Earlier this week, the bank took a loss of $1.8 billion dollars on the sale of bonds fueled in part by the Federal Reserve’s rapid interest rate increases. Frightened customers rushed to withdraw $42 billion in deposits. NBC News’ George Solis has more on what will happen to companies who had money at the bank and the sellers using e-commerce site, Etsy that are now not getting paid.
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#SiliconValleyBank #Finance #Markets
source
Silicon Valley Bank Executives & BOD regularly give 97.5+% of their Political Donations to which political party? 🔴 or 🔵
… hint (think FTX)
Sure they where
I had no idea it was going to effect me!! Interesting quote coming from a California elite!!
I tell you where they failed. Silicon vally bank failed when they went woke, diversity hire Jay Ersapah is the main responsible for SVB failure in the last two years. I hope SVB dont get a bailout
I guess the US never learn from their mistakes…
Even their sign looks stupid. SVB. They think this is some tech company lol!
Countdown Days For USA Maybe Just Began
want to steal a thousand? rob a store. want to steal millions? own a bank.
The people in charge who said the best way to get a coronavirus under control is to lock down the world, print trillions, create record inflation, then hike interest rates will shift to saying everything is out of control because they don't have a central bank digital currency.
Absurd
Come Monday the 13th, BANK RUNS!!! 🏦 🏃♀️ 🏃♂️ 🏃♀️ 🏃♂️ 🏃♂️ 🏃♂️ 🏃♀️ 🏃♂️
🏦 🏃♀️ 🏃♂️ 🏃♀️ 🏃♂️ 🏃♂️ 🏃♂️ 🏃♂️ 🏃♀️ 🏃♂️
🏦 🏃♀️ 🏃♂️ 🏃♀️ 🏃♂️ 🏃♂️ 🏃♂️ 🏃♀️ 🏃♀️ 🏃♂️ 🏃♀️
I’ve always wondered how do banks ever survive interest rate increases
SVB's Financial Risk manager is a bent, female, immigrant Indian with ZERO relevant work experience.
Capitalism…It's all fun until a bigger dog steals your bone.
Typical media to stretch the truth. Everyone who looked into this story would know that they always take the bonuses that day along with pretty much every bank and so many other industries because it is the last date to pay bonuses for last year for IRS purposes. So many goat on here just watching news without thinking. News is all about sensationalizing. Idiots.
In 2017 (R-IN) Mike Crapo's bill to reduce regulation of mid size banks like SVB was signed into law by Trump in May 2018. 159 democrats voted against reduced bank oversight/reserve requirements.
So SVB knowing it's in dire financial straits still found the money to pay out bonuses at the last minute? Are you kidding me? I understand still paying employees their regular salary, but bonuses, really? Now they're looking to taxpayers to bail them out? As a condition of any assistance, the government needs to make SVB claw back every last cent of those bonuses BEFORE providing any assistance. This is frickin' greed on steroids! Just shameful!!!!
Go get your money out of your accounts whatever the bank. That's what the biggest investors are doing on Monday. Yellen underestimates the snowball turning into an avalanche. She is not grasping the problem. Big investors all say we will see a domino effect in the financial market. She is too old for the job and at my age I can say it.
Ok, so… It was a government action or the federal reserve for that matter what sent the bank to crash. Got it
I’m pulling all my money out of Chase Manhattan and Citibank on Monday, just in case.
Go woke go broke
Wow it is like cryptocurrency supersized if someone did a withdrawal early maybe they had ulr square insider binanary information or a huge block chain situation… crazy stuff some entrepreneurs did a Wells Fargo?
Biden wants student loan forgiveness but we can't even give real working people the money they've earned.
Its starting now
Thank goodness the millionaires got their bonuses.
Fractional reserve banking is theft on a level no one can understand. ( ",> did this.
May the people responsible suffer the same fate as Elizabeth Holmes.
This is caused by the Trump's incompetence.
Ivy Leaguers, this one is on you.
WHAT IF MAJORITY OF AMERICANS WITHDRAW ALL THEIR BANK SAVINGS TOMORROW (3/13/2023)?
If a large number of Americans were to withdraw all of their savings from banks at once, it could potentially have significant implications for the banking system and the broader economy.
Banks use customer deposits to fund loans and investments, so a sudden and significant decrease in deposits could limit their ability to lend money and finance economic activity. This could lead to a contraction in credit markets, reduced investment, and slower economic growth.
Furthermore, if everyone were to withdraw all their savings at the same time, there may not be enough physical cash to meet the demand, which could lead to long lines at banks and ATMs, and potentially even a cash shortage.
