Be sure to read Yves post here.
Joint Statement by Treasury, Federal Reserve and FDIC Board of Governors of the Federal Reserve System. Correct schedule?
It’s a little crazy that all this debacle was potentially caused by @ByrneHobartnews bulletin. This is how the butterfly effect came about.
1) Byrne posts this article/tweet calling for SVB risk.
2) Pretty much every venture capitalist I know reads this newsletter.
3) They all start to pay very much, … https://t.co/zUSKF1ZW4J
— Evan Armstrong 📧 (@itsurboyevan) March 11, 2023
In the event of a sharp reversal, regulators will cover Silicon Valley Bank, Signature uninsured deposits American banker. Of course, this is the salvation:
I’m so old I remember when Dodd-Frank didn’t want to save anymore.
— Matt Stoller (@matthewstoller) March 12, 2023
First Republic receives additional funding from the Fed and JPMorgan WSJ
20 banks that are suffering huge potential losses on securities – as it was SVB MarketWatch
The demise of the Silicon Valley bank Net interest. About SBV’s problematic customer base:
The Silicon Valley bank’s problem is exacerbated by its relatively concentrated customer base. In their niche, all customers know each other. And there are not so many of them in Silicon Valley Bank. As of the end of 2022, it had 37,466 depository clients, each holding more than $250,000 in the account. Great for making recommendations when business is booming, this concentration can reinforce the feedback loop when conditions change.
IOW, in-group. Club:
Why do so many tech companies keep their money as deposits in SBV?
Was it financial naivete or some kind of incentive ((higher returns?)
— Chris Arnade 🐢🐱🚌 (@Chris_arnade) March 12, 2023
And a club you don’t belong to. One with a lot of symbolic capital when their economic capital was compromised:
People said that social media served as an accelerator for depositor panic (“a new kind of bank run!)…
But the real catalyst was that the tech and finance brothers realized that they had to unanimously repeat that anything less than a 100% FDIC guarantee and they would shoot the kid.
— Jesse Eisinger (@eisingerj) March 13, 2023
SIVB: Posthumous Administration Where to invest? Risk? What is the risk?
So when I read the proxies for 2023 and see that the Risk Committee 1) met 18 times in 2022 vs 18 times. their typical 5-7 times a year, 2) a new committee chair is appointed and 3) there was no chief risk officer for most of the year, this is a pretty strong set of signals that the company could know they had a serious problem with that they talked
Silicon Valley Bank profit cut due to tech downturn attracts bear sellers Financial Times. Pay attention to the date: February 22. Bury? Bury? Bury? burry—
SVB collapse: ‘Big short’ Berry accuses regulators of encouraging ‘greed’ Street. This is hardly fair. There is also a mention of “arrogance”. In fact, Berry mentions this before he mentions greed. Oddly enough, “arrogance is good” was not Gordon Gekko’s catchphrase….
Regulators face urgent task to stop proliferation from Silicon Valley banks WSJ
Barney Frank: Increase business deposit insurance limit WSJ. Frank is on Board of Signature Bank.
SVB lobby groups oppose proposal to strengthen deposit insurance Lever arm
Michelle W. Bowman: Future Central Bank Design Challenges (PDF) Bank for International Settlements. “The key issue that central banks should consider is how to clearly distinguish asset purchases from central bank actions in monetary policy… It is also important for central banks and other agencies to ensure that market regulation and supervision promote prudent behavior by financial institutions and sustainability in major financial markets.” March, 3rd
Billions worth of crypto transactions are at risk due to US bank closures Straits Times. It’s a damn shame.
Crypto entrance bumped right into a brick wall SVB VaPo
Fragile Capitalists rational walk
Zelensky has no choice but to ask his fighters to keep Bakhmut – for now political
Shift of the front line in the battle of Russia and Ukraine for Bakhmut, analysts say New York Times
Ukraine lies about casualty rates to justify keeping Bakhmut Moon of Alabama
Chris Hedges: death of Ukraine by proxy Chris Hedges, Sherpost
“Little cracks”: the military unity of the United States and Ukraine is slowly bursting at the seams political
Russia will take Ukraine, Donald Trump says firmly. Then explains the “deal” Hindustan Times
Moldova says it thwarted Russia-linked plot ahead of anti-government protests political
Georgian PM urges Ukrainian politicians to mind their own business Al Mayadeen
‘Hard’ exposure of Maidan massacre is hushed up by leading academic journal Keith Clarenberg, The Gray Zone. A 2021 Paper by Ivan Kachanovsky associated with in NC 02/27/2023.
Biden indefinitely blocks millions of acres of land and water from future oil drilling FOX. Unlike Willow.
Thanks to generative AI, catching the science of fraud will be much harder Register
Recent Developments in the Greek Code of Private Maritime Law Hellenic Shipping News
“Planned PR Campaign”: How Skinny Shot Drug Companies Tried to Influence the Obesity Debate Guardian A comment: “That’s why we can’t have nice things like initial solutions to global problems. Because all the money is in Band-Aids downstream and our systems are corrupt. Big business is using you for profit in more ways than you can imagine.” But innovation! Crash! This Bandaid has an app!
A leading antibiotic expert almost died after a cut in the garden sparked a life-threatening drug-resistant bacterial infection. insider
Influential Parents and Kids Whose Childhood Turned into Content Teenage fashion
Imperial crumbling clock
Europe arms imports on the rise, US dominance of exports growing, think tank says Reuters (RK).
Why Poverty Persists in America New York Times. “The main reason for our stalled progress in poverty reduction is due to the fact that we have not experienced the ruthless exploitation of the poor in labor, housing and financial markets.” But travel broadens the mind:
Or, from some point of view, very correct?
Curiosity Problem Pedestrian observations. Un-invented-here in the US transportation investments such as they are.
Antidote for the dayvia WLDavies):
The wildebeest migration is one of the greatest migrations in the world, involving millions of people. They are the driving force behind the Serengeti Mara ecosystem.
Ashili Loishuki, Serengeti environmentalist
Visit now, it’s happening in the Serengeti. pic.twitter.com/7pwcq4fntj
— Tanzania National Parks (@tzparks) July 17, 2022
See yesterday’s links and Antidote du Jour Here.