As a former banker, I find it really odd that these bankers were ignoring the interest rates, ignoring the markets, etc. Usually when a bank screws up this badly, it's because the management did something risky in order to make tons of cash for themselves. But in this case, management was making investments that didn't even keep up with normal inflation. It's almost like they wanted the bank to fail and use it as a tax write off. What they did wasn't risky. It was just plain lazy.

I've

The SVB situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty.

About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?

The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stock portfoIio, what’s the best way to take advantage of this bear market?

I am really worried about the current bank crisis. If a bank as big as SVB could fail, I fear for a lot more. I know a friend who is running a high-growth startup, and was badly hit by the bank run. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to$250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

A powerful coincidence is preparing in the US. Expansion, bank breakdown, serious dry season in the horticultural belt, downturn, real estate market decline, bank emergency, food deficiencies, diesel fuel and warming oil deficiencies, child recipe deficiencies, accessible car deficiencies and costs, the cost of residing place. It's all approaching together and it could prompt a genuine calamity towards the finish of this current year (or sooner). With expansion at present at around 6%, my essential concern is the way to expand my reserve funds/retirement asset of about $300k which has been exposed target since perpetually with zero to no increases.

The Fed is undoubtedly responsible for the present catch-up efforts, as they were first too slow to control inflation. The pandemic, supply-chain issues, and the state of Ukraine are all contributing reasons to the impending inflationary perfect storm. Not to mention the steep rise in housing costs, another aspect that makes it difficult for the Fed to keep inflation under control. In conclusion, spend your money as soon as possible if you have it to take advantage of the high savings rate.

After the 2008 financial crisis, all the major western democracies have implemented the recommendation of the Basel Framework for Banks, with the notable exception of the United States. The Basel Framework for Banks was implemented only for the major American banks. The smaller banks and regional banks were exempted (including SVB) because they lobbied hard and Congress bowed, they were excluded from the Basel Framework. One of the purposes of the Basel Framework is to improve the risk management.

I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat

Following your channel from the last two years, interesting and informative content. And more informative than mainstream news.

Just like the economist magazine, this video was perhaps the most concise and informative explanation of the Silicon Valley Bank bankruptcy that I have ever seen. I would probably need to consume 20 minutes of video footage from any other source in order to get even close to what I got from this four minute video by the economist. Well done!

great summary. thanks! 👍🏻

Most informative channel I came across. I love watching your videos

Information the key to knowledge and is shared beautifully in a short manner, interesting. 🤘🏻

They failed because the CEO and C-Suite Executives were extremely unqualified and should never have been in banking. Nobody that understands banking ignores the duration risk especially if they are highly exposed to long duration in a rising interest rate environment. The fact the CFO stated in their January Investor call that they had little exposure because the investments were HTM instead of AFS shows how unqualified these C-Suite executives were and should never be in charge of a financial institution of any kind.

It is interesting to watch from the sidelines and see how broader the impact will be from this, not just within the USA but globally.

Great video, I really enjoyed watching it and learned a lot from your insights

The content of this video is very informative, Waiting for more explanatory videos

Love the info that was provided and was super easy to understand

This is amazing video that I’ve watched it. I like the way they present the information so detail

The video was very informative and entertaining at the same time. I learned many things.

Very powerful and insightful. Thanks for sharing this video. Cheers

excellent information with reliable arguments, I like this type of reports with complete and concise information 👍

Thank you, this video was very interesting to see, great news

The video is very informative and it ensure that you are understanding of all the major concern with banks and financial system.

Great content and summary, watch it guys, so we know whats going on out there!!!!

Very interesting hearing how all the economic value of each economy relates

SVB CEO Becker was on the board of the San Francisco branch of the Federal Reserve who was tasked to oversee SVB and had close personal ties to Governor Newsom and his wife.

Amazing reality of the channel 😊😊

Absolutely useful insight on SVB. The tech industry is so complicated.

Great video very informative really loved it. It was really interesting.

I really like this content, I would recommend alot. Would definitely watch another video!

Brilliantly presented, thank you :)

The video is well explained and is quite informative.Great video 👍

This is absolutely an amazing video to watch. It did justice to a lot of information shared.

I believe we are in for a very tough 2-3 years financially!

Great explanation on what happened and what could happen. So interesting

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies...i would greatly appreciate any suggestions..

The three pillars of Basel III are market discipline, Supervisory review Process, minimum capital requirement.

The FDIC insurance has been at 250k since I was a kid…it’s probably time to investigate the insurance company and see why they haven’t kept up with inflation to protect that

The uninsured deposits shouldn't have been bailed out. It basically tells me to follow the rules unless you're rich.

Although none of us want a 2008 repeat, I feel it’s quite irresponsible to salvage SVB. It ends up fostering a perpetual circle of risk averse banks.

It was reported elsewhere that bank executives sold their stock the week before the collapse. Is this true? and if so, wonder how other stock holders feel about that (although I can probably guess!)...?!.

How much of a part was played by shorting?

Interesting the CEO legally sold his shares in the bank in February after the bank had been audited in January I believe.

I feel for the Etsy proprietors who have their business deposits held at Etsy have ZERO insurance and are at the mercy of the company billionaire predator owners. All those new agey serfs on the techno-manorial estate.

Banks collapsing is getting scary day by day. Its insane how every country is getting hit hard post covid. Questions remain its always the poor and weak that get hit the hardest

Your British compatriot, Patrick Boyle, spent 26 minutes on this topic, just recently!

can someone please explain to me how selling HTM securities can lead to a need for capital raise?

The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?

Can someone explain to me why interest rates lowered the value of the existing T bills they had on their balance sheet? I’m not quite understanding this part.

