Silicon Valley Bank (SVB) closed by state regulators

[AndySoCal]

@CreditCuriosity   I read your response.   This article may interest you if have not seen it already

https://www.cnbc.com/2023/03/14/sec-and-justice-department-silicon-valley-bank-investigation.html 

@coldfusion  The credit union and my internet based bank have not sent me anything email or snail mail wise. The CU has a statemnet on their web site.  Both of them are well capitalized and do not have niche market like Silicon Valley Bank (venture capital)  The venture capital was the vase majority of their business (SVB).

All,

Here is another article how they invested their money (in long term treasury and mortgage back securities). SVB did this at the same time the Fed was planning on raising interest rates. The last place you want to be is long  bonds when the Fed is or is planning to raise interest rates (my opinion) The longer the maturity the greater the swings in the bond price on the down side.  Here is a related article

https://markets.businessinsider.com/news/stocks/silicon-valley-bank-svb-goldman-sachs-bought-bond-po... 

[CreditCuriosity]

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@AndySoCal wrote:

@CreditCuriosity   I read your response.   This article may interest you if have not seen it already

https://www.cnbc.com/2023/03/14/sec-and-justice-department-silicon-valley-bank-investigation.html 

@coldfusion  The credit union and my internet based bank have not sent me anything email or snail mail wise. The CU has a statemnet on their web site.  Both of them are well capitalized and do not have niche market like Silicon Valley Bank (venture capital)  The venture capital was the vase majority of their business (SVB).

All,

Here is another article how they invested their money (in long term treasury and mortgage back securities). SVB did this at the same time the Fed was planning on raising interest rates. The last place you want to be is long  bonds when the Fed is or is planning to raise interest rates (my opinion) The longer the maturity the greater the swings in the bond price on the down side.  Here is a related article

https://markets.businessinsider.com/news/stocks/silicon-valley-bank-svb-goldman-sachs-bought-bond-po... 

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you pretty much nailed it.  Many bad decision by them in particular although other banks somewhat in similar situations.  

[Traveler101]

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@coldfusion wrote:

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@CreditCuriosity wrote:

Can't believe honestly we are bailing out above 250k...  Treasury and Fed getting involved.  This is sickening, not to mention weeks before C levels selling all their stocks several weeks prior (they need to be all put in prision for that alone)

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i'm not surprised either, but elaborating as to why would come dangerously close to crossing boundaries here.

I've been getting "your money is safe with us" emails from several of the CUs and banks I have accounts with the last couple of days.

Apparently someone spilled the beans that BoA has had an influx of $15 billion in new money but AFAIK the bank hasn't confirmed it, although flights to safety in response to apparent or real risk developing isn't exactly a new trend.

https://www.bloomberg.com/news/articles/2023-03-15/bofa-gets-more-than-15-billion-in-deposits-after-...

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Hearing this unfold over the last days really makes you think. First Tech was fast on trying to assure me of their solvency. I'm sure SVB was doing the same up until the end. Given the turbulent times we are living in, you have to wonder if banks and credit unions are going to tweak their business models and how will all this affect us as consumers. What the sad part is, not many, if any are accountable for their actions. It's a cycle that never ends. But assuredly people got a big fat bonus.

[AndySoCal]

@Traveler101   Below is a link to depositaccounts.com part  of the information about the bank or credit union inlcudes the health of the bank or credit union which is graded. They explain why the grade is given. First Technology is well capitalized you need not be worried about their solvency in my opinion.

https://www.depositaccounts.com/banks/first-technology-cu.html#health 

There is some misunderstanding on how much and what is covered by the FDIC and  NACU insurance.  If you have any questions use the FDIC link provided earlier in this thread.

[crystal626]

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@Traveler101 wrote:

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@coldfusion wrote:

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@CreditCuriosity wrote:

Can't believe honestly we are bailing out above 250k...  Treasury and Fed getting involved.  This is sickening, not to mention weeks before C levels selling all their stocks several weeks prior (they need to be all put in prision for that alone)

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i'm not surprised either, but elaborating as to why would come dangerously close to crossing boundaries here.

I've been getting "your money is safe with us" emails from several of the CUs and banks I have accounts with the last couple of days.

Apparently someone spilled the beans that BoA has had an influx of $15 billion in new money but AFAIK the bank hasn't confirmed it, although flights to safety in response to apparent or real risk developing isn't exactly a new trend.

https://www.bloomberg.com/news/articles/2023-03-15/bofa-gets-more-than-15-billion-in-deposits-after-...

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Hearing this unfold over the last days really makes you think. First Tech was fast on trying to assure me of their solvency. I'm sure SVB was doing the same up until the end. Given the turbulent times we are living in, you have to wonder if banks and credit unions are going to tweak their business models and how will all this affect us as consumers. What the sad part is, not many, if any are accountable for their actions. It's a cycle that never ends. But assuredly people got a big fat bonus.

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I'm much more comfortable with credit unions than banks honestly. The business models and priorities are completely different. Members vs shareholders. I checked the health of every CU I do business with and they're all rated at least B+. 

[coldfusion]

Rumored that Citizens Bank is making a play for what was SVB's private banking arm.

https://www.reuters.com/business/finance/citizens-financial-eyes-bid-svbs-private-bank-sources-2023-...

Not all that surprising given that Citizens has a history of growth through acquistion both during and after they were owned by RBS.

[CreditCuriosity]

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@coldfusion wrote:

Rumored that Citizens Bank is making a play for what was SVB's private banking arm.

https://www.reuters.com/business/finance/citizens-financial-eyes-bid-svbs-private-bank-sources-2023-...

Not all that surprising given that Citizens has a history of growth through acquistion both during and after they were owned by RBS.

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Hopefully they don't keep any of the C level people from SVB and put a chief risk officer in place along tons of other things.. Granted it would be under Citizens leadership if they do obtain it.