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Pull your panties up!!!!
www.barrons.com
St. Patrick's Day Meets Halloween: Why Wall Street Should Be Scared
A triple witching day happens when stock options, stock index options, and stock-index futures all expire on the same day.
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3 of the 4 banks that failed are under the purview of Mary Daly of the Fed. YUGE **** up by her, she should be forced to resign. It also makes you wonder what other banks in her district are in trouble. Case in point on FR:
From April 29 through the end of the year, the bank navigated through rising interest rates and a slowing economy without a chief risk officer at the helm until the company announced the hiring of Kim Olson to serve in that role on Jan. 4, 2023.
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On a macro basis, banks are no longer a good business, which is worrisome for the future. "Non banks" have entered a lot of the profitable businesses that banks used to have, so banks are left with lots of employees, real estate, oversight, low margin businesses, etc etc.
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Peter Thiel said he had $50 million in a personal account at Silicon Valley Bank when it collapsed, despite telling his portfolio companies to pull their money
Some have blamed Thiel for helping to trigger the run on SVB after he told Founders Fund customers to pull deposits from the bank before its collapse.
www.businessinsider.com
just wait 3-6 monthsBest thread going..
Peter Thiel said he had $50 million in a personal account at Silicon Valley Bank when it collapsed, despite telling his portfolio companies to pull their money
Some have blamed Thiel for helping to trigger the run on SVB after he told Founders Fund customers to pull deposits from the bank before its collapse.
I can tell you that EVERY PE company I am familiar with pulled their deposits from FR, so that article is BS.
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Let's be honest. That article isn't for people who know anyone at a PE company.
Agreed, but its also common sense....if you are the Treasurer of any company, there is lots of potential downside and near zero upside to maintaining a First Republic account, in other words, a bank run was expected to happen.
What Gets Lost When You Rescue Markets
Throwing a lifeline to the financial system in times of crisis can have unintended consequences. Among them: Making the world feel safer can lull people into complacency and excessive risk-taking.
www.wsj.com
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Hard to read some of the quotes. While the 1800s and early 1900s didn't have massive losses, they also didn't have the USD as the global reserve currency. The USA is also a massive country with tons of interconnected "parts" not just within the country but around the world. Thus, I'm ok with having a central bank but I'm not a fan of how connected they've become with the treasury.
What Gets Lost When You Rescue Markets
Throwing a lifeline to the financial system in times of crisis can have unintended consequences. Among them: Making the world feel safer can lull people into complacency and excessive risk-taking.
I have noted several times that SVB et al are failures of oversight and supervision. Here is an excerpt from a VC rag:
Over 40 years, it had developed a product suite tailored for the industry—mortgages to executives, credit lines for VC funds to keep capital flowing, and venture debt to startups deemed uncreditworthy by larger lenders. It also wasn't limited to US startups, with offices around the world.
In its Q4 earnings, SVB noted that it was a banker for 50% of the tech and life sciences startups in the US. Maybe that was an indicator of the problems ahead everyone missed. As the venture market goes, so goes Silicon Valley Bank.
Over 40 years, it had developed a product suite tailored for the industry—mortgages to executives, credit lines for VC funds to keep capital flowing, and venture debt to startups deemed uncreditworthy by larger lenders. It also wasn't limited to US startups, with offices around the world.
In its Q4 earnings, SVB noted that it was a banker for 50% of the tech and life sciences startups in the US. Maybe that was an indicator of the problems ahead everyone missed. As the venture market goes, so goes Silicon Valley Bank.
Other than lack of confidence/trust, the main issue is the MTM that for example is $100BB at BAC alone. So you could argue that they can raise on the short end, but need to stop QT to ease the MTM. They have already effectively started a form of QE again anyway.
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