and continued the easy money from the Fed. But
Republicans been in charge of the Fed 4 years of the last 14.
For inflation, the Democrats are at fault for the trigger. It was
stupid to take measures to increase energy prices. It was unwise to
lockdown and stimulate for COVID, but it was batshit-insane to spend
the money in ARP. Larry Summers knew that, and told Dems so. They
did it anyway. I'm pretty sure inflation would have happened anyway, in
a couple more years, but those things accelerated the process.
https://www.duxmail.com/meme/toobig.jpg
Come to find out the head of the SF Fed is a social justice warrior
who had essentially no banking experience. Her mentor was a Marxist economist; her entry position into the Fed was as a "labor inequality researcher". She was taken under Janet Yellen's wing and got the fast
track to regional fed chief despite ZERO real banking experience.
This is how woke and DEI ruins things. Your sex or race becomes a
top job credential, and you are put into a position where you are
out of your depth. Resources are squandered doing things which are
not central to the organizations need.
| Sysop: | Keyop |
|---|---|
| Location: | Huddersfield, West Yorkshire, UK |
| Users: | 388 |
| Nodes: | 16 (2 / 14) |
| Uptime: | 07:55:26 |
| Calls: | 8,221 |
| Files: | 13,122 |
| Messages: | 5,872,469 |
