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So $SVIB has $200b in assets, of which $116 are securities. About $80b of that are high quality liquid assets that could be sold or repo'd for cash. Looks good until..
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In 2008 the banks got rich, went bust, and got bailed out. It was unfair, so we created a regulatory system to prevent it from happening.
SVB is a minor bank. We could have let the process play out and show how the system has been improved. But it seems nothing has changed
1.3M views
It looks like Asian investors are selling dollar assets and buying gold.
1.3M views
One reason why First Republic bank looks like its imploding could be because it actually can't benefit from the Fed's new bailout facility.
You need Treasuries and Agency MBS to tap the facility, and they barely own any.
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🔥 Top post: So $SVIB has $200b in assets, of which $116 are securities. Abou · 1.7M views
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So $SVIB has $200b in assets, of which $116 are securities. About $80b of that are high quality liquid assets that could be sold or repo'd for cash. Looks good until..
Happy to announce the 2nd Edition of Central Banking 101. This edition updates the data and adds 15% more content, including sections on SOFR transition, Treasury buy backs, SVB run, private credit etc. Available on amazon worldwide.
Than…
It looks like Asian investors are selling dollar assets and buying gold.
In December 2018 Trump also made a similar comment after a big sell off. It was one day from the bottom.
The Canadian dream is a tiny home in your parent's backyard.
All this pearl clutching about Fed independence is nonsense. Fed is not independent, it is basically a branch of the Democratic party. You can see this in many ways.
1) Political donations by Fed employees overwhelming go to the Democrat…
Gold still surging - kinda concerning. Maybe someone is preparing for a big geopolitical move as they know they'll lose their dollars and euros after the fact.
All my life I have had to work harder to get to the same place as others - admissions deans and HR offices had a policy to discriminate against people who looked like me and would even brag about that policy on their websites
Good step t…
Sounds like the White House told Saudi Arabia earlier that they would refill the SPR to support oil prices. Saudis then realized they were getting played and took matters into their own hands.
https://t.co/hhyaRbmTEM
One reason why First Republic bank looks like its imploding could be because it actually can't benefit from the Fed's new bailout facility.
You need Treasuries and Agency MBS to tap the facility, and they barely own any.
In 2008 the banks got rich, went bust, and got bailed out. It was unfair, so we created a regulatory system to prevent it from happening.
SVB is a minor bank. We could have let the process play out and show how the system has been improve…
Any competent corporate treasurer understands the 250k FDIC limit and manages cash with money market funds, sweep arrangements, repo, bills etc.
Maybe the guys who were pouring money into FTX and monkey jpeg "startups" aren't all that so…
SVB was just a badly run bank that went bust. Happens all the time.
What's special about SVB is that many influential people banked with them, and are now lobbying for special treatment.
Let's hope our system is fair.
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