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#FTXUS Analysis - Thread 3
Following on from yesterday. Todays thread will focus on payments to #insiders made in the last 12 months prior to bankruptcy. Every time I look through the docs...I'm just amazed how spellbindly outrageous this whole shit show is.
Following on from yesterday. Todays thread will focus on payments to #insiders made in the last 12 months prior to bankruptcy. Every time I look through the docs...I'm just amazed how spellbindly outrageous this whole shit show is.
In 12 months just over $25m was paid to insiders. I've summarised by quarter. 48% of payments went to undisclosed parties but since they are insiders and SBF only clipped a lazy $500k in his name...lets assume its him. 
The stand out insider is the former CFTC commissioner #markwetjen who was paid $3.7million
At the beginning of what we call “America,” the government wrote laws, one such set of laws created the US dollar.
Because the federal government created the US dollar, you might think the Fed Govt’s understand that US dollar banking is the responsibility of the dollar’s creator.
Because the federal government created the US dollar, you might think the Fed Govt’s understand that US dollar banking is the responsibility of the dollar’s creator.
But, seemingly, the federal government (and the public) don’t get it. Allowing for-profit, private banks to handle that responsibility, competently and without stealing, requires an impossible level of supervision along with a naive belief in the purity of the human spirit.
For apologists, #SVB's #bailout was mere prudence: innocent bystanders stood in harm's way - rank-and-file startup employees, elite private school scholarship kids -so regulators improvised measures to make everyone whole without costing the public a dime. What's not to like?
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If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
pluralistic.net/2023/04/15/soc…
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pluralistic.net/2023/04/15/soc…
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But that account doesn't hold up to even the most cursory scrutiny. Everything about it is untrue. Take the idea that this wasn't a "bailout" because it was the depositors who got rescued, not the shareholders.
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Here's @CrossRiverBank's details over at #FDIC. Various addresses, FDIC ID numbers, charter info, etc. in case anyone's looking to dig around.
Note that for their first 5 years they were rated "Needs to improve" as a bank.
#lolbank
banks.data.fdic.gov/bankfind-suite…
Note that for their first 5 years they were rated "Needs to improve" as a bank.
#lolbank
banks.data.fdic.gov/bankfind-suite…
@crossriverbank 🧵 Who else didn't know that @CrossRiverBank changed its name from #FirstFinancialBank in 2008?
state.nj.us/dobi/bnk_depos…
state.nj.us/dobi/bnk_depos…
🧵 @CrossRiverBank is technically owned by #CRBGroup (seems like it's not the same as @CRBgrp?), a holding company in Fort Lee, NJ. Apparently #JoannaAlbertine is the CFO.
Here's their annual filings in NJ: ffiec.gov/npw/Institutio…
Here's their annual filings in NJ: ffiec.gov/npw/Institutio…
🧵1/Ω A few things about @crossriverbank, a tiny #a16z funded lender that originated more #PPP loans for "small businesses" than anyone besides Chase, BofA, and Wells Fargo, mostly for people who were not their customers.
Also @coinbase's preferred bank.
techcrunch.com/2022/03/30/cro…
Also @coinbase's preferred bank.
techcrunch.com/2022/03/30/cro…
🧵2/Ω They paid @McKinsey a bunch of money to tell the world that "while most banks originated PPP loans to their own customers, Cross River leads in originations to new customers"
mckinsey.com/industries/fin…
mckinsey.com/industries/fin…
🧵3/Ω Unlike other banks that blew up on "fund banking" recently (*cough* $SBNY $SIVB *cough*) @crossriverbank does their "fund banking" differently:
They package all the loans and sell them to weird "fintech" companies like @Upstart. @mikulaja
They package all the loans and sell them to weird "fintech" companies like @Upstart. @mikulaja
1) The fact is that @FDICgov #deposit #insurance is outdated. Don’t consider only the $250k or amount but underlying activities when assessing deposit insurance. It was designed for a Glass-Steagall world. Today, the #DIF should be priced relative to underlying business risk.
2) An old fashioned community bank that merely takes deposits and makes loans within its customer geography should be assessed at a different level than a bank that is also an asset manager, insurer, and investment bank.
