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Signature Bank has collapsed after experiencing a LIQUIDITY CRISIS following a RUN of withdrawals. This Crisis comes within days of the Collapse of SILICON VALLEY BANK and the Liquidation of Silvergate Bank which both encountered the same problems. In this video I look at the BAILOUT scheme put in place by the USA and discuss the ongoing risks as well as providing details of the 6 USA Banks that Moody’s have DOWNGRADED and discussing the situation with Swiss Banking Giant Credit Suisse.
For specific details please check out the CHAPTER list below.
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Chapters:
0:00 Intro
2:48 BANK TERM FUNDING PROGRAM
8:06 LOAN RATIOS
10:45 TIER 1 CAPITAL
12:14 MOODY’S RATINGS
17:56 CREDIT SUISSE
21:25 SUMMARY & CONCLUSION
#signature
#SILICONVALLEYBANK
#SILVERGATE
#usa
#GLOBALFINANCIALCRISIS
#RUBLE
#SWIFT
#RECESSION
#CHINA
#USA
#NATO
#WW3
#WORLDWAR3…(read more)
LEARN MORE ABOUT: Bank Failures
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The American banking system is facing a significant threat as the risk of bank runs becomes more apparent. Recent reports suggest that six major U.S. banks are at risk of facing such runs, primarily due to the whopping $1 trillion in uninsured deposits held by these financial institutions. This alarming situation raises concerns about potential bank failures, which could have cascading effects on the American economy.
Uninsured deposits are a significant vulnerability for banks, as they lack the protection typically provided by the Federal Deposit Insurance Corporation (FDIC). The FDIC ensures deposits of up to $250,000 per account, safeguarding the funds of individual depositors. However, deposits that exceed this amount are left uninsured, leaving them exposed to bank failures.
A potent combination of factors has contributed to this immense amount of uninsured deposits. One factor is the escalating wealth inequality in the United States, which has resulted in an increasing concentration of wealth in the hands of a few ultra-wealthy individuals and large corporations. These entities often hold significant cash reserves and prefer to keep their funds in uninsured deposits for various reasons, such as avoiding fees and maintaining flexibility for investment opportunities.
Another factor is the low-interest-rate environment that has persisted for an extended period. With traditional savings accounts yielding minimal returns, some depositors are willing to take on the risk of uninsured deposits in search of higher interest rates offered by non-traditional banking institutions or investment vehicles.
Among the banks facing the most substantial risk of bank runs are some of the largest financial institutions in the country. These include Bank of America, JPMorgan Chase, Citibank, Wells Fargo, Goldman Sachs, and Morgan Stanley. These financial behemoths collectively hold a significant portion of the uninsured deposits, potentially exacerbating the risk of bank failures.
If bank runs were to occur, the consequences could be severe. A bank run happens when a large number of depositors simultaneously withdraw their funds from a bank, fearing its financial instability. This sudden withdrawal of deposits can quickly drain a bank’s liquidity, rendering it unable to meet its financial obligations and potentially leading to bankruptcy.
The impact of such bank failures would ripple through the entire U.S. economy. Consumers and businesses would face difficulties accessing credit, leading to a slowdown in economic activity. Confidence in the financial system would be severely undermined, and a domino effect could ensue, triggering panic among depositors, resulting in further bank runs and failures.
To address this imminent threat, regulators and policymakers need to take proactive measures. Strengthening regulations around uninsured deposits and implementing stricter capital requirements for banks could help reduce the vulnerability of the financial system. Additionally, fostering a supportive environment for economic growth and reducing wealth inequality should be paramount to mitigate the need for uninsured deposits as wealth becomes more evenly distributed.
It is crucial for depositors to consider the safety of their funds and make informed decisions about deposit placement. While higher returns may be tempting, it is important to remember the potential risks involved in uninsured deposits and the importance of diversifying funds across different insured institutions.
The risk of bank runs and potential failures in the U.S. banking system is a pressing issue that demands attention. The excessive amount of uninsured deposits held by major banks raises a red flag and necessitates proactive measures to secure the stability of the financial system. Failure to address this risk promptly could result in dire consequences for the American economy.
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I miss your personal talks and your face. I think it is a bad idea to use all kinds of nonpersonal pictures instead of your personal face. All nonpersonal pictures makes watching less interesting and what you say does feel less true. Go back you your old personal manner!!!
Bank not safe . Dollars falling downhill no value inflation keeps going up
The negative impact of SVB and SI debacles has been reflected in the regional bank ETF (KRE) which has witnessed a decline of over 20%. This event has triggered contagion effects, dragging the entire market lower. However, historically speaking, a localized and narrow contagion of this nature presents an opportune time to invest in strong, financially stable companies with substantial cash reserves on their balance sheets.
This same credit sussie bank said we will not buy bond issued by Adani group just few days back. It was not credit worthiness of Adani group but it was lack of fund at Credit sussie bank. Bloody HYPOCRITES no money in your pocket and still advising others what to do and what not. Financial Bastards.
This is coming from a man that wears diapers, and don't know what Year were in. Or what state he's in..
Joe, says everything fine!!! That means things are horrible!! Time to get your money out of the bank. Wait I don't have anything in the bank..
The banking system is safe. Sure …
Deposits are safe .. Really? Yes, if they are fully insured.
The crisis has been triggered. So it will continue and worsen. That is sure.
Did you notice: This is about billions and trillions and there are still people who think that $ 1,000,000 is much money.
Joe, excellent analysis, as usual. Hope it is not the beginning of a bigger problem in the time to come.
The government is behind all this all the people that have money in the bank are gona get ripped off left homeless on the street
Welcome to the 1980's again. Regeanomics and unregulated capitalism at it's best eh.?!
Bernie predicted this some 5 years ago when banking regulations were dangerously eased by the Trump administration and the Rethuglican Senate. Here come the results of that avarice and unfettered greed. The vultures are circling the banks and they'll pick the carcasses clean when they go to ground. The criminal CEOs will run away to the Caribbean in their private jets leaving the rest of the economy to circle the drain.
Biden, Pelosi, Clinton, it's time to surrender your corruption monies back to taxpayers.
The thing that Joe has pointed out is that Silicon Valley Bank was in a poor financial position because of their unique management decisions. If we let capitalism take control, and not use bailouts, Silicon Valley Bank will close operations because they were managed in an unsustainable manner. Or management will make good decisions to help the business become stronger.
Under a capitalist approach, some banks, which were managed poorly, will collapse. The banks that were managed well will gain new customers and more deposits.
It's possible that this could manage itself over time. However, it appears that increasing interest rates too quickly can have a negative impact on bank performance, as Joe has indicated for Silicon Valley Bank. Therefore, halting or slowing the interest rate increase can help reduce some of the pain for banks. This should slow or prevent any banking collapse.
In addition, efforts should be made to make consumers trust their banking institutions in a way that they understand.
google Modern Monetary Theory if you want to get ill. Basically the US is a reserve currency so the government can print all the money it wants for its ineffective social programs.
MMT theorizes that inflation should not occur as long as the US is below full Employment, Translation.
1. Keep interest rates at zero until inflation gets out of control.
2. lower the value of your money buy printing money not backed by productivity gains.
3 Give you crappy interest rates on the money you do save.
4 Inflation starts to rise nobody in Washington will even think of not increasing spending. Google baseline budgeting.
5. Increase Interest rates to curb inflation and cool the economy. Translation, your laid off unless you work for the federal government.
Thank your Janet Yellen for your tireless public service.
This svb story is bullshit. They should have sold their "bonds" as fed announced rate hikes. They're a bank, if they didn't see their exposure they shouldn't be a bank. They let the rates spread 6 points before selling?
Shouldn't buy long term bonds to cover short term deposits; all fine with no forced sale-BAnking 101.
ARE CREDIT UNIONS AT EQUAL RISK?
My money is in Bank Of America. I do not worry
And stuffing my pocket with dollars what do I do. Er put it in another bank? No? Buy gold? No? Buy land ? No? It's all really silly. But you can send all the dollars to me, then they will be safe….
the other issue is will big banks take advantage of this bailout and put all of their offshore losses and domestic submerged losses into a big pot and realize it on the income statement and get nonpenalized bailout money?
Yet another case for cryptocurrency.
Let those banksters rot.
Sleepy Joke killed the oil and gas industry, now he’s out for the banks. Don’t get me wrong, I won’t shed a tear for bankers losing their jobs.
We can't just have tons of accounts with only 250k in it.
Get back our deposit and keep in hand is must.
I don't trust FDIC or Biden!
Poor Management and bank practices, while the CEO’s still kept taking their salaries while their banks are failing.
Once the feds get every bank then it's centralized beast banking system Thank you Jesus for saving me!
The papacy bought up most of wallstreet for pennies on the dollar after ww2
This is cause by the U.S. FEDERAL RESERVES. this is done so that the federal reserve how print money out of nothing, the government bonds failed this scheme done to a laminate and take over the silicone tech industry
Stop IT YOUR HURTING ME PLEASE
GREAT DEPRESIÓN
Lies PLEASE GET YOUR MONEY OUT WHILE YOU STILL CAN !!!!!
Biden should be fire too !!!