I’ve been putting off writing about this story, because I don’t understand financial stuff as well as other things. Furthermore there’s always enormous amounts of FUD with finance stories, so it can be extremely hard to figure out exactly what is going on. Now that the dust has cleared somewhat I feel I can finally write my overview.
Silicon Valley Bank, one of the leading lenders to the tech sector, was shut down by regulators Friday [March 10th] over concerns about its solvency.
On Wednesday evening, SVB announced it was planning to raise $2 billion to “strengthen [its] financial position” after suffering losses amid the broader slowdown in tech sector. It also indicated it had seen an increase in startup clients pulling out their deposits. At the same time, the bank signaled that its securities had lost value as a result of higher interest rates.
By Thursday morning, SVB shares began to see a massive sell-off.
Later that day, SVB CEO Gary Becker pleaded with tech investors to “stay calm.” He said that the only danger posed to SVB was if “everybody is telling each other that SVB is in trouble.”
That appears to have morphed into a self-fulfilling prophecy, with tech titans including Peter Thiel reportedly warning startup founders to reduce their exposure to SVB.
By the end of the day, SVB shares had fallen by 60%.
On Friday morning, CNBC reported that SVB had been unable to raise the cash it had been hoping to assemble, and was looking for a buyer as deposit outflows continued to accelerate.
I saw people on Telegram wondering how Thiel knew to get his money out of SVB before the crash. There are many valid critiques of Peter Thiel. This does not appear to be one of them.
Peter Thiel telling investors to pull out of SVB a day after they had announced billions in losses is barely even newsworthy. It’s not like he pulled off some sort of scam here, he just saw what was obviously coming down the pipe. Focusing on stuff like this is annoying, because there are the (((usual suspects))) exploiting the situation as we would expect.
By noon Friday, California state and federal banking regulators had seen enough and announced they were taking over SVB’s deposits and putting the bank into receivership.
Journalist David Israel – no really – tells us how many Israeli startups were about to get put on rollercoasters that went straight into ovens because of this.
SVB Financial Group, a.k.a. Silicon Valley Bank, on Thursday, was desperately reassuring its venture capital clients that their money was safe after its stock dropped 60% and more than $80 billion in value in bank shares evaporated. The run on the bank followed a capital raise––also desperate––intended to pay for a lost $1.8 billion, the result of the sale of a $21 billion portfolio of US Treasuries.
SVB has an Israeli branch, managed by David Cohen and Gadi Moshe, and serves an estimated 500 Israeli companies, including giants such as eToro, Redis, Verbit, Fireblocks, and Capitolis. According to reports, companies that tried to take their money out of SVB were refused.
It’s not just the Dual Citizens of course. Lots of Important-Americans had their money and businesses at stake here. The East Palestine Peasants aren’t gonna get shit after Norfolk Southern sets off a chemical holocaust in their backyards that killed their pets. But when Important-Americans have some of their non-earned cash threatened the shills man the battlestations and earn their keep.
When Biden’s Treasury Secretary, Janet Yellen, announced that all tech companies who deposited funds at SVB, even those who recklessly parked obscene amounts of money there without diversifying, would be made whole, the federal government sent a clear message to the American people: There are alternative rules if you are part of the favored class.
Put your hands together for Newsweek journalist Vivek Ramaswamy. He’s a Republican shill, but he’s nailed this one.
It’s not as complicated as they want you to believe. Silicon Valley Bank (SVB) is a bank for a bunch of tech companies in Silicon Valley. The bank invested deposits in mortgage-backed securities that go down in value when interest rates go up. When the Federal Reserve raised interest rates, SVB ran into trouble.
It turns out that many of the tech companies who parked money at SVB did so without thinking too much about it—and made some horrendous decisions. For example, the tech company Roku deposited a staggering $487 million at SVB.
The normal rules of the road are clear: The first $250,000 is insured by FDIC. After that, the customer is liable for loss. But Silicon Valley wanted a different set of rules for itself.
His entire piece is worth reading, as it’s somewhat complicated. Interestingly, you can actually still find the page I screencapped below.