3) #FDIC insurance should be priced based upon underlying activity AND business line risks. The DIF assessments for plain vanilla, old fashioned banks, should be essentially free up to a dollar amount that captures the deposit needs of their local customers.
Le fonds américain qui est soit-disant censé garantir les dépôts jusqu'à $250000 aux États-Unis, est de $130 milliards.
Les dépôts des clients de #SVB sont de $165 milliards, soit plus que le fonds de garantie, dont $150 milliards non assurés (dépôts dépassant les $250k).
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Les dépôts des clients de #SVB sont de $165 milliards, soit plus que le fonds de garantie, dont $150 milliards non assurés (dépôts dépassant les $250k).
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Le fonds de garantie de la #FDIC aurait dû garantir tous les dépôts jusqu'à 250k$, soit $15 milliards.
Le fonds de garantie est inférieur aux dépôts des clients de la #SVB.
C'est pour cette raison que la #FED est directement intervenue pour garantir tous les dépôts des clients.
Le fonds de garantie est inférieur aux dépôts des clients de la #SVB.
C'est pour cette raison que la #FED est directement intervenue pour garantir tous les dépôts des clients.
Ces $130 milliards de garantie sont une poussière par rapport aux $10000 milliards de dépôts aux États-Unis.
C'est dans la tempête que les mythes tombent et que les mensonges se dévoilent.
C'est dans la tempête que les mythes tombent et que les mensonges se dévoilent.
Todays UNN show situation report by KimPossible was all about the #bankingcrash who caused it and why, needless to say it was yet another failed attempt by the remaining #blacksun minions > Watch 13-MAR-23 NEWS 1 unitednetwork.tv/videos/13-mar-…
Here is the last of #kimpossibles report from todays show. 13-MAR-23 NEWS 1 unitednetwork.tv/videos/13-mar-…
#quote: Jacob Rothschild passed away last weekend 80+ yrs old. Nathan Rothschild is running the family biz now. h/t KimPossible 13-MAR-23 NEWS 1 unitednetwork.tv/videos/13-mar-…
🔴 #SVBBank "Attention aux investisseurs mondiaux ! Ne laissez pas les banques américaines manger votre argent".
Article initialement publié par Global Times (#Chine) le 12 mars 2023
Alors que les analystes de Wall Street ont déclaré que la faillite de la Silicon Valley Bank 🔽
Article initialement publié par Global Times (#Chine) le 12 mars 2023
Alors que les analystes de Wall Street ont déclaré que la faillite de la Silicon Valley Bank 🔽
2.
(#SVB) n'entraînera pas de risque systémique pour le système financier dans son ensemble, il convient de noter que les mesures prises par les régulateurs américains pour faire face à l'effondrement de la #SVB et à la gestion des dépôts de ses clients constitueront une 🔽
(#SVB) n'entraînera pas de risque systémique pour le système financier dans son ensemble, il convient de noter que les mesures prises par les régulateurs américains pour faire face à l'effondrement de la #SVB et à la gestion des dépôts de ses clients constitueront une 🔽
3.
fenêtre importante pour savoir si la crise a le potentiel de s'aggraver.
L'effondrement de #SVB a provoqué une onde de choc dans les start-ups du monde entier, les entreprises technologiques ayant averti que les retombées potentielles pourraient porter un coup fatal aux 🔽
fenêtre importante pour savoir si la crise a le potentiel de s'aggraver.
L'effondrement de #SVB a provoqué une onde de choc dans les start-ups du monde entier, les entreprises technologiques ayant averti que les retombées potentielles pourraient porter un coup fatal aux 🔽
#SVB Bankruptcy and $USDC Unpegged Incident
1/7 #Circle, an issuer of $USDC, announced on Mar 10th that #SVB, where they held their funds, had gone bankrupt. This leaves $3.3B collateralized in $USDC locked up. Upon this news, $USDC plunged more than 10%.
1/7 #Circle, an issuer of $USDC, announced on Mar 10th that #SVB, where they held their funds, had gone bankrupt. This leaves $3.3B collateralized in $USDC locked up. Upon this news, $USDC plunged more than 10%.
