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The More I Learn About SVB...


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#11 slupert

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Posted 13 March 2023 - 09:49 AM

The more I'm amazed by the layers of rank incompetence...

 

And I'm the guy who sez, "You'll never go broke underestimating the intelligence of bankers!" (no offense to any of my banker friends, but...)

 

The sad thing is that it's not just the incompetence of the bank management and especially their investment officer, the regulators were totally asleep at the switch.

 

And the laziness and stupidity of the depositors is what really gets me. Who in the Hell just puts massive sums in a bank with just $250k of insurance?!?!? I have to think that all those businesses with deposits there hired CFO's with degrees in gender studies but no actual understanding of finances.

 

There's a reason why there are custodial banks. And brokerage firms with better, safer cash management options with more insurance. You can wire money in a trice, too, so there's no reason to keep excessive sums in any given bank.

 

I just have to shake my head.

And then I imagine all the old white men who were passed over for positions as CFO's and Investment Officers (and the like) who had 25-30 years of experience and who had been through multiple business cycles and crises, who would have avoided all these rookie mistakes...

Then I shake my head again.

 

Custodian banks do not handle day to day operations, such as payroll.



#12 MikeyG

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Posted 13 March 2023 - 09:50 AM

I sure hope they pause.    Raising rates has slowed Auto, Homes, Restaurants traffic, but has increased spending in groceries and elsewhere.  

 

 

.3 or lower tomorrow and this market is ready for a rocket ride...


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#13 linrom1

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Posted 13 March 2023 - 09:58 AM

What people don't understand is that SVB could have easily gone to the Discount Window and borrow as much as that they needed, that's why the Discount Window is there. But they chose not to?



#14 OEXCHAOS

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Posted 13 March 2023 - 10:01 AM

 

The more I'm amazed by the layers of rank incompetence...

 

And I'm the guy who sez, "You'll never go broke underestimating the intelligence of bankers!" (no offense to any of my banker friends, but...)

 

The sad thing is that it's not just the incompetence of the bank management and especially their investment officer, the regulators were totally asleep at the switch.

 

And the laziness and stupidity of the depositors is what really gets me. Who in the Hell just puts massive sums in a bank with just $250k of insurance?!?!? I have to think that all those businesses with deposits there hired CFO's with degrees in gender studies but no actual understanding of finances.

 

There's a reason why there are custodial banks. And brokerage firms with better, safer cash management options with more insurance. You can wire money in a trice, too, so there's no reason to keep excessive sums in any given bank.

 

I just have to shake my head.

And then I imagine all the old white men who were passed over for positions as CFO's and Investment Officers (and the like) who had 25-30 years of experience and who had been through multiple business cycles and crises, who would have avoided all these rookie mistakes...

Then I shake my head again.

 

Custodian banks do not handle day to day operations, such as payroll.

 

Oh, I know that they don't, but you can hold excess liquidity in securities there, if too much for a brokerage. It's just risk and capital management 101.


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#15 K Wave

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Posted 13 March 2023 - 10:01 AM

This is where Morgan Stanley and LPL have their banking services...at least for check clearing anyway. Trying to find out just how connected they are.

 

 

Be careful out there...

 


Edited by K Wave, 13 March 2023 - 10:03 AM.

The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#16 OEXCHAOS

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Posted 13 March 2023 - 10:02 AM

This is where Morgan Stanley and LPL have their banking services...at least for check clearing anyway. Trying to find out just how connected they are.

This is the parent company, the actual Bank subsidiary holding better right now...but for how much longer.

 

Be careful out there...

 

Ouch!!!


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#17 K Wave

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Posted 13 March 2023 - 10:07 AM

Schwab...

 


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#18 K Wave

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Posted 13 March 2023 - 10:08 AM

SO FAR....MS is the least rotten

 


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#19 K Wave

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Posted 13 March 2023 - 10:09 AM

WFC...huge lows taken out..if the June lows go as well..........

 


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#20 K Wave

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Posted 13 March 2023 - 10:10 AM

BAC hangin' over the edge.....

 


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy