SIVB Bank Failure

[james22]

However, insiders complained as the bank grew at breakneck speed, its top management became inordinately focused on social issues...

 

SVB executives were also deeply committed to social justice, according to several of its ex-employees. “I almost felt like I was at work on a college campus,” said another former executive, who recalled weekly internal “TED talks” on social issues and classes on “how to make sure you were not committing a microaggression”.

 

https://www.ft.com/content/6e23a2fb-484e-418d-b309-bf558b3a6a17

[Parsad]

15 hours ago, james22 said:

For nearly 2 months, a short seller was warning on Twitter that Silicon Valley Bank was about to blow up. ‘It was sitting there in plain sight.’

 

https://fortune.com/2023/03/10/silicon-valley-bank-svb-short-seller-william-martin-twitter-2-months/

 

Great pickup by him!  Cheers!

[Parsad]

About friggin' time!  Not sure why this wasn't implemented after 2008/2009.  Clawback compensation and ban executives/directors from the industry if a bank fails!  Cheers!

 

https://finance.yahoo.com/news/biden-asks-congress-to-give-regulators-authority-to-claw-back-executive-compensation-171255897.html

[CorpRaider]

Bloomberg says my boys over at FCNCA are in the data room at SIVB, might bid.  Prior "very low" bid during FDIC process was rejected.  They have helped FDIC resolve a lot of smaller bank assets over the years.  

Edited March 19, 2023 by CorpRaider

[Xerxes]

Great interview. 
 

folks call the recent SVB akin to tightening, Gundlach sees it as easing (disinflationary) as the bonds are being paid full face value (I am guessing he is referring to SVB securities portfolio)

 

 

[LearningMachine]

4 hours ago, Xerxes said:

Great interview. 
 

folks call the recent SVB akin to tightening, Gundlach sees it as easing (disinflationary) as the bonds are being paid full face value (I am guessing he is referring to SVB securities portfolio)

 

 

@Xerxes, did you mean to say Gundlach thinks Fed/treasury giving banks par-value for their treasuries is inflationary not disinflationary?

Edited March 20, 2023 by LearningMachine

[Spekulatius]

The Fed does not give the banks par value for their securities, it lets them borrow in exchange for par value for the securities, but they still need to pay the current 4.5% ST interest rates. So this may solve some liquidity issues, but it becomes a negative carry trade and the banks will lose money doing so.

[Xerxes]

11 hours ago, LearningMachine said:

@Xerxes, did you mean to say Gundlach thinks Fed/treasury giving banks par-value for their treasuries is inflationary not disinflationary?

yes
I always mix up “disinflation” since it has both a D and a I. 

[Paarslaars]

https://9gag.com/gag/aL1zLMv

 

good times

[Spekulatius]

All you need to know about the last 2 weeks worth of financial news from El risitas:

 

[John Hjorth]

And a photo of the phone Bill Ackman has been tweeting from about the whole mess, calling for Ms. Yellen to save the world:

 

[Dinar]

4 hours ago, Paarslaars said:

https://9gag.com/gag/aL1zLMv

 

good times

That's why Spain was an economic basket case for centuries

[Paarslaars]

Yeah sure but there has to be some middle ground here?  

[Spekulatius]

2 hours ago, Dinar said:

That's why Spain was an economic basket case for centuries

You run out of bankers pretty quick that way.