Yes to bail out. The people and companies can get their money back. Right now it’s only $250,000 per account. Some customers had millions. What if that was you? Could you pay your employees?
I blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).
@Bill Having an investment advisor is the best way to go. Based on a direct encounter with a CFP named Christine Blake Mckale, I can say with certainty that their skills are excellent. She helped raise over $580,000 in 18 months from an initially stagnant portfolio of $150,000
@Bill Christine really knows her stuff. I found her website, read through her resume, educational background, qualifications and it was really impressive. She is a fiduciary who will act in my best interest.
Have we learned nothing? "NO Bailouts", let the chips fall where they may. It would be using funds from taxpayers who were not involved and never consented to their money being used in this way.
@@realnapster1522 if one regional bank fails, then other regional banks will probably fail due to a lack of confidence, which means everyone would have to jump ship to the big 4. That would be a LOT of people out of work and not getting paid. Also it would be a LOT of eggs in a few baskets. Be careful what you wish for.
Actually it's the opposite. SVB is the perfect bank to actually fail. There is not a banking crisis like in 08. This was a very specific bank that needed much better management. Denying a bailout would send a message to other institutions to get your management structure to a more competent place!
Actually, that is a load of nonsense. They did not make risky investments, their problem is low-interest AAA US treasury bonds, which are now worth 75% of their face value. And the government cant bail them out, it is the government debt that is the problem. The more money the government prints, the more interest rates go up, the less these bonds are worth and the worse the problem gets. The only way this is fixed is if the government cuts spending, to the point that it has a surplus, so it can buy back those bonds at face value. And we know that can't happen. Who knew $31 trillion in Government debt might be a problem!
@@bobbyraejohnson Well the toxic securities in 2008 were Mortgage backed securities, which were a banking bubble (naughty banks!) This time they are a US$ currency bubble (naughty Fed!) The thing is that the Fed are not only the people who issue US$, they are also the ones shorting them.
@@celestialnubian Bank goes out of buisness, equity investors lose everything, bond holders will get whatever is left after assets are sold to reimburse depositers. This is the obvious risk of keeping so much money over 250k in a single niche bank.
@Brandon Burns I do not understand what do mean so? The purpose of the FDIC was crested to protect the average American and to build confidence during the early stages of the Great Depression under the Banking Act of 33. It was never designed to protect a multi-million dollar corporation. MEANING THIS IS OUTSIDE THE SCOPE OF THE FDIC.
If SVP is forced to liquidate, they will flood the market with COVID era TBills, devaluing them more, driving up interest rates, and making the problem worse. it isn't one Bank being irresponsible, it isn't even like 2008 and the banks acting irresponsibly. It is a systemic problem caused by the Fed.
The negative impact of SVB and SI debacles has been reflected in the regional bank ETF (KRE) which has witnessed a decline of over 20%. This event has triggered contagion effects, dragging the entire market lower. However, historically speaking, a localized and narrow contagion of this nature presents an opportune time to invest in strong, financially stable companies with substantial cash reserves on their balance sheets.
Indeed, the recent market downturn serves as evidence that a vast majority of individuals lacked a sufficient understanding of the underlying financial dynamics at play.
@Mark Lofgren I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper professional coach, how did you go about touching base with your coach?
Thank you for sharing; I just searched her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes
@Mark Lofgren I've come across a lot of recommendations but this one stands out Susan Bauer Normansell resume is pretty sophisticated, and shows she was active during the last bear market, I also emailed her. Thanks for the info!
depositors know the FDIC insurance only goes up to 250K. anything above that is your own risk and responsibility. You CHOSE to park your millions and billions with a bank run by degenerates taking extremely high risks. NO BAILOUTS FOR BANKS OR WALL STREET
@Cobi Cobi Yup! Everyone sure has a lot against minorities, immigration or abortion/lgbtq issues! But the banks?!! The U.S. and MAGA folks are an utter joke!
Since the Republicans don't want to bail out student loans. There should be no bail outs for banks and corporations. Allow them to lose their jobs, retirement plans, savings, and companies.
You do get that if this bank doesn't get bailed out it might crash even more of the financial market which means everyone gets screwed right? I don't think you get how the financial world works lol
They can sell off anything assets worth a dam. Sell accounts with deposits over the FDIC limit. And maybe pay back bond holders if anything is left. These people don't need a bailout. That's ridiculous.
These people who put the money in uninsured accounts were making between ten and fifty million dollars per year. If they’re that stupid, it’s their fault. Let these guys rot. A bailout for SVB would be exceptionally devastating for our country.
