[ April 19, 2024 ]
Silicon Valley Bank (SVB) Bank went belly-up. It is the bank that finances new ideas, start-ups, the future etc. It’s a fitting (and painful) allegory of America itself. It’s the second biggest bank failure in the history of America. SVB financed half of all venture capital healthcare and technology companies in the United States. It held enormous cash reserves for some of the biggest crypto currencies.
SVB catered mainly to the insular ecosystem of startups and the investors that fund them. Its deposits boomed alongside the tech industry, rising 86% in 2021 to $189 billion and peaking at $198 billion a quarter later. The bank poured large amounts of the deposits into U.S. Treasurys and other government-sponsored debt securities.
The bank is the 16th largest in the U.S., with some $209 billion in assets as of Dec. 31, according to the Federal Reserve.
Story continues below advertisement
“When customers showed up at SVB’s branch in Manhattan today to get their deposits back, managers called the police. What we have here is a 1929-style bank run. And that’s not a good sign for anyone.”
Biden said, “Our economy is moving in the right direction”
Time for Biden to brag about how brilliantly he has handled the American economy. He just put out a $6.8 trillion budget proposal for 2024.
Tucker Carlson on the collapse of Silicon Valley Bank: "When customers showed up at SVB's branch in Manhattan today to get their deposits back, managers called the police. So what we have here is a 1929-style bank run. And that's not a good sign for anyone." pic.twitter.com/8EBXcTtiWv
— Becker Clips (@NewsBecker) March 11, 2023
US Manufacturing Sector Contracts Again; Raw Material Prices Spike
Biden said the “economy is strong as hell.”https://t.co/sj2vznnRaQ pic.twitter.com/hW2tL3GZHQ
— 🇺🇸 Pamela Geller 🇺🇸 🇮🇱 (@PamelaGeller) March 3, 2023
Silicon Valley Bank Closed by Regulators, FDIC Takes Control
Some tech startups had been rushing to transfer money out
The collapse of Silicon Valley Bank is the second-largest bank failure in U.S. history
By Rachel Louise Ensign, Corrie Driebusch and Meghan Bobrowsky, WSJ, March 10, 2023:
SANTA CLARA, Calif.—Silicon Valley Bank collapsed Friday in the second-biggest bank failure in U.S. history after a run on deposits doomed the tech-focused lender’s plans to raise fresh capital.
The Federal Deposit Insurance Corp. said it has taken control of the bank via a new entity it created called the Deposit Insurance National Bank of Santa Clara. All of the bank’s deposits have been transferred to the new bank, the regulator said.
Insured depositors will have access to their funds by Monday morning, the FDIC said. Depositors with funds exceeding insurance caps will get receivership certificates for their uninsured balances, meaning businesses with big deposits stuck at the bank are unlikely to get their money out soon.
The bank is the 16th largest in the U.S., with some $209 billion in assets as of Dec. 31, according to the Federal Reserve. It is by far the biggest bank to fail since the near collapse of the financial system in 2008, second only to the crisis-era collapse of Washington Mutual Inc.
The bank’s parent company, SVB Financial Group, was racing to find a buyer after scrapping a planned $2.25 billion share sale Friday morning. Regulators weren’t willing to wait. The California Department of Financial Protection and Innovation closed the bank Friday within hours and put it under the control of the FDIC.
Customers tried to withdraw $42 billion—about a quarter of the bank’s total deposits—on Thursday alone, the California regulator said in a filing Friday. The flood of withdrawals destroyed the bank’s finances; at close of business Thursday, it had a negative cash balance of nearly $1 billion and couldn’t cover its outgoing payments at the Fed, according to the filing.
The bank was in sound financial condition on Wednesday, the regulator said. A day later, it was insolvent.
SVB’s troubles have dragged down a wide swath of the industry. Investors dumped the shares of banks big and small on Thursday, shaving $52 billion off the value of the four largest U.S. banks alone. The megabanks recovered Friday but many of their smaller peers continued to plunge. Several were halted for volatility.
Investors are worried about banks with a similar profile to SVB. Shares of San Francisco-based First Republic Bank, which caters to businesses and wealthy individuals, have fallen about 30% since Wednesday. “First Republic’s deposit base is strong,” the bank said Friday.
Shares of PacWest Bancorp have fallen 54% in the past two days. More than two-thirds of its lending portfolio is tied to real estate, with a sizable portion lent to venture-capital firms.
