Silicon Valley Bank collapses after members make run, Other banks to follow?

Wait, wait, did the Billionaire investor Bill Ackman calls on the US government to consider a bailout of Silicon Valley Bank if private investors won't step up SVB Financial Group shares closed 60% lower on Thursday even as CEO Greg Becker tells investors to "stay calm."

www.msn.com... ate-investors-wont-step-up/ar-AA18sgt0

Soo they are calling on us the tax payer to bail out the crocked banks and Billy boy soo they can keep their lavish lifestyle without losing a penny, while we get the tap.

He can kiss my latino ass.

This is going to be long, but painfully necessary to show. Could this be evidence of the crack in the dam of financial collapse?
Mega-cap banks like JPMorgan, Bank of America, and Wells Fargo all fell more than 5%, while the regional banking sector sank by as much as 8%. The decline picked up steam throughout the trading day as shares of SVB Financial plunged as much as 62%. The KBW Bank Index fell 7.7%, its biggest decline since June 2020.

The implosion at SVB Financial happened after the company lowered its guidance, announced a $2.3 billion capital raise, and said it lost $1.8 billion as it sold off more than $20 billion worth of US Treasuries that it bought when interest rates were near record lows. The multi-pronged announcement caught investors by surprise.

"Part of the problem is Silicon Valley [Bank] had been telling investors up until a couple weeks ago that their guidance was intact. There was no reason to believe this announcement was going to hit," Keefe, Bruyette & Woods' head of equity trading RJ Grant told Insider on Thursday.

"It's a little bit unnerving on a couple different levels: one at the micro level with their management, and two at the macro level, like if they weren't being dishonest, this [negative] deposit flows happened very suddenly," Grant said.

The surprising announcement at SVB Financial, which included the fact that an ongoing slowdown in private markets and venture capital had weakened its deposit levels, drove down other California-based banks like PacWest Bancorp and First Republic.

PacWest Bancorp has a healthy venture deposit business and saw its stock drop by more than 20%, while First Republic, which is another growth-oriented bank, saw a decline of more than 15%.

Piling onto the mess in the banking sector on Thursday is the development that crypto-oriented bank Silvergate Capital would wind down its operations. Silvergate fell by more then 40%, while Signature Bank, which has some exposure to the crypto industry, lost more than 11%.

Amid the sharp decline in the banking sector on Thursday, investors are getting more and more risk-off as fears of potential contagion in the sector spread.
markets.businessinsider.com...

a reply to: v1rtu0s0

There's actually the "Inverse Cramer" ETF that outperforms the market by doing the opposite of what Jimbo says LOL

You Can Bet Against Jim Cramer With New ETF

It could be beginning of the big financial reset, after all nothing happens in the US that is not link to European and Asian markets, Also China, yep US bailed China and the middle east back when the last market crash.

Thats when everybody find out that China was up to their necks on US housing market, who is next North Korea revelation?

Just saying.

originally posted by: ketsuko
a reply to: NightSkyeB4Dawn

Housing is setting up to crash again too, and this time the big speculators are holding lots of empty inventory.

Couldn't happen to a better group.

I do feel for the folks who overextended themselves just to have a place to live. No fun when you NEED something in a gold rush of speculators and cheap money.

a reply to: gb540

The stock market is a virtual game simulator that make people think they have real money, the biggest scam ever, that is what modern trading is about this days.

Not a word on MSM I checked Fox and nothing , I read a recent story that some finance guy said the market is going to crash in a matter of days something to do with the S&P .

a reply to: Ravenwatcher


I use to follow the markets but since it became a scam simulator with a panic buton is not much fun anymore.

I made a cash offer on some property 3 weeks ago that was 2/3 of asking but still higher that they paid 2 years ago. Realitor said if I come up a bit they will accept. I've moved on but willing to talk. They make $150,000 on a 2 year investment that they did no work on. Good enough as far as I can see.

originally posted by: AugustusMasonicus

originally posted by: NightSkyeB4Dawn
I have been expecting another domino to fall.

Four Biggest U.S. Banks Lose $52 Billion in Market Value.

The four largest US banks have over $11trillion in assets, $52billion is only .005% of that.

Not a financial expert, but as I read it, SVB kind of got burned for being a good fiduciary to its depositors?


SVB invested primarily in US-backed treasuries and bonds, which, although paid at the interest rate "locked-in" at the time of purchase and for the duration of the instrument, would be secure against loss. But when interest rates started climbing through the roof, SVB could not move those funds to higher paying vehicles because of the established terms. Then, when SVB's depositors started withdrawing funds to address their, now inflation-related operating needs, the bank could not cover the demand.

And could not raise enough cash to cover the demand because it's assets are locked into treasuries and bonds paying below the current interest rate.

a reply to: Ravenwatcher

I don't know about that, but thanks to the way interest rates have been handled a lot of the regional banks are having some issues.

While the higher rates might be good if you loan, you have to get people willing to borrow at that rate, and in the meantime, everywhere you owe interest on anything, your rates have gone up.

a reply to: Ravenwatcher

Linky?

___________


This is part FTX, part ESG, and 100% Democrat caused.

Buckle up!

Hey what ever happened to those "Stress Tests" by The Basel Committee at The B.I.S. ?? 🤣🤣

a reply to: xuenchen

They use ESG for scores now, who cares about financial health
its the diversity that matters LOL!

a reply to: burntheships

A whole new level of get woke, go broke!

originally posted by: ketsuko
a reply to: burntheships

A whole new level of get woke, go broke!

This time it's us that goes broke.

Public, Private Pensions Set to Collide Over ESG Investing

You're on the hook per usual.

While ESG retirement investing has been more popular in private- and public-sector pension plans, only about 3% of US 401(k) plans offer an ESG fund, and less than 1% of retirement assets under management are sustainably invested. The Biden administration’s proposed ESG rule, combined with state anti-ESG rhetoric, could flip that dynamic, McGannon said.

Say goodbye to your 401k.

originally posted by: ketsuko
a reply to: burntheships

A whole new level of get woke, go broke!

Yep! Maybe this was the plan all along?

originally posted by: marg6043
a reply to: gb540

The stock market is a virtual game simulator that make people think they have real money, the biggest scam ever, that is what modern trading is about this days.

Silicone CEO sold $3.5 million of his stock 2 weeks ago.

www.newsweek.com...

Well this makes everybody feel real comfortable....................🤣🤣

Janet Yellen: Government Is Monitoring the Silicon Valley Bank Crisis

a reply to: carewemust

Other high levels sold stock too.

When will the audit take place, it usually happens
within 48 hours. But my guess is some important
people with (D) by their name will get a pass.