Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron’

[mountaineer]

John Cardillo
@johncardillo
If you manufacture a pandemic, you can shut the world down for a few years in an attempt to control everything.

If that doesn’t work, you can manufacture a banking crisis, nationalize the banks, and truly control everything forever.
8:33 AM · Mar 13, 2023

[catfish1957]

KBE now down 7% as we approach open, and VIX rocketed to 30 as Pedo Joe opened his mouth.

Going to be an interesting day.

KBE down 11% at opening.  And don't forget this is the ETF for the big boys.

What's that...... about half a trill market cap?

[catfish1957]

KBE now down 7% as we approach open, and VIX rocketed to 30 as Pedo Joe opened his mouth.

Going to be an interesting day.

Long treasury bonds are down 6% at open. Wonder how long China holds on to them. 

[Kamaji]

Interesting snippet from NY Post's timeline of the SVB collapse:

SVB had invested the cash into higher-yield, long-term mortgage-backed securities and bonds. When the Fed hiked interest rates, however, the value of those investments plummeted.

Source:  https://nypost.com/2023/03/13/a-timeline-of-silicon-valley-banks-collapse-how-it-all-unfolded/


Looks like, amongst other things, they had a rate/maturity mismatch of titanic proportions that went against them.

[Free Vulcan]

Interesting snippet from NY Post's timeline of the SVB collapse:

Source:  https://nypost.com/2023/03/13/a-timeline-of-silicon-valley-banks-collapse-how-it-all-unfolded/


Looks like, amongst other things, they had a rate/maturity mismatch of titanic proportions that went against them.

Make no mistake, these dumbass 'quants' that come out of these Ivy league b-schools in particular are academic drones, chalkboard smart and market/economy stupid.

They create these portfolios based on equations with assumptions that things are going to stay the same forever. It's the same reason their MBS portfolios went to crap in '07. They had every signal to get the hell out of their positions but they relied on their formulas.

The markets and economy are always in motion. You're lucky if your assumptions hold for a year, two at most.

[240B]

[Hoodat]

Looks like the FED is going to be printing up a lot more money to prop up millionaires and billionaires.  Meanwhile, expect the regime to go after small banks, forcing them out of business, only to be bought up by the newly enriched big banks.

[mountaineer]

 Obama official, Hillary donors, improv actor: Meet SVB’s board of directors
By Joshua Rhett Miller   
March 14, 2023 10:24am

One is a Hillary Clinton mega-donor who went to a Shinto shrine to pray after Donald Trump won the White House. Another worked for President Barack Obama before her own political career spectacularly failed. A third is a prolific contributor to Democrats, including Nancy Pelosi — who owns a Napa Valley vineyard just 15 minutes from the former House speaker’s.

There’s even an improv performer.

The 12 directors who were supposed to oversee fallen Silicon Valley Bank — and prevent the catastrophic errors that threw the entire banking system into jeopardy on Friday — might not be household names.

But they are facing a series of investigations into their collective role in its collapse.

A Post examination of the board reveals it did not jibe with Silicon Valley’s young image: Only one independent director is under 60, while the oldest is 78.  ... 

NY Post

[mountaineer]

Libby Emmons
@libbyemmons
Thiel basically caused the bank-run, and will now be paid back in full by the fed.
BREAKING: Peter Thiel had $50 million in failed SVB at time of collapse

     Mar 16, 2023
BREAKING: Peter Thiel had $50 million in failed SVB at time of collapse
The Biden administration said on Sunday that they would move to protect all depositors at SVB.

Billionaire PayPal founder Peter Thiel reportedly had $50 million stored in fed-seized Silicon Valley Bank, this despite his venture fund having warned others that the bank was at risk. The Biden administration has promised to make sure all depositors are able to access the full amount of what they had in SVB's coffers.

Thiel was also blamed for the bank run on SVB, in which depositors attempted to withdraw some $40 billion from the tech-industry bank in 24 hours. Thiel's Founders Fund had advised clients not to keep all their cash in SVB, and to spread it around to other financial institutions.   ...

https://thepostmillennial.com/breaking-peter-thiel-had-50-million-in-failed-svb?utm_campaign=64506

[Timber Rattler]

HOLD ON THERE: Yellen says not ALL deposits at ALL banks are "insured"

https://hotair.com/tree-hugging-sister/2023/03/16/hold-on-there-yellen-says-not-all-deposits-at-all-banks-are-insured-n537411

Regional banks are out of luck!

https://twitter.com/i/status/1636412189832798209

[mountaineer]

So much incest.

Joe Biden’s Green Energy Buddies Have Major Ties To Silicon Valley Bank
By: Larry Behrens
March 21, 2023

The contrast couldn’t be clearer. A devastating train derailment and subsequent toxic fires rock a community in Ohio that President Trump carried by 29 points. Forty days later, President Joe Biden has yet to set foot in East Palestine despite numerous pleas from residents.

A few weeks after the train crash, news breaks about a well-connected bank few have ever heard of crumbling on a Friday afternoon. At a time of the day his supporters say he usually does nothing, Biden is in front of the television cameras telling the world that the U.S. government will bail out Silicon Valley Bank, which is located in a city Biden won by almost 50 points. Biden’s climate buddies and Gov. Gavin Newsom’s wine companies are no doubt relieved.  ...

It’s easy to wonder if President Biden’s actions are driven by the bank’s connection to climate companies. This article highlights a few, noting “Silicon Valley Bank served as a banker to dozens of climate and energy-tech companies, holding their cash on a day-to-day basis and issuing billions of dollars in loans in support of the type of large-scale, one-off projects that are essential to the sector.”

Read it again: Dozens of climate companies. Billions in loans. Holding their cash on a day-to-day basis. Now, it gets interesting. ...

Read more at The Federalist