Major Northern CA Bank Fails

[ZoWie]

Silicon Valley Bank has been closed by the state and/or the US government after panic withdrawals started with people lining up to get their money. FDIC says they'll bail out insured deposits. Many tech companies use that bank, and their finances are currently in limbo.

Here I was, all ready to start posting links to a developing weather catastrophe in Central California, with whole counties declaring emergencies before anything that dire has actually happened, and now the mass hysteria is building about the financial system in the same place.

CNBC is in full crisis mode. Stocks tanked yesterday on financial worries. Today at this moment the DOW and NASDAQ are more stable than those people who work on that floor of 30 Rock. CNBC's chatty corps is so hyped about their version of Armageddon that they can't even get the equipment to work right. On-air meltdown mode seems one button push away.

So here's a different link, concerning the bank, about a different sort of chaos up north, and that's that.

https://www.bbc.com/news/business-64915616

A crucial lender for early-stage businesses, SVB is the banking partner for nearly half of US venture-backed technology and healthcare companies that listed on stock markets last year.

Speaking in Washington on Friday, US Treasury Secretary Janet Yellen said she was monitoring "recent developments" at Silicon Valley Bank and others "very carefully".

[Motor City]

https://twitter.com/RepKatiePorter/stat ... 4810702848

The collapse of Silicon Valley Bank was totally avoidable.

In 2018, Wall Street pushed a deregulation bill that allowed banks like SVB to take reckless risks. It passed, even as I and many others warned of the risks.

I am writing legislation to reverse that law, S. 2155.

Of concentrated power and delusions

[Drak]

In 2018 Trump removed the Dodd/Frank regulations.

[ZoWie]

The SVB failure is only one bank, but it should be taken as seriously as the failure of only one major New York brokerage the last time the tech bubble burst. That incident led to a complete rethink of the system, which is all that's keeping us from a worse panic this time.

People are burned out on bad news and in a very bad psychological situation. Another banking collapse like the S&L crisis would undoubtedly precipitate a major day of reckoning in this country, and the usual people would deal with it in the usual manner, by screaming for a military attack on whoever is easiest to shift blame onto. The last thing we need right now is another unnecessary 20-year war.

A major crypto bank is also in trouble, and if it goes a lot of people will be up shit creek. Unfortunately, economics right now are like the weather in LA. Lots of complaining, no real attempt to stop dumping tons of poison into the planet's atmosphere.

[Libertas]

In 2018 Trump removed the Dodd/Frank regulations.

Left up to Republicans we would be dying in much larger numbers, this reminds me of one of the pilot airplane youtube's I watch And this one is from a guy called Mentour Pilot And he was talking about a regulation in the states where documentation of pilots history has to be available when they go to be a new hire at an airline But before this became available bad pilots were getting through. Republicans of course would do away with this law if they could.

Repubs either on purpose or because they are all stupid, will kill many of us.

[bird]

The SVB failure is only one bank, but it should be taken as seriously as the failure of only one major New York brokerage the last time the tech bubble burst. That incident led to a complete rethink of the system, which is all that's keeping us from a worse panic this time.

People are burned out on bad news and in a very bad psychological situation. Another banking collapse like the S&L crisis would undoubtedly precipitate a major day of reckoning in this country, and the usual people would deal with it in the usual manner, by screaming for a military attack on whoever is easiest to shift blame onto. The last thing we need right now is another unnecessary 20-year war.

A major crypto bank is also in trouble, and if it goes a lot of people will be up shit creek. Unfortunately, economics right now are like the weather in LA. Lots of complaining, no real attempt to stop dumping tons of poison into the planet's atmosphere.

I would say that the average person, if there is such a thing, does not comprehend the interconnectedness of the financial system. While we rant, justifiably, about threats to democracy such as Jan. 6 the real threat is the system itself.

Marx was right about the system. Unfortunately, he wrong about solutions. The entire world cannot operate on the assumption of T.I.N.A. It not only is destructive ecologically, it is destructive socially and psychologically. That being said there is no solution that will not touch off chaos. So, chaos now or chaos down the road when it could light up the entire world and not in a good way.

[Number6]

The bank is FDIC insured so those accounts with $250,000 or less shouldn't have a problem getting their money. The problem is more for businesses that deal in the millions of dollars and have their money is a single account. For example, if Company X has $10 million in one bank account they're only insured up to $250,000 and thus could lose $9.75 million.

We've been through this drama in the past with the Savings and Loans scandal in the 80s and the financial crisis in 2008 with the federal government coming to bail them out. Treasury Secretary Janet Yellen shouldn't bail out Silicon Valley Bank and I agree with her.

Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money.

The Federal Deposit Insurance Corporation insures deposits up to $250,000, but many of the companies and wealthy people who used the bank — known for its relationships with technology startups and venture capital — had more than that amount in their account. There are fears that some workers across the country won’t receive their paychecks.
https://www.huffpost.com/entry/janet-ye ... 08735a733a

[gounion]

As always, this is what happens when you don’t listen to the liberals. As long as banking is mostly unregulated, this will continue to happen on and on and on. Banks cannot be trusted to regulate themselves.

[Number6]

As always, this is what happens when you don’t listen to the liberals. As long as banking is mostly unregulated, this will continue to happen on and on and on. Banks cannot be trusted to regulate themselves.

Stuff like this happens when you loosen regulations in the name of business interests.

[gounion]

Stuff like this happens when you loosen regulations in the name of business interests.

What’s funny is idiots like Glenn always bitches about regulations, but when something happens, he complains “why didn’t the government stop that?”

[Glennfs]

What’s funny is idiots like Glenn always bitches about regulations, but when something happens, he complains “why didn’t the government stop that?”

Ong a bank failed if only the government had protected us oh why oh why oh why.
How can we ever survive without the government to protect us.

[gounion]

Ong a bank failed if only the government had protected us oh why oh why oh why.
How can we ever survive without the government to protect us.

You know, we didn’t have bank failures from the New Deal for forty or more years, when Reagan started cutting the regulation, and gave us the S&L crisis, then the meltdown of 2008. Which the reforms of the New Deal were made to prevent.

Problem is when these bankers invent crap out of whole cloth that doesn’t have anything to do with reality, just to make money from nothing.

If we had a well-regulated financial system, this wouldn’t happen. It’s theft by bankers.

[bird]

Ong a bank failed if only the government had protected us oh why oh why oh why.
How can we ever survive without the government to protect us.

Well, foolish one, it appears contagion is spreading in the F.I.R.E. sector.

Tell you what, pick up the phone, call your bank and tell them you don’t want the FDIC to back your money. You know, you don’t need government protection.

[JoeMemphis]

Ong a bank failed if only the government had protected us oh why oh why oh why.
How can we ever survive without the government to protect us.

This isn’t Reagan’s fault. That’s just total nonsense. For one thing the man left office in 1988, 34 years ago. He died in 2004. We have had the SNL crisis and the banking crisis in 2008. We have had 5 different Presidents since then from both sides of the aisle. That’s plenty of time to fix a problem. Hell the Obama administration was elected with an almost veto proof majority after the last major bank crisis. What did they miss?

Secondly, the bank in question is not FDIC insured which means it operates under state banking regulations. Let’s see, which state are they located in and who runs that state with veto proof majorities.

So if there is a gap in regulation. It isn’t because of Reagan. Blaming Reagan after 30 years sounds like an irresponsible adult blaming a long dead parent to avoid taking responsibility for their own decisions.

Edited to correct. SVB deposits under $250k appear to be insured by FDIC. However it is a state chartered bank and regulated by the State of CA.

[Motor City]

Ong a bank failed if only the government had protected us oh why oh why oh why.
How can we ever survive without the government to protect us.

Yea I guess I could see why some people wouldn't want to be protected from being awarded free money for driving the bank into failure.

[gounion]

This isn’t Reagan’s fault. That’s just total nonsense. For one thing the man left office in 1988, 34 years ago. He died in 2004. We have had the SNL crisis and the banking crisis in 2008. We have had 5 different Presidents since then from both sides of the aisle. That’s plenty of time to fix a problem. Hell the Obama administration was elected with an almost veto proof majority after the last major bank crisis. What did they miss?

Secondly, the bank in question is not FDIC insured which means it operates under state banking regulations. Let’s see, which state are they located in and who runs that state with veto proof majorities.

So if there is a gap in regulation. It isn’t because of Reagan. Blaming Reagan after 30 years sounds like an irresponsible adult blaming a long dead parent to avoid taking responsibility for their own decisions.

Edited to correct. SVB deposits under $250k appear to be insured by FDIC. However it is a state chartered bank and regulated by the State of CA.

How fucking hilarious. Gee, Glenn didn’t mention Reagan. I did. You want to pretend you aren’t paying attention to me, but you are. How cowardly and dishonest.

First, the bank IS FDIC ensured. You say you’re an accountant? You’re an idiot! The problem is deposits are only ensured to $250,000.

You don’t have a clue what you are talking about!