@@FoieGras What about the tech industry repeating the same stupid mistakes? This happened in '00 as well. A bunch of zombie companies that don't actually make money. They only exist so the executives can squeeze out every dime into their pocket before it goes under.
@@astrobullivant5908 It's mostly companies who deposited, not individuals. Companies' payroll and operating cash. Bailing out depositors makes usually sense, but obviously SVB stock holders should lose everything.
@@johnj8069 Well, most of the depositors are FDIC insured so the government has to bail them out by law, just as any insurance company has to "bail out" its policy holders when certain events happen. The people in charge of depositing these companies' money are often getting paid tens of millions of dollars to do so. If the depositors like Roku were too lazy and stupid to put their money in insured accounts, then they shouldn't get a bailout, but instead only get portions of sold-off assets from the liquidation of SVB.
Corporate socialism is OK huh, what about bailing out the people, the homeless, the needy, nahhhh give it to the billionaires. The world is upside down
I don't mind the government giving bank bailouts IF THESE FUDGING COMPANIES PAID THEIR FAIR SHARE OF TAXES. You can't be an ardent capitalist when you are making profit and a humble socialist when you take loses.
Im in tech and I don’t believe we should bail SVB out. When you can get multi million dollar valuations for ideas with no proof of concept, something is very wrong. It’s unnatural that all that money should be circulating when there is nothing backing it
Any individual or entity that has more than $250,000 in deposits at an FDIC-insured bank should see to it that all monies are federally insured. It’s not only diligent savers and high-net-worth individuals who might need extra FDIC coverage. Corporations, family foundations, governments and charities also use bank networks and other measures to expand federal insurance protection of their deposits.
This is an example of Moral Hazard if the directors of SVB bought 30 year government bonds didn't they know months ago when the interest rates would increase then the value of those bonds would go down? IMO they should have known if they had to raise capital thru bonds sales then those losses would be reflected on their balance sheet immediately. SVB didn't know how to diversify risk and never should have been given a bank charter. No government bailout tough luck for them let the lawyers sue the pants off of them for being so stupid.
Where's my bailout. Love that we are already repeating 2008 with bailout talk. Not sure how inflation is going to trend downwards if we start handing out taxpayer funded bailouts. This is the first inning of the downtrend.
Depositors, by law are protected up to a limit. But creditors and stockholders are not protected from losses. There is no bailout by the government of stockholders. Another bank may step forward to provide liquidity and acquire the customers, ie a private bailout. In any case, the FDIC, will work to make depositors whole to the extent the law permits. US taxpayers know there are costs involved in the process. This is not a "bailout". Remember that depositors are also people who are trying to meet a payroll.
Bank runs mean most big banks cannot hold their bonds at 1% to maturity and now those bonds are worth 37 cents maybe. Bank of America may have 110 billion of unrealized losses on the books now, This is contagion, !!!!
Under no circumstance should this bank get a government bailout. Last time around, banks were bailed out and homeowners were hung out to dry. Can't bailout homeowners. Can't bailout student loan borrowers. No chance on earth this bank should get bailed out.
Shareholders shouldn't be bailed out. It's the deposits. The reason fdic is under 250k is why the run on the bank occurred. If all depositors aren't made whole, and whole soon, bthere will be much bigger problems. They did not loan to startups, vcs invested in them. Both the vcs and many companies had accounts with silicon valley Bank. They shouldn't lose their money. If the gvt is asleep at the switch we will all lose big next week.
No they should not be made whole. Many of these startups and companies should have NEVER been lent funding in the first place. The fact that so many of these “tech” companies used this bank is because they were well known for lending to unproven, risky, startups who couldn’t get funding elsewhere. The ONLY people who aren’t getting bailouts in this country are the responsible workers who are having their taxes used to bailout these irresponsible banks, tech companies.
@@williammathis6044 exactly.. these phone scam “startups” selling pipe dreams to VCs and reporting made up success metrics with no actual profits. Only about 1 in 50 of these so called startups are profitable. Let them go burst or bail out themselves on go fund me.
No way… the rest of us are responsible people, pay our taxes and take calculated risks when investing. We reduce our standard of living when we make bad investments and shoulder our own losses. Why should we bail out irresponsible people…
@@williammathis6044 I work for a startup who banks with SVB. we weren’t “lent funding”. We simply had our deposits in there. I think you’re getting investing confused with general banking.
Precisely as astrologers have been saying for eons re March 2023. Pluto entering Aquarius. Classic. Nothing shocking. Pluto ( banking, big money, death and rebirth) entered capricorn ( big business, governments, paitrioarchy) / cancer ( housing, healthcare) axis in 2008. This time it’s entering Aquarius ( digital anything, computation, internet, hitech, AI, anything fringe).
