GENERAL TOPICS > Coffee Induced Early Morning Rant
Bank failure...this could be important
Flyin6:
Silicon Valley Bank Shuttered
US regulators shut down Silicon Valley Bank yesterday in what is the second-largest failure of a financial institution in US history, following Washington Mutual during the height of the global financial crisis in 2008. Silicon Valley Bank, which caters to mostly technology workers and venture-backed companies, had roughly $209B in assets and $175B in deposits as of December.
The Federal Deposit Insurance Corp. assumed control of Silicon Valley Bank via a new entity a day after depositors began withdrawing their money on fears of the bank's solvency, also known as a bank run (see 101). The bank's parent company's shares fell roughly 70% since it announced plans this week to raise $2.25B to shore up its balance sheet and offset nearly $2B in losses on asset sales. Trading halted yesterday after market volatility. Insured depositors will have access to their funds, typically up to $250K, Monday, the FDIC said.
stlaser:
Here’s more info, better article on it.
https://www.zerohedge.com/markets/record-bank-run-drained-quarter-or-42-billion-svbs-deposits-hours-leaving-it-negative-1bn
stlaser:
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Flyin6:
Financial failures/disasters often are cascade events. First one then a couple more, then a landslide. I do not think this story is over.
In 2008 some retirement funds in France started to fail. They had bought up sub-prime US mortgages...The rest is history.
Personal note: I lost over $300K on that one!
stlaser:
--- Quote from: Flyin6 on March 11, 2023, 12:23:39 PM ---Financial failures/disasters often are cascade events. First one then a couple more, then a landslide. I do not think this story is over.
In 2008 some retirement funds in France started to fail. They had bought up sub-prime US mortgages...The rest is history.
Personal note: I lost over $300K on that one!
--- End quote ---
Lol, yeah 08 hit us hard too. I don’t have a definitive number as we owned real estate and well all I know is it cost us. Definitely made it a couple interesting years as we got stuck with two mortgages during that time. We gambled all of our investments and bought the farm in July 08. My timing is impeccable…..
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