Silicon Valley Bank shut down, second-biggest bank collapse in U.S. history | LiveNOW from FOX
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- เผยแพร่เมื่อ 9 มี.ค. 2023
- The Federal Deposit Insurance Corporation (FDIC) says it has seized control of Silicon Valley Bank (SVB), confirming the lender was shut down by California regulators amid a run on the bank.
The FDIC said in a press release that SVB was closed on Friday by the California Department of Financial Protection and Innovation, which in turn appointed FDIC as the receiver of all insured deposits of the bank.
Tech investor Zain Jaffer joins LiveNOW's Andrew Craft to discuss what SVB's collapse means for the industry and for the people who banked there.
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These are smart people. They knew the risk. Take your 250,000. And go home like the rest of us. No more bailouts.
No bailouts needed. They still have assets. It will just take time sell them if another bank does not buy SVB assets
@@danielkim672 Good luck finding a bank.
@@queennoneya601 Oh yea, I am not saying that a white knight bank will emerge, that is the best case scenario.
Is anyone glad the Silicon Valley bubble is finally popping?
Yeah . They needed to be brought back to reality. 7.00 Starbucks was stupid.
They’ll say it’s not an issue with all banks, but what else are they suppose to say?
Maybe grandma knew best by not trusting banks.
A run on banks is exactly what will happen.
Most of said bank's "involved deposits" (big hitters) are NOT insured, however, in this case.
Too bad so sad.
in Europe banks all deposits till 100 000 EUR are secured by state agency
These startups (less than three years old) should have been pointed to Mezzanine financing at considerably higher interest rates. The crippling factor was going long on its bond portfolio. As rates go up, bond values decline. They didn’t have enough money to fund depositors and loans. The question becomes where were the state and Fed regulators.
Everthing is left to run wild. Thanks bush for deregulation.
@@queennoneya601 Actually, deregulation of the financial industry occurred in 1999 with the repeal of the Glass-Steagall Act. Clinton approved the repeal.
@@guineveregruntle6746 clinton also opened the door to more trade with china. It had hillarys name written all over it . Hillary and George Bush on the same team. Get dat money. 2000 Banks collapsed. Bailout the rich by Obama's term.
On their 11-month vacation, they take every year.
And the deregulations allowed them to do precisely what they did. No safety guards in place. Reminds me of another name from long ago...starts with an "L" and ends with "Bros"
Take your money out of the banks right now, once banks start bail ins you're toast.
Yet the average person hasn't a clue what a "Bail In" even is.
It's all a house of cards. One good puff of wind.... Redacted Rebels
...and so it begins.
very good coverage 👍🏻
OH, YELLEN, YES, THE LADY WITH THE CHECKBOOK, WRITING CHECKS TO THE UKRAINE! NO WONDER WE ARE LOSING OUR MONEY! PRETTY INTERESTING, MAYBE SHE SHOULD COME TO THIS BANK WITH HER CHECKBOOK AND REIMBURSE THE DEPOSITORS FOR THEIR LOSSES!
Melt down Monday when the dominos start it all goes down
Sounds like 2008 on steroids.
Very frightening
Banks made sure to let y’all know they ain’t broke lmaooo
This all goes back to 2008 and obuma's policies. He's still carrying it out.
did they really get some pizzas frfr
Yes, because it kept them from eating each other.
Idk why out of all the footage that’s what they decided to show 😂
@@terrancekayton007 it is the most important if you broke flat broke how can you afford a mcChicken? these people are scammers frfr
well, Regulators will eat pizza tonigh 0:18 ...... my money lost
May want to look up what an ecosystem is
This is why you should divide your savings among multiple banks and keep each deposit no more than $249,999
If you had $100,000,000 in liquid assets, you'd need 400 banks. It'd be kind of hard to do meaningful business if you need 40 banks to fund a $10,000,000 loan.
@@mariannekearney-brown9021 you dont need to use 400 banks. Unless 2008 happened again, diversifying between 3 or 4 banks allows companies to have liquidity even as they wait for the FDIC to unwind a failed bank
@@mariannekearney-brown9021 That's a $100M dollar problem I'd like to have.
@@mariannekearney-brown9021 I guess Remy D wasn't ready for that response. 🤣🤣🤣
Mo money . Mo problems. Luckily ive never had enough money to go thru the stress, anxiety depression and feelings of being a failure, associated with losing a fortune.
Lets go Brandon
25% of the national debt was accumulated under 45s impeachments.
This will continue
Read your bible and know it, its will only get worse,
BUILD BACK BETTER! HA
😂25% of the national debt was accumulated under the orange menace 👍🏿
To not know and understand history is to repeat history every few years.
