Silicon Valley Bank Run!!

[ELIAKIM]

Cross posting with the C&B. 

HSBC snaps up UK arm of failed lender Silicon Valley Bank for just £1 in bid to prevent tech sector collapse - after more than £50BILLION was wiped off FTSE amid global financial panic

• Collapse of tech-focused Silicon Valley Bank sparked fears across Wall Street
  
  
  
• FTSE 100 suffered bigger falls than seen in aftermath of September mini-budget
  https://www.dailymail.co.uk/news/article...lapse.html
  

[ELIAKIM]

Flurry of UK tech and bioscience firms hurry to reassure investors that their cash is safe in wake of SBV collapse
Dozens of UK tech and bioscience firms rushed to reassure investors their cash was safe following the collapse of Silicon Valley Bank (SBV) and the last-minute rescue of its UK arm by HSBC.

Two medical tech businesses on London’s junior market AIM suspended trading for several hours as they rushed to clarify their cash position.

Diaceutics, which develops technology to help perform laboratory testing and gather data, revealed around £22million of its £22.2million cash balance had been held in SVB accounts and it had been ‘unable to access’ the funds.

+1

Diaceutics, which develops technology to help perform laboratory testing and gather data, revealed around £22m of its £22.2m cash balance had been held in SVB accounts

The company said while it was ‘hopeful’ the money would become available, the crisis had inflicted a ‘significant impact’ on its cash position and ‘material uncertainty’ around its ability to spend.

As a result, Diaceutics requested trading in the shares be suspended as it tried to access the cash held by SVB and explore ‘other funding options’. 

Trading in the shares was later restored. Medical imaging group Polarean reported around £10.3million of its £11.5million cash balance had been held in SVB as well as £1.3million in a checking account at the bank.

The firm said it had asked for a trading suspension while it sought ‘further clarification’ on the state of its cash reserves. 
more on the link 


https://www.thisismoney.co.uk/money/markets/article-11855079/Flurry-firms-hurry-reassure-investors-cash-safe.html?ico=mol_desktop_home-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fhome%2Findex.html

[Wingsprint]

https://youtu.be/Y3AM00DH0Zo

When You Put Money in the Bank annnddd It's Gone - SOUTH PARK (Comedy...2.2 minutes)

[NowhereMan]

"The Crash of 1929 - PBS documentary"

https://www.youtube.com/embed/H5VOec8NBb8

The banker who caused the 1929 stock crash
https://thehustle.co/wp-content/uploads/...ADER-4.gif


"1929 Stock Market Crash and the Great Depression - Documentary"

https://www.youtube.com/embed/qlSxPouPCIM

[NowhereMan]

2 hours ago

Grace:
What the Media Won't Tell You About the Silicon Valley Bank........

https://www.brighteon.com/embed/48691b74...7c1dbd73f5

[NowhereMan]

3 hours ago 

The Fake Banking System Explained In Under Five Minutes..........

An excerpt from The Creature of Jekyll Island.
Arm yourselves with knowledge, anons.
So important to understand how inherently corrupt our system truly is.
If the financial system does not change, then we will have not moved away from hidden enslavement.
God deliver us!

https://www.brighteon.com/embed/99db9f76...2570821102

[Wingsprint]

"The Crash of 1929 - PBS documentary"

https://www.youtube.com/embed/H5VOec8NBb8

The banker who caused the 1929 stock crash
https://thehustle.co/wp-content/uploads/...ADER-4.gif


"1929 Stock Market Crash and the Great Depression - Documentary"

https://www.youtube.com/embed/qlSxPouPCIM

Mitchell eliminated the word......."CHARTER"

single handed....

I had seen that first one on American Experience.. years ago...good find...great interview with the Mitchells in the house that they had lived in...


Arrest and acquittal

Mitchell remained chairman until 1933, when he was arrested and indicted for tax evasion by then Assistant U.S. Attorney Thomas E. Dewey. Charges were brought following testimony by Mitchell in which he openly stated that he had sold his stake in National City Bank to avoid paying taxes.[1][2] Defended by attorney Max Steuer, he was found not guilty of all criminal charges, but the government won a million-dollar civil settlement against him. In 1933, the U.S. Senate's Pecora Commission investigated Mitchell as its first witness for his part in tens of millions of dollars in losses, excessive pay, and tax avoidance. In November 1929, U.S. Senator Carter Glass said, "Mitchell more than any 50 men is responsible for this stock crash."[3]

His townhouse on Fifth Avenue, built for him by Walker & Gillette in 1926, with a rusticated facade in the manner of a 16th-century Roman palazzo, now houses the French consulate.

