It's terrible to see another collapse, they're all connected. There goes the Silvergate bank, this SVB and as in almost all markets have come to this despite that we've been experiencing collapse since last year. But on this particular thing with SVB, I am feeling bad for those start ups that have been reliant to them because they're the major source of those seed and crowd funding of many start ups and that's why the collapse has connection to many retail, start up and tech companies.
First of all, it should be noted that the economies of almost all countries are now experiencing a big drop. Due to the coronavirus pandemic and the enormous costs of fighting it, unemployment has risen sharply and the purchasing power of people has fallen. They are forced to withdraw deposits from banks, and this is one of the reasons why banks lose their profits. First of all, those banks burst, where the organization of work was weak or there were abuses in working with financial resources. But this does not mean that the banking system as a whole will collapse. In any case, the system will stand and will develop further. 
Topic: If they have the solution, why are banks still failing? - page 4. (Read 833 times)
The stock of Silicon Valley Bank, one of the biggest banks in the US collapsed to 65% before trading was halted. This is the largest bank failure since the 2008 financial crisis.
The bank's parent failed to get a buyer making the California Department of Financial Protection and Innovation close Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation as receiver. Customers were scared and began to pull out their funds to avoid unforeseen circumstances.
Economists are warning that the fall of SIVB might spread and have a bad effect on the entire banking sector. The shares of many banks in the US and Europe dropped because of this incident. According to Reuter U.S. banks have lost over $100 billion stock market value in two days, with European banks losing around another $50 billion in value.
I have always seen bad news about the cryptocurrency industry making headlines in national and international newspapers. The government and bankers criticize the industry and portray the banks as the only remedy to the financial problems of the world. SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.
https://www.investors.com/news/silicon-valley-bank-liquidity-crisis-sends-shockwaves-through-financial-industry/
https://www.reuters.com/business/finance/us-bank-stocks-add-losses-regulators-shutter-svb-financial-2023-03-10/
The bank's parent failed to get a buyer making the California Department of Financial Protection and Innovation close Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation as receiver. Customers were scared and began to pull out their funds to avoid unforeseen circumstances.
Economists are warning that the fall of SIVB might spread and have a bad effect on the entire banking sector. The shares of many banks in the US and Europe dropped because of this incident. According to Reuter U.S. banks have lost over $100 billion stock market value in two days, with European banks losing around another $50 billion in value.
I have always seen bad news about the cryptocurrency industry making headlines in national and international newspapers. The government and bankers criticize the industry and portray the banks as the only remedy to the financial problems of the world. SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.
https://www.investors.com/news/silicon-valley-bank-liquidity-crisis-sends-shockwaves-through-financial-industry/
https://www.reuters.com/business/finance/us-bank-stocks-add-losses-regulators-shutter-svb-financial-2023-03-10/
According to reports from experts, the spreaders of FUDs who are organized and can pay for advertisements in many media are bankers or bank companies, they unite to fight cryptocurrencies that are a threat to banks, it cannot be denied that the bank system is indeed fragile and will not be strong.
I think the challenges of banks will be more complicated and more problematic, the transaction system that users expect must be faster and cheaper, but almost every day we hear about criminal cases from banks, those who work in banks can easily steal customer money without being noticed, the latest of course in malaysia when there is a transaction of more than $1 million made with mobile banking and the owner doesn't feel transacted, so be aware.
I have always seen bad news about the cryptocurrency industry making headlines in national and international newspapers. The government and bankers criticize the industry and portray the banks as the only remedy to the financial problems of the world. SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.
Why should we be listening to the banks? They are obviously not telling the truth. If a bank manager tells us that they are the only solution to financial management that this comes out of fear of losing their job. The bank managers are not working for the common good, they are not interested in a better works for everybody. The interests of the banks are egoistic and focused on their own bonus payments. The banks we see failing right now are not in trouble because of a bad business model, but rather because of greed. They gave out too many bad loans because they wanted higher returns, risk management was failing and now they are looking for the tax payers to pick up the bill.
SVB wasn't even mismanaged. I doubt when this gets reviewed there would be any legal finding of misconduct unlike with FTX.
SVB had banked on U.S. treasury bonds for a sizeable chunk of their portfolio and were ripped when the federal reserve starting raising interest rates. They started trying to raise capital desperately and it caused a panic and everyone ran to withdraw their balances simultaneously. The fact is that this type of situation can happen to literally any bank if every customer decides to withdraw their cash. If the banking institution isn't to secure emergency funding, within a day the entire institution collapses.
