About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?

@Peterl4290

2 ай бұрын

I've never felt secure keeping a large sum of money in a bank, so I invest through my financial advisor, reap the benefits, and then spend the money. We fail to realize that banks are commercial enterprises that are driven by greed as well. The over-leveraging of assets by banks starting in 2020 was one of the factors that led to SVB's collapse.

@larrypaul-cw9nk

2 ай бұрын

We were traveling in the same direction, my wife and I. I withdrew my money over the past two years and invested with her wealth manager. I won't be able to match her earnings over time, but at least I make more. Haha.

@sabastinenoah

2 ай бұрын

I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?

@larrypaul-cw9nk

2 ай бұрын

Her name is “Vivian Carol Gioia” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

@sabastinenoah

2 ай бұрын

I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!

Thanks for explaining it simply!

@tdcu776

Жыл бұрын

The best

@laxmiyadav-sj1ud

Жыл бұрын

Nice

@ravneetsingh7137

Жыл бұрын

Thanks for easy task

@100perdido

Жыл бұрын

Read my post above and you will see that the explanation is not just simple, it Looney Tunes.

@lavanyagoru

Жыл бұрын

Explantation was awesome

The disastrous decision to repeal the Glass-Steagall Act in the late 1990s led to the spectacular failure of huge banks during the financial crisis of 2007-2008. To prevent a future catastrophe, Dodd-Frank and this Act both need to be revived right away. What happened with SVB is just the start of what will happen if nothing is done to address the current problem.

@DavidRiggs-dc7jk

10 ай бұрын

I think SVB was attempting to restructure their bond holdings. Yes, they would lose money if they sold their low-yield bonds. However, they were attempting to make up for it by repurchasing bonds on the open market at the higher interest rate.

@jeffery_Automotive

10 ай бұрын

The SVB scenario warns that the effects of the Fed's rate hikes are still being felt, despite the economy's so far successful resilience. Investors need to be cautious about the upcoming inevitable in situations like these. I'll suggest hiring a financial advisor because you don't have to act on every forecast. For a time, I've been using this as my backup strategy.

@berkrix4312

10 ай бұрын

@@jeffery_Automotive Would you please let me know how I might use their service to get in touch with this particular coach? You seem to know everything, unlike the rest of us.

@jeffery_Automotive

10 ай бұрын

Finding financial advisors like Julie Anne Hoover who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

@berkrix4312

10 ай бұрын

@@jeffery_Automotive I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.

I'm sure no CEO will be held responsible for their incompetence

@stachowi

Жыл бұрын

BONUSES were paid!

@hwhack

Жыл бұрын

@@stachowi Ya, just read about that too.

@wnsjimbo2863

Жыл бұрын

why should he ? its not illegal for a business to fail

@FLPhotoCatcher

Жыл бұрын

Something doesn't seem right. Someone needs to investigate who the investors are who are being hurt. Why shut it down so suddenly and completely? Why not freeze withdrawals until money can be raised? At least leave the chance open until the books are thoroughly checked. Again, someone needs to investigate who the investors are, who are being hurt. For example, the Brave browser, which is popular with Conservatives, has been trying very hard to sell crypto to its users... Then it crashes. You see where I'm going.

@alroth6308

Жыл бұрын

they are democrats at silicon bank, and just as with hunter and the clintons they are free to hose over taxpayers and those paying the fdic insurance tab soon to become more expensive without the 250K limit. just how it is until folks tell such evil biden democrat filth enough is enough and to go eff themsivles instead of those not so connected to democrat corruption

Honestly, I'm unsure if investing is a wise move right now. Take note of how frequently things fail. As I still have some time before I retire, I'm still looking for a better strategy to invest my money despite reading charts and predictions from well-known investors from the past and present. In order to generate passive income, I want to build a solid and reliable portfolio.

@SophiaChristian-so2of

11 ай бұрын

The SVB situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor.

@MarkFreeman-xi3rk

11 ай бұрын

I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $850k with the help of my advisor from an initial $120k investment.

@cythiahan8455

11 ай бұрын

@@MarkFreeman-xi3rk That’s impressive! I need guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can i reach this advisor?

@MarkFreeman-xi3rk

11 ай бұрын

My advisor is Margaret Johnson Arndt , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

@darnellcapriccioso

11 ай бұрын

Thanks, I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.

FED: We need people unemployed and bankrupt to calm inflation.. **2 days later SVB goes under** FED: Wait, not THOSE people, only poor and middle class can fail in this economy, as usual

@michelcarlos01

Жыл бұрын

Underrated comment

@realMoMoPuFF

Жыл бұрын

For commies, it doesn't matter who goes down. They would betray their own mother if that helps their plans.

@scifirealism5943

9 ай бұрын

Exactly.

A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

@ryleemacmahon

Жыл бұрын

Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.

@marleycapron

Жыл бұрын

These are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The bigger the red candles, the bigger the green ones.