@@acornsucks2111Aquarius is lefty stuff yes, but also, it’s anything futuristic and scientific... this is just the beginning. Other Aquarian themes we will be dealing w until 2043 involve AI, extreme climatic changes, space travel, aviation changes, UFOs, anything electrical and/or nuclear, mass revolutions globally.
This bank was investing in autonomous truck startups like waymo and embark which ultimately would have destroyed the lives of truckers and their families. Trucking is the most common job in 29 states. NO BAILOUT! It's evil to take the taxes that truckers are forced to pay to bail out the very same bank that would enable companies to work tirelessly to destroy their livelihoods!
You're talking about the people with money in their accounts right? Because if you're Bailing out the guy with millions in his account then the system deserves to fail
Oh god we are going to have another Lehman moment. I don’t think people realize how catastrophic this is. Everything has a ripple effect, no matter what, it will touch your job too.
@@fokana1 They have tons of oversight. Oversight isn't there to force banks to stay alive. Its there to limit systemic risk. The fact is a couple more regional banks dealing with Silicone companies might go under in the next year or two. They deal with high risk tech companies that in a lot of cases don't even make money. The only reason they exist was the low interest rates. This bank bought a whole bunch of government bonds right before rates went up and then sold them at an incredible lose for some reason. Then proceeded to make one dumb move after another. Nothing at this point seems to be illegal, just dumb mismanagement.The reality is they seemed to have stopped transactions fast enough. Any FDIC insured deposit gets their money back Monday. Deposits over $250k will probably be bought by other banks meaning they don't lose money. Any assets will be sold to cover the remaining deposits and then the rest will go to bond holders. There will probably be some companies go under while everything gets figured out but not much regulation can do about that. Its how the market works. Anyone owning stocks just got screwed and gets nothing. The 6 largest banks in America are the ones under incredible scrutiny after the Dodd-Frank bill. The next largest 20 had increase regulations as well. At this point they don't seem to be in violation of anything. This is just the end of the free money era. The tech industry is the one who will take the brunt of that. One of the reasons tech companies go to this regional banks like this is the large banks can't mess with them because the loans.....etc... are to risky with the strict oversight they are under.
The bank examiners didn't know how to perform asset risk analysis or Stress Testing. A bank examiner should have asked "If you have a need to sell these Govt Bonds at higher interest rates these losses will have to be reflected on your balance sheet and you may not be able to meet depositor withdrawals?"
Covering deposits, insured and otherwise should not be a problem. The issue I see is the credit lines the bank may have extended to startups and VCs -those promises were made by an institution that failed. In particular, I see no reason any bank should extend credit lines to VCs that forced the run on this bank!
The cash rate goes to a measly 4.5% and this bank is destroyed, who was running this bank? This sounds criminal .Somebody has made a lot of money because of this.
Bailout?? They get rewarded for bad practices? For lucrative salaries? When my business ain’t doing well I pay my bills and don’t pay myself. I’m sure these SVB big wigs are taken care of, they may even get there bonus.
Regional banks are already paying interest on their funding in return for fixed duration. Regionals are funded by CDs, 2 mo, to 5 yrs, laddered, to individual holders. This does add to scrutiny of commercial lending and banking. Those tend to be interest free with no commitments.
Yesterday: It is fine if lots of people lose their job in order to tame inflation. Next day: Who cares about inflation? do not mess with my speculation banker. Moral hazard is a b*ich
This is pure failure to manage interest rate risk ...... why the hell were they holding so much long term treasury bonds (the smallest rate hike would, pummel bond values & balance sheet)
Absolutely correct. Any institution with that degree of “interest rate risk” should have a basic understanding and hedging their risk. Many businesses do it - agriculture, transportation, oil/gas, aggregate commodities, food production ….
I think any unemployed tech startup employees from the result of the SVB collapse should learn to coal mine coal is going through the roof right now and is the job of the future.
The expert correspondent pretty much immediately discredits himself by saying, "Bond rates have gone down, and all of a sudden they found themselves in a real crunch." They're in a crunch because yields soared, while they were holding long term bonds. Bond rates did not come down. Bond prices came down.
No using the taxpayer money, including money that should go to low-income people, in order to ensure that high-income individuals get to continue to live above their means. They are venture capitalists who take major risks, right? So why is this even a consideration? Isn't this just part of being a venture capitalist?
Any subject that would allow such goofery of their money, aka the thing that keeps civilians civil and able to make such basic transactions like the eating of food, pretty much deserves what they get
No to bail out. This is moral hazard for others to take stupid decision
biden is that stupid
What bailout? It's depositers getting paid from insurance.
Yes to bail out. The people and companies can get their money back. Right now it’s only $250,000 per account. Some customers had millions. What if that was you? Could you pay your employees?
@@bsanders1 Taxpayers shouldn't fund the bad decisions of some companies.
@@augustosantos7621 All these companies did was deposit their money in a bank.
I blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).
@Bill Having an investment advisor is the best way to go. Based on a direct encounter with a CFP named Christine Blake Mckale, I can say with certainty that their skills are excellent. She helped raise over $580,000 in 18 months from an initially stagnant portfolio of $150,000
@Bill Christine really knows her stuff. I found her website, read through her resume, educational background, qualifications and it was really impressive. She is a fiduciary who will act in my best interest.
Joe biden print machine is blameless I guess
so the bank took out a lot of investments and then the market changed.. sounds like they failed because they were bad at their job
But why bother to be good when high risk can bring high return, and if you do fail odds are the tax payer will bail you out, and give you a profit.
@@damham5689 What are you a pinko commie.
@@damham5689 j/k lol
00:12 “SVB stock HALTED before the market open today.”
Whatever to happen to let the FREE MARKET decide? This is NOT capitalism at all!
So many financial experts on UA-cam :) What financial institution do you run?? I want to bank with you =]
Have we learned nothing? "NO Bailouts", let the chips fall where they may. It would be using funds from taxpayers who were not involved and never consented to their money being used in this way.
I know right! Im tired of corporate socialism funded by the tax payers.
Good luck with your layoff. I disagree with bailouts but I also study economics. This is not good. You will be jobless
@@texasgermancowgirl if one bank fails, it won’t collapse the economy.
@@realnapster1522 if one regional bank fails, then other regional banks will probably fail due to a lack of confidence, which means everyone would have to jump ship to the big 4. That would be a LOT of people out of work and not getting paid. Also it would be a LOT of eggs in a few baskets. Be careful what you wish for.
No bailouts for corruption, this was NOT due to market manipulation or corruption.
No bailouts anymore. Let them burn.
many bill and now mills death time1! no equity just balloon inflated payments.
Trick and Treat!! No angel is coming
Actually it's the opposite. SVB is the perfect bank to actually fail. There is not a banking crisis like in 08. This was a very specific bank that needed much better management. Denying a bailout would send a message to other institutions to get your management structure to a more competent place!
Well said
Actually, that is a load of nonsense. They did not make risky investments, their problem is low-interest AAA US treasury bonds, which are now worth 75% of their face value. And the government cant bail them out, it is the government debt that is the problem. The more money the government prints, the more interest rates go up, the less these bonds are worth and the worse the problem gets.
The only way this is fixed is if the government cuts spending, to the point that it has a surplus, so it can buy back those bonds at face value. And we know that can't happen. Who knew $31 trillion in Government debt might be a problem!
You mean what should of happened in 2009?
@@bobbyraejohnson Well the toxic securities in 2008 were Mortgage backed securities, which were a banking bubble (naughty banks!)
This time they are a US$ currency bubble (naughty Fed!)
The thing is that the Fed are not only the people who issue US$, they are also the ones shorting them.
Nope! Biden gave in and is now going to bail out the very billionaires he and the Democrats are constantly complaining about.
They played stupid risky games and if it had played out right they weren't going to share their profits with us. NO BAILOUTS!
@TheRiiiight What an incredibly stupid comment.
@@celestialnubian Bank goes out of buisness, equity investors lose everything, bond holders will get whatever is left after assets are sold to reimburse depositers. This is the obvious risk of keeping so much money over 250k in a single niche bank.
@TheRiiiight I agree with your point, but this is not a consumer driven bank.
@@josephruffin6360 so
@Brandon Burns I do not understand what do mean so?
The purpose of the FDIC was crested to protect the average American and to build confidence during the early stages of the Great Depression under the Banking Act of 33. It was never designed to protect a multi-million dollar corporation. MEANING THIS IS OUTSIDE THE SCOPE OF THE FDIC.
Stop talking about bailing out banks. They will never learn if you keep rescuing them from their stupidity.
I'd like to get bailed out of my bad investments, and credited for my good ones as if nobody else saw the play.
Is that too much to ask?
Biden said taxpayers will not pay a penny, so we should bail them out.
No, no, …..NO. No more of MY MONEY to be used bailing out these freaking crooks!!!
