Do

 

you remember the day Leman brothers went?

I sure do.

I dont believe this is anything along those lines.

But it's still a lil strange 

to be talking about bank insolvency(s) in 2023.

Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis

"The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning."

"Financial regulators have closed Silicon Valley Bank

 and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago."

"The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money."

(And just like another article was saying, it gives the Fed something else to worry about, like it needs anything else to worry about...)

"The FDIC’s standard insurance covers up to $250,000 per depositor, per bank, for each account ownership category. It is unclear exactly how larger accounts or credit lines for companies will be impacted by the closure. The FDIC said it will pay uninsured depositors an advanced dividend within the next week, with potential additional dividend payments as the regulator sells SVB’s assets."

"As of the end of December, SVB had roughly $209 billion in total assets and $175.4 billion in total deposits, according to the press release. The FDIC said it was unclear what portion of those deposits were above the insurance limit."

"The last U.S. bank failure of this size was Washington Mutual in 2008, which had $307 billion in assets."

(Wa Mu held my mortgage at that time.

Yup.) 

'SVB was a major bank for venture-backed companies, which were already under pressure due to higher interest rates and a slowdown for initial public offerings that made it more difficult to raise additional cash."

"The move represents a rapid downfall for SVB. On Wednesday, the bank announced it was looking to raise more than $2 billion in additional capital after suffering a $1.8 billion loss on asset sales."

"CNBC’s David Faber reported Friday morning that the efforts to raise capital had failed and that SVB had pivoted toward a potential sale. However, a rapid outflow of deposits was complicating the sale process."

(Really? Hard to believe, Go figure...)

"While many Wall Street analysts have argued that the struggles for SVB are unlikely to spread to the broader banking system, shares of other midsized and regional banks were under pressure Friday.

(This is not good and it complicates things for the people who really dont need them to be any more complicated than they already are. 

I mean...your Fed chair doesn't think the money supply matters any more for goodness sakes...

You really think he needs things to get any more "complicated" than they already are?)