@curtisdarveau

Жыл бұрын

i don't know much about the market, but based on what little knowledge I have of economic supply and demand, this is the best time to venture into the market, but the only thing holding me back is the constant fluctuations in prices, which it's not supposed to be a problem, but i really need guidance because i want to use this avenue of everything being on discount to build a portfolio that pays dividends and takes care of me in retirement.

@itzeltorreson

Жыл бұрын

I am going to look her up too, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.

@LNatureblush

Жыл бұрын

I don’t understand why the government is backing this. Why? The bank and investors played with a risky hand needs to suffer the consequences and not use our tax payers money who are playing it conservatively to help these risky players

SVB’s real problem was the homogeneity of their depositors. A liquidity crunch in the startup scene meant that pretty much all of their cash was gone. Had they had a more diversified pool of depositors, this wouldn’t have stung as badly.

@TheJcrist

Жыл бұрын

Nah, that's not the problem. The issue is not in SVB but in the Feds rate hike. SVB did nothing wrong in theory - they invested in the "AAA asset" aka US bonds , which went down so rapidly once the rates went up that nobody could predict. This is the real problem and also the waiver of 10 percent cash reserve during the pandemic, which is another blunder by the regulator. Now, every bank is exposed, not just SVB. They are only the first ones to go. There will be many more, please stay tuned 😂

@aztronomy7457

Жыл бұрын

That literally has nothing to do with it. The depositors were not at fault. They were just the ones who got screwed over by irresponsibility in terms of how banks use their money. No business , no matter how diversified, would just let their $ get thrown away if they knew a bank was being negligent.

@solido888

Жыл бұрын

@@TheJcrist But the rates *had* to go up due to inflation. The issue is that they were raised so quickly, and this was due to them being so low for so long.

@solido888

Жыл бұрын

@@aztronomy7457 I mean, leaving $450 million in a checking account that is only insured for $250k is pretty negligent.

@darrennew8211

Жыл бұрын

@@TheJcrist They invested all their money in 10-year bonds while the interest on those bonds was very low. Had they invested in three-month bonds and kept rolling it over, they would have had even lower interest but they would have been able to sell them off much more easily.

The ceo & executives effectively cashed in by selling shares & had this bank dissolved in 2 days. When you put your money in the bank THEY own it, they let you use it in the interm. They use it daily to invest & grow THEIR porfolios... not yours.

Privatize the gains, then socialize the losses

@Don-md6wn

Жыл бұрын

The major banks should have been nationalized, broken up into much smaller pieces, then sold back to the public after the 2008 financial crisis. Instead, the economy is even more dependent on a relative handful of large financial institutions now than it was then.

@John-ir2zf

Жыл бұрын

Ah the joys of socialism !!! Or should I say communism. Soon you'll hear the potato administration start talking about the need to "nationalize the banking to save the world" blahblah. D e m o c r a t s......always bad with OUR money (ftx,svb, our economy).

@John-ir2zf

Жыл бұрын

@@Don-md6wn nationalization doesn't mean the institution is turned over to the public.... It means the gov takes it over. And nationalizing banks is a big step towards the communism the left wants

@kuppdaballsstrokedastaff429

Жыл бұрын

You know what’s funny is that these are the banks we should protect. They are the ones that made traditional safe investments such as bonds and treasuries. It’s funny how the banks that run business the honest way and the way as customers would want get thrown under the bus, while crooked big banks and Wall Street get bailouts anytime they gamble with our money. Kind of interesting how people with no knowledge on the situation just read a quote on Facebook and spew it out thinking that it applies in this case.

There is not a single bank that could withstand a majority of of customers pulling all their money from their accounts. Most banks don’t have more than 10% capital. Under the right circumstances any bank can fail.

@jefflarson1652

Жыл бұрын

Though this is true, customers of this size should also realize the risks and don't deserve to be insured more than the $250,000 FDIC limit.

@CouchMan88

Жыл бұрын

@@jefflarson1652 That's dumb. Those are the customers the banks care most about. The large accounts enable the banks to loan out money so the little guy can get car and home loans. Not to mention they are the accounts of employers who pay for the bills for their businesses and the paychecks of their employees. They stimulate the economy and allow others to make money. They need to bank just like anyone else. Although I would have multiple banks if I had a large sum of money its not smart to keep it all in one place. Myself with almost no money in cash has multiple bank accounts.

@Inferno415

Жыл бұрын

@@CouchMan88 generally it’s more expensive to have multiple account’s especially for smaller businesses. That being said, the fault of this whole ordeal falls on the banks. They basically gambled with the depositors money and lost all of it. As you might or might not know, there’s this thing called modern portfolio management theory that basically says to diversify evenly to maximize returns and minimize risk. Had they just followed this basic principle they would have avoided losing any money and everyone would be happy. The fault is and only is on this regional bank. Of course if I was a depositor I wouldn’t be putting my money in small bank like them. I’d put it with Chase or Bank of America and invest my own money and that’s it(I’d have no worries because they are too big to fail and they invest the proper way).

