- Reaction score
- Deep Underground Bunker
A Debt based system must ALWAYS expand in order to be able to pay interest. As soon as that stops it collapses.
Thursday, the U.S. Labor Department said weekly jobless claims jumped by 21,000 to 211,000, up from the previous week's unrevised estimate of 190,000 claims.
The latest labor market data missed expectations as economists were looking for claims to remain below 200,000 at around 195,000.
Well there was a time when default and failure relieved the need to expand the money base to cover all debts. Remeber when bad ideas failed and good ideas won? Back in the bad old dayz?
Like back in the day when banks were 'merging' with 'other' banks....That was back when the system is not nearing it's maximum expansion. Then the individual failures can be allowed and compartmentalized fairly easily and not threaten the entire system. That time appears over.
Like back in the day when banks were 'merging' with 'other' banks....
"Merging with banks" sounds so much better than 'Banks that were insolvent'.
Shares of SVB Financial Group, known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the entire banking sector again on concern that more banks would incur heavy losses on their bond portfolios.
SVB's CEO Greg Becker held a call with clients Thursday afternoon to calm their fears, CNBC learned, after a 60% tumble in the stock that day. The shares were down another 62% in premarket trading Friday before they were halted for pending news. They did not open for trading with the market at 9:30 a.m.
The SPDR S&P Regional Banking ETF was off another 5% Friday following an 8% tumble on Thursday. The Financial Select SPDR Fund was down by 1.6% following a 4% decline on Thursday. Signature Bank, which is known to cater to the crypto sector, was off 18% in following a 12% tumble Thursday. First Republic Bank was off 31% following a 17% tumble on Thursday. PacWest Bancorp was down 23%. Many of these regional bank shares were halted for volatility repeatedly.
Major banks were holding up better than regional banks with JPMorgan Chase up 1.4% Friday after tumbling 5% on Thursday.
Nonfarm payrolls rose by 311,000 for the month, the Labor Department reported Friday. That was above the 225,000 Dow Jones estimate and a sign that the employment market is still hot.
That's the shit!Although I am holding PTGX with a 91.58% gain... Generally the Weekend Trend Trader system is getting Thrashed and Trashed this week.
I never have that problem...[Like being boiled in oil.] #Next1000Trades
Shares of SVB Financial Group, known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the whole banking sector again.www.cnbc.com
Contagion fears for the banking sector...
U.S. Treasury Secretary Janet Yellen said Friday she’s tracking a number of banks as Silicon Valley Bank has faced major problems.
John McLaughlin: ... Issue number 5: what number am I thinking of? Pat Buchanan!
Pat Buchanan: Geez, uh, 82?
John McLaughlin: Wrong! Eleanor Clift!
Eleanor Clift: Is it between 1 and..
John McLaughlin: Don’t skirt the issue!
Eleanor Clift: Uh.. 40!
John McLaughlin: Wrong! Mortontyne!
Morton Kondracke: 212?
John McLaughlin: Wrong! Jackareeno!
Jack Germonde: 2?
John McLaughlin: Wrong! The correct answer is 134. 134.
For Immediate Release
WASHINGTON – Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.
All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including on-line banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-866-799-0959.
The FDIC as receiver will retain all the assets from Silicon Valley Bank for later disposition. Loan customers should continue to make their payments as usual.
Silicon Valley Bank is the first FDIC-insured institution to fail this year. The last FDIC-insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.
2. What is bridge bank, how does it?
A bridge bank is a new national bank chartered by the Office of the Comptroller of the Currency (OCC) and controlled by the FDIC in accordance with section 11 ( n ) of the Federal Deposit Insurance Act.
Creating a bridge bank permits parallel functions to continue. First, the bridge bank allows client banks to maintain their correspondent banking relationship with the least amount of disruption. ... Secondly, operating a bridge bank allows FDIC's preexisting efforts to market the bank to continue. Thirdly, operating the bridge bank allows time for the failed bank to be liquidated in an orderly fashion if marketing efforts are unsuccessful.
Simon Dixon, CEO of online investment platform BnkToTheFuture, tweeted that Circle's chief executive Jeremy Allaire said the firm held "most of their cash is in BNY Melon," while sharing a screenshot from March 2. BnkToTheFuture is an investor and shareholder in Circle.Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.https://t.co/NU82jnajjY
— Circle (@circle) March 10, 2023