Silicon Valley Bank is largest failure since 2008 crisis, billions stranded

rietrot said:
Yeah these banks are selling, also interest rates are higher so buyers want a better yield.

Any evidence that the rest of the world is dumping US bonds? How much did China sell?
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China?, who mentioned China except you?
 
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This says it all....
 
rvZA said:
We all knew this was going to happen. The domino effect is now happening. All US banks will collapse and others around the world too. 2008 coming back again, but this time much worse. This time SA banks will not jump this one free.
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Think SA banks are well prepared!
 
rietrot said:
What is it with leftist moaning about Peter Thiel?
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People are moaning because he made the right call. I'm sure all his clients are very happy they listened.

An older article that details some of the actions taken. None of the conspiracy nonsense.
finance.yahoo.com

Thiel’s Founders Fund Withdrew Millions From Silicon Valley Bank

(Bloomberg) -- Peter Thiel’s Founders Fund had no money with Silicon Valley Bank as of Thursday morning as the bank descended into chaos, according to a person familiar with the matter.Most Read from BloombergFirst Republic Set to Get $30 Billion of Deposits in RescueIn New York City, a $100,000...
finance.yahoo.com finance.yahoo.com
 
Speedster said:
Nope. Investing in a bank would mean buying shares in the bank. Investing at a bank and investing in a bank are two very different concepts.
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Not many people are aware of this, but when you deposit money with the bank, you forfeit your ownership of the money (surrender your legal title to it). The money becomes the banks asset and all you have is a claim (an IOU).

You basically loaned the money to the bank to do as they see fit and risk the money not being there when you want it.
 
Paulsie said:
Not many people are aware of this, but when you deposit money with the bank, you forfeit your ownership of the money (surrender your legal title to it). The money becomes the banks asset and all you have is a claim (an IOU).

You basically loaned the money to the bank to do as they see fit and risk the money not being there when you want it.
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But that is what banking regulators are for. It's ridiculous to think each potential client must understand and stay on top of their bank's inner business.
 
Speedster said:
But that is what banking regulators are for. It's ridiculous to think each potential client must understand and stay on top of their bank's inner business.
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This is a perfect case of bad regulation and midwits at the bank following it blindly. Treasury bond are supposed to be zero risk according to the regulation.
 
Speedster said:
But that is what banking regulators are for. It's ridiculous to think each potential client must understand and stay on top of their bank's inner business.
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It's not the banks. It's the system that's rotten, Keynesian economics and all.
 
rietrot said:
Treasury bond are supposed to be zero risk according to the regulation.
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They are when it comes to the security of repayment. They are not when it comes to yields.
And when the value of underlying assets dips below the banks liabilities, all a sudden they become insolvent.
 
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