The collapse of Silicon Valley Bank is second largest in US history

Silicon Valley Bank was closed by regulators on Friday after depositors rush to get their money.
The bank is a major leader of tech start ups and the spectacular collapse over two days is seen post the feds 4 triilion dollar injection into the market after the market freeze of March 2020 and now the interest rate hikes that has resulted in security bond yield increaing but their market value significantly decreasing.

Some interesting comments by Tooze. https://adamto…

He says banks generally are sitting on big losses from the interest rate hike effects on the value of their bond portfolios.

Bloomberg says this morning the situation will hit the SBV bank in England on Monday when it will be declared insolvent, and may hit other SBV banks in other countries such as India, China, Germany and Israel.

Leaders of roughly 180 tech companies today sent a letter calling on UK Chancellor Jeremy Hunt to intervene, claiming “The loss of deposits has the potential to cripple the sector and set the ecosystem back 20 years

Biden has come to the rescue of his wealthy donors with the announcement of a massive bailout. Yet he just cant seem to find the money to help the working class the poor thing

According to a post by economic historian Adam Tooze on his Chartbook site, “At a rough guess SVB suffered a loss of at least $1 billion every time interest rates went up by 25 basis points (a rise of 0.25 percentage points) and the Fed has hiked by 450. So if they had to sell their ‘safe’ portfolio of bonds they would actually suffer a huge loss.”

SVB are not Robinson Crusoe in the sea of banking malfeasance house of cards

Another bank collapses

More to fall by the end of the week

Shares of First Republic Bank fell more than 64 per cent to $29.86 after declining as much as 70 per cent.

Shares of Western Alliance Bancorporation fell over 53 per cent to $22.99, while PacWest Bancorp stock was down almost 38 per cent to $7.75.

Zions Bancorporation and KeyCorp had more modest declines, with shares down 17 per cent and 8 per cent, respectively.

Interesting comment by Bernie, supporting the people and correcting the definition of socialism

“Now is not the time for U.S. taxpayers to bail out Silicon Valley Bank. If there is a bailout of Silicon Valley Bank, it must be 100 percent financed by Wall Street and large financial institutions. We cannot continue down the road of more socialism for the rich and rugged individualism for everyone else,” said Sen. Bernie Sanders (I-Vt.) in a statement.


President Biden Announces American Rescue Plan

It was Trump who gave the rich a tax cut to the tune of 2 trillion dollars.

Trump Tax Cuts Helped Billionaires Pay Less Taxes Than The Working Class In 2018

According to a 2017 survey, many large corporations said that they didn’t need the money from the Trump administration’s tax cuts. They were sitting on a record $2.3 trillion in cash reserves, double the level in 2001.

Why do you keep lying?
Here is where your “observations” belong.

He took away one of their talking points! Conservatives loved to point out that the rich paid the majority of the US tax bill. Never mind its a progressive system, so more money, more taxes.

And what a scam that is. Of course, a rich person pays more in taxes, even if they pay only half the tax rate of a wage earner.

That’s the same as a COLA increase based on a percent of income.
Say a cost of living increase is $200 00 p/yr in dollars or an average of 2% increase p/yr.

Now this is how COLA is distributed;
A 2% COLA for a person making 100,000 = 2000. 00 p/yr
A 2% COLA for a person making 10,000 = 200.00 p/yr

That is not a “cost of living adjustment” but a “cost of lifestyle adjustment”.

I have a feeling more large corporations are going to collapse in the near future and not just banks and it will be due to their greed. Even Big Pharma could collapse too, because of their greed.

Yes when you remove that much capital from the market there will come a time when there is not enough money to sustain a healthy economy.

Money sitting in banks or stocks receiving “unearned” profits without producing goods is useless if not actually detrimental to a free market system.

It is disheartening to know that supermarket shelves are sitting empty, yet corporations making more money than ever.

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IMO, low rates have supported big business for some time now. We are starting to move toward greater equality, but it will be a long struggle.