And yes, it’s Reagan’s deregulation. Any time we try to fix that, the Republicans fight it. You don’t want the financial system regulated, and this is how we pay for it.

[gounion]

This isn’t Reagan’s fault. That’s just total nonsense. For one thing the man left office in 1988, 34 years ago. He died in 2004. We have had the SNL crisis and the banking crisis in 2008. We have had 5 different Presidents since then from both sides of the aisle. That’s plenty of time to fix a problem. Hell the Obama administration was elected with an almost veto proof majority after the last major bank crisis. What did they miss?

Secondly, the bank in question is not FDIC insured which means it operates under state banking regulations. Let’s see, which state are they located in and who runs that state with veto proof majorities.

So if there is a gap in regulation. It isn’t because of Reagan. Blaming Reagan after 30 years sounds like an irresponsible adult blaming a long dead parent to avoid taking responsibility for their own decisions.

Edited to correct. SVB deposits under $250k appear to be insured by FDIC. However it is a state chartered bank and regulated by the State of CA.

Yes they are. Funny how you corrected it AFTER I pointed this out. You are an idiot.

Banks are all regulated by the FDIC, a FEDERAL agency. Strike two. That’s why the FDIC, not the state, took this bank over. For an accountant, you really don’t know shit about anything, do you?

Gonna do another edit?

And it seems like a bill deregulating banks by Donald Trump in 2018 paved the way for this failure, via Forbes: https://www.forbes.com/sites/mayrarodri ... 3e15763432

[JoeMemphis]

Edits to posts that are made prior to said post being read are not date stamped.

[gounion]

Edits to posts that are made prior to said post being read are not date stamped.

Don't lie. You edited it after I pointed out your gross error.

You going to edit your second idiot mistake - one that an accountant shouldn't be making - that the federal government didn't regulate and oversee the banks that failed?

[JoeMemphis]

Don't lie. You edited it after I pointed out your gross error.

You going to edit your second idiot mistake - one that an accountant shouldn't be making - that the federal government didn't regulate and oversee the banks that failed?

Where did you “point it out to me”? Because your response clearly contains my clarification.

SVB is a state chartered bank and is regulated by and under the laws of the state of CA. It’s a matter of public record. Google it.

[gounion]

Where did you “point it out to me”? Because your response clearly contains my clarification.

But you were an idiot to say it in the first place.

SVB is a state chartered bank and is regulated by and under the laws of the state of CA. It’s a matter of public record. Google it.

Then why is the FDIC taking over the bank? Hmmmm? https://www.fdic.gov/resources/resoluti ... y-faq.html

I mean, you're supposed to be an educated, accredited accountant, right? How can you be so stupid?

[JoeMemphis]

But you were an idiot to say it in the first place.
Then why is the FDIC taking over the bank? Hmmmm? https://www.fdic.gov/resources/resoluti ... y-faq.html

I mean, you're supposed to be an educated, accredited accountant, right? How can you be so stupid?

Read the very first sentence of your own link. Who closed the bank?

[Glennfs]

How fucking hilarious. Gee, Glenn didn’t mention Reagan. I did. You want to pretend you aren’t paying attention to me, but you are. How cowardly and dishonest.

First, the bank IS FDIC ensured. You say you’re an accountant? You’re an idiot! The problem is deposits are only ensured to $250,000.

You don’t have a clue what you are talking about!

And yes, it’s Reagan’s deregulation. Any time we try to fix that, the Republicans fight it. You don’t want the financial system regulated, and this is how we pay for it.

Banks fail a day or two after Biden tells us how great the economy is and it is Reagan's fault.
Such is liberal logic

[JoeMemphis]

Banks fail a day or two after Biden tells us how great the economy is and it is Reagan's fault.
Such is liberal logic

No he changed his mind on talking points. He is now blaming it on Trump. However this particular bank is a state chartered bank and is regulated by the California Department of Financial Protection and Innovation. They are the folks who closed the bank. This bank operates under the laws of the State of California.

[gounion]

No he changed his mind on talking points. He is now blaming it on Trump. However this particular bank is a state chartered bank and is regulated by the California Department of Financial Protection and Innovation. They are the folks who closed the bank. This bank operates under the laws of the State of California.

No, the bank operated under the FDIC. The FDIC now controls it.

And you're an idiot. You even thought the bank wasn't insured under the FDIC.

And Reagan, yes, started the deregulation. And Trump and the GOP did another bill further deregulating these banks. The bank didn't have to do any reporting which would have shown it was failing.

Tell me why you guys thing this deregulation of our financial system is such a great idea.