Discover and read the best of Twitter Threads about #svbcrash

Most recents (5)

Not every financial company should be structured as a bank, thereby accepting deposits, intermediating funds across markets, and reporting capital adequacy ratios using the @BIS guidelines.
This is the lesson I derive from the #SVBCollapse
@Bis What is the point of pasting SVB CAR and Capital Ratio Metrics?
What sense could one derive from them before the run began?
They didn't reveal the full picture to the creditors, depositors, or shareholders.
CAR is a metric which exemplifies loss absorption capacity
We need to revert to the Glass Steagall Act to understand economic history.
Why it was introduced in the aftermath of the Great Depression.
Why FDR and his team drew Chinese walls between Investment and Retail Banking institutions?….
Read 6 tweets
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
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
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.
Read 16 tweets
The #SVBCrash also further exposes the uselessness of the Basel 3 Accord and its modifications over the years
Why nobody is discussing the utter failure of @BIS_org which makes financial institutions invest billions in technology and staff recruitment, etc
We need answers
@BIS_org And the liquidity risk metrics reporting and filing which were introduced by @BIS_org under BASEL 3 were not fully implemented by the FED beyond certain large banks
But, still, certain aspects of Basel 3 were fully incorporated by the #SVB to make risk disclosures to the public.
Read 8 tweets
Here is this Week’s Market Wrap

'Banking on a Collapse' written by @shyamsek

A Thread (1/n)

#Banking #SiliconValleyBank #SVBCollapse #marketwrap
One week is a long time in global banking. Or, so it seems if one goes by the latest inflation and interest rate commentary of the federal reserve Chairman Jerome Powell. (2/n)

#banking #inflation #interestrates
The Silicon Valley bank collapse has almost caused a setting for a rapid reset of the interest rate trajectory in the US. (3/n)

#SiliconValleyBank #SVBCollapse #interestrates
Read 13 tweets
What happened with Silicon Valley Bank (SVB)? Why did it crash? Who's responsible?

A thread 👇 🧵

#SVBCollapse #SVB #SIVB

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.

In early 2023, the Chokepoint operation harassed the Silvergate bank and its customers, which caused a bankrun and the shutdown of Silvergate.
Read 10 tweets

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