FDIC shuts down Silicon Valley Bank, crash incoming? Update: 2nd bank, Signature Bank in NY closed
- Thread starter Paper Boi
- Start date
In The Zone '98
Superstar
lmao all the bond and DIF folks are really quiet all of a sudden
what happened to the taxpayers wont foot the bill and bonds paying off the deposits
voltronblack
Superstar
if they were to do that would that make the augment why there needs to be a nationalization of banks
voltronblack
Superstar
ok breh if you can could you go in to detail about what you mean by that.google bard explanation.
A Credit Default Swap (CDS) is a financial instrument that transfers credit risk from one party to another. In the simplest of terms, a CDS is a contract between two parties, a buyer and a seller. The buyer of the CDS agrees to pay a premium to the seller in exchange for the seller agreeing to pay a predetermined amount of money if the reference entity (in this case, a bank) defaults on its debt.
An intricate example of a CDS on a bank that has failed is the case of Lehman Brothers. In 2008, Lehman Brothers filed for bankruptcy. This event triggered a wave of CDS payments, as investors who had bought protection from Lehman's default were now owed money by the sellers of the CDS. This led to a systemic crisis in the financial system, as banks and other financial institutions were unable to meet their obligations to their CDS counterparties.
The systemic ramifications of Deutsche Bank failing would be significant. Deutsche Bank is one of the largest banks in the world, and its failure would likely trigger a widespread panic in the financial markets. This could lead to a sharp decline in asset prices, a freeze in credit markets, and a severe recession.
The failure of Deutsche Bank would also have a significant impact on the CDS market. Deutsche Bank is a major player in the CDS market, and its failure would likely lead to a sharp increase in the cost of CDS protection. This would make it more expensive for banks and other financial institutions to hedge against default risk, which could make the financial system more vulnerable to future crises.
An intricate example of a CDS on a bank that has failed is the case of Lehman Brothers. In 2008, Lehman Brothers filed for bankruptcy. This event triggered a wave of CDS payments, as investors who had bought protection from Lehman's default were now owed money by the sellers of the CDS. This led to a systemic crisis in the financial system, as banks and other financial institutions were unable to meet their obligations to their CDS counterparties.
The systemic ramifications of Deutsche Bank failing would be significant. Deutsche Bank is one of the largest banks in the world, and its failure would likely trigger a widespread panic in the financial markets. This could lead to a sharp decline in asset prices, a freeze in credit markets, and a severe recession.
The failure of Deutsche Bank would also have a significant impact on the CDS market. Deutsche Bank is a major player in the CDS market, and its failure would likely lead to a sharp increase in the cost of CDS protection. This would make it more expensive for banks and other financial institutions to hedge against default risk, which could make the financial system more vulnerable to future crises.
You want your money managed by the same people who manage the national debt, the debt ceiling, taxation rules and the national budget and ways and means?
google bards take on nationalized banks.You want your money managed by the same people who manage the national debt, the debt ceiling, taxation rules and the national budget and ways and means?
Here are some of the benefits of nationalizing a bank for consumers:
* **Increased access to banking services.** Nationalization can help to increase access to banking services by making them more widely available, especially in rural and underserved areas. This can be done by opening new branches and ATMs, and by providing financial education and assistance to people who are not familiar with banking.
* **Lower interest rates.** Nationalization can help to lower interest rates by making more money available for lending. This can benefit consumers by making it cheaper to borrow money for things like mortgages, car loans, and credit cards.
* **Increased lending to small businesses.** Nationalized banks are often more willing to lend money to small businesses than private banks. This can help small businesses to grow and create jobs.
* **Increased transparency and accountability.** Nationalized banks are often more transparent and accountable than private banks. This can help consumers to feel more confident about their money and to know that their money is being used responsibly.
If the US nationalized a bank for Americans, it would likely have a significant impact on the economy. The government would need to decide how to compensate the shareholders of the bank, and it would also need to ensure that the bank continued to operate effectively. If the nationalization was successful, it could help to stabilize the financial system and to increase access to banking services for all Americans. However, there are also risks associated with nationalization, such as the potential for political interference and the loss of private sector jobs.
* **Increased access to banking services.** Nationalization can help to increase access to banking services by making them more widely available, especially in rural and underserved areas. This can be done by opening new branches and ATMs, and by providing financial education and assistance to people who are not familiar with banking.
* **Lower interest rates.** Nationalization can help to lower interest rates by making more money available for lending. This can benefit consumers by making it cheaper to borrow money for things like mortgages, car loans, and credit cards.
* **Increased lending to small businesses.** Nationalized banks are often more willing to lend money to small businesses than private banks. This can help small businesses to grow and create jobs.
* **Increased transparency and accountability.** Nationalized banks are often more transparent and accountable than private banks. This can help consumers to feel more confident about their money and to know that their money is being used responsibly.
If the US nationalized a bank for Americans, it would likely have a significant impact on the economy. The government would need to decide how to compensate the shareholders of the bank, and it would also need to ensure that the bank continued to operate effectively. If the nationalization was successful, it could help to stabilize the financial system and to increase access to banking services for all Americans. However, there are also risks associated with nationalization, such as the potential for political interference and the loss of private sector jobs.
doesn't sound bad at all.
There are a few different ways that a nationalized bank in America could be administered. One possibility is that the government could create a new agency to oversee the bank. This agency could be staffed by government employees, or it could contract with private companies to provide services. Another possibility is that the government could simply take over the existing management of the bank. This would mean that the same people who currently run the bank would continue to do so, but they would now be working for the government.