2/7: However, #Circle had previously disclosed the amount of reserve it held in $USDC, and currently, only 8.2%($3.3B out of $40B) was tied up in #SVB.
3/7: By using the #FDIC recovery process as a guide, it's expected that the payout rate will be around 94%, indicating an estimated loss of approximately $200M.
Mutual funds do come with lock-in features! Especially if you are investing in a capital-protected product, you are not entitled to early encashment for a certain time.
Redemptions are deterred with the backend load.
#Backstops are required in the banking arena beyond penalties
Redemptions are deterred with the backend load.
#Backstops are required in the banking arena beyond penalties
Of course, if you park liquidity in a time deposit liability side product, at a bank, you might have to pay a penalty for early withdrawal.
But, the highest liquidity risk is emanating from the sight deposits pool.
Run-on-the-bank risk is hard to mitigate if assets don't sell
But, the highest liquidity risk is emanating from the sight deposits pool.
Run-on-the-bank risk is hard to mitigate if assets don't sell
Also, the standard practice is to call in the treasury department and borrow short-term through the interbank market to fund liquidity drains.
Call and Clean lending is done via the wholesale market for Fi credits.
Also, Repo markets can be used.
Call and Clean lending is done via the wholesale market for Fi credits.
Also, Repo markets can be used.
Una cronología del 2do colapso bancario más grande en la historia de EEUU. Las redes están a full con publicaciones sobre #SiliconValleyBank, y la historia es difícil de seguir. Acá un hilo 🧵con un poquito de research para intentar entender mejor cómo se llegó a esta situación
El miércoles pasado, Silicon Valley Bank $SIVB tenía $212 billones en activos y una capitalización de mercado de $16bn. 48 horas después, el banco quebró. ¿CÓMO SE LLEGÓ HASTA ESTA SITUACIÓN CRÍTICA?
La raíz del problema empezó en 2021 cuando las firmas, mayoría #startups respaldadas por #venturecapital, recaudaron $330bn (el doble que el año anterior). Todo esto en un mundo en donde sobraba liquidez, con Fed fund rates de 0,25 %, T-Bonds a 10 años al 1% e inflación de 1,4%
⭐️One of the largest banks in the U.S., #SiliconValleyBank, has gone bankrupt. This is the largest bankruptcy in the United States since the 2008 financial crisis.
It has raised question marks on the existence of 1000's of startups in the US and in India too.
#Thread
#BankCrash
It has raised question marks on the existence of 1000's of startups in the US and in India too.
#Thread
#BankCrash
1. California banking regulators pulled the shutters on #SiliconValleyBank (SVB), a lender to some of the largest tech companies in the world, on 10th March, making it the largest bank to fail since the global financial crisis of 2008.
2. US regulators closed #SiliconValleyBank and took control of its deposits, a move which puts nearly $175 billion in customer deposits under the Federal Deposit Insurance Corp’s control.
In this Silicon Valley Bank situation, it might be worth giving a little credit to the #FDIC. Most people are talking about #SVB as a once-in-a-lifetime event. But, FDIC has gone through this 562 times in the last 22 years. Bank failures are not that rare.
For everyone in a panic that the money is lost -- that's probably not the case. The assets of SVB are not worth nothing. SVB went down for *liquidity* reasons, not *solvency* reasons.
On Thursday, depositors initiated $42 B (!) of withdrawals. This letter from the California regulator says that SVB ended the day with short around a billion. (this would actually be quite a feat if they actually met $41B of those withdrawals... so I don't think they did)
¿Cómo el mayor colapso bancario desde la Gran Recesión del 2008 puede desencadenar una crisis sin precedentes?
Las industrias #tech #crypto #vc están en PELIGRO.
Controlar la bomba o mandar todo a la 💩 será decidido este fin de semana...🧵👇🏽hilo en plastilina y español.
Las industrias #tech #crypto #vc están en PELIGRO.
Controlar la bomba o mandar todo a la 💩 será decidido este fin de semana...🧵👇🏽hilo en plastilina y español.
