Religion and Ethics Forum

General Category => Politics & Current Affairs => Topic started by: Nearly Sane on March 11, 2023, 08:56:19 AM

Title: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: Nearly Sane on March 11, 2023, 08:56:19 AM

This feels like a one off but confidence in such matters is key.


https://www.bbc.co.uk/news/business-64915616

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: jeremyp on March 11, 2023, 02:24:47 PM

It isn't a one off.

https://www.thestreet.com/investing/cryptocurrency/crypto-bank-silvergate-goes-out-of-business

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: Nearly Sane on March 11, 2023, 02:36:03 PM

Quote from: jeremyp on March 11, 2023, 02:24:47 PM

It isn't a one off.

https://www.thestreet.com/investing/cryptocurrency/crypto-bank-silvergate-goes-out-of-business

Interesting and worrying. The report on Silicon Valley didn't highlight a cryptocurrency angle but given the name....

ETA - Given the similarity in names and  closeness in timing, I wonder if there was an effect in confidence.

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: jeremyp on March 11, 2023, 02:50:53 PM

Quote from: Nearly Sane on March 11, 2023, 02:36:03 PM

Interesting and worrying. The report on Silicon Valley didn't highlight a cryptocurrency angle but given the name....

ETA - Given the similarity in names and  closeness in timing, I wonder if there was an effect in confidence.

Both banks collapsed because of the government bond problems but they got into a position where the government bond situation mattered for different reasons. Silvergate provided banking services to cryptocurrency exchanges and were put under pressure because people lost faith in cryptocurrency exchanges and started taking their money out. The exchanges were keeping their money on deposit in Silvergate, so they were taking money out of their deposit accounts in that bank. Silvergate then had to start selling bonds to meet the US government's capitalisation laws.

There probably will be other similar bankruptcies caused by government bonds being devalued due to high interest rates but the trigger may be different in each case.

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: Nearly Sane on March 11, 2023, 03:10:32 PM

Quote from: jeremyp on March 11, 2023, 02:50:53 PM

Both banks collapsed because of the government bond problems but they got into a position where the government bond situation mattered for different reasons. Silvergate provided banking services to cryptocurrency exchanges and were put under pressure because people lost faith in cryptocurrency exchanges and started taking their money out. The exchanges were keeping their money on deposit in Silvergate, so they were taking money out of their deposit accounts in that bank. Silvergate then had to start selling bonds to meet the US government's capitalisation laws.

There probably will be other similar bankruptcies caused by government bonds being devalued due to high interest rates but the trigger may be different in each case.

Thanks for this

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: Nearly Sane on March 11, 2023, 10:09:51 PM

Could have a worrying impact

https://archive.vn/EZi6M

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: Nearly Sane on March 11, 2023, 10:16:31 PM

And some more detail


https://www.reuters.com/business/finance/global-markets-banks-wrapup-1-2023-03-10/

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: Nearly Sane on March 13, 2023, 07:57:11 AM

HSBC buys British part of SVB



https://www.bbc.co.uk/news/business-64937251

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: Nearly Sane on March 15, 2023, 05:20:53 PM

Ohh err


https://www.bbc.co.uk/news/business-64964881

Title: Re: Silicon Valley Bank: Regulators take over as failure raises fears
Post by: Nearly Sane on March 20, 2023, 07:48:40 AM

And UBS buys Credit Suisse

https://www.bbc.co.uk/news/business-65007871