Thank trump for giving all the banks money that let them do it. This is trump's horrible.economy.
send it to Ukrine
@@JawnSnow 🤡🤡🤡🤡
No bailout. Need to reduce inflation.
Sounds easy huh? Tell us how oh wise one? That's right I though so.
@@longfang98 FED funds over inflation
Reduce government spending and at this point raise taxes. Done.
00:12 “SVB stock HALTED before the market open today.”
Whatever to happen to let the FREE MARKET decide? This is NOT capitalism at all!
If SVP is forced to liquidate, they will flood the market with COVID era TBills, devaluing them more, driving up interest rates, and making the problem worse.
it isn't one Bank being irresponsible, it isn't even like 2008 and the banks acting irresponsibly. It is a systemic problem caused by the Fed.
1929 and 2008 happened. Therefor regulations have to exist.
No more bank bailouts! Let em' fail.
That'll be politically unwise for any politician develop for bailout nowadays
The negative impact of SVB and SI debacles has been reflected in the regional bank ETF (KRE) which has witnessed a decline of over 20%. This event has triggered contagion effects, dragging the entire market lower. However, historically speaking, a localized and narrow contagion of this nature presents an opportune time to invest in strong, financially stable companies with substantial cash reserves on their balance sheets.
Indeed, the recent market downturn serves as evidence that a vast majority of individuals lacked a sufficient understanding of the underlying financial dynamics at play.
@Mark Lofgren I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper professional coach, how did you go about touching base with your coach?
Researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call.
Thank you for sharing; I just searched her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes
@Mark Lofgren I've come across a lot of recommendations but this one stands out Susan Bauer Normansell resume is pretty sophisticated, and shows she was active during the last bear market, I also emailed her. Thanks for the info!
NO BAILOUTS! When a depositor is overdrawn, the Bank gives us an overdraft fee, not a bail out, so, whats good for the goose is good for the gander.
Thats right make them pay a fee.
good point
0 Bailouts for these ghouls, let them sink.
No bailouts !!!! Let em fail. Pay back the people not the corporation.
there is absolutely no reason to bail out SVB, its is not a systemic risk to the financial system.
depositors know the FDIC insurance only goes up to 250K. anything above that is your own risk and responsibility. You CHOSE to park your millions and billions with a bank run by degenerates taking extremely high risks. NO BAILOUTS FOR BANKS OR WALL STREET
Forget that, No Bailouts!
If they as much as offer a bail out, I HOPE THAT IT BECOMES THE MOST VIOLENT UPHEAVAL AGAINST THE 1% IN HISTORY!!
@@Luci_S It won’t be upheavel people will cry about it online then forget about it in a few months
@Cobi Cobi
Yup!
Everyone sure has a lot against minorities, immigration or abortion/lgbtq issues!
But the banks?!!
The U.S. and MAGA folks are an utter joke!
@@Luci_S That’s very true
@@Luci_S people don't care if it doesn't effect them. That's why banks keep getting away with it
But providing some help to students with loans is going too far?
Bailing out a bank that couldn’t hack it in the free market is reasonable?
Stop it with the bailout, let them fail, nobody bails me out when I get laid off
I'd love to have my taxes bail out a gambler with money issues 😒
hhahah we pay ourselves like biden pays his son
SVB was also the bank holding the largest bag when the FTX debacle occurred.
Looks good on them then.
Since the Republicans don't want to bail out student loans. There should be no bail outs for banks and corporations. Allow them to lose their jobs, retirement plans, savings, and companies.
No Bailouts!!!!!
Of course. Bail out bankers and the rich, but FU working people in over their heads with student loans.
If this bank gets bailed out this government needs to be replaced
You do get that if this bank doesn't get bailed out it might crash even more of the financial market which means everyone gets screwed right? I don't think you get how the financial world works lol
Bingo to the guy above^ we are looking at unemployment in the millions next.
Like a depression
@@texasgermancowgirl Yeah its a good idea to avoid that
Think of the depositors
They can sell off anything assets worth a dam. Sell accounts with deposits over the FDIC limit. And maybe pay back bond holders if anything is left. These people don't need a bailout. That's ridiculous.
These people who put the money in uninsured accounts were making between ten and fifty million dollars per year. If they’re that stupid, it’s their fault. Let these guys rot. A bailout for SVB would be exceptionally devastating for our country.
@@FoieGras What about the tech industry repeating the same stupid mistakes? This happened in '00 as well. A bunch of zombie companies that don't actually make money. They only exist so the executives can squeeze out every dime into their pocket before it goes under.
