I fixed the ticker, the correct ticker is SIVB.
Today pre-market the stock was down another -60%, it had to get halted to avoid a melt up. Its still halted and the company announced they are looking to get taken over. And the contagion is spreading to other regional banks like FRC and SBNY. SBNY is SignatureBank which is probably the only decent crypto bank left. If that bank goes under, then its not good for crypto overall.
Even some of the larger names like Schwab are having a -10% day. Like that Michael Burry said, this might be this generations Enron moment.
Topic: FTX Contagion now spreading into TradFi (Read 48 times)
I do not know what is the link with what is happening with FTX, what is happening here is a classic story of stock buybacks, investments with quick returns, an attempt to collect hot money quickly, the absence of a risk management strategy and diversification of investments, and finally sensing danger late.
The reassurance of users at this time comes with actions, not words, but it will not be like a snowball, but rather a single bank collapse.
Perhaps the only link is exposure to one type of *asset.*
The reassurance of users at this time comes with actions, not words, but it will not be like a snowball, but rather a single bank collapse.
Perhaps the only link is exposure to one type of *asset.*
So the FTX contagion is finally hitting the regional banks. All of a sudden today SVBI bank, a top 20 commercial bank lost like -80% value in a single day.
Bruh, you had me googling for 10 minutes, it's SIVB or SVB Financial, SVBI bank no longer around.
I think what happened was that many customers of SVBI knew that a large portion of its books was in the mortgage backed securities market and these were at a loss due to fed interest rate hikes.
Nope, they invested in start-ups, the majority failed to launch anything, and they wanted more fiancing, but they got none, they had to sell bonds that triggered a panic, usual story, although I agree on the rates, it made money more expensive so their strategy of throwing cheap money at everything no longer works.
So no, it's nothing like Silvergate contagion into traditional markets, more like acting as Silvergate did got them here.
legendary
Activity: 1358
Merit: 1565
The first decentralized crypto betting platform
So the FTX contagion is finally hitting the regional banks. All of a sudden today SVBI bank, a top 20 commercial bank lost like -80% value in a single day.
I have read about Silicon Valley Bank in various places and nowhere do I see a link between what has happened with that bank and what has happened in the crypto world. It seems that Silvergate and this happened almost at the same time but there is no cause and effect relationship.
The economic situation, the reduction in liquidity, the drop in business from technology companies and a timing blunder are what seems to be behind this, and not an alleged link to FTX.
So the FTX contagion is finally hitting the regional banks. All of a sudden today SVB bank, a top 20 commercial bank lost like -80% value in a single day.
This comes the day before Silvergate bank said it’s going to liquidate. I think what happened was that many customers of SVB knew that a large portion of its books was in the mortgage backed securities market and these were at a loss due to fed interest rate hikes. Exactly what took down Silvergate. They had a lot of their assets in government bonds which they had to sell at a loss to make up for liquidity. Many on SVBI knew this and it underwent a bank run.
Earlier the bank realized the MBS loss and was raising for money to generate liquidity. However like Silvergate, this will cause even more panic and more bank runs and they will have to sell even more MBS at a loss. And it’s possible this huge bank might be another Silvergate bank.
The mess that SBF started is just nuts… many really must hate that guy.
This comes the day before Silvergate bank said it’s going to liquidate. I think what happened was that many customers of SVB knew that a large portion of its books was in the mortgage backed securities market and these were at a loss due to fed interest rate hikes. Exactly what took down Silvergate. They had a lot of their assets in government bonds which they had to sell at a loss to make up for liquidity. Many on SVBI knew this and it underwent a bank run.
Earlier the bank realized the MBS loss and was raising for money to generate liquidity. However like Silvergate, this will cause even more panic and more bank runs and they will have to sell even more MBS at a loss. And it’s possible this huge bank might be another Silvergate bank.
The mess that SBF started is just nuts… many really must hate that guy.
Jump to: