The second biggest bank failure in American history is happening right now in the heart of California’s tech mecca. Betty Yu reports. (3-10-23)…(read more)
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The collapse of Silicon Valley Bank has sent financial shock waves across the world, leaving investors and clients reeling. The once-reputed bank, which specialized in serving the technology industry, has been struggling with mounting losses following bad loans and risky investments.
Silicon Valley Bank was founded in 1983 and quickly established itself as a leading financial institution for startups and emerging technology companies. With headquarters in Santa Clara, California, the bank provided lending, banking, and investment services to clients across the United States and in other countries as well.
However, in recent years, the bank’s financial performance has been faltering, culminating in its shocking collapse. According to reports, the bank had been saddled with non-performing loans and bad investments, resulting in mounting losses that it struggled to cover.
The collapse of Silicon Valley Bank has sent shock waves through the technology industry, with many startups and investors scrambling to find alternative banking solutions. Many of the bank’s clients had relied heavily on its services, which were custom-tailored for the tech industry, and are now frantically seeking out other banks to avoid any further disruptions.
The failure of Silicon Valley Bank has also raised concerns about the broader health of the technology sector. With the bank’s collapse, investors are beginning to worry about the stability and sustainability of other tech-related financial institutions, and the potential ripple effects that could have throughout the economy.
Despite the alarming headlines, experts suggest that the long-term effects of Silicon Valley Bank’s collapse may be limited. While some individuals and companies will undoubtedly suffer from the disruption, the broader tech industry is still relatively healthy and growing rapidly.
Nevertheless, the collapse of Silicon Valley Bank should serve as a warning to investors and financial institutions alike. It highlights the importance of proper risk management, especially in the fast-paced and high-stakes world of technology investing. As the old saying goes, “caveat emptor” – let the buyer beware.
Biggest lesson of 2022 in the stock market: Nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
In conclusion, the government's decision to cover the uninsured portion of a missing fund in the absence of a buyer is a crucial step towards stabilizing the economy. By taking responsibility and acting quickly, the government can prevent a catastrophic collapse of the financial sector and safeguard the interests of companies and their employees.
Don't vote Blue San Francisco
This is just like Alec Badwin in Fun with Dick and Jane. The CEO takes off in his chopper after the place collapses.
Joe Biden's socialist glass house is starting to break up.
This is the best news yet and none too soon for the Biden administration., His policy to have everyone living in tents is finally showing progress. I mean who needs economic success when you can really reduce your carbon footprint with no automobile and really no need for transportation, especially during the midst of an impending worldwide economic collapse and the end of jobs more generally. Biden is going to herald as the soup president and heavy on the water if you please. I congratulate those who decided not to vote for Trump. Who needs houses or cars or all those freaking bills anyway. Yes, your vote has made America into a third-world country. Saying goodbye to first-world problems has finally been realized thanks to all those brilliant Biden voters. Your vision of a free America means mass homelessness. Again, I must congratulate all those Biden voters wanting to simplify life by living off the land. A real getting back to nature agenda is what all the Biden voters wanted, and boy did they ever get it. Well done and three cheers to you. I suggest turning to heavy drinking and med use it will ease the pain of living outside full time. Your tent and your voting again for Biden is all you really need in the future. The economic engine that defined America for generations has finally ended. Thank God. Now we can all gather around the campfire or pass out on the sidewalk or in a public park and simply wait for better times to show up. Let's face it we really need to Get Gavin Knew Some on this. His ability to destroy one of the best economies in the world (california) is quite impressive if you ask me. Just think what he could do in Was. DC. If I had to bet I would bet Knew SOme could derail the world economy much sooner than Biden. It is quite the spectacle watching the collapse of banking in California. I mean wow. So much for the tech industry helping the economy. Absolutely, a great time to choose a tent don't wait for the last minute or alternatively, you could just move to California they have the fastest growing homeless population in the country, and for good reason. Just look at the leadership skills of Knew Some. Wow, California is so progressive. While saving the earth from humans they have done a lot to make sure the car tells get their meds to their customers by ignoring everything under the sun except for carbon emissions. Yes, talk to someone from Cali and they will talk your ear off about the green new deal, carbon emissions, and the state of the world and doing it all from the comfort provided to them in their sidewalk tent. Shout out to the Biden voters as the kids say you crushed it. And we all celebrate your success in making America great for living outdoors as that will be the only option going forward. Oh yeah, your phone bill will likely be paid by turning to the earliest of professions. Never mind that's already happened according to Instagram etc. Well done.
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.
I will forever be indebted to you, you've changed my whole life i'll will continue to preach about your name for the whole world to hear you've saved me from a huge financial debt with just little investment thanks so much Mrs Mabel Downey
??????. Where was the money transferred to? Offshore? Is this part two of the "Plandemic"?
Banking Should Be Simple. Why are all these people complicate the process ? Now I know all the Banking Employers and Employees are Crooks. They Go Bankrupted and Disrupt the Banking System. The Banking CEOs' make millions dollar a year and they can not run a Bank. The US Government has to bail out the Banks again. The First Time is 2008 Banking Crisis. Give Me Break. This is unreal. Coruption and Under The Table Wheeling and Dealing are ruining the Middle Class Americans. The Riches get Richer and The Poors get Poorer. Capitalism does not work Anymore. American people when do you we start to wake up and see the real and broken Banking System. I Rest My Case. Thank You.
