How SVB failed?

[JaiBalayyaaa]

 

 

[yemdoing]

thats how capitalism works... 

in short : they got lot of investments during covid but didnt do risk management . had to sell bonds for loss and this caused panic with investors and they took their investments out at the same time.

some say this is calculated attack , some say it's poor management 

 

[dasari4kntr]

2 minutes ago, yemdoing said:

thats how capitalism works... 

in short : they got lot of investments during covid but didnt do risk management . had to sell bonds for loss and this caused panic with investors and they took their investments out at the same time.

some say this is calculated attack , some say it's poor management 

 

regional banks ki regulatory avasaram ledanu 2018 lo chepparu kada…so they didnt care about it…

 

[GelakoduKri]

like this 

[Ryzen_renoir]

45 minutes ago, dasari4kntr said:

regional banks ki regulatory avasaram ledanu 2018 lo chepparu kada…so they didnt care about it…

 

Nothing to do with regulation, almost every bank in US would fail if they had a bank run like SVB 

[dasari4kntr]

Just now, Ryzen_renoir said:

Nothing to do with regulation, almost every bank in US would fail if they had a bank run like SVB 

asalu bank run endukindhi bro..?

2 billion loss ki vunna bonds ni ammatam valle kada…that decision gave wrong signals to many made them to bank run…

all big banks go under heavy regulations…since the experience of 2008…

in 2018 regional banks got exemptions for those regulations…and they grow big in 2020-2021 still no regulations…so finally mis management caused all these issues…

[dasari4kntr]

5 minutes ago, Ryzen_renoir said:

Nothing to do with regulation, almost every bank in US would fail if they had a bank run like SVB 

 

1 minute ago, dasari4kntr said:

asalu bank run endukindhi bro..?

2 billion loss ki vunna bonds ni ammatam valle kada…that decision gave wrong signals to many made them to bank run…

all big banks go under heavy regulations…since the experience of 2008…

in 2018 regional banks got exemptions for those regulations…and they grow big in 2020-2021 still no regulations…so finally mis management caused all these issues…

The original Dodd-Frank law said that once a bank became bigger than $50 billion in assets, it would be subject to additional rules and oversight. Then came 2018 and the Economic Growth, Regulatory Relief, and Consumer Protection Act — aka the Dodd-Frank rollback.

“In 2018, the law said, ‘Oh, now that only applies to banks with more than $250 billion in assets.’ And it turns out Silicon Valley Bank at the time — and actually even last week — fell under that threshold,” said Erin Lockwood, who teaches political science at University of California, Irvine.

That’s despite the fact that it was the 16th largest bank in the country.

“Before the law was passed, banks the size of Silicon Valley Bank would have been required to have more stress tests more frequently,” said Dennis Kelleher, CEO of Better Markets, which lobbied against the rollback.

[Picha lite]

1 hour ago, yemdoing said:

thats how capitalism works... 

in short : they got lot of investments during covid but didnt do risk management . had to sell bonds for loss and this caused panic with investors and they took their investments out at the same time.

some say this is calculated attack , some say it's poor management 

 

How it is a loss anna… bond konapudu 3% anuko vadu 2.5% ki ammada? 

[Ryzen_renoir]

22 minutes ago, dasari4kntr said:

 

The original Dodd-Frank law said that once a bank became bigger than $50 billion in assets, it would be subject to additional rules and oversight. Then came 2018 and the Economic Growth, Regulatory Relief, and Consumer Protection Act — aka the Dodd-Frank rollback.

“In 2018, the law said, ‘Oh, now that only applies to banks with more than $250 billion in assets.’ And it turns out Silicon Valley Bank at the time — and actually even last week — fell under that threshold,” said Erin Lockwood, who teaches political science at University of California, Irvine.

That’s despite the fact that it was the 16th largest bank in the country.

“Before the law was passed, banks the size of Silicon Valley Bank would have been required to have more stress tests more frequently,” said Dennis Kelleher, CEO of Better Markets, which lobbied against the rollback.

This narrative is terrible because silicon valley bank actually passes all the stress tests of the original dodd Frank law 

The only reason they are bringing up this argument is to blame Trump for the bank failure , it's just pure politics 

Once again there's nothing fundamentally wrong about SVB aside from some bad bets , it's just that they had a huge bank run in a short period of time

 

 

[dasari4kntr]

1 minute ago, Ryzen_renoir said:

This narrative is terrible because silicon valley bank actually passes all the stress tests of the original dodd Frank law 

The only reason they are bringing up this argument is to blame Trump for the bank failure , it's just pure politics 

Once again there's nothing fundamentally wrong about SVB aside from some bad bets , it's just that they had a huge bank run in a short period of time

 

 

as per original law threshold is 50 billion ….

until 2016 (44 billion) it was under that threshold…it crossed the 50b threshold in 2017 (51b) after that next year 2018  that law got changed to 250B…

so as per that SVB went for stress test  only one time in 2017…?

 

 

[Ryzen_renoir]

5 minutes ago, dasari4kntr said:

as per original law threshold is 50 billion ….

until 2016 (44 billion) it was under that threshold…it crossed the 50b threshold in 2017 (51b) after that next year 2018  that law got changed to 250B…

so as per that SVB went for stress test  only one time in 2017…?

 

 

The people pushing this argument are just politicians , ask any economist they will tell every major bank in America  will collapse if faced the same situation as SVB

SVB liabilities were fine until 2022 when fed started raising interest rates . Every bank is faced with negative liability with rising interest rates

Besides the management and clients of SVB are all related to democrats, that's why they are blaming older regulations to take the heat off them  

There is a reason why democrats did not restore strict checks on banks even when they had full majority in house /senate and presidency in 2022

[dasari4kntr]

2 minutes ago, Ryzen_renoir said:

The people pushing this argument are just politicians , ask any economist they will tell every major bank in America  will collapse if faced the same situation as SVB

SVB liabilities were fine until 2022 when fed started raising interest rates . Every bank is faced with negative liability with rising interest rates

Besides the management and clients of SVB are all related to democrats, that's why they are blaming older regulations to take the heat off them  

There is a reason why democrats did not restore strict checks on banks even when they had full majority in house /senate and presidency in 2022

all the yearly SVB asset numbers are there…

i quoted original congress bill link also in above comment…

i can provide bunch economists source also who are saying the same…

your talking bankrun can effect any bank the same…but i am talking about why bank run happened in first place…

fed didnt raise the interest rates overnight…they are slowly increasing over the time…when new interest rate hike happened existing bonds yields fell…if you sell it…that’s basic fundamentals…

all big banks who go through the heavy stress test they maintain the strong cash flow even the scenarios like high interest rates…

svb can’t maintain the cash flow and sold the bonds in hurry for loss of 2 billion dollars which raised red flags…

all big banks also have unrealized bonds loss…but they dont sell the bonds for loss…because they gone through heavy regulations and stress tests…

i didnt even quote trump in my comment…i am not even talking about politics here…i quoted economists opinions…its purely svb mismanagement…

 

[Ryzen_renoir]

10 minutes ago, dasari4kntr said:

all the yearly SVB asset numbers are there…

i quoted original congress bill link also in above comment…

i can provide bunch economists source also who are saying the same…

your talking bankrun can effect any bank the same…but i am talking about why bank run happened in first place…

fed didnt raise the interest rates overnight…they are slowly increasing over the time…when new interest rate hike happened existing bonds yields fell…if you sell it…that’s basic fundamentals…

all big banks who go through the heavy stress test they maintain the strong cash flow even the scenarios like high interest rates…

svb can’t maintain the cash flow and sold the bonds in hurry for loss of 2 billion dollars which raised red flags…

all big banks also have unrealized bonds loss…but they dont sell the bonds for loss…because they gone through heavy regulations and stress tests…

i didnt even quote trump in my comment…i am not even talking about politics here…i quoted economists opinions…its purely svb mismanagement…

 

I agree , There is definitely mismanagement in SVB but nothing that would make it crash so fast 

It's not just regulation , it's just bad management 

[Spartan]

  edo gooduputani undi..

 

behind the scene manak teliyadam le..

someone big wanted it to collapse .... to trigger the banking collapse

and make money other way around.

[JaiBalayyaaa]

1 minute ago, Spartan said:

someone big

You mean someone born in South Africa?