Silicon Valley Bank collapse: Fears of financial crisis

[KingKhanWC]

US regulators rushed to seize the assets of Silicon Valley Bank (SVB) on Friday after a run on the bank, the largest failure of a financial institution since the height of the financial crisis more than a decade ago.

Silicon Valley, the country's 16th largest bank, failed after depositors - mostly technology workers and venture capital-backed companies - hurried to withdraw their money this week as anxiety over the bank’s situation spread.

The bank could no longer cope with the massive withdrawals of its customers and its last attempts to raise new money did not succeed.

https://www.euronews.com/next/2023/...al-crisis-after-bank-used-by-us-tech-sector-f

Western Alliance Bancorp dropped nearly 75pc as the opening bell sounded while shares in First Republic Bank dropped 67pc. PacWest Bancorp dropped more than 35pc.

The major US banks were also hit, with Wells Fargo falling 7.5pc, Bank of America dropping 7.4pc, Citigroup down 5.8pc and JP Morgan falling 2.7pc.

https://www.telegraph.co.uk/busines...-news-latest-budget-ftse-100-markets-economy/

Biden says investors will not be protected.

If you're an investor or have a large amount in your bank account, you may need to think carefully where your money is parked.

 

[sweep_shot]

Sign of things to come?

Modern day financial system is like a massive Ponzi scheme.

 

[KingKhanWC]

Sign of things to come?

Modern day financial system is like a massive Ponzi scheme.

I think we have passed the signs now.

FDIC (Federal Deposit Insurance Corporation) have been planning for this for around a decade now.

They have stated they want people to use less cash and when the banks starts to collapse, they will only reveal this on a Friday night.

SVB bank collapse is very serious and the domino effect could hit everyone in the west.

 

[sweep_shot]

I think we have passed the signs now.

FDIC (Federal Deposit Insurance Corporation) have been planning for this for around a decade now.

They have stated they want people to use less cash and when the banks starts to collapse, they will only reveal this on a Friday night.

SVB bank collapse is very serious and the domino effect could hit everyone in the west.

Is it time to withdraw most fund from bank? What would you do?

 

[KingKhanWC]

Is it time to withdraw most fund from bank? What would you do?

Atm its an issue for companies who held large depoists. I would suggest not to keep more than a few thousand in any bank account atm. Roku a company held 25% of their money in SVB, now it stands to lose it all, approx $500 million.

It will soon of course move to ordinary people. You are insured upto a certain sum but after this is sorry, its gone.

 

[Technics 1210]

A second US bank failed over the weekend too, Signature Bank.

The media are not reporting this as front page/headline news, it also affects the UK, we all know why, to contain the panic.

A run on a number of banks is now happening in Amreeka, and soon will spread into the UK, Europe; people associate a banking collapse with Lehman's, Northern Rock, Bear Sterns etc, the fear is back, with the added backdrop of cost of living crisis, and high levels of debt.

This is a stable Amreekan economic system folks!

But no, Gary's tweet is the big news!

 

[Technics 1210]

Is it time to withdraw most fund from bank? What would you do?

In UK and USA, your deposits up to 85000 are insured. So if you have an account with more than that, transfer to other accounts, not exceeding the insured limit.

Otherwise just pull out the cash and buy gold. Check Gold price today on the back of 2 banks collapsing.

 

[Technics 1210]

Oh, the Feds will pause rate hikes because one of the reasons for SVB collpase is they piled into Treasuries when interest rates were rock bottom during covid, now the rates jumped, they've lost the spread. They announced the loss, but this did not prevent account holders from withdrawing cash at the tune of Billions, causing a run on the bank.

The fear is other banks are in the same situation thus rate rises will pause but will it stip runs on a bank? Of course this means inflation could spiral out of control.

Meanwhile anyone with variable rate mortgages can breathe a sigh of relief, but no for long, as job layoffs will increase resulting in higher unaffordability.

Carnage is around the corner.

 

[KingKhanWC]

A second US bank failed over the weekend too, Signature Bank.

The media are not reporting this as front page/headline news, it also affects the UK, we all know why, to contain the panic.

