Discover and read the best of Twitter Threads about #siliconvalleybank
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Auditors lubricate capitalism, keeping finance's gears smoothly a-whirl, so investors can move money in and out of companies without poring over their books or walking their facilities. Without auditors, capitalism's gears would grind to dust:
pluralistic.net/2021/02/18/ink…
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pluralistic.net/2021/02/18/ink…
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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/2023/05/09/din…
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pluralistic.net/2023/05/09/din…
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Unfortunately for capitalism, auditing is irredeemably broken. The Big Four auditors (#PWC, #EY, #Deloitte and #KPMG) have merged to monopoly, becoming #TooBigToFail and #TooBigToJail.
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First Republic Bank was taken over by @FDICgov and sold overnight—the third bank failure in two months. I’ll dive deeper into what Congress can do, but first let me say this: Americans' money in the banking system remains safe and deposits up to $250,000 are fully insured. 🧵🔽
These recent bank failures were avoidable.
The Fed’s report on #SiliconValleyBank's collapse pointed to bank mismanagement and the 2018 rollback of financial safeguards, among other issues.
I wrote two bills to prevent this from happening again. (2/5)
The Fed’s report on #SiliconValleyBank's collapse pointed to bank mismanagement and the 2018 rollback of financial safeguards, among other issues.
I wrote two bills to prevent this from happening again. (2/5)
In 2018, Congress overturned banking regulations put in place after the 2008 financial crisis. I called it out at the time for exactly what it was—catering to Wall Street. I’ve introduced the #SVBAct to restore these critical protections. (3/5)
1/ Have you watched my latest #BTC analysis? I mentally prepare you for the 🩸📉 we're seeing today!
Consolidation is a psychological battle!🤺 The victor must prove itself continually before trending onwards; longer battles imply stronger forces. 🧠 🧵
Consolidation is a psychological battle!🤺 The victor must prove itself continually before trending onwards; longer battles imply stronger forces. 🧠 🧵
2/ I'm using a metaphor of a battle to describe the process of consolidation, which refers to the strengthening and solidifying of a position or entity, in this case, #bitcoin.
In this metaphor, the "victor" is the entity or position that successfully consolidates itself. 🪖🫡💪
In this metaphor, the "victor" is the entity or position that successfully consolidates itself. 🪖🫡💪
3/ Consolidation is a critical process in which an entity or position is strengthened and solidified over time. Rather than being a one-time event, consolidation is an ongoing process that requires consistent effort and attention to maintain and strengthen the position.
⭕️ La Junta de Gobierno de @Banxico elevó la tasa de interés de referencia a 11.25 por ciento, un movimiento que replica el aumento de la semana pasada de 25 puntos base de la tasa de interés de referencia de la Reserva Federal de #EstadosUnidos. (1/8)
🔹Aunque se trata de una medida de política monetaria restrictiva abocada a contener la #inflación, el incremento de 25 puntos base publicado este jueves representa el cambio de menor magnitud en la tasa de interés desde noviembre de 2021. (2/8)
🔹La comunicación del banco central también sugiere un punto de inflexión que apunta a la reducción del ritmo con el que se ha implementado este ciclo de restricción monetaria: (3/8)
1) Attempts by the Fed to argue it was a roll-back of the Dodd Frank that caused, or led to, the failure of #SiliconValleyBank are 100% untrue…
2) the bill didn’t prohibit or in any way prevent the Fed from applying enhanced prudential supervision standards. It permitted the Fed to do such enhanced prudential supervision on any BHC, or category of BHCs, if it was concerned that such BHC(s) could pose a risk to financial… twitter.com/i/web/status/1…
3) Second, and more important, the root of the failure to supervise interest rate risk at the banks was 100% tied to the Fed’s 2013 final rule that allowed non-GSIBs to elect to exclude most items from regulatory capital…
💥 The Domino Effect: Signature Bank, #SiliconValleyBank, and Silvergate Collapse – What You Need to Know #BankingCrisis
1/ 🚨 Recent events have seen the collapse of Signature Bank, #SiliconValleyBank, and #Silvergate, sending shockwaves throughout the financial industry. In this thread, we'll explore the factors leading to their downfall and the broader implications.
