Finance Financial Doom and Gloom

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Stanthropical

Stanthropical

De̸͍̺̺̓̾m̶̶̶ͫͫod̶̶̶ͩͩu̶̶̶ͧͧLaᴛ̶̶ⷮo̵̢̦̟͋̾̓r
Here's how the second-biggest bank collapse in U.S. history happened in just 48 hours
PUBLISHED FRI, MAR 10 2023 3:59 PM EST
UPDATED FRI, MAR 10 2023 8:38 PM EST
https://www.cnbc.com/amp/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html

FDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California
Friday, March 10, 2023
https://www.fdic.gov/news/press-releases/2023/pr23016.html

Silicon Valley Bank failure could wipe out 'a whole generation of startups'
March 11, 20232:00 AM ET
https://www.npr.org/2023/03/11/1162805718/silicon-valley-bank-failure-startups

More than 85% of Silicon Valley's Bank's Deposits Were Not Insured. Here's What That Means for Customers
MARCH 10, 2023 6:38 PM EST
https://time.com/6262009/silicon-valley-bank-deposit-insurance/


What does Silicon Valley Bank’s collapse mean for the financial system?
A big lender to American startups goes under
Mar 10th 2023 | WASHINGTON, DC
https://www.economist.com/finance-a...-banks-collapse-mean-for-the-financial-system
 
LOL:


Short Sellers Make $500 Million on SVB’s Demise. Collecting Won’t Be Easy
  • One-day mark-to-market profit of $513 million on short bets
    Stock remains halted after falling 63% in premarket trading

Silicon Valley Bank Tries to Prevent Bank Run After Shocking Collapse

Silicon Valley Bank Tries to Prevent Bank Run After Shocking Collapse

ByBreanna Bradham+Follow

March 10, 2023 at 2:39 PM CST

SVB Financial Group’s record plunge on Thursday minted short sellers roughly half a billion dollars in paper profits. But they now face a challenge: how to close their positions.

SVB shares plunged by 60% on Thursday as worries mounted over the bank’s operation, netting traders who bet against the stock a one-day mark-to-market profit of roughly $513 million. The stock fell another 63% in premarket trading Friday before being halted, with the Federal Deposit Insurance Corp. ultimately announcing that it had seized the bank.
Click to expand...
 
Crypto woes:


USDC depegs as Circle confirms $3.3B stuck with Silicon Valley Bank
https://cointelegraph.com/news/usdc-depegs-as-circle-confirms-3-3b-stuck-with-silicon-valley-bank/


Traders Dump USDC After Silicon Valley Bank and Silvergate Fail
USDC issuer Circle said it banked with failed SVB and Silvergate.
https://thedefiant.io/traders-dump-usdc


Bitcoin on track for ~10% weekly loss on Fed fears, end of Silvergate Bank
Mar. 10, 2023 7:26 PM ETBitcoin USD (BTC-USD)VYGVQ, ETH-USD, SI By: Jessica
https://seekingalpha.com/news/39466...ekly-loss-on-fed-fears-end-of-silvergate-bank


Crypto Wallets Withdraw $902M USDC From Centralized Exchanges in Past 24 Hours Amid SVB, Silvergate Shutdowns
$11.4 billion of USDC reserves are held in the form of cash at Reserve Banks, which include the two members of the Federal Reserve System.
By Sage D. Young
Mar 10, 2023 at 7:50 p.m. UTC
Updated Mar 10, 2023 at 8:33 p.m. UTC
https://www.coindesk.com/business/2023/03/10/crypto-wallets-withdraw-902m-usdc-from-centralized-exchanges-in-past-24-hours-amid-svb-silvergate-shutdowns/?outputType=amp

Circle’s exposure to US banks could top $9B
[URL]https://cointelegraph.com/news/circle-s-exposure-to-u-s-banks-could-top-9b/amp
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Silvergate Bank voluntary liquidation:

