Silicon Valley bank crashed (US)

On March 10, 2023, Silicon Valley Bank crashed. It was the 2nd largest bank failure in US history.

It was the bank of choice for tech startups.

This seems to be underplayed in the news. This bank is not an isolated issue with other similar sized banks (big but not global big, so called regional US banks) facing similar problems. The hike in interest rates has exposed their weak reserves, poor risk management - and Trump squashing Dodd-Franks (which meant they had limited over-sight). Other banks are likely to follow or require bail-out. Same old story - reduce over-sight and regulation and risk goes up. When risk goes up the high profits are rapidly followed by a crash. There is a real risk that something like 2008 repeats with the need for massive state bail-out. Lets hope not.

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I’m not sure I’d say it was underplayed in US news. Biden had to come out with a statement to calm people. Three banks crashed in March 2023.

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Credit Suisse is the big story in Europe

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I don’t think it’s been underplayed in U.K. news broadsheet papers, either - I’ve read detailed reports on it in The Telegraph, The Guardian and The Financial Times - and The Independent and Sky News have covered it too - and the U.K. Prime Minister has acknowledged the issues and tried to calm fears about it too.

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Bank crashes are used, usually to cover up other bad fiscal news. :icon_wink:

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I was responding to a previous post, saying it had been underplayed in the News.
In the newspapers I have read, it has not been underplayed - whatever the reasons for reporting it, it has definitely been reported.

I heard it, but wasn’t surprised, can’t have read it from a newspaper, only read local free rags.

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It was the front page headline of the FT weekend paper version last week. Online news will be different but then it’s usually free so they go for clickbait articles in newsfeeds.

Silicon Valley Bank bought by rival, First Citizens BancShares.

My heart bleeds for them…

Is this in response to the title of the thread? SVB was just bought out. No bleeding necessary. (⁠◠⁠‿⁠・⁠)⁠—⁠☆

It’s in response to all money grabbing heartless big conglomerate financial establishments who seem to run the world these days, they control you and your money. They make adverts on TV to booster their image with pictures of black horses running wild and cute little girls petting them. Their slogans are “We’ll be by your side” Of course they will, waiting to jump on you and repo your car or house if you fail to keep up payments on credit cards they allowed you to become so deep in debt that suicide is the only way out. They themselves invest your hard earned brass and make billions for all the suited and booted noses in the trough (you never see a poor banker) and they have the power to run the world, which they do from people who are installed in governments like Sunak, (who voted for this guy anyway) Macron, Trudeau and Biden to name but a few.
Gone are the honest little high street banks where you could have a chat with the local manager who would refuse you a loan if he didn’t think you could afford to pay it back.
You are all just a number on a bank account now and can only deal with a computer.

:nerd_face: Quite an interesting perspective. I’ve known a lot of bankers. Some of the poorest paid people in the financial industry. Corporate financial people make more. Investment people make more than that.

Your banking industry must be different than here or you know different bankers than I do.

Ours is different, too. As you did, we also have to differentiate between different types of “bankers”. The real bankers are the investment guys or rather used to be as their golden days are over.
High Street bankers are well-paid over here, though.


Are these retail bankers?

SVB was a retail bank.

Wouldn’t people complain if they were not allowed to use them? I doubt that it’s the fault of the banks if customers run into debts.

Yes, they are.

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Here’s what I think the different banking employee roles are, depending on the bank, of course. Its very likely I’ve missed a few out.
Retail - this covers everything from teller (low pay), call centre agent (low pay), complementary product sales - mortgage, insurance, investments (good pay but results driven), management (good pay)
Small business - some banks lump this into retail as it gives a branch presence, some stick in with larger business banking - various roles such as account manager (but often virtual, not branch based) and related product sales (all good pay)
Large business - covers lots of areas of banking from cash management to treasury services with roles such key account manager and product specialists (good to very good pay)
Trading & currencies - very good to excellent pay
Investment banking - excellent pay
Amidst all of this are the myriad of support roles - IT, risk & quality, HR, compliance, and all the usual management layers. Everything from low pay through to excellent pay).
So I think the catch all term banker is wrong, but its possible to identify the people working for banks who are the ones who are never poor. And the ones on pretty average salaries (of course there are perks such as low cost mortgages).

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