[Gold Mule]

I short sold them starting two weeks ago on float stock ( end of day) the difference in that time between bid / ask and market make the next morning has been worthwhile ... there are more than a few short sellers out there that fell red by even covering on this one for a few more days... a lot of long bettors lost big money... there was no bailout offerred that would help a long stock play come whole or even a ill timed short play... at least it hasn't been annouced yet

[Gold Mule]

I short sold them starting two weeks ago on float stock ( end of day) the difference in that time between bid / ask and market make the next morning has been worthwhile ... there are more than a few short sellers out there that fell red by even covering on this one for a few more days... a lot of long bettors lost big money... there was no bailout offerred that would help a long stock play come whole or even a ill timed short play... at least it hasn't been annouced yet

 Edit to add : Maybe it sounds like I am acting different than being someone that lives the status and have a belief that all will be took care of by govt ... I don't  believe that ...I  have limited belief in goveronment ... i will short sell bank by bank if the opporunity comes my way ... i like being able to withdraw my earnings in gold

[Nirmanakaya]

Spoiler

With the failures of Silicon Valley Bank (SVB) and Signature Bank we’ve seen the second and third largest bank failures of all time happen within a week. There seem to be two logical questions to be asked. How did this happen? Should we be concerned?

To address the first question, we need to go back to recent history and the low interest rates that were used to stimulate economic activity throughout the pandemic. The low rates had far reaching impacts, with one of the most important being the creation of a boom cycle for tech companies. These tech companies made up a huge portion of the depositors at SVB, which created excessive concentration risk for the bank. Banks like JP Morgan and Bank of America have about 30% of their deposits from retail clients like you and I. SVB on the other hand had only 2.7% of their deposits from stickier retail depositors like us. This created the environment for a failure, but the catalyst of the failure was disastrous risk management on the part of the bank. Banks are required to hold a certain portion of their assets in highly liquid investments, like US treasury bonds. Typically, when banks make these investments, they hedge the risk of interest rates rising. The term “hedge” simply means that they protect themselves from taking losses in the event that rates increase and hurt the value of their bond portfolios. SVB did not do this. On top of the lack of hedging, SVB held a relatively large portion of their assets in securities like treasuries and mortgage backed bonds. In fact, 55.4% of their total assets were in these types of securities, compared to 22.2% on average for other institutions. This meant that just like many of us last year, SVB lost money on their investment portfolio as the Federal Reserve hiked rates to combat inflation. At the same time, their client base made up of tech companies began to withdraw cash because their access to other forms of funding diminished as rates went higher. Once the inflows from tech companies turned into outflows, SVB was in real trouble and eventually failed. Signature Bank had similar issues after a bet on cryptocurrency banking went south and depositors quickly withdrew funds in the aftermath of the SVB collapse.

The second question is really the most important- should we be concerned? The short answer is “no”.

Spoiler

The biggest potential concern would be the risk of contagion from these banks failing, but as was highlighted in the previous paragraph, other large US banking institutions are not in the same situation as SVB. After the Great Financial Crisis in 2008, regulations have made banks’ balance sheets much stronger. The large US banks have a much more diverse funding base and prudent risk management procedures. With the joint measures from the Treasury Department, Federal Reserve and FDIC, depositors at SVB and Signature Bank will be made whole. This move protects many businesses that stood to lose significant amounts of money and more importantly gives confidence to depositors at other banks that they do not need to rush to withdraw funds.

This exactly.  

I actually talked to my financial advisor today.   And while I do not agree with his line of thinking sometimes, he has been with our family for 30 years, and always has steer us in the right direction.  He basically said what you are telling us,  furthermore he explain the silicone bank was heavily invested in digital or cripto currency, that it has no hard assets backing, hence the main reason they went into trouble.  He told me not to worry.

And I said, but I read this, and I read that!  But Chase and BOA!  He literally asked me if I was a conspiracy theorist.     I told him I proudly often wear a tin foil hat.