2/ 📉 A combination of factors such as mismanagement, excessive risk-taking, and exposure to toxic assets has led to these banks' demise. Their failure has amplified fears surrounding the general insolvency present in banks.
🧐 @FDICGov's press release makes it sound like First Citizens Bank took all the loans that #SiliconValleyBank had on its books.
But... it did not.
$90 billion in toxic loans were left behind.
Cost to taxpayers currently estimated at $20bn but it will rise.
But... it did not.
$90 billion in toxic loans were left behind.
Cost to taxpayers currently estimated at $20bn but it will rise.
@FDICgov 🧵 Much of what is being written about #SVB is just as wrong as what's being printed right now about Citizens Bank "buying Silicon Valley Bank".
To be clear: $SIVB had $90 billion in loans so toxic no one would buy them.
#fundbanking / #venturedebt
cryptadamus.substack.com/p/how-everyone…
To be clear: $SIVB had $90 billion in loans so toxic no one would buy them.
#fundbanking / #venturedebt
cryptadamus.substack.com/p/how-everyone…
For many #ConstitutionalLaw scholars, last years' #Dobbs decision on #AbortionRights at the #SupremeCourt came as a dismaying shock, because it showed conclusively that #conlaw wasn't a realm of ideologically consistent intellectual foment, but rather, a matter of *politics*. 1/
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/2023/03/25/con… 2/
pluralistic.net/2023/03/25/con… 2/
Writing for @CreditSlips, the #FinanceLaw scholar #AdamLevitin admits to feeling a bit of schadenfreude in that moment. The "blue collar" law scholars in "grubby" banking and money fields have always treated the conlaw set as "slightly clueless toffs":
creditslips.org/creditslips/20… 3/
creditslips.org/creditslips/20… 3/
Today's Twitter threads (a Twitter thread).
Inside: Mass tech worker layoffs and the soft landing; Hey look at this; and more!
Archived at: pluralistic.net/2023/03/21/tec…
#Pluralistic 1/
Inside: Mass tech worker layoffs and the soft landing; Hey look at this; and more!
Archived at: pluralistic.net/2023/03/21/tec…
#Pluralistic 1/
Tomorrow (Mar 22), I'm doing a remote talk for the @IFTF's "Changing the Register" series:
iftf.zoom.us/webinar/regist… 2/
iftf.zoom.us/webinar/regist… 2/
Mass tech worker layoffs and the soft landing: Finally, the non-tech sector can hire technical workers.
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As tech reaches terminal #enshittification, so hollowed that they're barely able to keep end-users or business customers locked in, capital's running the final #rugpull, where all value is transfered from those who make things for a living to those who own things for a living. 1/
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/2023/03/21/tec… 2/
pluralistic.net/2023/03/21/tec… 2/
"#ActivistInvestors" have triggered massive waves of tech layoffs, firing so many #TechWorkers so quickly that it's hard to even come up with an accurate count. The total is somewhere around *280,000* workers:
layoffs.fyi 3/
layoffs.fyi 3/
Supposedly, the #SiliconValleyBank #bailout wasn't a bailout: in a bailout, the *investors* get public money; but with #SVB, it was the depositors. But, of course, SVB's owners were also depositors in their bank. All in all, SVB's owners are entitled to $2B in public money. 1/
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/2023/03/18/2-b… 2/
pluralistic.net/2023/03/18/2-b… 2/
When #Biden said, "investors in the banks will not be protected. They knowingly took a risk and when the risk didn’t pay off, investors lose their money. That’s how capitalism works," he was ignoring the fact that this isn't how *the law* works. 3/
Concerns over small US banks ⚠️
Something has happened since the start of the banking liquidity crisis we are all watching unfold.
It has created a scenario in which perceived risk is completely polarised within the banking world.
Let me explain 👇
Something has happened since the start of the banking liquidity crisis we are all watching unfold.
It has created a scenario in which perceived risk is completely polarised within the banking world.