I disagree with Zain on the risk / liquidity management interpretation. With an inverted yield curve, highly liquid treasuries are not by themselves the risk.
My issue is that they didn’t even ladder their treasury exposure. Why did they go all-in on long duration maturities? There was no hedging in place as you would expect with a proper risk management division at an established bank.
@@ZainJaffer agreed Zain. Was management thinking this party would never end? It seemed that they felt the VC capital flow of deposits into SVB would never pause for an extended period let alone stop
Fiatsystems always collapse.
"people lose trust in banks!" Who ever trusted the banks?
And it starts…
2008: The Sequel.
Well. This didn’t happen overnight, so 🤷🏿♂️
The go straight to jail Do Not Pass GO
XRP !!!
Its time led science tech companies go out to oversea.
Why a american company hindenburg doesn't researched on American bank SVB , but came all way they to do research on Indian company adani, Dai loose american your sitting on Big Aappu 😂🤣
Okay.... Don't panic, I'm hearing rumbles of troubles at Fox News....
"fingers crossed"
When the government tells you not to panic, that is the time to run for the hills.
@@haroldcruz8550…I despise Fox.mews.
If government can help to Ukraine, they can help to one single bank in America
😂 all fake
Buy Bitcoin!!
Scam alert!
@@murp61
This is why I vote democratic!!! If we had a democratic president in office, this wouldn't have happened!!!
WHAT IF MAJORITY OF AMERICANS WITHDRAW ALL THEIR BANK SAVINGS TOMORROW?
If a large number of Americans were to withdraw all of their savings from banks at once, it could potentially have significant implications for the banking system and the broader economy.
Banks use customer deposits to fund loans and investments, so a sudden and significant decrease in deposits could limit their ability to lend money and finance economic activity. This could lead to a contraction in credit markets, reduced investment, and slower economic growth.
Furthermore, if everyone were to withdraw all their savings at the same time, there may not be enough physical cash to meet the demand, which could lead to long lines at banks and ATMs, and potentially even a cash shortage.
It's important to note, however, that it's unlikely that a large number of Americans would suddenly withdraw all of their savings at once. Even during times of economic uncertainty, many people rely on their savings for emergencies and daily expenses and may not have the means to withdraw all of their funds at once.
In any case, it's important to be cautious and informed when making decisions about your finances, and to consider the potential risks and consequences of any actions you take.
WHAT IF AMERICANS LOSE THEIR TRUST ON BANKS?
In general, people's confidence in banks can be influenced by a variety of factors, such as economic conditions, bank policies, and regulatory oversight. If there is a perception that a bank is in financial trouble or is engaging in risky behavior, it could undermine people's trust in that bank and potentially the banking system as a whole.
That being said, it's worth noting that banks in the United States are subject to regulatory oversight and are required to hold a certain amount of capital to protect against losses. Additionally, the FDIC insures deposits up to a certain amount, which can help to mitigate the risk of bank failures.
Overall, the level of confidence that Americans have in banks may vary depending on a range of factors and individual experiences.
WHAT IS THE MAXIMUM AMOUNT THE FDIC PAY FOR EACH ACCOUNT?
The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank. This means that if an insured bank were to fail, each depositor's account would be covered up to $250,000, including principal and accrued interest.
It's worth noting that the $250,000 limit applies to each depositor's accounts at a given bank, so if you have multiple accounts at the same bank, they are added together, and the total amount insured is up to $250,000. Additionally, if you have accounts at different banks, each bank is separately insured up to $250,000 per depositor.
The FDIC provides a comprehensive guide to deposit insurance on their website, which includes information about what types of accounts are covered and how to maximize your insurance coverage. If you have specific questions about your FDIC insurance coverage, it's a good idea to consult with a financial advisor or contact the FDIC directly.
HYPOTHETICALLY, WHAT IF THE SAVINGS WORTH $45M, HOW MUCH WILL THE FDIC REIMBURSE THE LOSES?
If an individual had a savings account worth $45 million at an FDIC-insured bank that failed, the FDIC would only insure up to $250,000 of the total amount. This means that the depositor would be reimbursed up to $250,000 and would lose the remaining amount that exceeded the insurance limit.
It's worth noting that there are ways to potentially increase the amount of FDIC insurance coverage for large deposits, such as by spreading the funds across multiple accounts or by using different ownership categories. However, it's important to consult with a financial advisor or contact the FDIC directly to understand the rules and limitations of deposit insurance.
In any case, it's generally recommended to spread large deposits across multiple FDIC-insured banks to maximize FDIC insurance coverage and reduce the risk of losses due to bank failures.
Reference
Open AI (lol)