How Silvergate’s Crypto Collapse Differed From Silicon Valley Bank’s: No Bailout
A deep dive into regulatory filings shows how Silvergate Bank's collapse was, in a strange way, the ideal scenario for a failing institution. Sure, shareholders got wiped out, but depositors are made whole and the Federal Deposit Insurance Corp. isn't putting in a dime.
By Bradley Keoun, Helene Braun
Mar 10, 2023 at 10:08 p.m. UTC
Updated Mar 10, 2023 at 10:32 p.m. UTC
https://www.coindesk.com/tech/2023/...anks-no-us-government-bailout/?outputType=amp


Bitcoin, ether fall after go-to crypto bank Silvergate announces liquidation
PUBLISHED THU, MAR 9 2023 7:35 AM EST
UPDATED THU, MAR 9 2023 4:18 PM EST
https://www.cnbc.com/amp/2023/03/09...to-bank-silvergate-announces-liquidation.html
Replacing Silvergate’s Network Is a Challenge for Crypto Industry: JPMorgan
Some of the services provided by Silvergate will migrate to other banks such as Signature Bank, Provident Bancorp, Metropolitan Commercial Bank and Customers Bancorp, the report said.
By Will Canny
Mar 10, 2023 at 11:52 a.m. UTC
Updated Mar 10, 2023 at 9:22 p.m. UTC
https://www.coindesk.com/business/2023/03/10/replacing-silvergates-network-is-a-challenge-for-crypto-industry-jpmorgan-jpmorgan/?outputType=amp
 
Prediction of a chode:

Cohodes Says Signature The Next Bank To Fall: Along with warning investors about Silvergate, Cohodes has a stern warning for investors regarding Signature Bank(NASDAQ:SBNY).
https://www.benzinga.com/amp/content/31301740


Crypto bank Signature slides on Friday amid troubles at Silicon Valley Bank, Silvergate
PUBLISHED FRI, MAR 10 2023 11:01 AM EST
UPDATED FRI, MAR 10 2023 4:04 PM EST
https://www.cnbc.com/amp/2023/03/10...oubles-at-silicon-valley-bank-silvergate.html


Uh-oh! The crypto collapse has reached the real financial system / Silvergate’s troubles may make it harder to get out of crypto and into dollars.
https://www.theverge.com/2023/3/4/23623964/crypto-silvergate-bank-run-stablecoins-dollars
 
Stanthropical said:
Prediction of a chode:

Cohodes Says Signature The Next Bank To Fall: Along with warning investors about Silvergate, Cohodes has a stern warning for investors regarding Signature Bank(NASDAQ:SBNY).
https://www.benzinga.com/amp/content/31301740


Crypto bank Signature slides on Friday amid troubles at Silicon Valley Bank, Silvergate
PUBLISHED FRI, MAR 10 2023 11:01 AM EST
UPDATED FRI, MAR 10 2023 4:04 PM EST
https://www.cnbc.com/amp/2023/03/10...oubles-at-silicon-valley-bank-silvergate.html
Click to expand...


After SVB failure, regulators close crypto-friendly bank Signature Bank
Romain Dillet@romaindillet / 6:50 AM CDT•March 13, 2023

https://techcrunch.com/2023/03/13/a...rs-close-crypto-friendly-bank-signature-bank/
 
So, this happened...


Press Release
March 19, 2023
Coordinated central bank action to enhance the provision of U.S. dollar liquidity
For release at 5:00 p.m. EDT
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230319a.htm
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements...

Is this 2008, but much worse?
 
Time will tell how this compares to 2008. I haven’t studied these bank failures but if they were deep in crypto, I don’t feel sorry for them. (Remember that 2022 Super Bowl commercial for Crypto? Many of the actors have distanced themselves for that hurriedly.).
I do remember in 2008, the company I was involved with did about $1 million in sales/day. A bad day was $200,000. For 3 consecutive days, in 2008, we had zero net sales. The loan/credit market was vapor locked.
Currently a lot of companies and banks are sitting on a bunch of cash and ready to pounce as businesses go insolvent or can be bought cents on the dollar. Several M&A consulting firms are already scouring for deal making.
 
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