Note, this is from 2021, when rates were still low

And another bank collapses. Spectacular implosion of capitalism

Can anyone make heads or tails out of this statement ?


We are starting to move toward greater equality,


The dollar is a contract for a means of exchange of values. This contract is printed by the government and guaranteed to as to its exchange value.

OTOH, crypto money is not a means of exchange, it is merely an unsecured promise. If someone breaks the promise there is no way to recover the value.
Unfortunately a lot of people exchanged real money for crypto and someone broke a promise.

I would rather say that state money is the result of a social contract. And more so with the modern banking system and the system of checkers and credit card.

Most of the world money is purely scriptural, without any relationship with the needs of economy.

Money is mostly created by banks when they loan money they don’t have.

Thousands of milliards of $ or € have been created and are used for speculating.

Yes, economics needs to be regulated. There are always greedy people who must be restrained from taking advantage of lax regulation.

Punishing them after the fact doesn’t change a thing. They must never be allowed to take advantage in the first place. It’s not complicated.

When Trump was president he did away with a lot of banking regulations so that he himself could take advantage. Remember, no bank would lend him money because he never did pay his debts, except to expensive porn stars.
This banking disaster is but one in Trump’s sorry legacy.

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Yet, Repugs, Dotard supporters, etc are blaming President Biden for it.

Some Re[ublicans are asking to deregulate banking even more, but some cooler heads are finally beginning to protest against the Republican onslaught.

Why Do Republicans Want To Gut Bank Regulations Even More?

Not satisfied with the regulatory relief that legislators bestowed upon banks under the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) signed earlier this year, seven Republican senators want to gut bank regulations even more. They [wrote] the Federal Reserve’s Vice Chairman for Supervision, Randall Quarles, last Friday requesting the relaxation of key capital and liquidity rules for numerous banks in the $100 -250 billion asset range, and in some case, even for those larger than that range. Senators Bill Cassidy,(LA) James M. Inhofe,(OK) James Lankford,(OK) David Perdue(GA), Thom Tillis(NC), Michael Rounds(SD), and Jerry Moran (KS) are all signatories to the letter. Only Senators Moran, Perdue, Rounds, and Tillis are members of the [Senate Banking Committee]

(Membership | About | United States Committee on Banking, Housing, and Urban Affairs). Notably, Senator Mike Crapo the head of the Senate Banking Committee did not sign the letter, and neither did the eight other Republican members of the banking committee.

“This is just like before 2008 when political interference and ignorant ideology drove regulatory policy and resulted needlessly in the financial crisis” stated Dennis Kelleher, President and CEO of Better Markets, a civil society organization that promotes financial stability. “It is laughable that these senators are telling banking experts at the Federal Reserve with decades of individual experience and thousands of collective years, how to read data.” Kelleher emphasized that the “Fed exists to look at data in an unbiased manner and here you have a bunch of senators trying to bully the Fed to reading its own data in a particular way.”

With the exception of Senator Inhofe, senators Cassidy, Lankford, Moran, Perdue, Rounds, and Tillis all received campaign contributions from banks or securities firms. It is particularly incredible that senators who are in the Senate Banking Committee are allowed to receive monetary contributions from the very banks which the legislators are writing laws about. These senators’ voters should question whether they can be impartial when crafting laws intended to make the banking system safer in order not to have taxpayers continually bail banks out.

Who got rid of glass steagall Act??

Stating the bleeding obvious without thought on why it is not and how should it be regulated

It was regulated until Trump removed most of the banking regulations during his presidency. This was just another disastrous decision by Trump to make some new rich friends in the banking industry so that he could borrow again.

Obviously that fact escaped your attention. So clearly it is you who has not given it any thought.

And one solution to lessen the risk to investors is to have insurances covering bank accounts dependent on size and risk . Borrowers would be responsible to pay part of the premiums. This would have several beneficial effects that are readily apparent.