@@astrobullivant5908 It's mostly companies who deposited, not individuals. Companies' payroll and operating cash.
Bailing out depositors makes usually sense, but obviously SVB stock holders should lose everything.
@@johnj8069 Well, most of the depositors are FDIC insured so the government has to bail them out by law, just as any insurance company has to "bail out" its policy holders when certain events happen. The people in charge of depositing these companies' money are often getting paid tens of millions of dollars to do so. If the depositors like Roku were too lazy and stupid to put their money in insured accounts, then they shouldn't get a bailout, but instead only get portions of sold-off assets from the liquidation of SVB.
Corporate socialism is OK huh, what about bailing out the people, the homeless, the needy, nahhhh give it to the billionaires. The world is upside down
Just keep bailing them out? No!!!!!!!
I don't mind the government giving bank bailouts IF THESE FUDGING COMPANIES PAID THEIR FAIR SHARE OF TAXES.
You can't be an ardent capitalist when you are making profit and a humble socialist when you take loses.
Bailouts are so 2008! No more taxpayer dollars to save you from your bad choices!
Bailout HELL NO!!
Im in tech and I don’t believe we should bail SVB out. When you can get multi million dollar valuations for ideas with no proof of concept, something is very wrong. It’s unnatural that all that money should be circulating when there is nothing backing it
What about the depositors?
As a depositor. The depositor accepted the risk too. It is known up front that the FDIC will only cover 250k
Any individual or entity that has more than $250,000 in deposits at an FDIC-insured bank should see to it that all monies are federally insured.
It’s not only diligent savers and high-net-worth individuals who might need extra FDIC coverage. Corporations, family foundations, governments and charities also use bank networks and other measures to expand federal insurance protection of their deposits.
This is an example of Moral Hazard if the directors of SVB bought 30 year government bonds didn't they know months ago when the interest rates would increase then the value of those bonds would go down?
IMO they should have known if they had to raise capital thru bonds sales then those losses would be reflected on their balance sheet immediately.
SVB didn't know how to diversify risk and never should have been given a bank charter.
No government bailout tough luck for them let the lawyers sue the pants off of them for being so stupid.
Agreed. I would not invest or do business with them
Exactly
Where's my bailout. Love that we are already repeating 2008 with bailout talk. Not sure how inflation is going to trend downwards if we start handing out taxpayer funded bailouts. This is the first inning of the downtrend.
00:12 “SVB stock HALTED before the market open today.”
Whatever to happen to let the FREE MARKET decide? This is NOT capitalism at all!
don't bail them out. we don'nt get bailed out when we default on a mortgage. let them rot
No Bailout for businesses who fail in their responsibilities! Make your bed and lay in it!
Depositors, by law are protected up to a limit. But creditors and stockholders are not protected from losses. There is no bailout by the government of stockholders. Another bank may step forward to provide liquidity and acquire the customers, ie a private bailout. In any case, the FDIC, will work to make depositors whole to the extent the law permits. US taxpayers know there are costs involved in the process. This is not a "bailout". Remember that depositors are also people who are trying to meet a payroll.
Bank runs mean most big banks cannot hold their bonds at 1% to maturity and now those bonds are worth 37 cents maybe. Bank of America may have 110 billion of unrealized losses on the books now, This is contagion, !!!!
Under no circumstance should this bank get a government bailout. Last time around, banks were bailed out and homeowners were hung out to dry. Can't bailout homeowners. Can't bailout student loan borrowers. No chance on earth this bank should get bailed out.
No more bailouts for banks or any companies!
No bailout for SVB, what happens to the banks that marked to mkt its bonds portfolio and showed big losses? That’s moral hazard!
Again, why are people so willing to give these institutions bailouts but not students?
It’s called a bail-in, and when it happens it’s the worst thing to happen. It’s over. They will begin by saying it’s good. But it’s the end.
Bail-out? Hopefully not by our Gov.
No bail outs. Let them fail.
Moody's Credit Rating Agency granted Silicon Valley Bank a rating of "A" just three days before this bank went down.
Let that sink in folks.
just like in 2008
Shareholders shouldn't be bailed out. It's the deposits. The reason fdic is under 250k is why the run on the bank occurred. If all depositors aren't made whole, and whole soon, bthere will be much bigger problems. They did not loan to startups, vcs invested in them. Both the vcs and many companies had accounts with silicon valley Bank. They shouldn't lose their money. If the gvt is asleep at the switch we will all lose big next week.
No they should not be made whole. Many of these startups and companies should have NEVER been lent funding in the first place.