A run on a number of banks is now happening in Amreeka, and soon will spread into the UK, Europe; people associate a banking collapse with Lehman's, Northern Rock, Bear Sterns etc, the fear is back, with the added backdrop of cost of living crisis, and high levels of debt.

This is a stable Amreekan economic system folks!

But no, Gary's tweet is the big news!

CBDC is on its way, hopefully Gary is ready to tweet.

West has lived of free money, debt for decades now. The eventual collapse was always going to happen.

In the meantime the leaders here will concentrate on refugees, Putin and Im a Celeb.

 

[Technics 1210]

CBDC is on its way, hopefully Gary is ready to tweet.

West has lived of free money, debt for decades now. The eventual collapse was always going to happen.

In the meantime the leaders here will concentrate on refugees, Putin and Im a Celeb.

If the Amreekan President, appears on TV Monday morning trying to assure the public, its all you need to know

Remember the infamous quote before 2008 finanical crisis by Fed chairman Ben Bernanke? "The situation is contained"

Precious metals all the way from here!

 

[KingKhanWC]

If the Amreekan President, appears on TV Monday morning trying to assure the public, its all you need to know

Remember the infamous quote before 2008 finanical crisis by Fed chairman Ben Bernanke? "The situation is contained"

Precious metals all the way from here!

Yes , Silver has hit rock bottom now , the only way is up. Once banks start to collapse in Europe, it will rise along with Gold and other important metals.

Imo its always been a carefully crafted plan but the public in the west are too busy arguing over tweets, football and love island!

Please update this thread when more collapse.

 

[sweep_shot]

Atm its an issue for companies who held large depoists. I would suggest not to keep more than a few thousand in any bank account atm. Roku a company held 25% of their money in SVB, now it stands to lose it all, approx $500 million.

It will soon of course move to ordinary people. You are insured upto a certain sum but after this is sorry, its gone.

In UK and USA, your deposits up to 85000 are insured. So if you have an account with more than that, transfer to other accounts, not exceeding the insured limit.

Otherwise just pull out the cash and buy gold. Check Gold price today on the back of 2 banks collapsing.

I see.

Thanks.

We definitely need to be more vigilant now.

 

[Technics 1210]

I see.

Thanks.

We definitely need to be more vigilant now.

Correction, Amreeka is 250000.

 

[Technics 1210]

Yes , Silver has hit rock bottom now , the only way is up. Once banks start to collapse in Europe, it will rise along with Gold and other important metals.

Imo its always been a carefully crafted plan but the public in the west are too busy arguing over tweets, football and love island!

Please update this thread when more collapse.

Credit Suisse CDS have closed higher (and is now more than double the risk than at the peak of the financial crisis), while Credit Suisse shares are near rock bottom.

This could be the big one in Europe!

I wonder how Russian banks are doing?

Gold and Silver will rocket, because either the rates come down, or its QE all round, the first round of which was announced this morning - guaranteeing every dollar in SVB and Signature bank.

So much for Amreeka being against socialism when they are literally bailing out failed banks.

 

[KingKhanWC]

Credit Suisse CDS have closed higher (and is now more than double the risk than at the peak of the financial crisis), while Credit Suisse shares are near rock bottom.

This could be the big one in Europe!

I wonder how Russian banks are doing?

Gold and Silver will rocket, because either the rates come down, or its QE all round, the first round of which was announced this morning - guaranteeing every dollar in SVB and Signature bank.

So much for Amreeka being against socialism when they are literally bailing out failed banks.

I think you maybe correct, Credit Suisse is plunging as I type!

Russia will be fine, ironically the sanctions helped Russia move away from the Int financial system. Russia also has been advising its citizens to buy silver & gold, even setting up easier ways to purchase this and to store these assets. Yet people think Putin is evil to his people, if only they knew the evil plans of their own leaders...towards them.

I think Barclays , Natwest , HSBC etc will cling on in the near future because many will be taking out their large deposits and redepositing them into smaller amounts to these banks. But eventually they will collapse too, taking peoples money with them.

