16th largest bank in the US. Wouldn't be all surprised to see the Fed halt rate hikes on this news.
Silicon Valley Bank collapsed Friday morning after a stunning 48 hours in which its capital crisis set off fears of a meltdown across the banking industry.
California regulators closed down the tech lender and put SVB in control of the US Federal Deposit Insurance Corporation. The FDIC is acting as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors and creditors. The FDIC is an independent government agency that insures bank deposits and oversees the financial ins utions.
The FDIC said all insured depositors will have “full access” to their insured deposits by no later than Monday morning, and it will pay pay uninsured depositors an “advance dividend within the next week.”Several other bank stocks were temporarily halted Friday, including First Republic, PacWest Bancorp, and Signature Bank.https://www.cnn.com/2023/03/10/inves...ank/index.html“SVB’s ins utional challenges reflect a larger and more widespread systemic issue: The banking industry is sitting on a ton of low-yielding assets that, thanks to the last year of rate increases, are now far underwater — and sinking,” wrote Konrad Alt, co-founder of Klaros Group.
Alt estimated that rate increases have “effectively wiped out approximately 28% of all the capital in the banking industry as of the end of 2022.”
Insured deposits are capped at $250,000 I think. Plus I think you can have a joint account that insures for that much as well. But if someone has more than that, I don't think all of that is generally insured by the FDIC. Imagine having your life savings in there and still having to pay them for your mortgage/loan when they've lost a significant portion of your money. Maybe I'm reading it wrong.
yep.
https://www.fdic.gov/resources/depos...s-at-a-glance/The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for coverage over $250,000 if they have funds in different ownership categories and all FDIC requirements are met.
All deposits that an accountholder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount.
Silvergate failed two days ago
https://www.thestreet.com/investing/...bank-collapsesSilvergate (SI) - Get Free Report, which used to be known as the crypto bank, is the first U.S. bank to collapse since 2020, according to the Federal Deposit Insurance Corporation (FDIC), a guarantor for bank depositors.
funny meme
Hmm...
Many Wells Fargo customers are voicing frustration after money appeared to be missing from their online banking accounts on Friday morning.
The bank said in a statement that it's aware "some customers’ direct deposit transactions are not showing on their accounts, however funds in accounts are accurate and available."
"We are working quickly on a resolution and apologize for the inconvenience. Customers’ accounts continue to be secure,” Wells Fargo said in response.
Downdetector, which tracks online outage reports submitted by users, indicated a e in issues with Wells Fargo around 8 a.m. Eastern.
The notice to customers came as many posted on Twitter that their direct deposits and scheduled paychecks were suddenly missing on Friday. Some said their accounts were now at risk of overdrafting.
https://www.wfaa.com/article/news/na...b-83e35f815c6eThe bank initially posted a notice in its mobile app Friday morning that said a "technical issue" may be to blame if customers were seeing missing transactions or incorrect balances.
This is really big
Even the stocks of big European banks are down several percent , so far
I bought some sqqq calls yesterday when I heard the news . I need to own some silver and gold
that was fast.
sounds bad
Real world impact
https://www.fdic.gov/news/press-rele...3/pr23016.htmlThe FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds.
"bad bets on MBSs" are widely mentioned today
(wonder if Twitter/Tesla are exposed)
“Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-866-799-0959.”
four days ago
The Cramer curse
https://www.bbc.com/news/business-64911066A 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.
lol uninsured...thats fck up with someone with excess over 250k...shouldve spread ur risks into other banks, instead of having everything in 1 basket
Got your fingers crossed?
Why would they be?
It would surprise me if the Fed immediately came out and said there's a financial crisis and we caused it. I mentioned to you some theories I've heard of how things might play out here
https://www.spurstalk.com/forums/sho...1#post10821678
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