July 23, 2024

AndronETalksNews

AndronETalksNews

Banking Crisis Summary – March 13 – 19, 2023 – Supersleuth

Banking Crisis

This week was littered with news about a looming banking crisis. It began with the spectacular downfall of SVB – Silicon Valley Bank

SVB  had a debt to equity ratio of 185:1, which means that the there is more usage of creditor financing i.e. bank loans than shareholders’ financing.

SVB had exclusivity clauses with specific clients, which limited their ability to benefit from banking services provided by other institutions. These clients were unable to diversify where they kept their money.

Most of their clients are heavily concentrated in tech startups.

SVB was shut down on March 10th, 2023 by US regulators, because of a sudden increase in deposit withdrawals and a failed attempt to raise equity to cover this outflow.

SVB collapse was driven by the ‘first Twitter-fueled bank run’

Conspicuous information came out of the banking industry when it was reported that several SVB and First Republic executives had sold large quantities of their stock before they folded.

SVB execs sold millions of their company stock in lead up to collapse, federal disclosures show

First Republic Bank execs quietly sold $12M in stock BEFORE SVB crash

The SVB Board had various characters on it, many not qualified for their jobs.

Only ONE member of failed SVB’s board had a career in investment banking

And in California…

Gavin Newsom Kept SVB Ties Secret While Lobbying For Bailout 

First Republic bank, based in san Francisco, has been bailed out by a group of banks including JP Morgan and the Federal Reserve. 

First Republic was rescued by rivals. Silicon Valley Bank was abandoned by its friends

Biden is caught telling the truth…

https://twitter.com/ronin19217435/status/1636007093906952192?s=12&t=P3LeMncIL7x1cPGyNOx3ww

Bank of America has $113 billion of unrealized losses…

The Central Bank Game Plan

And lastly…

‘The results are in and the first group of Central Banking Awards 2023 winners has been unveiled, with the National Bank of Ukraine taking the prize as Central bank of the year.’  

Central Banking Awards 2023: first group of winners revealed