 

[ElRaja]

SVB was a spectacularly mismanaged bank, i was never interested in investing in it thus never analysed its practises, but in hindsight it was run amazingly badly.

there is no way anyone can accurately predict the fall out from this, however, corps cant pull their money out and sit on it, that's not how businesses are run. the money will eventually find its way back to the bigger banks, like it did after 2008, IMO.

the move on the feds part to allow repos on face value of us treasuries virtually cancels the m2m losses these banks are carrying on their balance sheets for liquidy purposes, it also signals the fed believes interest rates would be materially lower in one years time, or they would create a liquidity cliff in a years time for these banks.

banks are selling off as investors struggle to ascertain what short and medium-term impact this will have on earnings and uncertainty over potential increase in regulation.

 

[SalimBhai]

In UK and USA, your deposits up to 85000 are insured. So if you have an account with more than that, transfer to other accounts, not exceeding the insured limit.

Otherwise just pull out the cash and buy gold. Check Gold price today on the back of 2 banks collapsing.

Up to 250 is insured per account. It’s called fdic insured

 

[JaDed]

The loss will be among Startups and small banks, but there seems to be all signs of a hard recession than a soft one.

I think VCs can be blamed but again if the bank screwed it’s mostly their fault.

 

[daytrader]

Silicon Valley Bank: parent company, CEO and CFO sued amid market turmoil
Proposed class-action lawsuit claims bank failed to reveal how rising interest rates made it ‘particularly susceptible’ to failure

SVB Financial Group and two top executives have been sued by shareholders over the collapse of Silicon Valley Bank, as global stocks continued to suffer on Tuesday despite assurances from US president Joe Biden.

The bank’s shareholders accuse SVB Financial Group chief executive Greg Becker and chief financial officer Daniel Beck of concealing how rising interest rates would leave its Silicon Valley Bank unit “particularly susceptible” to a bank run.

The proposed class action was filed on Monday in the federal court in San Jose, California.

It appeared to be the first of many likely lawsuits over the demise of Silicon Valley Bank (SVB), which US regulators seized on 10 March after a surge of deposit withdrawals.

The news came as shock waves from the collapse of SVB pounded global bank stocks further on Tuesday, with calls for calm from Biden and other policymakers doing little to reassure markets and prompting some analysts to rethink their outlook on interest rates.

“Americans can rest assured that our banking system is safe. Your deposits are safe. Let me also assure you, we will not stop at this. We’ll do whatever is needed,” Biden said on Monday.

Biden’s comments, along with emergency US measures to guarantee the deposits of SVB’s customers and shore up banks by giving them access to additional funding, failed to dispel investor worries about potential contagion across the banking sector.

...
https://www.theguardian.com/business/2023/mar/14/silicon-valley-bank-lawsuit-fraud-shareholders

 

[JaDed]

The loss is also for foreign startups including Chinese tech.
This was the easiest way for Asian startups to get money from US vcs as well.

https://www.cnbc.com/2023/03/13/silicon-valley-bank-collapse-hits-startups-as-far-away-as-china.html

 

[KingKhanWC]

Gold up by 2.5% , silver by 8%

 

[shortbread]

Is it time to withdraw most fund from bank? What would you do?

Investors and Depositors are two very different things, so before the sensationalism sets in let us be very clear.

A depositor is protected, including in this current SVB scenario. US regulators stepped in and by Monday ensured all depositors received their money. It's the same in the UK and most mature economies. In the UK depositors are protected upto £85k. Firstly most people smart enough to amass a considerable savings nowadays are unlikely to park all of it as cash savings in any one bank. Split one portfolio across multiple asset classes, plenty of financial advice available out there for anyone seeking it.

An investor who held shares/interest in the financial entity SVB will lose their holdings, this is a very small minority. If one invests in a business, he/she will hold a share in whatever profits/losses the company bears. What some dont mention is that a couple of years back investors had a 500+% bull run in SVB and most of them cashed out leaving their profits to trade.

No doubt this is a sizeable event and there will be repercussions. As interest rates go up many who were swimming naked will stand to be exposed. Fiscal tightening after decades of loose fiscal bad habits will create many causalities. What falls under the radar is the massive insolvencies going on in the UK right now. Unlike the US, UK does not have the fiscal prowess anymore to shore up the economy if another crisis hits.

All said an done we will not go into a barter system and the world will not see a complete economic collapse. The cycle simple repeats itself and there will be causalities this time as well. The best approach is to spread risk while always looking for growth, and NO, DO NOT have it all sitting in one place, whether that's cash, crypto, gold, silver, property, wheat, goats.... whatever!

