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1. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Saturday, 11-Mar-2023 23:22:17 EST LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}
   Silicon Valley Bank (SVB), which I did not even know existed until it collapsed, is affecting more than just other banks.
   
   Etsy: https://nu.federati.net/url/289866 [www nbcnews com]
   
   Source: https://one.darnell.one/@darnell/110008331780436783
   
   !econusa
   1. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Sunday, 12-Mar-2023 00:43:58 EST LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

      in reply to
      Bank of England ( #BoE ) responds to #SVB collapse https://nu.federati.net/url/289869 [www reuters com]
   2. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Sunday, 12-Mar-2023 01:05:58 EST LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

      in reply to
      Timeline of SVB's collapse: https://nu.federati.net/url/289872 [www reuters com]
      1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 10:35:13 EDT GeniusMusing

         in reply to
         @lnxw48a1
         Strangely missing from the timeline are a couple of items that should be of interest...
         
         SVB CEO sold $3.6 million in stock days before bank failure; removed from San Francisco Fed Board of Directors TechStory
         https://nu.federati.net/url/289878
         
         Silicon Valley Bank employees received bonuses hours before takeover
         https://nu.federati.net/url/289879
         1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 12:47:17 EDT GeniusMusing

            in reply to
            >A clip from the South Park episode Margaritaville; season 13 episode 3, March 25, 2009.
            
            And it's gone original YouTube
            https://www.youtube.com/watch?v=-DT7bX-B1Mg
            
            Something, something, history.
            1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 12:49:09 EDT GeniusMusing

               in reply to
               Treasury Secretary Janet Yellen says U.S. government won't bail out Silicon Valley Bank
               https://nu.federati.net/url/289881
               
               >Key Points
               >
               > Treasury Secretary Janet Yellen said the U.S. government will not bail out Silicon Valley Bank.
               >
               > “The reforms that have been put in place means that we’re not going to do that again,” Yellen told CBS’ “Face the Nation.”
               >
               > Regulators shuttered Silicon Valley Bank and seized its deposits Friday after depositors withdrew more than $42 billion by the end of the day Thursday.
               
               The reforms put in place were removed in 2018.
               1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 12:52:36 EDT GeniusMusing

                  in reply to
                  Trump signs bank bill rolling back some Dodd-Frank regulations
                  https://www.cnbc.com/2018/05/24/trump-signs-bank-bill-rolling-back-some-dodd-frank-regulations.html
                  
                  snip
                  
                  >The measure eases restrictions on all but the largest banks. It raises the threshold to $250 billion from $50 billion under which banks are deemed too important to the financial system to fail. Those institutions also would not have to undergo stress tests or submit so-called living wills, both safety valves designed to plan for financial disaster.
                  >...
                  1. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Sunday, 12-Mar-2023 13:31:39 EDT LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

                     in reply to
                     @geniusmusing I wouldn't be surprised if much of the language in the rollback law was taken from industry lobbyists.
                     1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 14:17:25 EDT GeniusMusing

                        in reply to
                        @lnxw48a1
                        Bingo!
                     2. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 16:37:33 EDT GeniusMusing

                        in reply to
                        @lnxw48a1
                        Interesting reading.
                        The Demise of Silicon Valley Bank by Marc Rubinstein
                        https://www.netinterest.co/p/the-demise-of-silicon-valley-bank
                        1. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Sunday, 12-Mar-2023 17:30:19 EDT LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

                           in reply to
                           Interesting that they mention First Republic. That's one that someone recently said regulators were watching.
                           1. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Sunday, 12-Mar-2023 17:40:16 EDT LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

                              in reply to
                              Also, in the late 1970s and early 1980s, rapid increases in interest rates and price inflation caused many savings and loans to fail. Not because they didn't have sufficient assets, but because their assets were long-term mortgages while their deposits were mostly demand deposits, and as interest rates rose, people tried to remove their deposit balances and invest them in higher yielding products.
                              
                              That sounds a lot like today, so I'm a little bothered that no one in the industry seems to remember the crisis that led to the regulator for savings banks being abolished and those institutions being regulated by the same regulators that cover commercial banks.
                              1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 18:29:30 EDT GeniusMusing

                                 in reply to
                                 Something, something, history, again.
                                 
                                 Regulators close New York's Signature Bank, citing systemic risk
                                 https://www.cnbc.com/2023/03/12/regulators-close-new-yorks-signature-bank-citing-systemic-risk.html
                                 
                                 >This is breaking news. Please check back for updates.
                                 