@blacklyfe5543

Жыл бұрын

​@CouchMan88 I rather put that into assets

@Inferno415

Жыл бұрын

@@blacklyfe5543 This right here, to weather a financial crisis it’s better to put it into assets that have proven time and time again that have recovered. Like stocks is a good one, just be careful not to put all your eggs into one basket valuing growth over risk adverse stocks like Coca Cola or other ones like Verizon(these are risk adverse stocks.

The irony is that the bank is getting slammed for being too safe. Generally bonds are one of the safest investments possible. But it's a unique perfect storm of devaluation and withdrawal. Generally these types of financial institutions should be punished for making risky investments with our money, but this isn't it. Regardless, these people have had enough bailouts.

@giovanni-ed7zq

Жыл бұрын

no the problem was svb and other banks lobbied trump to relax the dodd frank regulations on their bank so they started playing loose with their liquidity since they were not subject to stress tests.

@Don-md6wn

Жыл бұрын

@ReviewChan, the idea that long term bonds are one of the safest investments possible is complete rubbish.

@giovanni-ed7zq

Жыл бұрын

@@Don-md6wn its really not about the bonds but svc and other mid sized banks lobbied and payed donald to relax the dodd frank regulations put in place so bank callapses wouldnt happen. the reality is if svc and other callapsed banks had been subject to stress tests and liquidity regulations, they would not have callapsed as they would not have been allowed to play loose with their liquidity.

@Inferno415

Жыл бұрын

While it might be true that bonds are generally safe. The problem comes when they aren’t diversified correctly. Had they hedged against their bond assets or had proper diversification in their portfolio then they could have maximized gains and minimized losses to their assets. They didn’t do that so I wouldn’t say they were being too safe they were being negligent in that respect. Whoever made that decision is by my standards not mentally fit to invest for a bank or even give out financial information.

Who else is feeling the heat of the economy and the unpredictable stock market? Raises hand Yep, that's me with my $730k portfolio made up of bonds and stocks. I've been tossing and turning at night wondering if it's time to liquidate and flee for the hills. Anyone else in the same boat?

@Bradleyalice

Жыл бұрын

It would be prudent to conduct a thorough assessment of the companies you have invested in and their potential for future growth, especially considering the possibility of a further market downturn. Engaging the services of an investment advisor to help restructure your portfolio could help alleviate any anxiety and improve your investment strategy. I have personally found this approach to be successful in reducing stress levels.

@brettbing

Жыл бұрын

I have been exploring the possibility of utilizing advisors. However, I am still evaluating their potential effectiveness in providing the support I need.

@Bradleyalice

Жыл бұрын

"MARIA ELENA MONTES ADVISOR" an esteemed coach known for her proficiency in her area of expertise. You probably might have come across her. I found her on a CNBC interview where she was featured and i reached out to her afterwards. She has since provided entry and exit points on the securities I focus on. You can carry out a quick internet research on her name for more info. I basically follow her market moves and haven’t regretted doing so...

@brettbing

Жыл бұрын

Thank you so much for this information. ☺

@gabreiribeiro

Жыл бұрын

In today's world, some may question the need for financial advisors, but recent data suggests otherwise. In fact, a recent survey conducted by Investopedia revealed that the demand for financial advisors has increased by a significant 41.8% since the onset of the pandemic. As for Maria Elena Montes, while I'm not certain whether she is currently accepting new clients, it's always worth reaching out to her to inquire. Her expertise in the field is highly regarded, and she may be able to offer valuable insights to those seeking financial guidance.

In 2015, Silicon Valley Bank stated that it served 65% of all U.S. startups. In 2022, Silicon Valley Bank began to incur steep losses following increased interest rates and a major downturn in growth in the tech industry, where the bank's liabilities were heavily concentrated.

@giovanni-ed7zq

Жыл бұрын

nope the problem was svb bank lobbied trump to relax the dodd frank regulations on svb bank and thats why it failed cuz they started playing loose with the liquidity and not subject to stress tests.

@rickglorie

Жыл бұрын

@@giovanni-ed7zq that's financial hooliganism.

@NikolaTesla-hd4nm

Жыл бұрын

@@giovanni-ed7zq Oh gio vanni, you're absolutely right. It couldn't possibly be the fault of the bank's executives for mismanaging their finances and taking on too much risk. It's obviously all Trump's fault for relaxing regulations, because we all know that regulations are the only thing standing between us and financial utopia. And of course, anyone who disagrees with your expert analysis is clearly a "financial hooligan." Keep up the great work!

@magnus08f250

Жыл бұрын

@@giovanni-ed7zqthe stupidity of this comment

@zetabeta848

Жыл бұрын

When I heard this news I feel very glad . Wish US Economy end start in near future.

When you deposit high amount of cash in the bank, you are a investor to the bank not a depositor.

@Don-md6wn

Жыл бұрын

Not if the government bails you out, as they've done in this case.

@sanjayaadhikari9867

Жыл бұрын

@@Don-md6wn Government has not bailed out in this case. Government is just paying back the FDIC insured clients.

@jefflarson1652

Жыл бұрын

@@sanjayaadhikari9867 They are bailing the depositors out by going over the insured amount of $250,000 per account. The taxpayers are paying for this.

Banks should not be bailed out. They should take responsibility for terrible decision-making.

@Tempires

Жыл бұрын

easier said than done as if it spreads damage will be terrific

@aztronomy7457

Жыл бұрын

If you don’t bail out the depositors of the regional banks, then all the depositors at all the other regional banks would withdraw them and cause literally ALL of them to collapse. Thereby ensuring JP morgan, Wells Fargo, BoA etc control the entire banking system. And if any of the “too big to fail” banks fail then we’ve got anarchy. As the above commenter said, easier said than done.

@ChadSimplicio

Жыл бұрын

Let them all fail. The fed cannot stop the apocalypse that the socioeconomic collapse is causing.

@JJs_playground

Жыл бұрын

Technically in this case the bank wasn't bailed out, the depositors were bailed out.

@joelstiffarm2996

Жыл бұрын

​@@Tempires yes, that is how you remove bad banks

Why shes not using her real natural voice. Why people think that making the voice more deep and changing the tone is fashionable? Its not. Use your own voice.

It amazes me how much the financial system is built on pure speculation. It's about as reliable as horoscopes.

@chytstorm

Жыл бұрын

Push this comment to the top please. Thank you.

@AmericanTestConstitution

Жыл бұрын

Actually, there is a history of some literally relying on the horoscope.

@SpeedHomeAttack

Жыл бұрын

@@AmericanTestConstitution Keyword being some

@Inferno415

Жыл бұрын

It’s not purely based on speculation, for the most part there is a correct way to invest that hasn’t failed me ever. It’s following the modern portfolio management theory. Which you might or might not know tells you to diversify evenly to maximize gains and minimize risk in the market. That being said, the whole ordeal was caused by this regional bank’s stupidity. They put their majority of their assets into bonds, knowing full well that interest rates will go up in the future due to the trillions of dollars pumped into the economy by stimulus. Not only that, but back then to increase spending they made it so banks have to only keep about 10% of their depositors money in case something happens. All of this caused the crisis. The financial system is not a 100% on speculation but those that manage the money speculate in responsibly that lose money or cause these crisis.

Fantastic explanation. Thank you for taking the time to draw it out in such an easy to understand manner.

Actually the CEO started this by selling stocks before time. Just SEE the stats, a huuuuge dump.

@chbhhfhbfg4218

Жыл бұрын

Where do you go to see when CEOs sell their stocks?

@Don-md6wn

Жыл бұрын

@@chbhhfhbfg4218 Pretty much any financial website. Or you can just do a search for "insider selling" for any company you're interested in. Executives of publicly traded companies are required to report any transactions in their company's stock within a day or so of making it.

@shadabfariduddin6784

Жыл бұрын

@@chbhhfhbfg4218 to the CFO maybe?

@KB-nt7eg

Жыл бұрын

​@@chbhhfhbfg4218 the internet. Over 50 million dollars worth were sold on February 27th. That's only one of the many records I looked at. There are more from this past week.

Thoughtful and articulate synopsis. Thank you.

Thanks for explaining it simply! First one I’ve understood :’)

@brendanwashbern

Жыл бұрын

Same!

@sarthakmodi6740

Жыл бұрын

Hi

Signature Bank of New York went under yesterday as well. $320 billion of banks being shut down in a weekend!

They failed to hedge against their treasury bonds portfolio with the interest rate swaps which would have minimized their losses when interest rates rose. They purchased a massive amount of bonds and MBS, a lot more than what bigger banks would have done. They are the dumb gamblers in the casino.

@sniper-go8cf

Жыл бұрын

I didnt look at it like that i was thinking when the svb stock dropped i thought they where buying it when it was down so they could profit from the stock

@ivoriankoua3916

Жыл бұрын

Peter Thiel stated that ther Head Risk Officer was more worried about LGBTQ that actually doing her mondain work , so that's probably one big factor here.

@Don-md6wn

Жыл бұрын

@@ivoriankoua3916 her "mondain" work - LOL, what a moron. Peter Thiel is a right wing POS who was likely pulling the strings for SVB behind the scenes, given that his portfolio companies bailed out just before it failed.

No regulators to watch how these banks diversified their investments? Putting almost all of the depositors' money in long-term bonds is absurd. The management can easily see also the inflows and outflows of cash in their Cash Flow Statement every month. This might have triggered the dumping of shares from the CEO, CFO, and CMO of the company weeks ago since they know already the problem several weeks or months ago.