CF:
A head of risk assessment at the beleaguered Silicon Valley Bank has been accused of prioritizing pro-diversity initiatives over her actual role after the firm imploded on Friday.
Jay Ersapah – who describes herself as a ‘queer person of color from a working-class background’ – organized a host of LGBTQ initiatives including a month-long Pride campaign and implemented ‘safe space’ catch-ups for staff.
Last year professional network Outstanding listed Ersapah as a top 100 LGTBQ Future Leader.
It adds that she is ‘allies’ with gay rights charity Stonewall and had authored numerous articles to promote LGBTQ awareness.
These included ‘Lesbian Visibility Day and Trans Awareness week.’
Separately she was also praised in a Facebook post by the group ‘Diversity Role Models,’ a charity which campaigns against homophobic, biphobic and transphobic bullying in UK schools.
‘As a queer person of color and a first generation immigrant from a working class background, there were not many role models for me to ‘see’ growing up.
You know what they say. Go woke get broke a bailout provided by the taxpayer because capitalism is fake. As if to prove my point, the article quotes from one Paul Tucker who unironically does the bit.
One Facebook user, Paul Tucker, wrote: ‘The [SVB] Board of Directors is filled with diversity hires who are there because of their woke credentials.
‘They all have pronouns in their bios, which are filled with corporate newspeak.
‘The Head of Financial Risk and Model Risk Management was this nutbag: Jay Ersapah.
‘This is what happens when you allow people to manage your money based on woke principles instead of on their actual skill and competence.
‘I hope the depositors at this failed bank enjoy all of that diversity, because diversity is your strength, eh?’
He signed off the post: ‘Get woke, go broke.’
I think the depositors at that bank enjoy the diversity just as much as they enjoy the bailout that your taxes gave them. “Woke” is just a term that consubversatives created to refuse to actually advocate for White People while pretending to advocate for White People. It also lets them repeat garbage like the “Go Woke Get Broke,” nonsense, which presupposed that capitalism is not entirely fake.
Big businesses do not need to respond to market forces, even in the absence of bailouts. That these banks get your taxdollars when the die comes up snakeyes for them makes this even more absurd. You can’t start a business without a payment processor and banking, which these banks will happily deny to you for political purposes.
There simply exists a Corporate-State Complex. Consubversatives know this as well as anyone else, they just pretend not to in order to run interference and make the organized resistance to big businesses impotent and stupid.
The former CEO of Silicon Valley Bank who sat at the helm of the financial institution when it collapsed was spotted sauntering in Hawaii Wednesday — as his former colleagues scramble to pick up the pieces.
Greg Becker and wife Marilyn Bautista fled to their $3.1 million Maui townhouse just days after Becker, who was CEO of SVB since 2011, left the firm, photos taken by the Daily Mail show.
Despite his change in employment status, Becker, 52, seemed unconcerned with cash as the couple enjoyed a chauffeur-driven limo ride to San Francisco Airport Monday and first-class tickets to their island paradise, the outlet reported.
That’s odd. You’d think someone who just got fired after their employer went out of business at the drop of a hat would be suffering financially.
The ex-CEO cashed in 12,500 shares for nearly $3.5 million just two weeks before the firm went under.
But he knew that the bank was seriously struggling because he had access to the financial sheets long before the public, and decided to hedge his bets. This sort of thing would get you executed in a real country, but in this one he gets to sip mai tai’s in flip flops at the beach. Think about that the next time you struggle to pay rent, or have to cut back to live within your means.
Treasury Secretary Janet Yellen, however, reassured lawmakers that the US banking system is in stable condition.
“I can reassure the members of the committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them,” Yellen said Thursday.
Speaking of the Jew Janet Yellen, Radix Verum put out this video, claiming that Yellen allowed some firms to transfer their funds out before the feds seized the assets.
They reference this piece by Information Liberation.
IL:
Israeli firms managed to transfer $1 billion out of Silicon Valley Bank to accounts in Israel just before the bank was seized by the feds, the Times of Israel reports.
