Discover and read the best of Twitter Threads about #sivb
Most recents (4)
1) Anyone stupid enough to think the @federalreserve has “solved” the banking problem should focus their binoculars. The approach reminds me of the failed MLEC which I described as “May Losses Extend Continuously”. @PatrickMcHenry @FinancialCmte @FSCDems #SIVB #SBNY… twitter.com/i/web/status/1…
2) A proper program would have taken the underwater long dated HTM at a MTM. Then @federalreserve should have required banks to cut dividends & buybacks & raise capital within that year. The @USTreasury should have taken Sr. Pref retire-able upon full capitalization of the… twitter.com/i/web/status/1…
3) Taking HTM bonds from banks at par, for a year, without taking Sr. Pref & explicitly requiring banks to raise capital within 12 months exacerbates moral hazard, transfers future risk to the DIF & taxpayers & ties the hands of the Central Bank vis a vis monetary policy.
There are at least 26 public pension funds (managing money for ~80 pension plans) who directly held stock in SVB Financial Group (#SIVB), the parent of Silicon Valley Bank.
A short 🧵👇🤦🏻♂️
A short 🧵👇🤦🏻♂️
It is likely there are many more pension funds who own a small amount of stock in #SVB through an asset management firm. These are just the pension funds who reported direct investments in the bank.
Pension funds are also going to be exposed to potential stock losses in companies that have substantial banking at #SVB, like Roku and Etsy.
Plus, valuation mark downs for private companies that suffer because of the bank failure will trickle down to state pension funds too.
Plus, valuation mark downs for private companies that suffer because of the bank failure will trickle down to state pension funds too.
What happened with Silicon Valley Bank (SVB)? Why did it crash? Who's responsible?
A thread 👇 🧵
#SVBCollapse #SVB #SIVB
A thread 👇 🧵
#SVBCollapse #SVB #SIVB
1/9
SEC Chair Gary Gensler & Senator Elizabeth Warren launched operation Chokepoint 2.0 somewhere in late 2022.
Chokepoint 2.0 is an operation aimed at crypto companies and getting them unbanked.
No matter how you feel about crypto, this had big consequences outside of it.
SEC Chair Gary Gensler & Senator Elizabeth Warren launched operation Chokepoint 2.0 somewhere in late 2022.
Chokepoint 2.0 is an operation aimed at crypto companies and getting them unbanked.
No matter how you feel about crypto, this had big consequences outside of it.
2/9
In early 2023, the Chokepoint operation harassed the Silvergate bank and its customers, which caused a bankrun and the shutdown of Silvergate.
In early 2023, the Chokepoint operation harassed the Silvergate bank and its customers, which caused a bankrun and the shutdown of Silvergate.
First thing's first. This $SIVB thing is happening before 5pm on a Friday. So, this is meant to affect the closing of this week's market. /1
zerohedge.com/markets/silico…
zerohedge.com/markets/silico…
In 2008/09 all the FCID bank closures happened after the market closed on Fridays to limit the damage. Today we are treated to a vandalistic "Biden" regime making a big deal out of this DURING trading hours. /2
From a purely political and qualitative standpoint I'd say a number of things are at play here.
For a major SV bank to fail this spectacularly in 24 hours, 72 after the FOMC Chair went full "Resting Hawk Face" smells of a setup to force a "pivot" this weekend./3
For a major SV bank to fail this spectacularly in 24 hours, 72 after the FOMC Chair went full "Resting Hawk Face" smells of a setup to force a "pivot" this weekend./3
