We got a bank collapse y'all

[Kafka]

I

An outstanding ESG rating - but no chief risk operator: SVB hired woke board obsessed with diversity, invested $5BN for ‘healthier planet’ and held monthlong Pride celebration —but failed to spot glaring problems with investments​

• Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups
• But for eight months last year, the bank did not have a chief risk operator
• At the time, it was investing clients' money in low-interest government bonds and securities that saw their value fall when interest rates rose

SVB hired woke board obsessed with diversity

Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups.

www.dailymail.co.uk

@buttslut already posted this I think

 

[Ron]

An outstanding ESG rating - but no chief risk operator: SVB hired woke board obsessed with diversity, invested $5BN for ‘healthier planet’ and held monthlong Pride celebration —but failed to spot glaring problems with investments​

• Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups
• But for eight months last year, the bank did not have a chief risk operator
• At the time, it was investing clients' money in low-interest government bonds and securities that saw their value fall when interest rates rose

SVB hired woke board obsessed with diversity

Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups.

www.dailymail.co.uk

It seems like having a good ESG rating and not having a risk officer are not one in the same issue

 

[TenSteel]

just like a Redditor who just got cut off by their parents

Libertarians are the house cats of the world: arrogant to a fault while blissfully ignorant of the world being maintained around them and despite their presence in it.

 

[TenSteel]

An outstanding ESG rating - but no chief risk operator: SVB hired woke board obsessed with diversity, invested $5BN for ‘healthier planet’ and held monthlong Pride celebration —but failed to spot glaring problems with investments​

• Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups
• But for eight months last year, the bank did not have a chief risk operator
• At the time, it was investing clients' money in low-interest government bonds and securities that saw their value fall when interest rates rose

SVB hired woke board obsessed with diversity

Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups.

www.dailymail.co.uk

Was it a portfolio full of high risk investments?


No no, let’s blame it on woke stuff.

 

[vr6vdub]

An outstanding ESG rating - but no chief risk operator: SVB hired woke board obsessed with diversity, invested $5BN for ‘healthier planet’ and held monthlong Pride celebration —but failed to spot glaring problems with investments​

• Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups
• But for eight months last year, the bank did not have a chief risk operator
• At the time, it was investing clients' money in low-interest government bonds and securities that saw their value fall when interest rates rose

SVB hired woke board obsessed with diversity

Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups.

www.dailymail.co.uk

SVB Chief Pressed Lawmakers To Weaken Bank Risk Regs

Collapsed bank’s president told Congress “enhanced prudential standards” should be lifted “given the low risk profile of our activities.”

www.levernews.com

 

[Dylith]

Was it a portfolio full of high risk investments?


No no, let’s blame it on woke stuff.

He needs this.

 

[stevezissou]

Was it a portfolio full of high risk investments?


No no, let’s blame it on woke stuff.

Is this bank run a consequence of out of control spending and inflation?

Nah lets blame it on the prior administration lmao

 

[TenSteel]

I

@buttslut already posted this I think

@stevezissou proudly carrying her dimly lit torch.

🫡

 

[TenSteel]

Is this bank run a consequence of out of control spending and inflation?

Nah lets blame it on the prior administration lmao

I don’t work in finance, so let me ask this to you or anyone else who’s more knowledgeable than me:

Were there or were there not regulations under Trump that were relaxed that allowed a bank to carry this level of risk in their investment portfolio?

 

[MWHC22]

didn't read thread... but WTF is with making a special exception for these banks and their depositors?

if you put more than $250k in an account its on you if the bank goes under and you lose everything above that. it took less than a week for government agencies to decide to bail them out yet we can't help homeowners that only own a primary residence or student loan borrowers? get fucked.

they claim to be forcing banks to pay a special fee to recoup the funds they plan to use to bail everyone out so tax payers don't have to pay it... yet i suppose they think the banks won't just pass that along to the customers... who happen to be the tax payers.
maybe the government should force universities to pay a special fee and wipe out the student loans with it eh?

 

[MWHC22]

I don’t work in finance, so let me ask this to you or anyone else who’s more knowledgeable than me:

Were there or were there not regulations under Trump that were relaxed that allowed a bank to carry this level of risk in their investment portfolio?

yes... deregulation started under regan...go super charged under clinton... slightly SLIGHTLY reigned back in under Obama...then Trump undid the Obama stuff

 

[stevezissou]

I don’t work in finance, but let me ask this to you or anyone else who’s more knowledgeable than me:

Were there or were there not regulations under Trump that were relaxed that allowed a bank to carry this level of risk in their investment portfolio?

They are treasury bonds and MBS that weren't hedged against interest rate risks.

Why are interest rates having to be raised so quickly? What events lead to that having to be done?

Now interest rates are rising so fast traditionally "safe" investments are losing value because of rapidly rising interest rates.

What environment and factors led to interest rates having to be hiked so quickly? Gee I wonder.....

 

[halflife78]

I know this is going to be a dumbass question, but I don't know the answer so I'm going to ask anyway. What happens if I have a safe deposit box at a bank that shuts down like this and I have a million dollars in the box? Do people with safe deposit boxes get access to their boxes? I assume that's a yes at some point, just not sure so I figured I would ask.