Yeah! no surprised . Biden and Obama’s economy is no good! We are in recession .
Maybe this is what we needed. Deflate the economy.
Danggggggggg
Bankers: God's filthy crooked demons on Earth.
SVB's Financial Risk manager is a bent, female, Indian immigrant with ZERO relevant job experience.
wait, actual people in line, in person to withdraw money? they couldn’t do it through an app, or pay someone else to stand in line?
on a more serious note, everyone will get their money, even those deposits above $250k. Only people losing are the bank’s shareholders—they are going to zero.
Hope the Fed. chair has learned by now that there is too much leverage and leverage based activity in the economy to raise rates by 600 basis points in a year. Powell will need to walk back from the rate hikes. if this spreads, he’s likely going to be forced to resign.
Value at market. That's the key. Accounting rules can keep a pet rock collection valued at billions on purchase price. But pet rocks are worthless. I fear that we will turn to hard currency soon hard as in food, shelter.
So here is my simple take on this. During the Trump years business was booming with lots of start-ups and the bank grew fat. Then Biden systematically broke the economy and the bank didn't see that coming. They won't be the last.
So Greenberg had insider information to get out b4 the suckers. Truly privileged information.
It's amazing 2 ponder how humans, as the most advanced animal, managed 2 have babies w/o maternity app startups.
Bottom Line,… Investment Banks are the backbone for the innovation and start up business, are the backbone of the America. Powell and FED are directly responsible for the failure of SVB bank which is doing nothing but lending start up businesses.
Bernie Bros told u so! Don't need, don't want "maternity startups". Just need Medicare For All.
WHAT IF MAJORITY OF AMERICANS WITHDRAW ALL THEIR BANK SAVINGS TOMORROW?
If a large number of Americans were to withdraw all of their savings from banks at once, it could potentially have significant implications for the banking system and the broader economy.
Banks use customer deposits to fund loans and investments, so a sudden and significant decrease in deposits could limit their ability to lend money and finance economic activity. This could lead to a contraction in credit markets, reduced investment, and slower economic growth.
Furthermore, if everyone were to withdraw all their savings at the same time, there may not be enough physical cash to meet the demand, which could lead to long lines at banks and ATMs, and potentially even a cash shortage.
It's important to note, however, that it's unlikely that a large number of Americans would suddenly withdraw all of their savings at once. Even during times of economic uncertainty, many people rely on their savings for emergencies and daily expenses and may not have the means to withdraw all of their funds at once.
In any case, it's important to be cautious and informed when making decisions about your finances, and to consider the potential risks and consequences of any actions you take.
WHAT IF AMERICANS LOSE THEIR TRUST ON BANKS?
In general, people's confidence in banks can be influenced by a variety of factors, such as economic conditions, bank policies, and regulatory oversight. If there is a perception that a bank is in financial trouble or is engaging in risky behavior, it could undermine people's trust in that bank and potentially the banking system as a whole.
That being said, it's worth noting that banks in the United States are subject to regulatory oversight and are required to hold a certain amount of capital to protect against losses. Additionally, the FDIC insures deposits up to a certain amount, which can help to mitigate the risk of bank failures.
Overall, the level of confidence that Americans have in banks may vary depending on a range of factors and individual experiences.
WHAT IS THE MAXIMUM AMOUNT THE FDIC PAY FOR EACH ACCOUNT?
The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank. This means that if an insured bank were to fail, each depositor's account would be covered up to $250,000, including principal and accrued interest.
It's worth noting that the $250,000 limit applies to each depositor's accounts at a given bank, so if you have multiple accounts at the same bank, they are added together, and the total amount insured is up to $250,000. Additionally, if you have accounts at different banks, each bank is separately insured up to $250,000 per depositor.
The FDIC provides a comprehensive guide to deposit insurance on their website, which includes information about what types of accounts are covered and how to maximize your insurance coverage. If you have specific questions about your FDIC insurance coverage, it's a good idea to consult with a financial advisor or contact the FDIC directly.
HYPOTHETICALLY, WHAT IF THE SAVINGS WORTH $45M, HOW MUCH WILL THE FDIC REIMBURSE THE LOSES?
If an individual had a savings account worth $45 million at an FDIC-insured bank that failed, the FDIC would only insure up to $250,000 of the total amount. This means that the depositor would be reimbursed up to $250,000 and would lose the remaining amount that exceeded the insurance limit.
It's worth noting that there are ways to potentially increase the amount of FDIC insurance coverage for large deposits, such as by spreading the funds across multiple accounts or by using different ownership categories. However, it's important to consult with a financial advisor or contact the FDIC directly to understand the rules and limitations of deposit insurance.
In any case, it's generally recommended to spread large deposits across multiple FDIC-insured banks to maximize FDIC insurance coverage and reduce the risk of losses due to bank failures.
That thumbnail w the 2 techbros standing outside the bank is from the TV show "Silicon Valley". I hope u got permission from Mike Judge.
That’s why you only have 250000 in each bank
The wrong person decided to run in the presidential election. You need money to do that.