Silicon Valley Bank collapse

Herdfan said:
And that is one of the things that started this in the first place.

Why keep money in a bank paying <1% when you can get the same safety and a 5% return. People and companies were pulling money from banks to buy Treasuries.

The thing about economics is nothing works in a vacuum. Do one thing such as increasing rates to slow down inflation, and you can bet there is going to be a converse reaction somewhere else.
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Hmmm...

With respect to the cause of the recent bank runs, I believe you are thinking of Treasury Bonds, and smaller regional banks investing their required capitalization in bonds with long terms (30 years), thanks to deregulation in 2018.

As the Fed increased interest rates to deter inflation, the market value of those Treasury Bonds dramatically fell, thus causing regional banks investing in them to be substantially under-capitalized. And that caused people who had large cash accounts in excess of FDIC coverage motivation to pull their money out.

Treasury Bills are just another safe way for people to invest money.
 
Sofi where I have a modest sum, recently filed a lawsuit to stop the forbearance pause on Student Loans. My thought is they are trying to recoup some of their losses on interest and I am a bit worried, since they put out a multi-tweet yesterday saying. "Everything is fine..."
 
I had been hearing this noise, from certain people, that SVB failed because of "wokeness". Apparently, there is something of a trend in investing called "ESG" – environmental, social, governance – which seeks to handle capital responsibly, and SVG, which AIUI, is not technically an investment bank, was being too "woke" by following these principles, which caused them to fail.

Ironically, the big capital in SVB was pulled by the guy who helped launch GloriFi, the "anti-woke" bank that failed just about before it got started.
 
www.salon.com

The "woke banks" talking point is even more racist than you thought

It's based on reclassifying the American Heart Association as "BLM riots"
www.salon.com www.salon.com

"But how Republican propagandists generated this lie is darkly interesting. Talking Points Memo founder Josh Marshall decided to dig around into where this number was coming from. Watters and other right-wing propaganda outlets pointed to the Claremont Institute, a right-wing think tank that's gone pure MAGA in the past few years. The group put together a database of corporate charities that they claim exposes "who funded the BLM riots." That dubious $74 million number comes from this supposed database. Marshall discovered, however, that in order to gin up this fake data, Claremont reclassified basically any charity you can think of as "BLM Movement & Related Causes."

Charity groups that Claremont labeled "BLM Movement & Related Causes" include, The American Heart Association, the United Negro College Fund, a STEM program for kids at Saint Paul Public Schools, the Martin Luther King Jr. Center for Nonviolent Social Change, Smithsonian's National Museum of African American History and Culture, the U.S. Vaccine Adoption Grants, Grameen America, which provides small business loans to female entrepreneurs, and the Local Initiatives Support Corporation, a group that helps expand child care and housing in underserved communities."


Wow, just wow.
 
On the subject of woke banks or corporations, many donate to progressive causes as little more than a smokescreen to distract from what they are really up to. It’s like a landlord kicking you out of your house so they can get maximum market rate which you can’t afford but on your way out the door they hand you a tent to live in hoping this goodwill donation will discourage you from going to the press with your story.
 
Chew Toy McCoy said:
www.axios.com

SVB employees blame remote work for bank failure

What happened at Silicon Valley Bank will likely enter the broader return-to-office debate.
www.axios.com www.axios.com

Who green-lit this turd of an article, even as just a summary?

Remote work blamed for bank failure.

Basic question: How so?

Hard-hitting journalism: Dunno. Somebody said it.
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Axios has been in the news a bit lately - they seem to have lost their minds
 
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