2nd Biggest Bank Failure In U.S. History: On The Verge Of A Much
Bigger Collapse Than 2008
Mar 11, 2023
The wait for the next “Lehman
Brothers moment” is over. On Friday, we witnessed the second biggest bank
failure in U.S. history. The stunning collapse of Silicon Valley Bank is
shaking the financial world to the core. As of the end of last year, the
bank had 175 billion dollars in deposits, and approximately 151 billion dollars
of those deposits were uninsured. In other words, a lot of wealthy
individuals and large companies are in danger of being wiped out. In
particular, this is being described as an “extinction level event” for tech
startups, because thousands of them did their banking with SVB. I cannot
even begin to describe how cataclysmic this is going to be for the tech
industry as a whole. The closure marks the biggest bank failure since the 2008
financial crisis and the second-largest in U.S. history after Washington Mutual
collapsed during that industry-wide meltdown, according to FDIC data. Worries
over a run at SVB led Wall Street investors to dump other bank stocks as well.
Shares of some prominent West Coast lenders took sharp nosedives Friday,
including First Republic Bank, PacWest Bancorp and Western Alliance
Bancorporation. Once the dominoes start falling, it will be difficult to stop
the process. In fact, the situation is already so dire that Peter Schiff is
proclaiming that we are “on the verge of a much bigger collapse than 2008”…
“Banks own long-term paper at extremely low interest rates. They can’t compete
with short-term Treasuries. Mass withdrawals from depositors seeking higher yields
will result in a wave of bank failures.” Of course a lot of the “experts” in
the mainstream media never saw this coming. Unfortunately, SVB’s situation is
not unique. Thanks to rapidly rising interest rates, many other banks are also
sitting on mountains of Treasury bills that have lost a lot of value… As I have
been telling my viewers, our system simply cannot handle higher rates at this
point. But the “experts” at the Fed assured all of us that they knew exactly
what they were doing. Now they have caused one of the biggest bank failures in
U.S. history, and much worse is on the way if they do not reverse course. But I
don’t expect the “experts” at the Fed to listen to any of us. They are just
going to keep doing what they are doing, and we are all going to have to live
with the consequences.
https://www.youtube.com/watch?v=D0sCpQ9mlGs
Date: March 11, 2023
Subject: WHAT AFFECT COULD THE COLLAPSE OF THE SILICON VALLEY BANK HAVE ON YOU EVEN IF YOU WERE NEVER A CUSTOMER OF THE BANK THERE ARE A NUMBER OF GRAVE CONCERNS REGARDING THE BANKING SECTOR OF BUSINESS THESE DAYS AND THIS SHORT ALERT WILL HELP YOU WATCH FOR THINGS THAT COULD AFFECT YOU DIRECTLY:
1 THE KEY POINTS OF THE BANK CRASH:
1.1 The collapse of Silicon Valley Bank was caused by a massive run on the bank, with customers initiating withdrawals of $42 billion this week.
1.2 Prior to the run on the bank, the bank was in “sound financial condition,” according to the California Department of Financial Protection and Innovation (DFPI). Customers withdrew $42 billion, leaving the bank with a negative cash balance of $958 million.
1.3 On March 8, 2023, the Bank announced a loss of approximately $1.8 billion from a sale of investments (U.S. treasuries and mortgage-backed securities).
1.4 On March 8, 2023, the Bank’s holding company announced it was conducting a capital raise.
1.5 Despite the bank being in sound financial condition prior to March 9, 2023, investors and depositors reacted by initiating withdrawals of $42 billion in deposits from the Bank on March 9, 2023, causing a run on the Bank.
1.6 As of the close of business on March 9, the bank had a negative cash balance of approximately $958 million.
1.7 Despite attempts from the Bank, with the assistance of regulators, to transfer collateral from various sources, the Bank did not meet its cash letter with the Federal Reserve.
1.8 The precipitous deposit withdrawal has caused the Bank to be incapable of paying its obligations as they come due, and the bank is now insolvent.
2 WE WILL START WITH SOME OF THE OBVIOUS THINGS BASED ON WHO SOME OF THE BANK’S KEY CUSTOMERS ARE/WERE:
2.1 MOST OF THE SILICON VALLEY VENTURE CAPITAL COMPANIES HAD ONE OR MORE LARGE ACCOUNTS THERE TO SUPPORT THEIR VENTURE FUND EFFORTS IN SILICON VALLEY.
2.1.1 SOME BUT NOT ALL VENTURE FIRMS WERE ABLE TO GET THEIR FUNDS OUT AS WELL AS THE FUNDS OF THEIR VENTURE CAPITAL CLIENTS. 2.2 A LARGE NUMBER (MORE THAN 200) YOUNG AND OLD TECH COMPANIES HELD ONE OR MORE ACCOUNTS AT THAT BANK.