@robertmarmaduke186

Жыл бұрын

I just watched Margin Call for free last weekend. KZread was warning us to get liquid. With Silverado S&L Reagan's Bailout, I bought some of that re-monetized junk, it ended up being illiquid and I only got 5c/$1 back. The investment firm got a handslap from the SEC because the firm was funneling cartel drug money into Wall Street. It's a great big club!!

@bobby7703

Жыл бұрын

Dude banks are already overregulated

@aztronomy7457

Жыл бұрын

@@bobby7703 for good reason. They’ve got OUR money!

@darrennew8211

Жыл бұрын

@@bobby7703 Banks are overregulated because they're allowed to create money (not value, but money) out of thin air, and the only thing backing the USD is the faith that it's still going to be worth something for the foreseeable future. If banks didn't do fractional reserve lending and/or money was still backed by gold, you wouldn't need nearly as much regulation because normal people could find out whether their bank is trustworthy before they put their money there.

@casualtake1497

Жыл бұрын

@@bobby7703 lol no, the fact this can happen just disapprove your opinion

These banks need to stop playing with deposits

Ten executive team members got huge bonuses for taking down the 16th largest bank: Greg Becker, Daniel Beck, Marc Cadieux, John China, Phil Cox, Laura Cushing, Michael Descheneaux, Michelle Draper, Jeffery Leerink, Kim Olsen, John Peters, and Michael Zucker.

@Don-md6wn

Жыл бұрын

So did just about all the employees. I read average compensation of this bank was the highest of any U.S. bank, about $250K per average employee. Their average probably isn't pulled down as much by tellers and other low paid employees as the giant banks.

@Falconlibrary

Жыл бұрын

I can't wait for their testimony before Congress. "I don't recall, congressman." "I was not aware of that, congressman." "I don't have that information, congressman." Riveting!

@Bongaboi151

Жыл бұрын

@@Falconlibrary #spoilers

Silicon Valley Bank hosted too many US treasury bonds, and US government could not solve inflation issue and still waste money for Ukraine and other unnecessary cases to cause the interest rate increasing. So, it made US treasury bonds' value dropping and bank asset value went down to cause such collapse. It is why other countries don't want to take US treasury bond anymore. Increase debt ceiling will be useless since not one wants to take US treasury bonds. Biden administration made many wrong decisions for US, and it will destroy US economics. We need better government administration knowing how to take care US for paying our debt to make economic stable instead of wasting money to make show.

During the Trump administration, SVB CEO successfully lobbied to have mid-sized banks not obligated to perform the bank stress tests. Who could have thought that would have turned out badly?

@banit1122

Жыл бұрын

Under the Biden Administration, Oil industries were attacked and the inflation rate exploded. Fed had to hike rates aggressively in response and that triggered a collapse of SVB. Who could have thought submitting to Green Terrorists would have turned out so badly?

@Don-md6wn

Жыл бұрын

Anybody remember Trump standing next to 3 piles of paper as tall as he is in 2017 and bragging about much regulation he had slashed? We had the big train derailment after Trump gutted train safety legislation from the Obama administration, now this.

@aulusagerius7127

Жыл бұрын

The govt cannot protect against management stupidity like the two examples cited here.

@davegim

Жыл бұрын

Lol get woke go broke. Silicon Valley, the liberal hivemind of Commiefornia

@reviewchan9806

Жыл бұрын

It's also a warning sign to Reinstate Glass Steagall

Here we go! Buckle up!

This Video is very Nice. Thanks for Video.

just curious, why instead selling the bonds they opt to not execute repo facility in Central Bank ?

True to form to a Wall Street Journal video, it always stops 2 to 3 minutes earlier than the story needed to be told

@reynoldsmathey

Жыл бұрын

It was a very poor and incomplete explanation.

@housepianist

Жыл бұрын

I think it’s just fine. Most of their videos are anywhere from 7 to 15 minutes. I think they’re just giving you the just of what’s going on and I’m sure we’ll hear more on this later. WSJ does re-visit these kinds of things often.

@TheRealTomWendel

Жыл бұрын

What story? It’s one word- deregulation.

Another Bank, Signature Bank collapsed.

Thanks for the explanation is very easy

Thanks, dear WSJ-team - a good brief explanation!

Why does every commentator on this channel have vocal fry and valley girl upspeak?

@houseplant1016

Жыл бұрын

They are baddies

@CHMichael

Жыл бұрын

Does not inspire confidence

I have a feeling, we are in the midst of something historic!

@solido888

Жыл бұрын

The fall of an empire

@ssj2camaro21

Жыл бұрын

How? It's common sense on how it failed. What do you think would happen with a startup bank (their customers are startups) and not having enough cash? The only issue I'm having is the news blowing this up like it affects the rest of the economy

@c.eb.1216

Жыл бұрын

This feels more slow-motion than the 2008 crash, though I was young and not following the news as closely as I do now as an adult.

@KB-nt7eg

Жыл бұрын

​@@ssj2camaro21 the only issue you have is literally the issue at hand that you can't see. The fact that banks can't pay anywhere near everyone the money they owe them, is the problem. You're creating other problems because you have no idea what's happening.