SVB had banked on U.S. treasury bonds for a sizeable chunk of their portfolio and were ripped when the federal reserve starting raising interest rates. They started trying to raise capital desperately and it caused a panic and everyone ran to withdraw their balances simultaneously. The fact is that this type of situation can happen to literally any bank if every customer decides to withdraw their cash. If the banking institution isn't to secure emergency funding, within a day the entire institution collapses.
They got greedy and yea, they were unlucky too. They shouldn't have invested such large amount of customers funds in a long term investment without thinking about the repercussions if things went south, and I believe they thought about it but they went ahead with it anyway. When the federal reserve started raising interest rates they panicked and got desperate as you said so that led to the panicking of the public. SVB would have been okay eventually if people did not panic but you can't blame the public for panicking because what normal human wouldn't panic when the bank is panicking?
I don't even think they got greedy. U.S. treasury bonds aren't supposed to be high risk investments. People seem to be overlooking the fact that the current predicament by the federal reserved being forced to raise interest rates were entirely manufactured by them. They decided to inject trillions of dollars into the economy and it's banks like SVB that were sitting on a pile of cash without a place to put it. 2020-2022 were uncertain years for investors, U.S. treasury bonds were not a bad idea. At some point, they should have been aware that the interest rates hikes were going to impact those investments and not have had mass sell offs in panic in order to raise liquidity.
I don't blame people for panicking and ultimately the banks are responsible for their investments. Doesn't seem prudent to blame the bank for operating within a system that's inherently corrupted with state sponsored fiscal ineptitude by the federal reserve.
Currently the Bank has faced challenges and failures in recent years including increased competition from fintech startups, low interest rates, and regulatory pressures. These factors have depressed the bank's profitability, leading to several failures and mergers. Despite this, it is acknowledged or not that banks still play an important role in the global financial system, providing essential services such as lending, payments, and risk management. While cryptocurrencies offer new possibilities for innovation and decentralization of finance, they also come with their own set of risks and challenges.
I think Not all banks fail why is that nowadays banks have adapted and thrived in the changing financial landscape in order to provide valuable services to their customers. For example, some banks have invested in fintech startups and developed their own digital solutions to compete with technology new.
Plus, the long term treasury bonds that they were holding which gave very little return whereas because of the FED rate spike they were forced to give so much back to people who had accounts there. Think about it this way, when you are the second biggest bank in the nation, that means tens of billions of dollars, which means that 2% to 5% difference would be as much as billions as well, which bank could survive something like that?I think Not all banks fail why is that nowadays banks have adapted and thrived in the changing financial landscape in order to provide valuable services to their customers. For example, some banks have invested in fintech startups and developed their own digital solutions to compete with technology new.
They weren't capable of predicting how the nation will go, and because of the interest rate increases and them not being ready for something like that, they ended up earning less and spending more for peoples money to be in their accounts.
To be fair to these banks and whoever running them, I don't think they "portray the banks as the only remedy to the financial problems of the world." Are they saying that?
Even if they say so, don't think that they actually know everything. They may appear as if they know it all, but no, they cannot foresee everything. They even failed to assure and pacify their depositors and prevent a bank run. They even failed to keep themselves solvent.
As a matter of fact, the collapse of centralized crypto companies like FTX is almost similar to the collapse of these traditional banking institutions. They may heavily criticize crypto companies and yet they also failed due to irresponsibility resulting to insolvency, lack of foresight, wrong predictions, false assumptions, greed, overconfidence, and others.
Even if they say so, don't think that they actually know everything. They may appear as if they know it all, but no, they cannot foresee everything. They even failed to assure and pacify their depositors and prevent a bank run. They even failed to keep themselves solvent.
As a matter of fact, the collapse of centralized crypto companies like FTX is almost similar to the collapse of these traditional banking institutions. They may heavily criticize crypto companies and yet they also failed due to irresponsibility resulting to insolvency, lack of foresight, wrong predictions, false assumptions, greed, overconfidence, and others.
I think, simply because it is just a tool of the government to run the monetary policy of the country. As a tool it will not be perfect and vulnerable under the influence conditions, only if this set of effects cannot be filled by continued money printing to control. Bank failure as a fact will have to happen when that time comes.
There are many cases of bank failures, of course, because banks do not develop techniques, they are only busy looking for profit and do not care about security issues, in my country there are frequent cases of theft of customer money and thieves can find out and do things that are not fair, so this makes many users worry .