2.2.1 ALL FUNDS GREATER THAN $250,000 BY ANY ACCOUNT HOLDER IN THAT BANK ARE UNINSURED AND CONSIDERED A TOTAL LOSS.
2.2.2 THE 200+ TECH COMPANIES ARE AT CONSIDERABLE RISK TO GO BANKRUPT DUE TO THE FORCED CLOSING OF THE BANK.
2.2.3 A WHOLESALE GROUP OF TECH SECTOR BANKRUPTCIES WOULD TOTALLY CHANGE THE FACE OF THE AMERICAN ECONOMY.
2.3 THAT BANK HAD SIGNIFICANT HOLDINGS IN COLLATERALIZED DEBT BONDS (BUNDLED MORTGAGES WHICH HAD LONG TERM EARNING POTENTIAL WHILE AT THE SAME TIME ABLE TO ACT AS COLLATERAL FOR THE BANK.
2.3.1 MANY OTHER BIG BANKS TRADED FREELY WITH SILICON VALLEY BANK AND NOW MANY OF THEM ARE CAUGHT IN THE WEB OF PROBLEMS.
2.3.2 THIS MEANS THAT THE POTENTIAL FOR LARGE SCALE BANK RUNS AND LARGE SCALE NATIONAL BANKRUPTCIES AS WELL AS ALL THE JOB LOSSES WHICH GO WITH COMPANIES TRYING TO MAKE LAST DITCH EFFORTS TO REMAIN RUNNING BY LAYING OFF HUGE NUMBERS OF PEOPLE.
3 THE FORCED CLOSING OF SILICON VALLEY BANK ALSO AFFECTS THE TECH SECTOR AND BANKING SECTOR IN EUROPE WHICH ARE ALREADY GASPING FOR AIR BECAUSE OF THE WAR AND THE UNEXPECTED BACKLASH FROM THE SANCTIONS PUT ON RUSSIA, ARE VERY FEARFUL OF BANK RUNS AND BEING FORCED TO SHUT DOWN.
4 SEVERAL BANKING ECONOMISTS ARE SAYING THAT WE SHOULD EXPECT MULTIPLE BANK FAILURES IN THE USA, UK AND EUROPE CAUSED BY RUNS ON THE BANKS BECAUSE OF THE FEAR THE PEOPLE HAVE FROM HEARING THE HORROR STORIES OUT OF THE SILICON BANK SHUT DOWN BY THE REGULATORS.
4.1 WHEN MULTIPLE PEOPLE IN MULTIPLE BUSINESS SECTORS IN MULTIPLE COUNTRIES WARN THAT YOU SHOULD BE READY FOR BANK RUNS AT YOUR OWN BANK THEY ARE NOT JOKING.
4.2 BECAUSE EVEN IF YOU LEAVE YOUR MONEY IN THE BANK IF ALL THE OTHER CUSTOMERS PULL OUT THEIR MONEY AND THE BANK IS SHUT DOWN YOU ARE THEN THE LOSER FOR NOT PAYING ATTENTION TO WHAT IS HAPPENING IN REAL TIME AT YOUR OWN BANK.
5 ADDITIONALLY MOST OF THE BANKS IN THE USA, UK AND EUROPE WERE ALREADY WORKING ON PLANS TO SEVERELY LIMIT RETAIL AND COMMERCIAL CREDIT IN ORDER TO SAVE THE LIQUIDITY OF BANKS WHICH THEY ARE REQUIRED TO PASS THE DAILY INSPECTION BY THE FEDERAL RESERVE OR THE CENTRAL BANK OF THE COUNTRY THEY ARE IN SO THAT THEY WILL BE ALLOWED TO OPEN THE NEXT MORNING.
6 WHAT HAPPENS WHEN BANKS QUIT TAKING EACH OTHERS DEPOSITS OR OVERNIGHT REPURCHASE AGREEMENTS ? WILL WE SEE BANKS WARRING AGAINST EACH OTHER ?
7 WHAT HAPPENS WHEN THE BANKS SHUT DOWN BOTH CONSUMER CREDIT AND COMMERCIAL CREDIT (EVEN SHORT TERM LOANS SO THAT COMPANIES CAN PAY OUT THEIR PAYROLLS ON TIME)?
8 CONSIDER THE POTENTIAL FOR WHOLE SALE LAYOFFS NATION WIDE AS COMPANIES DUMP PEOPLE TO PRESERVE WHAT CASH THEY HAVE TO STAY ALIVE AS THEY TRY TO RECOVER FROM THE FUNDS LOSSES WHEN BANKS ARE FORCED TO CLOSE BECAUSE OF BANK RUNS OR OTHER REGULATORY CAUSES?
