Silicon Valley Bank

[Euler]

Monday morning will be interesting.

But what a s**t show, billions in ten years bonds and left with huge paper losses when interest rates went up. Just madness. How do banks get away with this sort of stuff?

I followed this story all last week, but only paid attention when their money raising efforts failed.

[sniffer66]

Bit worrying. My son works for a tech start up. Guess where all there money is\was ?

Its the UK subsidiary, and is allegedly ringfenced but we are waiting with bated breath for tomorrow

[Archery1969]

Wasn’t someone warning about this in January and that several well known banks were in danger of collapsing causing another world wide financial meltdown and everyone laughed ?

[Euler]

I've been on the phone to a lot of investors at the weekend. You would think the authorities would come out with a statement on Sunday evening before things start unravelleing.

[Euler]

Wasn’t someone warning about this in January and that several well known banks were in danger of collapsing causing another world wide financial meltdown and everyone laughed ?

Curiously the incredibly loose monetary policy during the pandemic meant many people were going to make investments at really bad prices. Nobody ever seems to learn, it's just human nature.

[Euler]

The problem now is one of contagion as people will start to panic, but that panic will itself create liquidity problems at banks unless various authorities come out and nip that in the bud.

[Archery1969]

Should I be moving funds on-line, you can bet your bottom dollar this UK banks will be hit as I don’t believe a word of it when they say our banks have enough liquidity ?

[Archery1969]

O dear here we go….

https://www.bbc.co.uk/news/business-64930944

[wearthefoxhat]

Just seems to follow on from SBF and his shenanigans a few months ago. Tip of the iceberg? He was the iceberg....

[Archangel]

I was half following this story. Werent they essentially betting on interest rates staying low, and then when the rates shot up they were left with losses?
It doesnt evoke much confidence in banking when this stuff goes on and we only hear about it when its too late

[Derek27]

Customers of the bank are locked out of their accounts. Just like having your money with Betfair.

[Archery1969]

On the BBC it says allot of UK firms could be in trouble tomorrow morning and unable to pay staff with a big bailout.

My god, not again, budget could be rather funny.

[Dallas]

The problem now is one of contagion as people will start to panic, but that panic will itself create liquidity problems at banks unless various authorities come out and nip that in the bud.

I only became aware how serious towards the end of last as Bitcoin was taking a battering, hard to unpick how much of it was a result of this unfolding as it at least has had bit of a recovery in the last 36hrs

[Euler]

On the BBC it says allot of UK firms could be in trouble tomorrow morning and unable to pay staff with a big bailout.

My god, not again, budget could be rather funny.

Seems pointless coming out with a budget this week.

[Euler]

The problem with bank runs is that they are self-perpetuating. The only thing you can do is inject confidence into the system. But why SVB stuck so much into long dated bonds at such low rates is a bit daft. Bankers never seem to learn, they just pull the same old levers.