The Truth Must be Told
Your contribution supports independent journalism
Please take a moment to consider this. Now, more than ever, people are reading Geller Report for news they won't get anywhere else. But advertising revenues have all but disappeared. Google Adsense is the online advertising monopoly and they have banned us. Social media giants like Facebook and Twitter have blocked and shadow-banned our accounts. But we won't put up a paywall. Because never has the free world needed independent journalism more.
Everyone who reads our reporting knows the Geller Report covers the news the media won't. We cannot do our ground-breaking report without your support. We must continue to report on the global jihad and the left's war on freedom. Our readers’ contributions make that possible.
Geller Report's independent, investigative journalism takes a lot of time, money and hard work to produce. But we do it because we believe our work is critical in the fight for freedom and because it is your fight, too.
Please contribute here.
or
Make a monthly commitment to support The Geller Report – choose the option that suits you best.
Quick note: We cannot do this without your support. Fact. Our work is made possible by you and only you. We receive no grants, government handouts, or major funding.Tech giants are shutting us down. You know this. Twitter, LinkedIn, Google Adsense, Pinterest permanently banned us. Facebook, Google search et al have shadow-banned, suspended and deleted us from your news feeds. They are disappearing us. But we are here.
Subscribe to Geller Report newsletter here— it’s free and it’s essential NOW when informed decision making and opinion is essential to America's survival. Share our posts on your social channels and with your email contacts. Fight the great fight.
Follow Pamela Geller on Gettr. I am there. click here.
Follow Pamela Geller on Trump's social media platform, Truth Social. It's open and free.
Remember, YOU make the work possible. If you can, please contribute to Geller Report.
Join The Conversation. Leave a Comment.
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spammy or unhelpful, click the - symbol under the comment to let us know. Thank you for partnering with us to maintain fruitful conversation.
If you would like to join the conversation, but don't have an account, you can sign up for one right here.
If you are having problems leaving a comment, it's likely because you are using an ad blocker, something that break ads, of course, but also breaks the comments section of our site. If you are using an ad blocker, and would like to share your thoughts, please disable your ad blocker. We look forward to seeing your comments below.
12 Comments
1 year ago
Biden needs to be arrested — today!
This country can’t survive this swine.
The Constitution is not a suicide pact.
On to The Second Republic.
1 year ago
Biden is an active shooter.
He’s slaughtering us with impunity, operating unimpeded in the clear light of day.
He needs to be stopped.
1 year ago
Reply to
Chris Wolf
The ones who put the dislike, know me and Chris are right and just can’t deal with it and are too cowardly and blinded who probably serve their master Satan, lol good luck with that….won’t be seeing you in your soon too be home called HELL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
1 year ago
Reply to
Staff Sgt Chaos
Perhaps they do it beause you are an idiot with your brainwashed religious comments.
1 year ago
Reply to
Patti
I dare you to say that to my face Poser Patti the hypocrite, blinded, fool who I have no doubt helps destroy our Country and Patti the lost soul, it isn’t brainwashing moron, it’s called FREEDOM OF CHOICE, FREEWILL, man where do these people like Poser Patti come from, URANUS?
Last edited 1 year ago by Staff Sgt Chaos
1 year ago
Him and the whole Admin..and all the Organizations and I mean ALL that support the Administration. The FBI, CDC, IRS, FDA, CAIR, U.N, China, Russia, unmoral people and their acts, Fauci, Soros, there are too many that are corrupt, TAKE THEM ALL DOWN!!!!!!
WARRRRRRRRRRRRRRRRRRR, WAR, WAR, WAR, oh yea and WAR! I am not scared of any of them and would gladly hold my end of the Free, Born, UN Controlled, Christian, American Patriot deal for my Family, neighbors, Country and GOD!!!!!!!!!!!!!!!!!!!!
We never had it like this and the days are numbered!!!!!We are no longer obligated to turn the cheek when it affects the children’s lives as well as ours!!!!! However I am not displaying HATE, this is ANGER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
1 year ago
How can anyone say our Economy is string after the FDIC takes a bank over as the second largest largest Bank Failure in America”
1 year ago
Reply to
JIM
I don’t blame the government, I blame the voters who put them in charge. You can do a mistake one’s but repeat the same mistake twice means you are a total idiot.
1 year ago
This just the beginning. There will be many more bank and credit union failures as the corrupt government pushes toward a digital monetary system.
1 year ago
This is what happens when you put your faith in FIAT currency ….. it is just 1’s & 0’s in someone’s computer ….. it is NOT “real money”
