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| Economy |
| Market Watch - 20 banks that are sitting on huge potential securities losses ‐ as was SVB |
| 2023-03-12 |
| Posted by:Besoeker |
| #10 @#2 - 'Signature Bank said in a statement that it was in a “strong, well-diversified financial position.” ' LOL, I figured that was b.s., but I didn't expect the feds to shut down Signature Bank (SBNY) today, on a Sunday. After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer. Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. |
| Posted by: DooDahMan 2023-03-12 23:09 |
| #9 Thanks FG. |
| Posted by: Xyz 2023-03-12 22:21 |
| #8 S&P, NASDEQ and DowJ futures all higher as of this post |
| Posted by: lord garth 2023-03-12 19:15 |
| #7 I think this article has it but it seems like speculation based ONLY on exposure, XYZ? |
| Posted by: Frank G 2023-03-12 17:38 |
| #6 Can’t get past paywall for the 20.... |
| Posted by: Xyz 2023-03-12 14:44 |
| #5 The point here is that if you hold these securities to maturity, there is NO LOSS AT ALL. The geniuses in the accounting profession got the bright idea that you should "mark to market" these securities (and, yes, I know the pretzel contortions of FAS 115) so that you show "losses" that don't exist. It is just an accounting entry that will be reversed once rates start to go back down again. having said that, if it were just that--a liquidity shortfall aggravated by accounting entries-- I would expect the Fed to step in and make loans of last resort while SVB and others sell off the illiquid assets and then repay the Fed loans. The fact that the FDIC jumped in and seized the bank makes me think that something much more serious--that hasn't surfaced yet--is going on. |
| Posted by: Tom 2023-03-12 13:42 |
| #4 It needs to be noted what this sudden bank crisis crowds off the front pages, social media and MSM broadcast news - the J6 and Covid revelations. Coincidence or misdirection? |
| Posted by: NoMoreBS 2023-03-12 13:04 |
| #3 This could make the Fed Reserve hold rates steady or increase only 25 basis points. |
| Posted by: lord garth 2023-03-12 12:02 |
| #2 Signature Bank said in a statement that it was in a “strong, well-diversified financial position.” Right, that's what they ALL say. Didn't that chump CEO of Silicon Valley Bank say "don't panic" just a days ago? SBNY has commercial real estate problems along with running a similar money laundering scheme as Silvergate did using its Signet system. Get the popcorn ready. |
| Posted by: DooDahMan 2023-03-12 11:33 |
| #1 only thing that could impact my bank is hog belly futures crashing.... |
| Posted by: Mercutio 2023-03-12 07:47 |