@stocktradesniper

Жыл бұрын

@@solido888 Correct. And israel will be the next and last empire

Great explanation

What about silvergate and signature Bank?

1:13 Her voice...sounds like an old radio. Why? She's ok?

@HarishK-vh1ct

Жыл бұрын

Thank God, it's not only me! I tried to watch the full video but couldn't tolerate her voice.

@ankurdebbarma6363

Жыл бұрын

​ Me neither. It's terrible for my ears.

SVB did the exact same thing as FTX they used customers money on bad investments and had no money when the bank run happened.. yet they r getting bailed out

@Don-md6wn

Жыл бұрын

No, FTX was a Ponzi scheme, SVB is a failed bank. Nobody is going to bail out your crypto loss.

What was the average amount of a deposited account if $42B was being withdrawn on one day? It seems most individuals didn’t have a reason to withdraw until the run started.

@TheRealTomWendel

Жыл бұрын

I’m willing to be it was way over the FDIC insured limit of $250,000.

@CouchMan88

Жыл бұрын

@@TheRealTomWendel Allegedly over 90% of accounts were above the $250k FDIC threshold.

@Don-md6wn

Жыл бұрын

@@TheRealTomWendel Roku had deposits of over $400 million there from what I've read. I wonder if the CFO and/or CEO will face any consequences for doing something that reckless and stupid.

the main issue with SVB was how biased their investments were towards real estate, which later took a dive, leaving SVB with empty hands.

Let it collapse Why should normal people pay for bets made by these big shots!!

@abhishekdev258

Жыл бұрын

Whether Democrats or Republicans all will bail out these cronies.

@powerhouse884

Жыл бұрын

@@abhishekdev258 Nobody is talking about Political parties.

@abhishekdev258

Жыл бұрын

@@powerhouse884 so who exactly bails out banks..?

@poison7512

Жыл бұрын

​@@abhishekdev258 that's literally what's happening here .

@abhishekdev258

Жыл бұрын

@@poison7512 yup

Did they really pay out bonuses, and did some of the big shots really sell off all of their stock just days before the crash ?

@TheRealTomWendel

Жыл бұрын

Of course they did!

@Falconlibrary

Жыл бұрын

Is the Pope Catholic?

Uncut gems 💁🏻‍♀️

very nice videos

Those who are having the time of their lives, I wish you all the best. Work on yourself even more, so that you have the strength to help to others too.

If the average person knew how fragile our Banking Sector truly is, the entire worlds economy would collapse overnight and send us into a global depression that would not end in decades. Its ignorance that's holding up all the corruptions that is keeping the world turning.

@realnapster1522

Жыл бұрын

Well said 🎉

The government should only cover the $250,000 insured coverage deposit. Everything else let the market settle it out.

So where are they putting their money after withdrawing it from these banks.....CD's?

I'm not understanding how there was a "run" by depositors to withdraw their funds? Did everyone just wake up that day and decide to withdraw all their money from the bank? How would any of us know if our bank or deposit institution is in financial trouble?

@geigertec5921

Жыл бұрын

Probably someone from within the bank sent out a mass email to customers. Maybe someone who didn't get the bonus they thought they deserved, or maybe someone who wanted to short the stock or something, who knows?

@ew6546

Жыл бұрын

Their depositors are mostly tech/startups and since interest rates are so high it's been difficult/expensive for those companies to get new investor money. So instead they have been burning through their existing cash (withdrawing it from the bank) to pay expenses and such. Thay's why the bank saw so many outflows over the last few months. Once the news got out then there was panic and everyone tried to withdraw their funds but the bank couldn't sell its assets fast enough to meet the demand.

@SteveSmith-nh6ms

Жыл бұрын

@@ew6546 On a similar note, how or why would depositors go to the bank to withdraw their funds? If I had $100k in the bank, can I just go up to the teller window and ask for it in cash? Wouldn't you instead just wire the funds to another institution?

@tenfoldrotation

Жыл бұрын

​@@ew6546 This. They sold available securities at a $1.8 billion loss to cover the withdrawals and announced an emergency sale of stock to raise funds

@ew6546

Жыл бұрын

@@SteveSmith-nh6ms They do withdraw funds electronically. It's still a bank run if everyone is trying to do it.

Sounds like they had a CFO who was too stupid to understand how vulnerable long term mortgage backed security prices are to increasing interest rates. Mismatching the maturities of assets and liabilities for a small amount of extra yield would fall under the category of picking up nickels in front of a bulldozer.

@hassanharith6820

Жыл бұрын

I like the way u use this analogy to 'measure' certain level of people in their competency and credibility.

@TheRealTomWendel

Жыл бұрын

As long as the executives face no real consequences, they’ll risk their depositors funds every single time, and we all know as well as they do that the consequences will be trivial or none.