                                 That is the entire story at this time.
                                 1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 18:41:51 EDT GeniusMusing

                                    in reply to
                                    Update:
                                    Regulators close New York's Signature Bank, citing systemic risk
                                    https://www.cnbc.com/2023/03/12/regulators-close-new-yorks-signature-bank-citing-systemic-risk.html
                                    
                                    >“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” Treasury, Federal Reserve, and FDIC said in a joined statement Sunday evening.
                                    >
                                    >The banking regulators said depositors at Signature Bank will have full access to their deposits.
                                    >
                                    >“All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” the regulators said.
                                    >
                                    >Signature is one of the main banks to the cryptocurrency industry. As of Dec. 31, Signature had $110.4 billion in total assets and $88.6 billion in total deposits, according to a securities filing.
                                    1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 18:45:30 EDT GeniusMusing

                                       in reply to
                                       Federal Reserve Board Joint Statement by Treasury, Federal Reserve, and FDIC
                                       https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm
                                       1. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Sunday, 12-Mar-2023 20:14:05 EDT LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

                                          in reply to
                                          > enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors.
                                          
                                          Made whole.
                                          
                                          They'd better unleash USDOJ to go after anyone in SVB who did anything questionable, or this wil encourage big banks to take on more risks with depositors taxpayer protected money.
                                          1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Sunday, 12-Mar-2023 21:35:04 EDT GeniusMusing

                                             in reply to
                                             Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
                                             https://nu.federati.net/url/289892
                                             
                                             >Key Points
                                             >
                                             > The money to fully reimburse depositors of the collapsed Silicon Valley Bank and the shuttered Signature Bank will be furnished by other banks, not taxpayers, Treasury officials said.
                                             > The Deposit Insurance Fund, which will cover the deposits, is funded with quarterly fees assessed on financial institutions and interest on government bonds.
                                             > Using the DIF to shore up depositors is seen by the Biden administration as a way to avoid reigniting the public anger sparked by the 2008 taxpayer-funded Wall Street bailouts.
                                       2. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Sunday, 12-Mar-2023 23:28:44 EDT LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

                                          in reply to
                                          > Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
                                          
                                          A part of the joint announcement that people don't seem to have noticed. They're saying that even bank runs won't be allowed to collapse other banks.
   3. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Sunday, 12-Mar-2023 13:22:20 EDT LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

      in reply to
      https://apnews.com/article/svb-fed-bonds-rates-banks-inflation-a24b28b3caeede91c76cd120aa9b7966 [apnews com]
      
      > Silicon Valley Bank, the nation's 16th-largest bank, failed after depositors hurried to withdraw money this week amid anxiety over the bank's health. It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008.
      
      I didn't realize how large SVB was. I'd never heard of it until it collapsed.
      
      > There appeared to be little chance of the chaos spreading in the broader banking sector, as it did in the months leading up to the Great Recession. The biggest banks — those most likely to cause an economic meltdown — have healthy balance sheets and plenty of capital.
      
      https://nu.federati.net/url/289883 [www bloomberg com]
      
      > The Federal Deposit Insurance Corp. and the Federal Reserve are weighing creating a fund that would allow regulators to backstop more deposits at banks that run into trouble following Silicon Valley Bank's collapse.
      
      > Regulators discussed the new special vehicle in conversations with banking executives, according to people familiar with the matter. The hope is that setting up such a vehicle would reassure depositors and help contain any panic, said the people. They asked not to be identified because the talks weren't public.
      
      So the fears of *contagion* are real.
      
      https://nu.federati.net/url/289884 [www bloomberg com]
      
      > Watchdogs from the Federal Deposit Insurance Corp. and Federal Reserve are looking into the impact of significant withdrawals, said the people who asked not to be identified discussing the private interactions. Officials at the offices on Thursday sought more insight into the bank's predicament, the people said.
      
      Regulators are trying to determine whether insiders joined in the run on the bank.
      
      https://apnews.com/article/svb-fed-bonds-rates-banks-inflation-a24b28b3caeede91c76cd120aa9b7966 [apnews com]
      
      > Bill Tyler, director of operations for TWG Supply in Grapevine, Texas, said he first realized something was wrong when his employees texted him at 6:30 a.m. Friday to complain that they did not receive their paychecks.
      
      > TWG, which has just 18 employees, had already sent the money for the checks to a payroll services provider that used Silicon Valley Bank. Tyler was scrambling to figure out how to pay his workers.
      
      > "We're waiting on roughly $27,000," he said. "It's already not a timely payment. It's already an uncomfortable position. I don't want to ask any employees, to say, 'Hey, can you wait until mid-next week to get paid?'"
      
      https://nu.federati.net/url/289885 [apnews com]
      
      > Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money.
      
      > The Federal Deposit Insurance Corporation insures deposits up to $250,000, but many of the companies and wealthy people who used the bank — known for its relationships with technology startups and venture capital — had more than that amount in their account. There are fears that some workers across the country won"t receive their paychecks.
      
      > Yellen, in an interview with CBS' "Face the Nation," provided few details on the government's next steps. But she emphasized that the situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry.
      
      > "We're not going to do that again," she said. "But we are concerned about depositors, and we're focused on trying to meet their needs."
      
      There are lots of companies whose payroll funds were held in SVB, so there is lots of pressure to make those companies whole, even if their deposits exceeded the FDIC insurance limit.