 

[Technics 1210]

Gold up by 2.5% , silver by 8% ��

Lovely bit of bunce this morning! I drip feed into PMs, so ultimately averaged down on the recent decline, but with the rise of late, my breakeven has lowered, so quids in this morning!

Still a long way to go though!

Will trim some profit when Gold hits 2000, and Silver 25.

 

[KingKhanWC]

Lovely bit of bunce this morning! I drip feed into PMs, so ultimately averaged down on the recent decline, but with the rise of late, my breakeven has lowered, so quids in this morning!

Still a long way to go though!

Will trim some profit when Gold hits 2000, and Silver 25.

Yes, its a marathon not a sprint. But its on the right track. We dont know just yet how the domino effect will be but whether its this month or in two years time, the paper money will be like the dinosaurs in time.

 

[Technics 1210]

Credit Suisse shares tumble after top shareholder rules out more funding

https://www.ft.com/content/0324c5a6-cecd-4fb3-85b3-7cdc99a33e4e

1.77 EUR per share.

(Was 55.37 Euros/share in 2007, and has been in decline since)

This could be the big one that torpedoes Europe!

 

[MenInG]

Banking shares have fallen sharply again as investors remain nervous following the collapse of Silicon Valley Bank (SVB) in the US last week.

The failure of SVB has raised fears that other banks could also be facing problems.

Shares in Swiss banking giant Credit Suisse hit a new low after they plunged by 20%.

The fall came after Credit Suisse's largest investor said it could not give the bank any more financial help.

Share indexes across Europe - including the UK's FTSE 100 - were down by about 2.5% by mid-morning.

The FTSE 100 has fallen 6% in the past week to reach a three-month low.

"Investors remain nervous about what might be lurking in the shadows," said Russ Mould, investment director at AJ Bell.

"It's no wonder that investor sentiment remains cautious towards the big banks given that credit agency Moody's downgraded its outlook on the US banking system to 'negative'."

How bad is US banking crisis and what does it mean?
Warning that US banks face more pain
Credit Suisse's shares slumped after it revealed on Tuesday that its auditor, PwC, had identified "material weaknesses" in its financial reporting controls.

That prompted major investor the Saudi National Bank to say it would reject calls to inject further funds into the Swiss lender.

The wider problems in the banking sector began last week with the collapse of SVB, the US's 16th-largest bank.

The bank - which specialised in lending to technology companies - was shut down by US regulators on Friday in what was the largest failure of a US bank since 2008.

SVB's UK arm was snapped up for £1 by HSBC.

In the wake of the SVB collapse, New York-based Signature Bank also went bust, with the US regulators guaranteeing all deposits at both.

But fears have persisted over the fallout from the collapse and trading in bank shares has been volatile this week.

On Monday, trading was temporarily halted in several smaller US banks as shares slumped, although Tuesday saw stock prices rebound.

However, credit ratings giant Moody's has warned of more pain ahead for the US banking system.

On Tuesday, it cut its outlook for the sector to "negative" from stable, warning of "a rapid deterioration in the operating environment".

One of the problems that hit SVB was that it was forced to sell US government bonds that it held in order to raise money.

But the value of these bond holdings had fallen over the past year as the US Federal Reserve increased borrowing costs to try to curb inflation.

Many other central banks - including the Bank of England - have also been raising interest rates. As rates rise, the value of bond portfolios has declined.

The falls mean many banks could be sitting on significant potential losses - though the change in value would not typically be a problem unless other pressures force the firms to sell the holdings.

"The worry is that banks sitting on large unrealised losses in their bond portfolios might not have sufficient buffers if there is a fast withdrawal of deposits," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"Although the biggest players are judged not to be at risk, thanks to the chunky layer of capital they are sitting on and the stable nature of their deposits, the nervousness is palpable."

 

[Technics 1210]

Gold & Silver up 1.29% and 3.07% respectively.

DJIA down 600 points.

FTSE down 219 points.