If Americans Knew has more:
Israel’s Ha’aretz newspaper reports that “a good many Israeli companies had been able to get their money out in time, but that it was clearly not the case for everyone” and that “companies whose deposits are now locked will seek to conceal this, concerned that any rumors might drive away customers, suppliers and employees.”
The FDIC has announced an emergency bailout program that will pay depositors 100% of the money they had in the bank. It’s unclear whether this U.S. money will go to Israeli companies. Israel already receives over $10 million per day from American taxpayers.
The Washington Post reports: “While the fund going to the depositors is paid into by U.S. banks, it is ultimately backstopped by the Treasury Department — and therefore U.S. taxpayers.”
How nice of Treasury Secretary Janet Yellen to look the other way while these funds were transferred out.
Thanks, Janet. Very cool.
US Treasury Secretary Janet Yellen
Probably the best normie video is by Patrick Boyle. I used him as a reference for part of the ongoing Bankmanocaust series.
In short, the bank was extremely incompetent, and it didn’t matter because your taxes bailed out all these shitty people anyway, and the executives all got golden parachutes. Luckily the US Justice Department is getting to the bottom of all this, and the (((Sam Bankman-Fried))) shenanigans.
A bank accused of redlining in the Columbus, Ohio, area has agreed to a $9 million settlement over allegations that it concentrated branches and mortgage lenders in majority-white neighborhoods, the Justice Department said Tuesday.
Park National Bank, headquartered in nearby Newark, Ohio, operated 36 total branch locations where it accepted mortgage-loan applications across the metropolitan area surrounding Ohio’s capital city over a period of several years — but none of them were located in Black or Hispanic neighborhoods, according to a complaint also announced by the federal government Tuesday.
The bank, which the Justice Department says today has 20 full-service branch locations in the Columbus area, has since agreed to open one new branch and one new mortgage loan production office in majority Black and Hispanic neighborhoods in Columbus as a part of the settlement, and will ensure that a minimum of four mortgage lenders — at least one of whom can speak Spanish — are assigned and able to serve those communities, according to the Justice Department.
Merrick Garland
A no-name bank had a bunch of offices, none of which were located in crime-infested neighbourhoods. They don’t even pretend that they refused to lend to non-Whites, just that their offices weren’t physically located in the ghetto. These are the “crimes” that the Jew Merrick Garland’s (((Department of Justice))) is interested in investigating.
“For far too long the doors to home ownership have been shut for Black families and many other people of color because of unlawful redlining by banks and other financial institutions,” Kristen Clarke, assistant attorney general for civil rights at the Justice Department, said in a statement Tuesday. “When banks fail to provide equal access to lending services in neighborhoods of color, they engage in modern day redlining and exacerbate the racial wealth gap in our country.”
To better serve those communities, Park National has agreed to invest at least $7.75 million in a loan subsidy fund that will increase access to mortgage, improvement and refinancing loans, as well as home-equity loans, in Hispanic and Black neighborhoods. The bank will also put $750,000 toward outreach, advertising, consumer financial education and credit counseling in these communities, and devote $500,000 to developing community partnerships to service residents of majority Black and Hispanic neighborhoods.
The important question here is *why* SVB was allowed to fail — clearly there is no shortage of fiat dollars, and there are mechanisms (e.g. via the Federal Reserve) to provide liquidity to banks.
During every crisis there are sacrificial lambs, banks and other financial institutions that are allowed to fail (for whatever reason) when it’s obvious they could all be saved by providing sufficient liquidity, including by buying ‘distressed assets’ at par.
No one takes talk of ‘moral hazard’ or the ‘balance sheet’ of the Federal Reserve seriously anymore — that was always phony posturing for the rubes.
One of your best pieces.
It entirely kicks ass.
You’re at the “specular effect” level here,
a blog I read daily until it got Holohoaxed.
Tyty whipsnade.
That last paragraph is a worthy of Dr. Goebbels.
I’m thinking this is something they’ll get out of the headlines ASAP because there’s very little to say about it but “the government bailed out jews, tech companies, and millionaire anti-Whites” and they really don’t want that to be the focus of any news stories.
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