9 THINK VERY CAREFULLY IF ANY OF THE FOLLOWING BANKS WERE SUDDENLY FORCED TO CLOSE WITHOUT WARNING TO YOU ?
9.1 BANK OF AMERICA
9.2 JP MORGAN CHASE
9.3 WELLS FARGO
9.4 UBS
9.5 DEUTCHE BANK
9.6 5/3 BANK
9.7 AS WELL AS ANY OTHER MAJOR BANKS
10 MAJOR WARNING:
10.1 ALL THE MAJOR BANKS ARE HAVING CONTINUOUS BOARD MEETINGS AND VIDEO CONFERENCE CALLS WITH OTHER BANKS IN THE USA AND EUROPE.
10.2 ALL THE CENTRAL BANKS (FEDERAL RESERVE, BANK OF LONDON AND THE ECB IN THE EU ARE HAVING ALL NIGHT MEETINGS AND CONFERENCE CALLS.
10.3 THEY ARE IN ALL NIGHT SESSIONS AND ALL THE BANKS AND CENTRAL BANKS ARE PANICED AND CONCERNED LIKE THEY HAVE NEVER BEEN CONCERNED LIKE THIS BEFORE.
11 CURRENT ESTIMATED LOSSES AND RESULTS IF THINGS CONTINUE AS THIS WEEK HAS ENDED UP !!!
11.1 BETWEEN 200 AND 5000 COMPANIES CLOSING OR LAYING OFF HUGE NUMBERS OF WORKERS IN THE USA ALONE NOT COUNTING THE OTHER COUNTRIES AS THEY TRY TO STAY ALIVE WHILE RECOVERING FROM LOSSES BECAUSE OF BANK FAILURES.
11.2 BETWEEN 5 AND 15 MILLION JOBS LOST DUE TO EITHER COMPANIES GOING BANKRUPT OR PEOPLE BEING LAID OFF BECAUSE THE COMPANIES ARE NOT ABLE TO ACCESS THEIR RIGHTFUL FUNDS.
11.3 ALL THE SERVICE COMPANIES WHICH PEOPLE WILL NO LONGER BE ABLE TO PAY: (POWER, WATER, WASTE, AND COMMUNICATIONS) AS WELL AS RENT AND MORTGAGES, FOOD AND FUEL. THIS IS A TIME TO PAY TIGHT ATTENTION TO THINGS AND NOT STICK YOUR HEAD IN THE SAND !!!
USA BANK COLLAPSE To Trigger More Bank Runs as Global Financial
Markets Brace for Meltdown
March 12, 2023
Silicon Valley Bank has collapsed after experiencing a LIQUIDITY
CRISIS following a RUN of withdrawals which forced the bank to sell long terms
bonds and incur massive losses. This Crisis comes within days of Silvergate
Bank encountering the same problems which led to the bank falling into
LIQUIDATION. In this video I provide details of the problems at both banks and
discuss the risks of this Crisis spreading across the whole financial system
and causing another GLOBAL FINANCIAL CRISIS.
https://www.youtube.com/watch?v=H7C9oXK0-70
BANK RUN USA PANIC - Second USA Bank Collapses in 3 Days, Run of
Withdrawals Causes Liquidity Crisis
March 10, 2023
Silicon Valley Bank (SVB) is experiencing a LIQUIDITY CRISIS
following a RUN of withdrawals which has forced the bank to sell long terms
bonds and incur massive losses. SVB's shares fell by 60% in 1 day and have now
been suspended. This Crisis comes within days of Silvergate Bank encountering
the same problems which led to the bank falling into LIQUIDATION. In this video
I provide details of the problems at both banks and discuss the risks of this
Crisis spreading across the whole financial system and causing another GLOBAL
FINANCIAL CRISIS.
https://www.youtube.com/watch?v=tbc1ooJWG3I
Bank Run Causes USA Silvergate Bank to Collapse Resulting in
More Runs & Spread of as Banking Panic
March 9, 2023
A Bank Run has caused USA Silvergate Bank to Collapse. It was
initially believed that this was a Crypto related event however the USA has now
seen more BANK RUNS and this has now caused the failure of a second bank
Silicon Valley Bank. The failure of Crypto Exchange FTX has resulted in major
CONTAGION throughout the whole of the Crypto sector as a result of losses
incurred by Investors, Customers & other Crypto Businesses. The latest
victim of this Contagion is SILVERGATE BANK that has now entered LIQUIDATION
and the question is whether this will now spread across the whole Financial
World.
https://www.youtube.com/watch?v=VebDKGe9o7Q
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