$7T of covid money and a windfall for big tech during covid.Quote:
SVB received a ton of new deposits suddenly.
I'm confused. Your contact is withdrawing money from the big banks and moving it to the Dallas bank on Monday?Red Pear Realty said:
I saw an email with my own eyes from a bank headquartered in Dallas asking my contact to withdraw money from the big banks like Chase, BOA, etc and deposit with them. This email was sent Friday afternoon. The person who this email was sent to said they would be withdrawing their money from this bank Monday.
Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
The challenge is that there has to be a line in the sand somewhere. Stuff needs to fail sometimes so people don't get stupid and risk everything knowing the government is just going to step in and save you.Dan Scott said:Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
This is why the deposits need to be protected to reduce panic, otherwise there will be nothing but super banks.
Red Pear Realty said:
I saw an email with my own eyes from a bank headquartered in Dallas asking my contact to withdraw money from the big banks like Chase, BOA, etc and deposit with them. This email was sent Friday afternoon. The person who this email was sent to said they would be withdrawing their money from this bank Monday.
Easier to transition to CBDC with a small group of super banks.Dan Scott said:This is why the deposits need to be protected to reduce panic, otherwise there will be nothing but super banks.Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
Dan Scott said:Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
This is why the deposits need to be protected to reduce panic, otherwise there will be nothing but super banks.
FifySF2004 said:
The amount of gross misunderstanding about thebanking(fill in blank) system onthisthese forum(s) isfreightingfrightening.
There can't be that level of protection and our system to work. Our whole system is interconnected.Dan Scott said:Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
This is why the deposits need to be protected to reduce panic, otherwise there will be nothing but super banks.
I get the point, but $250,000 is too low. Even medium size companies have payrolls and payables where they transaction millions monthly.SF2004 said:Dan Scott said:Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
This is why the deposits need to be protected to reduce panic, otherwise there will be nothing but super banks.
No, if you have more that $250,000 then you need to be responsible for the risk you are taking placing money on deposit with a bank. If a bank is paying exorbitant interest then there is a reason. Understand the balance sheet and risks of where your money is deposits.
The amount of posts on here about chasing yield and now forgiving these large depositors is concerning.
Troglodyte said:I get the point, but $250,000 is too low. Even medium size companies have payrolls and payables where they transaction millions monthly.SF2004 said:Dan Scott said:Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
This is why the deposits need to be protected to reduce panic, otherwise there will be nothing but super banks.
No, if you have more that $250,000 then you need to be responsible for the risk you are taking placing money on deposit with a bank. If a bank is paying exorbitant interest then there is a reason. Understand the balance sheet and risks of where your money is deposits.
The amount of posts on here about chasing yield and now forgiving these large depositors is concerning.
Also, what is Roku supposed to do? Open 2,000 bank accounts with $250k each? Banks/FDIC need some special accounts for those scenarios.
Whatever dude. What do you think ATMs stand for?SF2004 said:
The amount of gross misunderstanding about the banking system on this forum is freighting.
I think you have it right. I haven't heard how far they went out of the yield curve. I would agree with you if they were 1-2 years out. If they are buying 10 year treasuries, that pretty severe mismanagement. All banks have asset/liability committees that should be making sure the bank is matching its matching assets and liabilities.Dan Scott said:
The more I read about SVB, the more I think it's not really their fault, except not having more diversified client base, but it's a regional bank so that's not easy. Texas oil banks had same issue back in 2016. They are a victim of circumstances.
SVB received a ton of new deposits suddenly. They had to invest it somewhere, that's what a bank does. Interest rates were super low so they had to go further out the yield curve. Fast forward to recent months, Capital is tight and deposits aren't growing and securities are underwater. It doesn't appear they made several bad loans and that money is now gone.
Do I have this right? Solution seems simple to me, let the bank fail. Tough break they got rich super fast and they die super fast. Live by the sword die by sword type of thing. But get those depositors their money back. A collapse of Silicon Valley and California economy will be more costly.
I get the point here too, but now your medium sized construction company needs to have a bank analyst on staff to review bank solvency?? I get that Roku should have that person in their treasury department.SF2004 said:Troglodyte said:I get the point, but $250,000 is too low. Even medium size companies have payrolls and payables where they transaction millions monthly.SF2004 said:Dan Scott said:Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
This is why the deposits need to be protected to reduce panic, otherwise there will be nothing but super banks.
No, if you have more that $250,000 then you need to be responsible for the risk you are taking placing money on deposit with a bank. If a bank is paying exorbitant interest then there is a reason. Understand the balance sheet and risks of where your money is deposits.
The amount of posts on here about chasing yield and now forgiving these large depositors is concerning.
Also, what is Roku supposed to do? Open 2,000 bank accounts with $250k each? Banks/FDIC need some special accounts for those scenarios.
No, put your money with a good bank that runs a solid financial institution. No a bank that invest in venture capital or pays dumb interest to capitalize their bad decisions.
For a good all around bank you will receive fair interest, probably pay some fees, and the rate on your loan will be priced accordingly.
YouBet said:Whatever dude. What do you think ATMs stand for?SF2004 said:
The amount of gross misunderstanding about the banking system on this forum is freighting.
They stand for Any Time Money.
I get to get money and however much I want anytime I want!!!
My former SIL actually thought ATMs stood for Any Time Money.SF2004 said:YouBet said:Whatever dude. What do you think ATMs stand for?SF2004 said:
The amount of gross misunderstanding about the banking system on this forum is freighting.
They stand for Any Time Money.
I get to get money and however much I want anytime I want!!!
Pays out 100% of the time in Vegas… only machine that does that.
This is also what they will argue when it comes to CBDC.Dan Scott said:
There will need to be more bank transparency reporting. It'll make everything more expensive. More fees.
US is capitalist economy driven by small business. Small business shouldn't have to jump through hoops to make sure they can sleep at night knowing money is safe.
Troglodyte said:I get the point here too, but now your medium sized construction company needs to have a bank analyst on staff to review bank solvency?? I get that Roku should have that person in their treasury department.SF2004 said:Troglodyte said:I get the point, but $250,000 is too low. Even medium size companies have payrolls and payables where they transaction millions monthly.SF2004 said:Dan Scott said:Red Pear Realty said:
It is not TCB. I was hesitant to post what I did because I didn't want to spread panic unnecessarily, but I think it's important for people to understand that this might not be limited to just NorCal.
This is why the deposits need to be protected to reduce panic, otherwise there will be nothing but super banks.
No, if you have more that $250,000 then you need to be responsible for the risk you are taking placing money on deposit with a bank. If a bank is paying exorbitant interest then there is a reason. Understand the balance sheet and risks of where your money is deposits.
The amount of posts on here about chasing yield and now forgiving these large depositors is concerning.
Also, what is Roku supposed to do? Open 2,000 bank accounts with $250k each? Banks/FDIC need some special accounts for those scenarios.
No, put your money with a good bank that runs a solid financial institution. No a bank that invest in venture capital or pays dumb interest to capitalize their bad decisions.
For a good all around bank you will receive fair interest, probably pay some fees, and the rate on your loan will be priced accordingly.
Banks report to regulators quarterly. We definitely need those reports public. However, that will also cause more runs on banks.
Dan Scott said:
What do you guys think about making it harder the withdraw money. A bank run happens much faster now with internet banking. Should there be more friction beyond certain amount like having to go to actual branch.
SVB had deposit rates at 1.5% A 1 month is 4.7% Banks gonna have to increase deposit rates to keep deposits