What I see; I.Deposit levels V loan book size II. Iliquidity of the bank III. Low level of regulation towards a "smaller" bank that tripled its size in 2 yrs IV unrealized Losses V Social media and "small" VC, start up community sharing about pulling their decision VI management decision about how to apply their deposits. Do you think the measures taken by regulators will set a pecedent to other banks?

Financial crisis Alarming situation

the economy in the world does not stop, one day inflation is up there, the next, down there. very informative video

What really went wrong is that an influential VC called a bank run without need, and people panicked. No bank(!) no matter the oversight and tighting rules can survive an attack like that.

I thought it was only insured for 250k, that’s socialism that they weren’t being the normal coverage

So, the problem is the lack of reach of the regulatory framework? That's like saying if you have a bigger first aid kit you'll have less accidents.

It is my opinion that it would be easy to defer any significant investment decisions until the economic environment stabilizes in areas of concern.

What went wrong: People keep believing bankers have their customers best interest in mind...and that they act with a long-term perspective for their clients rather than a short-term profit for themselves. They don't.

Deregulation in the banking system has kick us in the 🥜 again.

Given how this was mostly triggered by the valuation of treasury notes dropping, this doesn't really seem like a "bank taking excessive risk" situation. I am a lot more sympathetic to this situation than what we saw in the financial crisis.

Can someone explain to me like I’m 5 why SVB was “struggling to make loans” to their commercial customers? Thanks

It is already shaking banks in Europe, especially in Switzerland, which was considered stable, but this is no longer the case

I am still trying to figure out what actually happened and could not get an answer which is absolutely accurate.

I didnt understand the fact that as rates rise the value of treasuries and bonds fell causing the bank to loose on their sale. Isnt the point of treasury or bond a fixed positive return , how can it be a loss?

Bro imagine working for Silicon Valley it would be really stressful

I wish the government was half as concerned about my missteps in life as they are with corporate missteps.

I havent gotten paid yet since the news! yall better fix this 😒😒

High risk customers and putting your eggs all in one basket is always a bad idea

Banks normally use Interest Rate Swaps to hedge the risk of rising rates. This should not have been a problem that could lead to major losses. The question remains: What really went wrong?

I don’t understand why SVB bought Treasury and mortgage backed securities, can someone explain?

I've said this once and I will say it again... We live in 2023 folks. If these engineers can't design buildings that won't collapse then they shouldn't be allowed to build them. I can't believe this still happening.

I had no idea that banks could have debt…

A top 20 best bank they said.....

So when the bank collapsed, people where able to keep all the assets and still be on top

What I find interesting is that depositors that left more than $250K (the FDIC insurance limit) deposited in this bank are now crying for the federal government to insure ALL deposits regardless of amount. That's a dangerous precedent to set. As for INVESTORS in the bank, they should take a haircut. That's the risk one assumes when investing.

Amazing all the concern about Banks but nowhere near a similar concern for an Economic Contagion from a Student Debt implosion. ... If 'Corp'orations are People, shouldn't People have the same Rights as a 'Corp'oration (i.e. essentially, a Bureaucracy) - that, it is, ultimately, intended to serve. "The People" are not even allowed the Right of 'Corp'arations to claim Bankruptcy from the Debt -- effectively, prevented from fully engaging with and contributing to the larger Economy - incapacitated by a lifelong form of 'Debters Prison!.'

The failure of silicon Valley bank has rippled into global markets and made big problems in the rising interest rates hopefully everything will be fixed soon

What really went wrong is the US treasury bond, which is supposed to be the safest asset in the world, is not safe any more. This is going to be a problem for any institutional investor who invested in US treasury bonds.

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. - Henry Ford

The profit is mine, the debts is ours. Government saving banks ...

Signature didn't fail which is why you are not going into any details. It was shut down because of its crypto friendly practices.

I find it troubling that the Federal Reserve did not know or chose to ignore the concentration of Treasury debt in single bank. We often hear about the extent of Treasury debt holdings by China. If you elect to raise interest rates in order to combat inflation it would seem logical to understand the risk to institutions holding these securities. This is the second failure by the Federal Reserve in this business cycle. They were asleep regarding the inflation consequences of pumping trillions of dollars into the economy while aggregate output flattened or shrunk. Two important lessons of my undergraduate study of economics: 1. You cannot put huge sums money in the hands of those who are producing no output without debasing the currency. 2. When you are late to the party you drink too much, too fast. The Fed has been imbibing excessively to cover its earlier mistakes and now others suffer the hangover. Like so many educational institutions, the Fed seems to be immune to its own knowledge.

These are the culprit - The bank execs, the banking system, the reduce regulation, and inside job trading

inrease bank liqudiity while reducing bank leverage!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Surprise surprise special rules and bailouts, no one else to blame for the financial prices

three letters: ESG

This is just another time when the people in power get away with making bad decisions without penalty

Oh I figured this was a goblin scheme.

So when will CBDCs disintermediate the commercial banks?

It's temporary solution, bring intrest rate down and control inflation otherwise next week another bank collapse. 😢

Is this a way to destroy all the money that was created after the pandemic to avoid inflation?

Did the presenter just 'fixed' her broken glasses with chewing gum?

Give it another 2 weeks.. Things will be fine.. 🙄🙄🙄

No person or corporation need fear being irresponsible, the taxpayer, from richest to most humble, will be there to make up the losses. It's as if the term Moral Hazard was still waiting to be coined.

Our system of guaranteed taxpayer bailouts on failure, is a great monetary incentive to engage in financial irresponsibility

Less oversight please going forward

We shouldn't put all of our trust in the banks