The decision of who would administer a nationalized bank would likely depend on a number of factors, including the size and complexity of the bank, the resources available to the government, and the political will to nationalize the bank.
The decision of who would administer a nationalized bank would likely depend on a number of factors, including the size and complexity of the bank, the resources available to the government, and the political will to nationalize the bank.
I already assume the postmaster general would be in charge of banking services offered by USPS.
The oldest nationalized bank in the world is the Sveriges Riksbank, which was founded in 1668. Nationalized banks fail much less often than private banks. In the United States, for example, there have been only a handful of failures of nationalized banks, while there have been thousands of failures of private banks. This is because nationalized banks are typically subject to much stricter regulation and supervision than private banks.
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google bard explanation.
A Credit Default Swap (CDS) is a financial instrument that transfers credit risk from one party to another. In the simplest of terms, a CDS is a contract between two parties, a buyer and a seller. The buyer of the CDS agrees to pay a premium to the seller in exchange for the seller agreeing to pay a predetermined amount of money if the reference entity (in this case, a bank) defaults on its debt.
An intricate example of a CDS on a bank that has failed is the case of Lehman Brothers. In 2008, Lehman Brothers filed for bankruptcy. This event triggered a wave of CDS payments, as investors who had bought protection from Lehman's default were now owed money by the sellers of the CDS. This led to a systemic crisis in the financial system, as banks and other financial institutions were unable to meet their obligations to their CDS counterparties.
The systemic ramifications of Deutsche Bank failing would be significant. Deutsche Bank is one of the largest banks in the world, and its failure would likely trigger a widespread panic in the financial markets. This could lead to a sharp decline in asset prices, a freeze in credit markets, and a severe recession.
The failure of Deutsche Bank would also have a significant impact on the CDS market. Deutsche Bank is a major player in the CDS market, and its failure would likely lead to a sharp increase in the cost of CDS protection. This would make it more expensive for banks and other financial institutions to hedge against default risk, which could make the financial system more vulnerable to future crises.
deutsche has been on life-support for years.
but there is no way the germans are letting one of their titans collapse. it has their name on it and it is the flagship german bank.
just like VW rescued it's "competitor" porsche when it was in danger of collapse.
the safest german bank is probably KFW but that is another matter.
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also about deutsche ..
the plain bagel showed an interesting chart in his credit suisse UBS buyout breakdown video
deutsche and "safe haven" UBS ...
the plain bagel showed an interesting chart in his credit suisse UBS buyout breakdown video
deutsche and "safe haven" UBS ...
@ ts 7m47s
Black Mamba
Superstar
Nearly $100 billion in deposits pulled from banks; officials call system 'sound and resilient'
Regulators again assured the public that the system is safe, as data showed customers pulled nearly $100 billion in deposits.
www.cnbc.com
Nearly $100 billion in deposits pulled from banks; officials call system ‘sound and resilient’
PUBLISHED FRI, MAR 24 20234:55 PM EDTUPDATED FRI, MAR 24 20238:49 PM EDT
KEY POINTS
- Federal Reserve data showed that bank customers collectively pulled $98.4 billion from accounts for the week ended March 15, as Silicon Valley Bank and Signature Bank failed.
- Officials at the Financial Stability Oversight Council, meeting in a closed session Friday, insisted the system “remains sound and resilient.”
A First Citizens Bank branch in Dunwoody, Georgia, on Thursday, March 23, 2023.
Elijah Nouvelage | Bloomberg | Getty Images
Regulators again assured the public that the banking system is safe, as fresh data showed customers recently pulled nearly $100 billion in deposits.
Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and more than a dozen other officials convened a special closed meeting of the Financial Stability Oversight Council on Friday.
A readout from the session indicated that a New York Fed staff member briefed the group on “market developments.”
“The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient,” the statement said. “The Council also discussed ongoing efforts at member agencies to monitor financial developments.”
There were no other details provided on the meeting.
The readout, released shortly after the market closed Friday, came around the same time as new Fed data showed that bank customers collectively pulled $98.4 billion from accounts for the week ended March 15.
That would have covered the period when the sudden failures of Silicon Valley Bank and Signature Bank rocked the industry.
Data show that the bulk of the money came from small banks. Large institutions saw deposits increase by $67 billion, while smaller banks saw outflows of $120 billion.
The withdrawals brought total deposits down to just over $17.5 trillion and represented about 0.6% of the total. Deposits have been on a steady decline over the past year or so, falling $582.4 billion since February 2022, according to the Fed data released Friday.
Money market mutual funds have seen assets rise over the past two weeks, up $203 billion to $3.27 trillion, according to Investment Company Institute data through March 22.
Earlier this week, Powell also sought to assure the public that the banking system is safe.
“You’ve seen that we have the tools to protect depositors when there’s a threat of serious harm to the economy or to the financial system, and we’re prepared to use those tools,” Powell said Wednesday during a news conference that followed the Fed’s decision to hike benchmark interest rates another quarter percentage point. “And I think depositors should assume that their deposits are safe.”
Powell noted that deposit flows “have stabilized over the past week” following what he called “powerful actions” from the Fed to backstop the system.
Banks have been flocking to emergency lending facilities set up after the failures of SVB and Signature. Data released Thursday showed that institutions took a daily average of $116.1 billion of loans from the central bank’s discount window, the highest since the financial crisis, and have taken out $53.7 billion from the Bank Term Funding Program.