[Finance] SVB - New banking crisis looming?

[dazzer6666]

As an ex-HSBC employee it’s quite a surprise to see the traditionally conservative behemoth get involved in such things.

This.

 

[dazzer6666]

No expertise whatever myself on banking, but weren't Barclays bailed out by a private deal with banks in Dubai, or their sovereign wealth fund, hence not needing any support from the UK Government? I seem to remember that Barclays were alleged to have had the most risky "casino banking" operation of the lot, as much of their Investment Banking division is based in the US, but that the private bailout deal avoided any real problems (I may have got all this wrong, and BT or Dazzer will have far greater knowledge than me). Whatever, my mother and I recently had to go to our local branch to sort out a large transfer, and the Personal Banker was quite happy in front of us to say that the two previous CEOs were hopeless and that staff were glad to see them leave the business.

Barclays deal (Qatar ‘investors’ rather than Dubai banks) was in part brokered by Amanda Staveley. Wonder what she’s doing now…….. You’re right - the investment protected Barclays from the banking crisis.

Diamond (imo) fostered a particular type of (deeply unpleasant at times) culture as his reach extended across the bank, but he had a very large number of disciples and appreciative shareholders as a result (because they made tons of money personally). You couldn’t speak out against him or his acolytes - you were instantly toasted if you did. The US business was doing well and then exploded for a while after Lehman went bust and Barclays took on their equities business.

 

[Weststander]

 

[sparkie]

View attachment 158314

Good stuff. My pension pot had taken a small hit so hopefully it'll right itself in a few days.

 

[beorhthelm]

this morning it's Europe's turn to lead, with Credit Suisse crashing in value.

 

[Machiavelli]

Concern levels escalating today. We'll see ...

 

[pb21]

Concern levels escalating today. We'll see ...

Yes, reading some comments that it's something and nothing, others very concerned it's indicative of something much more serious. As you say, we'll see...

 

[Crawley Dingo]

The Saudi's have bailed and they own more than 20% of Credit Suisse, waiting for a statement from the Swiss Gov like "Dont panic Cpt Manrwing." This is a systemic big bank so if it goes all hell breaks loose.

Bailout Arrives: Credit Suisse To Borrow $54BN From SNB To "Pre-emptively Strengthen Liquidity" | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[beorhthelm]

The Saudi's have bailed and they own more than 20% of Credit Suisse, waiting for a statement from the Swiss Gov like "Dont panic Cpt Manrwing." This is a systemic big bank so if it goes all hell breaks loose.

Bailout Arrives: Credit Suisse To Borrow $54BN From SNB To "Pre-emptively Strengthen Liquidity" | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

as i understand it, Saudi fund cant inject more without triggering threshold for a buyout offer.
its been commented today how poor the response if from Swiss regulator, seems like they forgot its their bag and they cant wait for a EU bailout. bit like zero hedge "ECB do something"

 

[sparkie]

Credit Suisse gets a £44 billion loan from Swiss Central Bank.

 

[pb21]

Big news coming out of Switzerland re. UBS buying Credit Suisse. Could be the end of it, seems reasonably likley it won't...

 

[beorhthelm]

sell CHF. 100bn credit line to back the CS buy out, more than 10% country GDP

 

[Machiavelli]

sell CHF. 100bn credit line to back the CS buy out, more than 10% country GDP

And how's the UK's economy doing in terms of the % of the financial sector?

 

[Swansman]

Big news coming out of Switzerland re. UBS buying Credit Suisse. Could be the end of it, seems reasonably likley it won't...

Sounds like something that could delay the issues... not that the issues become any less by being delayed.

 

[pb21]

Sounds like something that could delay the issues... not that the issues become any less by being delayed.

The fact 'they' rushed to do something over the weekend, finalising on a Sunday evening, whilst changing the law to do so, does sort of suggest it might be a bit papering of the cracks.

 

[Change at Barnham]

Are we expecting shares to plummet on Monday morning?

 

[Swansman]

Are we expecting shares to plummet on Monday morning?

Not an expert on these things but think it was carried out today in order to prevent exactly that.

That said, I have around £500 worth of gold stored by UBS and will be looking to sell it (or bring it home if possible). Only reason I kept it there was because I read that it is probably the most stabile financial institution on the planet, but of course them buying a massive loss machine will perhaps change that. Especially with UBS themselves borrowing money to provide some liquidity for their new acquisition. Seems like a dangerous game.

Seems to my non-expert eyes that a real financial crisis is long overdue and has been delayed by the artificial and unsustainable measures to cope with Covid-19 and the war in Ukraine. Things are rough now but appears like it will get even rougher.

Bit nasty that a "too big to fail" bank fails... and then the solution is to create a new bank which is "even more too big to fail". What happens if the finance people are wrong again as they always are?

 

[Barham's tash]

Not an expert on these things but think it was carried out today in order to prevent exactly that.

That said, I have around £500 worth of gold stored by UBS and will be looking to sell it (or bring it home if possible). Only reason I kept it there was because I read that it is probably the most stabile financial institution on the planet, but of course them buying a massive loss machine will perhaps change that. Especially with UBS themselves borrowing money to provide some liquidity for their new acquisition. Seems like a dangerous game.

Seems to my non-expert eyes that a real financial crisis is long overdue and has been delayed by the artificial and unsustainable measures to cope with Covid-19 and the war in Ukraine. Things are rough now but appears like it will get even rougher.

Bit nasty that a "too big to fail" bank fails... and then the solution is to create a new bank which is "even more too big to fail". What happens if the finance people are wrong again as they always are?

Just fyi if it’s physical or a financial instrument backed by physical gold (such as an ETF) then there is a ledger of ownership so your risk,should the deposit holder or security issuer have liquidity issues is non existent, your assets are safe and segregated.

 

[beorhthelm]

well after initial sell off, looks like market has reversed and showing positive. even UBS up.

 

[Machiavelli]

Found this interesting and informative:

Silicon Valley Bank: The Fed’s Role in its Downfall

The collapse of Silicon Valley Bank has many parents. Twitter is alight with fingers pointing at venture capitalists for starting a run against a bank whose many wealthy customers had deposits far in excess of the maximum that is guaranteed in the event of a bank failure ($250,000). Michael...

profstevekeen.substack.com