SVB - 2023 Too Big to Fail

Discussion in 'West Mall' started by theiioftx, Mar 13, 2023.

  1. ViperHorn

    ViperHorn 10,000+ Posts

    This is the only correct part of the statement: "incompetence at the bank, state regulator, and the Fed." But then Competence isn't a job description for those operations.

    You take risk under two scenarios: (1) The probable reward is greater than the known risk, and (2) You have no other choice if you want to stay in that business.

    SVB's management and board had no idea of the risk they were taking by borrowing to pay the debt in an era of rising interest rates. You need people like Sabre running your bank and not some PE want-a-be with a board full of politicos.
     
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  2. bystander

    bystander 10,000+ Posts

    After watching the market this morning, my feeling is that we need to jail some people and perp walk them like Bud Fox was in Wall Street. It is just sick that those of us on the precipice of retirement must endure this kind of stress and potential permanent loss as it could take years to recover even to what the market was like one year ago.
     
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  3. Driver 8

    Driver 8 Amor Fati

     
    • WTF? WTF? x 3
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  4. nashhorn

    nashhorn 5,000+ Posts

    Idiots are in control.
     
    • Agree Agree x 3
  5. Monahorns

    Monahorns 5,000+ Posts

    Yes. In every institution. Plan accordingly. Educate yourself.
     
  6. Driver 8

    Driver 8 Amor Fati

    JPowell didn't want regulatory failures mentioned - good thread in this one

     
  7. Mr. Deez

    Mr. Deez Beer Prophet

    It's not idiocy. It's cronyism, corporatism, and corruption. And of course, if this falls apart, they'll "blame capitalism."

    And don't you love when she says they can't discriminate against foreign investors? If they were Russian, you know they damn sure would find a way to discriminate.
     
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  8. Facing Addiction

    Facing Addiction 1,000+ Posts

    • Funny Funny x 2
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  9. nashhorn

    nashhorn 5,000+ Posts

    Darn, Kyosaki says all this is intentional and we are in serious trouble. Claims Yellen’s comments show they are all controlling and intentionally moving us to a “Fed” coin, ie, a central banking system.
    I may not be a “Rich Dad, Poor Dad” disciple but he’s making sense and has been correct before.
     
  10. Dionysus

    Dionysus Idoit Admin

    I think he is always extremely negative though, like he is trying to stir up drama to get attention. That’s been my limited impression of him anyway, admittedly I haven’t followed his work closely.
     
    • Agree Agree x 1
  11. nashhorn

    nashhorn 5,000+ Posts

    Probably right Dion but I remember hearing Yellen and had the same “did I hear that right” thoughts when she was remarking that only she and the Feds would be deciding to whom the relief would go.
     
  12. ViperHorn

    ViperHorn 10,000+ Posts

    Kellen is useless and never should have been confirmed.

    UBS is going to end up with Credit Suisse so this is big time godfather stepping up.
     
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  13. nashhorn

    nashhorn 5,000+ Posts

    Now that’s the truth in every way.
     
  14. guy4321

    guy4321 2,500+ Posts

    Jeez, guys. How'd you both know I am in control of an institution!?
     
    • Funny Funny x 1
  15. SabreHorn

    SabreHorn 10,000+ Posts

    It will never become public knowledge because of politicians, but there are great, long trusted institutions turning up on these problem lists. Places we went because we could not trust US banks with or without insurance. Meet with these banks in private and you realize that they put heavy starch in their underwear - all business, no laughter.

    I expected this from US banks but never from the Swiss, HSBC, Butterfield. Paribas was always the First City of Europe. They would go behind your back and steal your biggest customers.
     
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  16. ViperHorn

    ViperHorn 10,000+ Posts

    Not surprised by Swiss and HSBC. Both were very aggressive in areas (product and geographically) that no sane business man would go.
     
  17. mchammer

    mchammer 10,000+ Posts

    This article may explain the actions of the feds to protect insurers and let banks fail:

    Rich Bank Dumb Bank

    In short, a lot of bad folks making greedy and stupid decisions. People are hiding the real reason, hoping you don’t look under the covers.
     
    • Agree Agree x 1
  18. Monahorns

    Monahorns 5,000+ Posts

    The people making stupid decisions, the depositors, got paid from the wallets of poor and working class people.
     

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