The fact that so many of these “tech” companies used this bank is because they were well known for lending to unproven, risky, startups who couldn’t get funding elsewhere.
The ONLY people who aren’t getting bailouts in this country are the responsible workers who are having their taxes used to bailout these irresponsible banks, tech companies.
@@williammathis6044 exactly.. these phone scam “startups” selling pipe dreams to VCs and reporting made up success metrics with no actual profits. Only about 1 in 50 of these so called startups are profitable. Let them go burst or bail out themselves on go fund me.
No way… the rest of us are responsible people, pay our taxes and take calculated risks when investing. We reduce our standard of living when we make bad investments and shoulder our own losses. Why should we bail out irresponsible people…
@@williammathis6044 I work for a startup who banks with SVB. we weren’t “lent funding”. We simply had our deposits in there. I think you’re getting investing confused with general banking.
This is a Deja Vue of March of 2008. More analysts state that S&P500 hard down to 3,000!? I believe we are heading to mid 2,000🔥
00:12 “SVB stock HALTED before the market open today.”
Whatever to happen to let the FREE MARKET decide? This is NOT capitalism at all!
Yes, please sell so i can buy more
This is one bank. A lefty run bank.
Precisely as astrologers have been saying for eons re March 2023. Pluto entering Aquarius. Classic. Nothing shocking. Pluto ( banking, big money, death and rebirth) entered capricorn ( big business, governments, paitrioarchy) / cancer ( housing, healthcare) axis in 2008. This time it’s entering Aquarius ( digital anything, computation, internet, hitech, AI, anything fringe).
@@acornsucks2111Aquarius is lefty stuff yes, but also, it’s anything futuristic and scientific... this is just the beginning. Other Aquarian themes we will be dealing w until 2043 involve AI, extreme climatic changes, space travel, aviation changes, UFOs, anything electrical and/or nuclear, mass revolutions globally.
This bank was investing in autonomous truck startups like waymo and embark which ultimately would have destroyed the lives of truckers and their families. Trucking is the most common job in 29 states. NO BAILOUT! It's evil to take the taxes that truckers are forced to pay to bail out the very same bank that would enable companies to work tirelessly to destroy their livelihoods!
You're talking about the people with money in their accounts right? Because if you're Bailing out the guy with millions in his account then the system deserves to fail
Oh god we are going to have another Lehman moment. I don’t think people realize how catastrophic this is. Everything has a ripple effect, no matter what, it will touch your job too.
00:12 “SVB stock HALTED before the market open today.”
Whatever to happen to let the FREE MARKET decide? This is NOT capitalism at all!
This is BS.... and we already know to not believe in contagious things this last few years
and student loan debt relief is legal or illegal?
Illegal...I never signed for the loan...
@@PetuniaIii-pd1ww there's a lot of things you never signed off on that your tax money is going too ..
I blame Fed as well, where was the supposed improved oversight meant to prevent this?
There is, over large cap banks. This isn't one of them.
@Jordan Slingluff 16th largest bank in US isn't big enough for oversight?
@@fokana1 They have tons of oversight. Oversight isn't there to force banks to stay alive. Its there to limit systemic risk. The fact is a couple more regional banks dealing with Silicone companies might go under in the next year or two. They deal with high risk tech companies that in a lot of cases don't even make money. The only reason they exist was the low interest rates. This bank bought a whole bunch of government bonds right before rates went up and then sold them at an incredible lose for some reason. Then proceeded to make one dumb move after another. Nothing at this point seems to be illegal, just dumb mismanagement.The reality is they seemed to have stopped transactions fast enough. Any FDIC insured deposit gets their money back Monday. Deposits over $250k will probably be bought by other banks meaning they don't lose money. Any assets will be sold to cover the remaining deposits and then the rest will go to bond holders. There will probably be some companies go under while everything gets figured out but not much regulation can do about that. Its how the market works. Anyone owning stocks just got screwed and gets nothing.
The 6 largest banks in America are the ones under incredible scrutiny after the Dodd-Frank bill. The next largest 20 had increase regulations as well. At this point they don't seem to be in violation of anything. This is just the end of the free money era. The tech industry is the one who will take the brunt of that.
One of the reasons tech companies go to this regional banks like this is the large banks can't mess with them because the loans.....etc... are to risky with the strict oversight they are under.
The bank examiners didn't know how to perform asset risk analysis or Stress Testing.
A bank examiner should have asked
"If you have a need to sell these Govt Bonds at higher interest rates these losses will have to be reflected on your balance sheet and you may not be able to meet depositor withdrawals?"