It's important to note, however, that it's unlikely that a large number of Americans would suddenly withdraw all of their savings at once. Even during times of economic uncertainty, many people rely on their savings for emergencies and daily expenses and may not have the means to withdraw all of their funds at once.
In any case, it's important to be cautious and informed when making decisions about your finances, and to consider the potential risks and consequences of any actions you take.
WHAT IF AMERICANS LOSE THEIR TRUST ON BANKS?
In general, people's confidence in banks can be influenced by a variety of factors, such as economic conditions, bank policies, and regulatory oversight. If there is a perception that a bank is in financial trouble or is engaging in risky behavior, it could undermine people's trust in that bank and potentially the banking system as a whole.
That being said, it's worth noting that banks in the United States are subject to regulatory oversight and are required to hold a certain amount of capital to protect against losses. Additionally, the FDIC insures deposits up to a certain amount, which can help to mitigate the risk of bank failures.
Overall, the level of confidence that Americans have in banks may vary depending on a range of factors and individual experiences.
WHAT IS THE MAXIMUM AMOUNT THE FDIC PAY FOR EACH ACCOUNT?
The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank. This means that if an insured bank were to fail, each depositor's account would be covered up to $250,000, including principal and accrued interest.
It's worth noting that the $250,000 limit applies to each depositor's accounts at a given bank, so if you have multiple accounts at the same bank, they are added together, and the total amount insured is up to $250,000. Additionally, if you have accounts at different banks, each bank is separately insured up to $250,000 per depositor.
The FDIC provides a comprehensive guide to deposit insurance on their website, which includes information about what types of accounts are covered and how to maximize your insurance coverage. If you have specific questions about your FDIC insurance coverage, it's a good idea to consult with a financial advisor or contact the FDIC directly.
HYPOTHETICALLY, WHAT IF THE SAVINGS WORTH $45M, HOW MUCH WILL THE FDIC REIMBURSE THE LOSES?
If an individual had a savings account worth $45 million at an FDIC-insured bank that failed, the FDIC would only insure up to $250,000 of the total amount. This means that the depositor would be reimbursed up to $250,000 and would lose the remaining amount that exceeded the insurance limit.
It's worth noting that there are ways to potentially increase the amount of FDIC insurance coverage for large deposits, such as by spreading the funds across multiple accounts or by using different ownership categories. However, it's important to consult with a financial advisor or contact the FDIC directly to understand the rules and limitations of deposit insurance.
In any case, it's generally recommended to spread large deposits across multiple FDIC-insured banks to maximize FDIC insurance coverage and reduce the risk of losses due to bank failures.
GREEDY AMERICAN BANKS CRASH THE GLOBAL ECONOMY – AGAIN…!!!
Why cant you w4nkers regulate your banks…???
They are leaving out the biggest detail. WHO THE BANK RUN STARTED? WHO STARTED IT AND WHY DID THEY CAUSE THIS! They are hiding that some clients knew something was wrong and pulled out so they didn't loose their money and they took everyone else's money with them.
Never put all of your eggs in one basket
Never heard of the place.
This is not "increasing fallout"… this is the original story. Clickbait hysteria.
Is anyone surprised this is under joes watch. Keep spending I don’t see roads getting any better and keep sending that money to Ukraine while the American people are getting screwed
Wow they paid themselves bonuses!!
It's 07 all over again because these Democrats are corrupt and lying about the economy!
Good thing I'm broke
Bankman-Fried going to prison now tech bank collapses,Bitcoin bubble bursting countries like Russia can make up their own net currency as easily as Bitcoin was imagined
See why we should destroy capitalism?! It will fail no matter what, because it was always wrong, because it’s slavery and illegal! Plus automation will eliminate all jobs!
All people should own all things worldwide because that will end world poverty!
The bank can always sell their Hunter Biden artwork collection
It's just one bank chill guys, happens all the time.
This feels like some institute that launders money given people like Oprah and the British royals had money in this bank that most people never heard of 1 month ago. Why did all of the Venture Capitalist go to this one specific hole in the wall bank?
Quickly withdrew your money
NO BAILOUT for ROOKIE MILLIONAIRES who were dumb enough to put all there money in 1 bank. Let alone this is not a legacy Bank like Bank Of America. Legacy Banks will never be allowed to fail and will always be bailed out by the US govt. So that is why BOA has more deposits from millionaires and huge companies than any other bank.
This is one of the causes of the Great Depression.
Never put your money in a publicly traded bank.
Those bonuses were big
Other banks will soon follow. Another set of crashes to come.