Silicon Valley Bank

And do you have any examples of smaller community banks in which depositors have lost money? Just asking.

 

Apparently that was greatly misinterpreted. Many heard that Saudi would not fund more and took that as a non vote of confidence. But if you heard all of the comments and context they said the reason they won’t invest more is they are at 9.9% and going above that has a lot of regulatory and other hurdles they just don’t want to deal with. Regardless investors took the abbreviated out of context comments and ran with them.

 

yeah I haven’t followed the credit Suisse issue as closely.

 

I wonder if the law will get changed to clear the regulatory hurdles to allow KSA to invest more

 

Frontline just released a very well done documentary and historical perspective.

 

I don’t need to provide examples. Your treasury czar already told us what would happen if such events should occur.

 

Credit Suisse has been hanging precariously for quite a while though. The biggest issue will be trading partners. If, people like JP Morgan refuse to get on the other side of trades with Credit Suisse, just like what Goldman did to Bear Stearns, CS will fold up overnight (if I understand any of this...which is pretty questionable I might add). That is why money is flowing out of CS and that is why no amount of cash from the Swiss Bank can stave off the inevitable.

 

looks like UBS / CS merger is getting closer to happening.
UBS Offers $1 Billion to Buy Credit Suisse

 

CS pushing back claiming offer is too long and wipes out a lot of wealth or shareholder (see: executives holding a lot of their bonuses in company stock).

 

Which is what should happen. Negotiations in public are indicative of position of strength behind closed doors. They will get wiped out if they don’t take the offer.

 

So you're admitting that your post is based on a hypothetical that has never happened (at least not within decades) and may never happen. If I'm wrong please provide a link to a story involving depositors at a community bank that have lost their deposits. There is also a good chance that the depositors (not shareholders or management) of the "regional" banks like SVB, Republic and Signature that needed bailouts may not have ended up in that position had the Dodd-Frank oversight not been lifted by the former president and the Republican Congress in 2018.
From the 2018.
Trump signs the biggest rollback of bank rules since the financial crisis

 

Watching the press conference on Bloomberg right now. Swiss government announced UBS take over (uh, merger) of Credit Suisse at 8PM local time (3 PM here on the east coast) on Sunday.

 

The more I read about SVB and them taking deposits and putting money into long term treasuries, the more I feel anger with Dodd-Frank regulation rollbacks and no M2M on bank investments. It’s nonsensical.

Lawmakers from both parties skeptical of legislation over SVB - Roll Call

 

Agreed on both points. The presser (not something I normally sit through) was fascinating. Multiple reporters hammered the Swiss Finance minister and the Director of FINMA (financial market regulators) about creating an even bigger "too big to fail" bank. That this creates more concentration and less banking choice for those in Switzerland and over and over. The point was not lost on the financial reporters present for sure.

 

Some pissed off bond holders. Apparently an AT1 bond is a special instrument that can be converted into equity in some sort of transaction I do not understand.

Credit Suisse says $17 billion of its debt now worthless, angering bondholders

 

Well, of course, it’s Trump’s fault. Isn’t everything?? Goes without saying, man. You need not insult our intelligence by reminding us of this.

And no, I was completely mistaken. Yellen did say that all depositors would be made whole, no matter the size or position of the bank. Local mom and pop’s bank, you deposit $50,000,000.. you’re good, per Yellen. Sorry, I just misheard her.