fxfox Posted March 12, 2023 Report Share Posted March 12, 2023 7 minutes ago, sandy beach said: Goldman knew it… I laugh my ass off if in a few hours they announce that Goldman buys the shit. Link to comment Share on other sites More sharing options...
fxfox Posted March 12, 2023 Report Share Posted March 12, 2023 Bitcoin now 1800 points off the Friday low… Link to comment Share on other sites More sharing options...
fxfox Posted March 12, 2023 Report Share Posted March 12, 2023 Just in: https://www.washingtonpost.com/us-policy/2023/03/12/silicon-valley-bank-deposits/ Link to comment Share on other sites More sharing options...
DrStool Posted March 12, 2023 Author Report Share Posted March 12, 2023 3 hours ago, sandy beach said: Absolutely correct! I knew about this option when I started my own business in my apartment as a college student at Berkeley. If I knew this - they surely knew this too. I remember Bob Brinker used talk about this all the time on AM radio. They were not merely depositors. They signed a contract to swap the risk of being uninsured for the benefit of getting the whole VC networking / financing bundle. That's on them. No way should the middle class bail out these high risk start-ups. Can you clue in the rest of us. Link to comment Share on other sites More sharing options...
DrStool Posted March 12, 2023 Author Report Share Posted March 12, 2023 I think this refers to overnight sweeps of large accounts into multiple accounts below the insurable limit? Seems like a scam. Link to comment Share on other sites More sharing options...
TurdButter Posted March 12, 2023 Report Share Posted March 12, 2023 21 hours ago, Jimi said: Ackman doing a Spaces on Twitter right now. In related news, I am screaming profanities alone with my laptop. Watched a YouTube interview with Chris Whalen. He's turned a complete whore, wants full guarantee of all deposits and a Fed rate cut by tomorrow am. Sounded like Cramer with a different voice. Saw a comment from Sheila Bair: ' It's hard to make a case that this is systemic'. Link to comment Share on other sites More sharing options...
sandy beach Posted March 12, 2023 Report Share Posted March 12, 2023 1 hour ago, DrStool said: Can you clue in the rest of us. It used to be called CDARS or Certificate of Deposit Account Registry Service. Now it is part of several options called collectively IntraFi Networks. The FDIC confirmed that these networks allow for "pass-through" FDIC insurance. You can read their study on them here: Increasing Deposit Insurance Coverage for Municipalities and Other Units of General Government: Results of the 2006 FDIC Study (from 2008) https://www.fdic.gov/analysis/quarterly-banking-profile/fdic-quarterly/2008-vol2-1/municipaldep.pdf I believe over 3,000 banks in the US offer these services. Many brokers are now offering access to FDIC insured sweep accounts. For example Vanguard now offers a "Vanguard Savings a/c Cash Plus, FDIC insured" accounts that sweep the money into partner banks. But read up before investing about when insurance kicks in. My understanding is if the member bank fails or the investment in the bank fails (money market, CD, saving account, etc.) FDIC kicks in. If Vanguard fails SPIC kicks in. If all fail you get FDIC and SPIC involved. Don't quote me on that - do your own due diligence. Unlike above this is not like an IntraFi Network so the normal FDIC limits apply for each product/bank invested in. But if you already have an account it gives you another option without having the open an account at another bank. https://investor.vanguard.com/accounts-plans/vanguard-cash-plus-account Another option to look at are banks with additional supplemental insurance. Some banks pay for additional insurance for all deposits above and beyond FDIC insurance. One example is the Massachusetts DIF-member banks. http://www.difxs.com/DIF/DIFmemberbanks.aspx Most of the banks are in Massachusetts but they don't have to be. For example: https://bankprov.com/business-banking/small-business Again - I'm not offering advice or recommending any products or services. I'm not qualified to do that. I'm just sharing options to research. How well do all these systems hold up in a real nightmare scenario? We would need to research that further... The most straightforward way for most folks is to just open accounts at multiple banks directly. I've always done this because if a bank goes bad I want out within minutes and be up and running without losing time. DYODD! Link to comment Share on other sites More sharing options...
sandy beach Posted March 12, 2023 Report Share Posted March 12, 2023 29 minutes ago, TurdButter said: Watched a YouTube interview with Chris Whalen. He's turned a complete whore, wants full guarantee of all deposits and a Fed rate cut by tomorrow am. Sounded like Cramer with a different voice. Saw a comment from Sheila Bair: ' It's hard to make a case that this is systemic'. I saw that. What the heck? Link to comment Share on other sites More sharing options...
Jimi Posted March 12, 2023 Report Share Posted March 12, 2023 Are The Them going to be able to gap down futures at open hard enough to cause the Feds to blink? Link to comment Share on other sites More sharing options...
sandy beach Posted March 12, 2023 Report Share Posted March 12, 2023 5 minutes ago, Jimi said: Are The Them going to be able to gap down futures at open hard enough to cause the Feds to blink? Please lord no! Inflation is killing me and I want them to end ZERP and "The Fed Put" (TM) forever and kill off all the non-bank financial tapeworms once and for all! Jay - get 'er done - Higher for longer!!! Link to comment Share on other sites More sharing options...
fxfox Posted March 12, 2023 Report Share Posted March 12, 2023 SVB is NOT systemic. Never ever. JPM and BofA are for example. The solution should be: 1. Equity holders will not be supported 2. Deposits above 250k get supported somewhat, but only to the extend that public fear calms down and a bank run is avoided. 3. all Big4 top guys are sent to Gitmo. With a one-way ticket. Link to comment Share on other sites More sharing options...
sandy beach Posted March 12, 2023 Report Share Posted March 12, 2023 This looks a bit at Jimi's point that HTM can't be hedged for interest rate risk. They come to the conclusion the Fed was at fault for for killing SVB by raising rates too fast. I can't agree with this. The Fed was responsible for a lot of this. But risk managers should have seen this coming. Either that or a regular Joe like me knows more than their highly paid risk managers https://michaelwgreen.substack.com/p/the-valley-of-despair Link to comment Share on other sites More sharing options...
sandy beach Posted March 12, 2023 Report Share Posted March 12, 2023 Trial balloons coming out now... Link to comment Share on other sites More sharing options...
fxfox Posted March 12, 2023 Report Share Posted March 12, 2023 17 minutes ago, sandy beach said: This looks a bit at Jimi's point that HTM can't be hedged for interest rate risk. They come to the conclusion the Fed was at fault for for killing SVB by raising rates too fast. I can't agree with this. The Fed was responsible for a lot of this. But risk managers should have seen this coming. Either that or a regular Joe like me knows more than their highly paid risk managers https://michaelwgreen.substack.com/p/the-valley-of-despair Those idiots could have hedged at any time. How could KPMG even approve their risk self assesment??? I wonder if they even had an iSDA Agreement… Link to comment Share on other sites More sharing options...
Jimi Posted March 12, 2023 Report Share Posted March 12, 2023 "Show time!!" Link to comment Share on other sites More sharing options...
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