Como muchos ya saben, cerró el Silicon Valley Bank, el 16vo banco más grande de EEUU. Líder para custodiar fondos de startups por 40 años, fue víctima de lo que se conoce como un bank run o cascada de liquidez.
¿Cómo?
¿Cómo?
Los depósitos del #SVB aumentaron 3 veces de 2019 a 2021, y mientras fondos de capital de riesgo invirtieron en exceso en startups sin un modelo de negocio real, SVB hizo LO MISMO...pero en bonos del Tesoro de tasa fija y otros instrumentos de deuda.
Silicon valley libertarians up through yesterday:
Gov stifles innovation, keep them away.
This morning: we need immediate, drastic government action.
Gov stifles innovation, keep them away.
This morning: we need immediate, drastic government action.
Libertarian curious till there's a bank run.
Take a moment of pause to call out the sudden radical shift in discourse about the role of government from Silicon Valley.
Because as soon as things turn positive, they'll be weirdly amnesiac about it.
Because as soon as things turn positive, they'll be weirdly amnesiac about it.
Pequeño hilo para entender qué está ocurriendo con la estampida bancaria del Banco de Silicon Valley #SVB que ha puesto en riesgo varias startups.
Debido a las bajas tasas de interés en EEUU durante la pandemia, el sector tecnológico tuvo un crecimiento explosivo. 1/n
Debido a las bajas tasas de interés en EEUU durante la pandemia, el sector tecnológico tuvo un crecimiento explosivo. 1/n
No solo todos podían tener acceso a créditos con tasas muy bajas, sino que debido a que todos estábamos encerrados, los servicios digitales crecieron abruptamente.
Durante ese periodo, el banco recibió muchos depósitos de capitales de riesgo #VC interesados en invertir... 2/n
Durante ese periodo, el banco recibió muchos depósitos de capitales de riesgo #VC interesados en invertir... 2/n
🆘SVB Financial $SIVB collapse explained 🥵
~ Just 24 hours ago $SIVB was trading at over $260/share it hit a low of $33.40 today
~ It is currently halted after being shut down by regulators & taken over by the FDIC
~ Largest bank failure since 2008
#banks #financialcrisis
🧵⤵️
~ Just 24 hours ago $SIVB was trading at over $260/share it hit a low of $33.40 today
~ It is currently halted after being shut down by regulators & taken over by the FDIC
~ Largest bank failure since 2008
#banks #financialcrisis
🧵⤵️
🚨 What happened? Here's the $SIVB story
~ Silicon Valley Bank parent company SVB Financial Group has collapsed after disclosing large losses from securities sales & a stock offering meant to provide a boost to its balance sheet
#BankCrash
🧵⤵️
~ Silicon Valley Bank parent company SVB Financial Group has collapsed after disclosing large losses from securities sales & a stock offering meant to provide a boost to its balance sheet
#BankCrash
🧵⤵️
⏺️ $SIVB helps fund technology startups backed by venture-capital firms
~ Rising interest rates, fears of a recession & a slowdown in the market for initial public offerings has made it harder for early-stage companies to raise cash
~ This led firms to draw down on their deposits
~ Rising interest rates, fears of a recession & a slowdown in the market for initial public offerings has made it harder for early-stage companies to raise cash
~ This led firms to draw down on their deposits
🚨🚨🚨@investvoyager joins @Hoo_exchange, @Aexglobal, @CoinSwitchKuber, and others in #TheClosening,
there is officially no more money (or $BTC) left to give back to unsecured creditors (they call themselves "depositors")
1st major exchange in North American market to do so.
there is officially no more money (or $BTC) left to give back to unsecured creditors (they call themselves "depositors")
1st major exchange in North American market to do so.
Apparently the intervention of God Emperor #SBF was only able to keep @investvoyager out of the jaws of #TheClosening for 9 days. May the #Voyager monster at last find peace in the void, inshallah.
historical 🧵 from last week's events:
historical 🧵 from last week's events:
@investvoyager looks like its headed for #deathspiral because of its exposure to #3AC.
tweets about locked funds coming fast and furious right now.
coindesk.com/business/2022/…
tweets about locked funds coming fast and furious right now.
coindesk.com/business/2022/…
@investvoyager Looks like @investvoyager, another #DeFi (#CeFi?) "bank" like #BlockFi, has halted customer withdrawals and Twitter is freaking out. $VGX token has crashed.
more details w/r/t Voyager (@investvoyager) loan book, another crypto "bank" circling the drain because of the #3AC situation.
#VGX $VGTX
#VGX $VGTX
‘Trump Appointee Resigns After Fight With Democratic Bank Regulators’
‘Jelena #McWilliams, the chairwoman of the #FDIC, said that she would step down effective Feb. 4. Democrats on the board contended she was stonewalling their attempts to review policy’
nytimes.com/2021/12/31/bus…
‘Jelena #McWilliams, the chairwoman of the #FDIC, said that she would step down effective Feb. 4. Democrats on the board contended she was stonewalling their attempts to review policy’
nytimes.com/2021/12/31/bus…
‘#FDIC’s GOP chair to resign after partisan brawl’
“Her departure, effective Feb. 4, means that FDIC board member Martin Gruenberg will become acting chair”
politico.com/news/2021/12/3…
“Her departure, effective Feb. 4, means that FDIC board member Martin Gruenberg will become acting chair”
politico.com/news/2021/12/3…
‘#FDIC chair intends to resign in February, giving Biden more say over bank regulation’
“#Gruenberg has spoken out against the deregulatory actions taken over the past several years at the Federal Reserve that also have drawn sharp criticism from …”
cnbc.com/2021/12/31/fdi…
“#Gruenberg has spoken out against the deregulatory actions taken over the past several years at the Federal Reserve that also have drawn sharp criticism from …”
cnbc.com/2021/12/31/fdi…
#Oligarchy #Finance #Fascists: #Credit Chokehold will #Bankrupt #Businesses. Via #MSM distractions #TheLeft busy worked on pressure points: #Money #Banks, #IdentityPolitics grouping: #SkinColor #Religion #Occupation #Ideology & now #CarbonFootprint
Aims of the #GreatReset #American #Bankers #Oligarchy ... "We will promote social justice policies to reduce inequalities including through support to tax redistributive & domestic resource optimization approaches social safety nets & or insurance schemes"
Newly Unsealed Docs in 2018 showed top #FDIC Officials Running Operation #ChokePoint* under 2013 #ObamaAdministration to form public/private oligarchy
* to freeze politically disfavored #businesses deemed not PC / high risk out of the financial system
forbes.com/sites/norbertm…
* to freeze politically disfavored #businesses deemed not PC / high risk out of the financial system
forbes.com/sites/norbertm…
1) BOOOOOOOOOOOOM! 3 more #blockchain bills cleared the #Wyoming legislature today & head to @GordonGovernor's desk for signature! The special-purpose depository institution, tokenized corporate stock certificates & Secretary of State blockchain integration bills all passed today
2) The special-purpose depository institution (SPDI) is esp impt. It helps solve the #blockchain sector's prob of difficulty accessing basic US$-only #bank accounts, which v few banks offer to start-ups. Many horror stories of start-ups shutting down bc banks closed their accts
3) US businesses that lose their bank accts go out of biz (for ex. IRS requires withholding taxes to be paid electronically via a bank acct). It’s critical to success of #blockchain sector that more than just a few banks serve industry (for basic checking/payroll/cash mgmt accts)
1/ TWEETSTORM to answer ?s many asked abt #Wyoming's new #blockchain bills, including blockchain-friendly #bank bill. Bottom line: in addition to enacting 5 blockchain-friendly bills in 2018, 6 more bills have an elevated chance of becoming law bc they're now "committee bills"...
2/ ...& more bills are coming. Told ya' #Wyoming isn't done yet! Major opposition from the banking industry to the #bank bill & we weren't sure of outcome, but it v powerful committee endorsed it 13-1 & the only vote against it came from a banker. Next step=legislature in Jan...
3/ ...with momentum behind it (tho it's not law yet!). WY Banking Commissioner approached us after the 13-1 vote came in, to start rule-making work now. We're forming a group thru Digital Asset Trade Assoc (@asset_trade)--email info@digitalasset.org if you'd like to join that...
