rescued smaller banks during the 2008 crisis. But banks may be reluctant to do that again since regulators last time punished them for the sins of their foster children. The takeover of SVB will presumably cost the FDIC money to repay insured depositors.
There doesn’t appear to be any obvious systemic risk to the financial system from the SVB and Silvergate failures, and market discipline needs to prevail unless there is danger of a larger financial breakdown. SVB investors and customers benefited from the government’s easy money. Why should they also benefit from a government lifeline after taking risks with that easy money?This week’s bank failures are another painful lesson in the costs of a credit mania fed by bad monetary policy.
While big banks today are much better capitalized than before the 2008 financial crisis, some regional and small banks with less diverse deposit bases may be vulnerable to shocks. Some may be over-exposed to industries such as commercial real estate that are under stress. The Fed will have be careful as it continues its anti-inflation campaign.
opinion a broken clock shows the time right at least 2 times a day. Yours is only 1 with this..
opinion 개혁이란 바꾸는 게 아니고 알게 되는 거더라
opinion If they were investing the customers deposits into bonds. They should have stressed their interest levels in order to ascertain or estimate the total loses from bonds and then based on that additional capital could have been raised or they could have diversified their investment
opinion Who will be Greg Becker's bond guarantor?
opinion Investors were warned about the 'Rapidly Emerging Six Leading Indicators of Economic Collapse' as early as late September 2022.
opinion let's do Tahoe tomorrow, maybe Sam Bankrun will be there.
opinion But the President thinks the economy is doing well and his policies working! Only positive is the job numbers. Those are a little false gold. We're only ~2M more than 2019. Also lot of people didn't return to the workforce because of the pandemic management!
opinion Bad management, overzealous risk taking and ineffective regulatory oversight at a few banks close to crypto and VC. Blaming monetary policy is wrong and leaves these losers off the hook.
opinion wsj
opinion Don’t bail them out
opinion So it's the Fed's fault?