@@garyallen8626 Every other large bank has been talking about raising money for a downturn. This bank said hold my beer.
No. No bailouts.
No more bailouts. No more.
Whats funny is the big players took their money out a week ago ...now how did they know hmmm
Dont put all your egg in 1 bucket..need separate into more bucket for secure your egg..
Covering deposits, insured and otherwise should not be a problem. The issue I see is the credit lines the bank may have extended to startups and VCs -those promises were made by an institution that failed. In particular, I see no reason any bank should extend credit lines to VCs that forced the run on this bank!
No bailout.
No we the people will not bail these criminals out again. Let them fall.
This bank is too small to be bailed out and even if it is bailed out it has lost all credibility so customers will leave it and it will die anyway.
OK I'm going to admit it. I have a massive crush on Sara Eisen. Thanks for listening
GO. TO. HELL. When they make money, they keep it. When they lose money, they want other people to cover the loss.
The cash rate goes to a measly 4.5% and this bank is destroyed, who was running this bank? This sounds criminal .Somebody has made a lot of money because of this.
Bailout?? They get rewarded for bad practices? For lucrative salaries? When my business ain’t doing well I pay my bills and don’t pay myself. I’m sure these SVB big wigs are taken care of, they may even get there bonus.
Thats what you get for investing in crypto.
Regional banks are already paying interest on their funding in return for fixed duration. Regionals are funded by CDs, 2 mo, to 5 yrs, laddered, to individual holders.
This does add to scrutiny of commercial lending and banking. Those tend to be interest free with no commitments.
Why support this bailout but then don’t want a bailout for millions of students for student loans lol
Because they needed THAT money for Ukraine.
Because bailing out wealthy people who donate to campaigns is important
Cramer said it's ok
So… This time is different? 😂
@@martinpalm5 Bingo
Yesterday: It is fine if lots of people lose their job in order to tame inflation. Next day: Who cares about inflation? do not mess with my speculation banker. Moral hazard is a b*ich
That bag of Xanax is kicking in it’s cool
SVB doesn’t deserve a bailout beyond what it was insured for.
not this time buddy
This is pure failure to manage interest rate risk ...... why the hell were they holding so much long term treasury bonds (the smallest rate hike would, pummel bond values & balance sheet)
Absolutely correct. Any institution with that degree of “interest rate risk” should have a basic understanding and hedging their risk. Many businesses do it - agriculture, transportation, oil/gas, aggregate commodities, food production ….
The problem with THIS bank is that they gave loans to tech money furnaces.
No bailout, unless they want a revolution!
I think any unemployed tech startup employees from the result of the SVB collapse should learn to coal mine coal is going through the roof right now and is the job of the future.
Why should taxpayer bail out dumb investment by the bank.
It wouldn't surprise me a bit if taxpayers end up paying for this. Capitalism on the way up. Socialism on the way down.
what was their ESG score?
The expert correspondent pretty much immediately discredits himself by saying, "Bond rates have gone down, and all of a sudden they found themselves in a real crunch." They're in a crunch because yields soared, while they were holding long term bonds. Bond rates did not come down. Bond prices came down.
Who's next!?👀
My guess...First Republic!
Any other bank with similar fundamentals.
PNC
They bet on the wrong horse and are demanding taxpayers bail them out.
Do you know how reckless the lending and leverage has to be for a bank to become involvent? It's alot!
Stop it ; no bail out !!!!! Let it fall
So after eating 90 percent of the buffet, they're still hungry and want half of my plate.
No using the taxpayer money, including money that should go to low-income people, in order to ensure that high-income individuals get to continue to live above their means. They are venture capitalists who take major risks, right? So why is this even a consideration? Isn't this just part of being a venture capitalist?
Any subject that would allow such goofery of their money, aka the thing that keeps civilians civil and able to make such basic transactions like the eating of food, pretty much deserves what they get
When geeks succeed they are geniuses, when they fail they get bailout? That’s moral hazard!
There should be no such thing as a bail out!!!!! If illegal stuff was done ones responsible go to jail!
NO
Fdic gonna reach out to the companies outside of the US.
There is a new credit rating of the VCs that caused the run on this bank -ZERO!
Wasn’t just VCs
Soooo, helping millionaires with their money lost but refused to help regular Americans??
That’s what I would call “privilege”.
no bailouts. no freakin bailouts.
Is the FDIC limited to $250,000.....the rest of the money in the account is not insured. correct.
Yep yep but there are sooooooooo many ways to spread that money around.
Sara's hair indicates she has had some "fun" before the segment