 

[cbpage]

i have to chuckle at the amount of rage that would erupt in Silicon Valley and online if this happened and Elon had ownership in or a degree of control over a shitload of start ups by virtue of owning the bank

All loan apps done over Twitter via back and forth with Elon.

 

[MWHC22]

They are treasury bonds and MBS that weren't hedged against interest rate risks.

Why are interest rates having to be raised so quickly? What events lead to that having to be done?

Now interest rates are rising so fast traditionally "safe" investments are losing value because of rapidly rising interest rates.

What environment and factors led to interest rates having to be hiked so quickly? Gee I wonder.....

interest rate risk always exists though and will always exist. if the interest rate goes up 1% or 4% it doesn't matter... either way it changes the return and cost on investments of all kinds

 

[saabguy]

Ok but what the fuck happens with inflation

It’s always been a no-win situation, and this doesn’t change that. There was never going to be a “soft landing”. You can reduce inflation by crashing the economy or reducing spending. Do you think anyone has any interest in reducing spending? We can get inflation back to 2% but that’s likely going to result in double digit unemployment and a recession. We can keep the economy going along, but inflation will continue being higher than we prefer. So great, people have jobs and economy is fine, but real wages are down since it costs so much to buy everything from eggs to fleshlights. How are we to survive if we can’t have affordable fleshlights? Is that only a privilege for the super wealthy now?

 

[whatever]

I know this is going to be a dumbass question, but I don't know the answer so I'm going to ask anyway. What happens if I have a safe deposit box at a bank that shuts down like this and I have a million dollars in the box? Do people with safe deposit boxes get access to their boxes? I assume that's a yes at some point, just not sure so I figured I would ask.

not covered for FDIC payout IIRC

 

[Hisma]

interest rate risk always exists though and will always exist. if the interest rate goes up 1% or 4% it doesn't matter... either way it changes the return and cost on investments of all kinds

I have heard the term "laddering" when it comes to buying treasuries and MBS. Rather than buying a whole fuckton all at once. Seems like a way you can hedge against raising rates.

 

[Snake Pliskin]

View attachment 311231

SVB Chief Pressed Lawmakers To Weaken Bank Risk Regs

Collapsed bank’s president told Congress “enhanced prudential standards” should be lifted “given the low risk profile of our activities.”

www.levernews.com

Sold millions of his own stock two weeks ago. Hang this motherfucker.

 

[Hoodoo]

You’re joking right? Tech boomed during that time period - absolutely massively - and on top of that the bank required anybody who took debt from them to bank through them. It’s obvious how they did it.

Before it settled back 30% below ATH.

 

[MWHC22]

I know this is going to be a dumbass question, but I don't know the answer so I'm going to ask anyway. What happens if I have a safe deposit box at a bank that shuts down like this and I have a million dollars in the box? Do people with safe deposit boxes get access to their boxes? I assume that's a yes at some point, just not sure so I figured I would ask.

yeah you should have access... safety deposit boxes are not exactly a safe though and lots of people lose things in them and the bank is no liable as they are not insured etc unless you get something special.
when a bank goes under it simply closes until FDIC can reopen it (usually within a week or less) but.... i suppose shit could hit the fan and you don't get access to it

 

[JacksonWhite]

didn't read thread... but WTF is with making a special exception for these banks and their depositors?

if you put more than $250k in an account its on you if the bank goes under and you lose everything above that. it took less than a week for government agencies to decide to bail them out yet we can't help homeowners that only own a primary residence or student loan borrowers? get fucked.

they claim to be forcing banks to pay a special fee to recoup the funds they plan to use to bail everyone out so tax payers don't have to pay it... yet i suppose they think the banks won't just pass that along to the customers... who happen to be the tax payers.
maybe the government should force universities to pay a special fee and wipe out the student loans with it eh?

Silicon Valley Bank has lent to a ton of startups and forced them to keep accounts with them as a condition.

They don’t want those businesses to go under.

 

[Mejnoon]

Dangerous game mailing cashiers checks.

If it gets lost could take up to 60 or 90 days for the issuing bank to cancel the cashiers check lmao

Meanwhile money is just in limbo.

I agree, I still send wires I just verify the instructions by phone every time. But an incident like that can absolutely make a normally reasonable person unreasonably cautious/skittish.

 

[Ron]

didn't read thread... but WTF is with making a special exception for these banks and their depositors?

if you put more than $250k in an account its on you if the bank goes under and you lose everything above that. it took less than a week for government agencies to decide to bail them out yet we can't help homeowners that only own a primary residence or student loan borrowers? get fucked.

they claim to be forcing banks to pay a special fee to recoup the funds they plan to use to bail everyone out so tax payers don't have to pay it... yet i suppose they think the banks won't just pass that along to the customers... who happen to be the tax payers.
maybe the government should force universities to pay a special fee and wipe out the student loans with it eh?

The consensus itt is people who put money in banks shouldn’t have to worry about losing their money when they don’t do due diligence to vet the bank they work with

 

[MWHC22]

I have heard the term "laddering" when it comes to buying treasuries and MBS. Rather than buying a whole fuckton all at once. Seems like a way you can hedge against raising rates.

you can but in the process you reduce your short and long term gain in favor of lowering your risk.

apparently lots of big players decided gains were more important than hedgin their risk and now they get bailed out...again