Let me explain 👇
Since the fall of SVB and Signature Bank we've seen a rush to ensure that 100% of deposits in both banks are backed and no one with their money in either loses their deposit
Silicon Valley Bank had 95%+ of their deposits over the $250k insurance limit provided by the FDIC for protection if banks go under
The FDIC insurance means that deposits up to $250k are deemed safe and backed, anything above is not and vulnerable in the case of a bank failure
The FDIC insurance means that deposits up to $250k are deemed safe and backed, anything above is not and vulnerable in the case of a bank failure
GREAT SCOOPS: Last weekend, Federal Reserve Chair Powell sought to DOWNPLAY role of failed regulation/supervision -- partly by the Fed! -- in collapse of #SiliconValleyBank
H/T @TheProspect @ddayen & @nytimes trio 🧵1/12
H/T @TheProspect @ddayen & @nytimes trio 🧵1/12
"the Biden administration pushed to formally spotlight shortcomings in financial regulation that they blamed for the banks’ rapid descent to insolvency." But Powell "blocked efforts to include a phrase mentioning regulatory failures" 2/12 nytimes.com/2023/03/16/bus…
As @ddayen points out, that statement was pretty anodyne, and included praise for (unnamed) Dodd-Frank law of 2010 but no mention of the 2018 partial rollback that eased oversight of SVB 3/12 federalreserve.gov/newsevents/pre…
Seven years ago, I called #LeonardCohen's *Everybody Knows* "the perfect anthem for our times."
> Everybody knows the fight was fixed
> The poor stay poor, the rich get rich
> That’s how it goes
> Everybody knows
memex.craphound.com/2016/11/11/leo… 1/
> Everybody knows the fight was fixed
> The poor stay poor, the rich get rich
> That’s how it goes
> Everybody knows
memex.craphound.com/2016/11/11/leo… 1/
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/2023/03/16/com… 2/
pluralistic.net/2023/03/16/com… 2/
That was just after Cohen died, and while the world seems to want to settle on *Hallelujah* as his totemic song, *Everybody Knows* keeps inserting itself into the discourse, in the most toxic, hope-draining way possible. 3/
After #HindenburgReport, Adani group was ridiculed, shamed and branded as 'fraud' by Westerm media and experts.
Now, after #siliconvalleybankcollapse same Media houses and experts have changed narrative.
A thread 🧵
Now, after #siliconvalleybankcollapse same Media houses and experts have changed narrative.
A thread 🧵
1. Credibility Test
👉 Adani Group stood its ground, repaid $2.15-bn debt before time.
👉 Silicon Valley Bank CEO, CFO and CMO sold +$4.4MM in stock over the last 2 weeks.
Guess who was labelled as fraud by Western Media❓
👉 Adani Group stood its ground, repaid $2.15-bn debt before time.
👉 Silicon Valley Bank CEO, CFO and CMO sold +$4.4MM in stock over the last 2 weeks.
Guess who was labelled as fraud by Western Media❓
2. Rating Firms
👉In February, Credit Suisse halted acceptance of Adani Groups bonds citing the business malpractice.
👉Now, Credit Suisse has itself been suspended from trading. Its share has plummeted 34.59%.
Shouldn't they practice what they preach ❓
👉In February, Credit Suisse halted acceptance of Adani Groups bonds citing the business malpractice.
👉Now, Credit Suisse has itself been suspended from trading. Its share has plummeted 34.59%.
Shouldn't they practice what they preach ❓
My weird hobby is taking pictures of #signs, especially "vernacular" signs, handwritten and odd. The best kinds of signs tell you what *other* people think *you* are thinking, or what you don't understand. I've nabbed over 4,600 of 'em:
flickr.com/search/?user_i… 1/
flickr.com/search/?user_i… 1/
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/2023/03/15/mon… 2/
pluralistic.net/2023/03/15/mon… 2/
I think you learn more about the world by delving into others' misconceptions than you learn from their factual understandings. 3/
#FederalReserve is the largest central bank in the world.
Citizen vs. State: If you look at the original founding principle objectives of the federal reserve, you can’t find a single one which benefits the citizen. The fifth objective is clearly a great lie we’ve all been… twitter.com/i/web/status/1…
Citizen vs. State: If you look at the original founding principle objectives of the federal reserve, you can’t find a single one which benefits the citizen. The fifth objective is clearly a great lie we’ve all been… twitter.com/i/web/status/1…
Here’s a prev 🧵 on #FederalReserve
Just an FYI. I tweet from my readings and curated knowledge of the masses. I’m no banking contagion expert 😂
The biggest banking collapse since 2008 explained. And how it will impact the crypto markets.
