Name:	MartiniMan -	Reply
Subject:	Understanding the SVB debacle
Date:	3/15/2023 12:27:54 PM (updated 3/15/2023 12:35:38 PM)

As I pointed out below in response to Goofy's ill-considered post, the approach taken by SVB on their bonds is endemic in the banking industry.  See the post from the FDIC.  While SVB was investing in risky mortgages due to their dedication to ESG that caused Moody's to threaten the downgrade and forced them to sell bonds that were underwater.  When they did this it caused the run on the bank.  But at the end of the day their having so much in long-term bonds is not unique to them.  What is unique is that a bank making bad investments based on faulty virtue signaling while gifting almost $74M to BLM among other woke donations (committed $5B to support a "healthier planet", whatever the heck that means) had to sell their bonds at a loss.  In the case of SVB he bonds are not the cause, they are the symptom of woke and broke.

And of course the real cause of all this is the inflation created by Democrats in general and Brandon in particular due to their fiscal insanity forcing the Fed to raise rates and crush the value of bonds.  SVB sold $20B in bonds at a $1.8B loss.  Well run banks that are not making stupid investments decisions will be fine.  The bonds will mature and they will get their principal back.  Of course it will not be helpful to have bonds paying 1% while interest rates are much higher but as the Fed tames inflation, if they can, and rates go down the unrealized losses will be lessened.

Name:	GoneFishin -	Reply
Subject:	Understanding the SVB debacle
Date:	3/15/2023 3:07:22 PM

What have you posted that is that different than I posted? The basic problem is the loss of value of the existing long term bonds and the need to raise cash. The  feds could have used the bonds as collateral to a loan at the same rate the bonds were paying until their maturity  and avoided the run and takeover.

I keep reading articles how Trump with a push from the President of Silicon eased up bank requirements for regional banks which I guess you missed reading. Even Barney Franks helped to deregulate some of what he and Warren fought for when he was on the board of the failed bank in New York state... Signature.

Name:	MartiniMan -	Reply
Subject:	Reading comprehension alert
Date:	3/15/2023 6:20:48 PM

I will say it again.....the bond issue was a symptom, not the cause of their issues.  All banks have these bonds and yet only SVB was going to be specifically downgraded by Moody's because their woke investment portfolio was underperforming....not to mention the billions given to woke causes.  The only reason their unrealized loss became realized and caused the run on the bank is their need to add capital to try to hold off the downgrade.  Did you even read what the Fed wrote that I posted?!?!?  Unrealized losses from these bonds for better run banks because they don't have to sell them at a loss...realized losses because SVB was poorly run and focused on woke crap and had to sell their bonds at a horrible time...something the others have not had to do, yet.  

This isn't very hard to comprehend....for most of us anyway.

Name:	Carlson -	Reply
Subject:	MM you wasting your time trying
Date:	3/15/2023 7:14:25 PM

To explain these issue to these guys.  Bad management and/or incompetence was obvious here at the woke bank level and at the SF woke fed.  Then as this issue could have been solved on the quiet side,  this administration refused the sell assets to the big banks but they just could not stomach big banks buying the assets or providing bridge money to maturity.  

but did you see they gave $73 million to Black Lives Matter and to dem candidates?  

Name:	Carlson -	Reply
Subject:	https://justthenews.com/politics-policy/elections/
Date:	3/15/2023 9:29:01 PM

https://justthenews.com/politics-policy/elections/democrat-politicians-disavow-silicon-valley-bank-donations

Name:	MartiniMan -	Reply
Subject:	You're probably right
Date:	3/16/2023 8:40:37 AM

It just seems to me that a bank that actually highlighted their woke investment and loan practices, whose Board was dominated by woke leftists with little banking experience but lots of ESG and DEI experience and a CEO that was a super Dem donor who constantly bragged how they were a different kind of bank dedicated to changing the world (diversity, climate change, etc.) that my point would be self evident.