@realnapster1522

Жыл бұрын

They need to be extremely careful with depositors money. I can’t believe they invested so much money in risky assets. Why not invest in short term treasuries? Or T bills?

@NikolaTesla-hd4nm

Жыл бұрын

Oh dear, it seems some of us are so much smarter and more knowledgeable than those "stupid" executives who are clearly incapable of managing their finances. I'm sure they could all learn a thing or two from your vast expertise and perfect decision-making abilities. After all, it's so easy to criticize others from the safety of our keyboards, isn't it? But hey, I'm sure they'll all be lining up to hire you as their financial advisor any day now.

@Don-md6wn

Жыл бұрын

@@NikolaTesla-hd4nm Actually, I have an MBA in Finance and have been a financial advisor, and I'm not stupid or greedy enough to drive a bank into the ground by betting on the direction of interest rates. But keep licking the boots of overpaid corporate executives.

When I heard this news I feel very glad .

So the panic came from the message that the bank needs to raise capital because the bank failed to anticipate the withdrawals of its own clients? So the depositors received it as the bank is running out of cash which in fact the bank's money is invested in bonds? In my eyes, so far it's not an issue of trust or corruption. The issue I think is miscommunication and the failure to anticipate

@Don-md6wn

Жыл бұрын

Banks that rely on generating deposits in huge chunks from corporations and large investors are particularly vulnerable to getting wiped out by a run on deposits. Prior to the 2008 financial collapse, there were a lot of banks that raised deposits via "brokered CDs" that were offered through investment firms and paid higher than normal interest rates. This bank was raising deposits in huge amounts from tech companies; apparently the billionaire Peter Thiel's companies had a bunch of deposits with them and started pulling it last week.

Wells Fargo next?

Wasn't much of an explanation

I have been saying that businesses need to have multiple sources of income just like an individual does and look at what this woman said, "The bank needed to raise funds.". How come a bank has nothing to mitigate mass withdrawals. People need to learn how to diversify. Having so much money in the banks is dangerous. There are so many places to you can put money in case things go bad.

Can anyone explain "When fed rate rises why bonds fell?"

It's nice to see a bank struggle and fail. Now they know how it feels to be on the other side like everyone else

@salmanalbaloushi630

Жыл бұрын

They get bail-outs - no big deal

@venicec3310

Жыл бұрын

A bank isnt a person though. Just thousands of people all without a job and many investors losing alot of money

@yellowmoon1084

Жыл бұрын

CEO cashed out his stocks before the announcement, the employees got their bonuses early, the Federal government offered extended employment to all employees and all depositors are expected to get their money back. Bailout and nobody is going to struggle.

Really? One can pull $42-M from an ATM?

@akgonen60

Жыл бұрын

if every depositr shows up including the investors who are trying to pull out then yea 42 m in total would be the number

How will that impact other Banking stock like TCBI?

@John-ir2zf

Жыл бұрын

Sell it all !!! That system is about to fall. The leftist feds will try to "nationalize" the banking system... Then the other main components of our society will follow. You'll see food production "nationalized" You'll see manufacturing "nationalized" And the dems will have their communist utopia

This crash will make the crash of 29 pale in comparison

The government: Keep calm .., we keep printing $Trillion 'out of thin air'.., everything will be alright!

@misterlianghui

Жыл бұрын

Out of thin air.

No bailout for billionaire banks enough is enough. The FDIC should introduce very strict new regulations to these private banks since they cannot police themselves. The last thing we want is to rescue another billionaire bank. Let these banks go down under like everyone else.

The SEC would have to work at a bank to ever police a bank.

Wonder what Bank is next

sorry but that reporter's vocal fry was unbearable ugh 😬🫣

so the rich get bailed out again, and again, and again....

@LowerYourExpectationsPleb

Жыл бұрын

yes and that's how it should work

So the federal government is gonna insure all the deposits not just the 250k limit?

SVB President and CEO, Greg Becker, served as an advisor to DJT's US Dept of Commerce from 2016-17. Fact.

Thank goodness we have bank regulators to protect us 🙄 I don’t think that government bank regulators could predict a rainy day in Seattle.

@TheRealTomWendel

Жыл бұрын

SVB and their brethren cried for regulatory relief, paid lobbyists to pull the strings, and voila! Regulation has to have sufficient teeth to do the job. The notion that it hamstrings financial institutions and harms the economy is a myth that’s been busted over and over again. It’s like claiming that referees interfere too much in sporting contests. It’s like claiming that umpires interfere too much with baseball games.

@Don-md6wn

Жыл бұрын

Trump repealed Dodd-Frank and repeatedly bragged about it, but you think the regulators were the problem. I'm surprised you didn't say the collapse was because the bank was too "woke".

All we want is the peace of mind that when we work for our money that it's safe , it's not a lot to ask for considering how much we already give the government

"Investors" freaked out and sold stock? You mean SVB executives.

I want a Dion Rabouin video on this

CEOs during economic boom : my profit (capitalism) CEOs during economic bust: our loss (communism). Government should chip in money to help us.