I think, simply because it is just a tool of the government to run the monetary policy of the country. As a tool it will not be perfect and vulnerable under the influence conditions, only if this set of effects cannot be filled by continued money printing to control. Bank failure as a fact will have to happen when that time comes.
It must be admitted that the presence of cryptocurrencies is a serious threat to banks, banks can survive because of full guarantees from the government, if there is no regulation to protect it, it is certain that banks will not be able to compete with cryptocurrencies, moreover, sometimes banks are too easy to block accounts so the presence of crypto is a perfect solution. great for storing assets.
Not only because the government can survive in every country, but also because many users or customers open bank accounts and save their money there (the bank). Because if the customer doesn't have any bank, it won't develop rapidly in the country even though they are protected by the state government.
Cryptocurrency is a bank competitor that is very clear now that banks also need to develop their system in a better direction so that customers want to survive and continue to grow by showing more conveniences that are available to them at this time. Because there are still very many cryptocurrency users who use banks when they need cash withdrawals.
Currently the Bank has faced challenges and failures in recent years including increased competition from fintech startups, low interest rates, and regulatory pressures. These factors have depressed the bank's profitability, leading to several failures and mergers. Despite this, it is acknowledged or not that banks still play an important role in the global financial system, providing essential services such as lending, payments, and risk management. While cryptocurrencies offer new possibilities for innovation and decentralization of finance, they also come with their own set of risks and challenges.
I think Not all banks fail why is that nowadays banks have adapted and thrived in the changing financial landscape in order to provide valuable services to their customers. For example, some banks have invested in fintech startups and developed their own digital solutions to compete with technology new.
I think Not all banks fail why is that nowadays banks have adapted and thrived in the changing financial landscape in order to provide valuable services to their customers. For example, some banks have invested in fintech startups and developed their own digital solutions to compete with technology new.
It is clear that fiat currency and banks will soon face their doom day,and this will have great effect on the world economy. Fiat is becoming worthless gradually and banks are shutting down because they couldn't understand that old things are passing away because they can't resist the present challenge that the world is facing,which in high rate of inflation. Bitcoin was designed to face the present world economy challenges and to overcome it. So many criticism by banks on bitcoin and crptocurrency at large but right now bitcoin is excelling and banks are packing up their bags.
Economists are warning that the fall of SIVB might spread and have a bad effect on the entire banking sector. The shares of many banks in the US and Europe dropped because of this incident. According to Reuter U.S. banks have lost over $100 billion stock market value in two days, with European banks losing around another $50 billion in value.
People have no trust on banks anymore for the safety of their funds. I guess they might have started seeing bitcoin as an alternative.SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.
Financial gurus don't understand how to tackle the present economy challenges but claim that they know everything. Moreover mismanagement of public funds can also lead to the crash of SVB,who knows.
It must be admitted that the presence of cryptocurrencies is a serious threat to banks, banks can survive because of full guarantees from the government, if there is no regulation to protect it, it is certain that banks will not be able to compete with cryptocurrencies, moreover, sometimes banks are too easy to block accounts so the presence of crypto is a perfect solution. great for storing assets.
What's funny is that, on their twitter account, just 4 days ago, SVB twitted that they are
And now what?
- https://twitter.com/SVB_Financial/status/1632818336391213059?t=E3JtoDRGK_HgGo613tHVAA&s=19
Quote
Proud to be on @Forbes' annual ranking of America's Best Banks for the 5th straight year and to have also been named to the publication's inaugural Financial All-Stars list
And now what?
- https://twitter.com/SVB_Financial/status/1632818336391213059?t=E3JtoDRGK_HgGo613tHVAA&s=19
SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.
Because it really isn't the job of the economists or 'gurus' to prevent a certain bank from going insolvent — it's the CEO, the team in general, and the board of directors' jobs.The Emperor's New Clothes - Official Trailer I HD I IFC Films
I guess that the board of directors always gets big bonuses at the end of the year, it doesn't matter if they did a good job or if they made some royal mess with big losses.
SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.
Because it really isn't the job of the economists or 'gurus' to prevent a certain bank from going insolvent — it's the CEO, the team in general, and the board of directors' jobs.
But some of these CEO and board of Directors claim that they have wealth of experience in financial matters. The way they attack cryptocurrency firms will make one believe that they have all the solutions and are infallible.
After all, no matter how talented they are, they are human and will make mistakes from time to time. Why don't you hypothesize that the collapse of these banks will benefit other banks, their competitors? When a big man falls, there will always be another big man to take his place, and that is competition.
Another thing is, why do we care what they say about crypto? They are working for centralized companies, they are lashing out, smearing cryptocurrency, decentralized, also part of their job, they are defending their interests. Like us, crypto investors, and to protect it, we also spread bad news about banks. They and we are the same.
They never had any solution and if the world noticed they would have known that the institutions are subject to corruption due to their centralized ways of operation.
Nevertheless, the Simpsons appear to have already known that the SIVB collapse will happen because they already had a movie for it before the SIVB happened just like they once predicted Bitcoin
Nevertheless, the Simpsons appear to have already known that the SIVB collapse will happen because they already had a movie for it before the SIVB happened just like they once predicted Bitcoin
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First, it is nice that issues like Silicon Valley Bank happened so that people will know that the only to be safe is through decentralization and being their own bank which is exactly the path led by Satoshi but what I hate about the issue is some US government official that blames the SVB collapse on cryptocurrency whereas the person to blame is the CEO, and all the team involving.
I read that the SEC is looking into the issue and I believe it will be the exact thing that causes the FTX collapse.
Although we don't wish for this to happen to the innocent investors and people that are trusting them. But it's giving shed light on what you've said about these people that this can be the reason why there have been projects that are going against centralization in the world of finance.I read that the SEC is looking into the issue and I believe it will be the exact thing that causes the FTX collapse.
And this will open the idea to them that the cryptocurrency that they've been accusing of fraud and giving bad impression to many is the one that can be the best option right now which is bitcoin.
Until the general public understands the best alternative to deal with the collateral damage caused by the government economy and management practice is decentralization people will still be the victim of issues like this and I like the Bitcoiner the put the bus with the words "Be your own bank" at the doorstep SVB.
One reason was that according to the tinfoil hat men, the government is forcing people to use CBDC and wants crypto to fail.
If they fail, they won't let bank runs going to be publicly announced by the media and then those banks such as SVB and Silvergate were bought by bigger banks that have close connections to the government such as JPM.
If they fail, they won't let bank runs going to be publicly announced by the media and then those banks such as SVB and Silvergate were bought by bigger banks that have close connections to the government such as JPM.
The stock of Silicon Valley Bank, one of the biggest banks in the US collapsed to 65% before trading was halted. This is the largest bank failure since the 2008 financial crisis.
There's the latest news about Credit Suisse, aren't they now the biggest falloff this season?First, it is nice that issues like Silicon Valley Bank happened so that people will know that the only to be safe is through decentralization and being their own bank which is exactly the path led by Satoshi but what I hate about the issue is some US government official that blames the SVB collapse on cryptocurrency whereas the person to blame is the CEO, and all the team involving.
I read that the SEC is looking into the issue and I believe it will be the exact thing that causes the FTX collapse.
Although we don't wish for this to happen to the innocent investors and people that are trusting them. But it's giving shed light on what you've said about these people that this can be the reason why there have been projects that are going against centralization in the world of finance.I read that the SEC is looking into the issue and I believe it will be the exact thing that causes the FTX collapse.
And this will open the idea to them that the cryptocurrency that they've been accusing of fraud and giving bad impression to many is the one that can be the best option right now which is bitcoin.
SVB wasn't even mismanaged. I doubt when this gets reviewed there would be any legal finding of misconduct unlike with FTX.
SVB had banked on U.S. treasury bonds for a sizeable chunk of their portfolio and were ripped when the federal reserve starting raising interest rates. They started trying to raise capital desperately and it caused a panic and everyone ran to withdraw their balances simultaneously. The fact is that this type of situation can happen to literally any bank if every customer decides to withdraw their cash. If the banking institution isn't to secure emergency funding, within a day the entire institution collapses.
SVB had banked on U.S. treasury bonds for a sizeable chunk of their portfolio and were ripped when the federal reserve starting raising interest rates. They started trying to raise capital desperately and it caused a panic and everyone ran to withdraw their balances simultaneously. The fact is that this type of situation can happen to literally any bank if every customer decides to withdraw their cash. If the banking institution isn't to secure emergency funding, within a day the entire institution collapses.
They got greedy and yea, they were unlucky too. They shouldn't have invested such large amount of customers funds in a long term investment without thinking about the repercussions if things went south, and I believe they thought about it but they went ahead with it anyway. When the federal reserve started raising interest rates they panicked and got desperate as you said so that led to the panicking of the public. SVB would have been okay eventually if people did not panic but you can't blame the public for panicking because what normal human wouldn't panic when the bank is panicking?
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