Thread 👇
Thread 👇
#SiliconValleyBank ('SVB') was the 16th biggest bank in the US.
Primarily servicing US technology startups.
Primarily servicing US technology startups.
During COVID, SVB massively benefited from the tech startup golden period.
In lockdown, tech companies did very well providing entertainment & delivery services.
These companies' excess cash was stored with SVB in the form of deposits.
In lockdown, tech companies did very well providing entertainment & delivery services.
These companies' excess cash was stored with SVB in the form of deposits.
Another day, another quest!
The Collapse of Silicon Valley Bank - What is happening? 🧵
The Collapse of Silicon Valley Bank - What is happening? 🧵
How do banks operate?
They take deposits from us 💸, lend most of these deposits out to others & earn high interest rate🤑, They make MONEY 💰, They make more money by investing into other things like BONDS
However, these bonds did not work out for - SVB ⚖️
They take deposits from us 💸, lend most of these deposits out to others & earn high interest rate🤑, They make MONEY 💰, They make more money by investing into other things like BONDS
However, these bonds did not work out for - SVB ⚖️
SVB became greedy, let us explain -
After covid, central bank of US lowered the interest rates to enourage borrowings. But at the same time, VCs invested in a lot of startups too. So, startups didn't take loans but deposited more. Which resulted in a lot of extra cash with SVB.
After covid, central bank of US lowered the interest rates to enourage borrowings. But at the same time, VCs invested in a lot of startups too. So, startups didn't take loans but deposited more. Which resulted in a lot of extra cash with SVB.
Here's the real story of #SiliconValleyBank, as told the boring way through tedious analysis of balance sheets and SEC filings 🧵
Throughout 2021 startups were raising money from VCs and stashing it in SVB. Deposits increased from $102B to $189B. That's an 85% change in one year. Wow!
Most news sources claim that SVB stashed this money in relatively safe treasury securities. This is something important that most media sources got wrong.
forbes.com/sites/billcone…
forbes.com/sites/billcone…
Too true. The #SiliconValleyBank collapse is another confirmation & deepening of the #SecondGFC. Another straw in the global financial hurricane. We are seeing an acceleration of major bankruptcies in #Crypto, now #Tech. The danger is #Contagion. Do the banks have it covered? No
How can the banks, the Central Banks, the retail banks, Barclays Execution, manage a global crisis, without having sovereign power? They could not. They need to take over governments via threat & bullying, as they did in the #GFC financial crisis in the USA and the UK in 2008.
Bankers saved banks & the bankers in trouble, because they captured the USA Govt under Bush. It was shocking and unprecedented, but they justified themselves via PR and tame, greedy, or cowardly journalists, as “too big to fail”. The rest of us can fail & suffer, but not them.
Holmes received the "Doers Award" at the Forbes Under 30 Summit in Philadelphia.
Elizabeth Holmes was sentenced to 11.25 years in prison for the Biotech equivalent of vaporware among other things
The Federal Reserve has announced on Sunday yet another another massive bailout to cover in full the potential losses of rich depositors who held accounts at the failed #SiliconValleyBank. 1/
The @washingtonpost bluntly admits that the Fed has decided "to protect the assets of tech firms, venture capitalists, and other rich people in California." As always, this latest bailout of the rich is covered over with the lie that it won't cost the taxpayers a penny. 2/
In the days preceding the bailout, the Fed claimed that the failure of SVB was an isolated incident. But it now justifies the bailout by declaring that it is necessary to prevent systemic failure. 3/
The Federal Reserve have announced a new system created to protect banks from collapse in response to SVB and Signature Bank.
They've called it the Bank Term Funding Programme
Let's get this explained simply 👇
They've called it the Bank Term Funding Programme
Let's get this explained simply 👇
A large part of the reason SVB collapsed was because it bought a massive amount of low interest US T-Bills that plummeted in value after interest rate hikes and inflation rendered their return absolutely terrible.
When SVB was forced to raise liquidity they had to sell these bonds at massive losses, accruing heavy losses from those that they sold