@LowerYourExpectationsPleb

Жыл бұрын

tell me you have no idea about the economy and finance without telling me you have no idea about the economy and finance

@Don-md6wn

Жыл бұрын

@@LowerYourExpectationsPleb LOL, coming from the moron who said SVB went under because of diversity quotas and has MAGA in his screen name.

@LowerYourExpectationsPleb

Жыл бұрын

@@Don-md6wn Yes, going woke makes you go broke. Bidenomics didnt help much either.

It's because the banks are doing the exact same bond package fuckery they did in 2008. But instead of private real estate debt, they're now packaging the exact same type of bond, just with business debts.

Surprisingly no mention of Peter Thiel...

0:58 When rates grow, the bonds fell in value. Why is that?

I bet the WEF, is totally shocked that this is happening. How could such a thing happen? I mean, train wrecks, food processing plants exploding and now this. Iam shocked that this could ever happen and stuff.

If the reporter went to the navy and became an officer, she would have become ensign Ensign.

@williewonka6694

Жыл бұрын

Well, that would be easier to live with than "Rear Admiral Ensign"

Clearly shows that people still have the power

why was money suddenly being withdrawn?

The vocal fry. God

Bank hours and locations have been on a decline for the last 2 years. This limits withdrawal transactions. This limits average workingclass from closing, or moving accounts. Think Greece. This is not all right.

When you deposit. That money is automatically invested by your bank. Because they are so greedy, the bank invests in scary big money returns. Risky stuff. Due to deregulations…stupidity allows the banks to over invest and overspend all your dough.

Insider news :- Adani shorted US banks as retaliation. True story 😂

Thanks for the explanation, in using critical thinking skills I ponder why money was withdrawn at a pace where the bank needed to raise capital? Does inflation have something to do with it?

@nichollas118

Жыл бұрын

They serve majority tech startups and when interest rates rose, the environment was not conducive for startup growth and they started to pull cash out to perhaps support their own operations

@mightymulatto3000

Жыл бұрын

You'd be correct. Short term rates were low which made the long term rates more attractive. But this changed. Short term rates went up due to the inflation and made an otherwise sound decision on the banks long term bonds unsound. There are at a minimum of two ways besides speculation to make money on bonds. One buys it at face value, accepts the interest payments until maturity and you get full face value back. Not a bad strategy if you plan to hold. The second way which is probably what bit them in the @$$ is to buy the bond at a DISCOUNT and then at some future point sell the bond at face value or higher making a profit. This means the SVC bank would have had to sell at a significant discount below face value to get the cash flow it needed when it didn't want to. So rather than sell at a loss the bank just failed. One thing to keep aware of. In May the Exempt employee salary threshold is going to rise. This means that employers will either have to raise salaries, convert those salaried employees to hourly, pay them overtime or just get rid of them. Some employers are offshoring, some have risen pay and some will be shedding jobs. In any case there will be withdrawals from companies that have no choice but to pay essential employees in raised salaries or overtime.

Apparently, Bank-runs is a much better tool to fight the inflation than interest rate hikes; Federal Reserve is in full control.

Why would you use depositers money for long term investments

This is why I never use banks that are publicly traded on the stock market. It only takes a little panic to cause a lot more panic and when your stocks tank, that causes a LOT of panic.

@YashRamisetty

Жыл бұрын

So no Bank of America or chase or Wells Fargo?

Janet Yellen stated that she has been closely monitoring the banking industry. I’m curious if she was able to foresee this event

@rfbthree

Жыл бұрын

😆 No

@powerhouse884

Жыл бұрын

She didn’t foresaw it but she was seeing it at it occurred…. very very close to the TV 👀 📺 😂

@advancetotabletop5328

Жыл бұрын

The FDIC should have been able to identify the *relatively* risky banks. Hellen’s useless, as a mouthpiece for political agendas.

@patrickh9937

Жыл бұрын

Just a day or 3 before SVB collapsed, Jerome Powell said all is well. The feds aren't sending their best.

@darrennew8211

Жыл бұрын

Sure. You know she's allowed to do insider trading, right? :-)

I'm switching on getting a credit union now.

Very nice video

Trump's Deregulation doing the usual magic that deregulation does. We've seen this dance many times before. Bank CEOs Lobby for deregulation, CEOs get Deregulation. Politicians get massive amount of money for granting deregulation. CEO get paid massive bonuses when their risky gambles pay off, CEOs bank collapses when their risky gambles fail, leaving Uncle Sam holding the bag.

@darrennew8211

Жыл бұрын

You realize that Trump doesn't pass laws, right? It's the congressmen you elected that voted to change regulations.

Рынки посыпались поздравляю

@ainz1325

Жыл бұрын

Not like russia gas income

We all need a Tony Montana deposits

Signature (NY) and First Financial (San Francisco) Banks may be next

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Жыл бұрын

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Жыл бұрын

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Жыл бұрын

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