 

[Technics 1210]

Moody’s Puts First Republic, Five US Banks on Downgrade Watch

Moody’s Investors Service placed First Republic Bank and five other US lenders on review for downgrade, the latest sign of concern over the health of regional financial firms following the collapse of Silicon Valley Bank

https://www.bloomberg.com/news/arti...ic-five-us-banks-on-downgrade-watch#xj4y7vzkg

 

[Technics 1210]

Escalating crisis at Credit Suisse triggers fresh fears for European banks

Credit Suisse’s biggest shareholder has ruled out injecting any more cash into the embattled bank, triggering a 20pc slump in its share price and sparking panic in financial markets.

The deepening crisis at the Swiss lender triggered fears of wider contagion in Europe’s banking industry, sending shares in lenders plunging across the continent.

It came after Ammar Al Khudairy, chairman of the Saudi National Bank (SNB), said his company will not invest any more capital into Credit Suisse.

https://www.telegraph.co.uk/busines...ource=LI&li_medium=liftigniter-onward-journey

 

[Champ_Pal]

Sign of things to come?

Modern day financial system is like a massive Ponzi scheme.

SVB is just a peculiar case where most of their customers are Silicon Valley tech startups. Due to this, they were always on a shaky ground whenever economy suffers and startups go bankrupt.

 

[shortbread]

brought Credit Suisse few hours back @ 1.615, sold now for a nice 16%, too risky to hold onto

 

[Technics 1210]

Credit Suisse has appealed to Swiss central bank for help as shared side 30%

FT

 

[Technics 1210]

SVB is just a peculiar case where most of their customers are Silicon Valley tech startups. Due to this, they were always on a shaky ground whenever economy suffers and startups go bankrupt.

That's not why SVB went bust.

SVB had a pot of cash, bought Treasuries when rates were near 0, rates went up, lost the spread, lost 2.2 Billion, and went bust because there was a run on the bank.

SVB survived the .Com crash, and 2008 crash, they were a solid bank, but didn't diversify risk when investing cash.

 

[Champ_Pal]

That's not why SVB went bust.

SVB had a pot of cash, bought Treasuries when rates were near 0, rates went up, lost the spread, lost 2.2 Billion, and went bust because there was a run on the bank.

SVB survived the .Com crash, and 2008 crash, they were a solid bank, but didn't diversify risk when investing cash.

I know that. But the startups pulling out cash due to their failure made SVB sell their investments for loss. It’s the primary reason for its collapse.

 

[ElRaja]

the SNB will pbly come to try to imply they will support CS, the headache of trying to manage the fall out from its failure and potential impacts on UBS is unlikely to be something the SNB fancy.

 

[Technics 1210]

We can thank the practise of fractional reserve banking!

 

[Cover Drive Six]

Credit Suisse posted a loss of $1.5 billion in Q4 and the stock is down 97% in 5 years with a 40% probability of default.

SBI posted a $1.8 billion Quarterly profit while the stock is up by 230% in the last 5 years.

The irony is, the former giving a sell report on the latter.))

 

[Cover Drive Six]

Forbes is a Fraud.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">&#55357;&#57000; SVB deleted their twitter account <a href="https://twitter.com/SVB_Financial?ref_src=twsrc%5Etfw">@SVB_Financial</a><br>This is what they posted just a few days ago: <a href="https://t.co/Tc6EFZhJnn">pic.twitter.com/Tc6EFZhJnn</a></p>— Dr. Eli David (@DrEliDavid) <a href="https://twitter.com/DrEliDavid/status/1635002935989121025?ref_src=twsrc%5Etfw">March 12, 2023</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[daytrader]

Credit Suisse to borrow up to $54bn from Swiss central bank

Troubled banking giant Credit Suisse says it will borrow up to 50bn francs ($54bn; £44.5bn) from the Swiss central bank to shore up its finances.

The lender said it was taking decisive action to strengthen its liquidity as it looked to become a simpler bank.

Shares in Credit Suisse fell 24% on Wednesday after it said it had found "weakness" in its financial reporting.

This prompted a general sell off on European markets, and fears of a wider financial crisis.

Credit Suisse said its borrowing measures demonstrated "decisive action to strengthen [the bank]".

"My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs," Credit Suisse's chief executive Ulrich Koerner said in a statement.

Problems in the banking sector surfaced in the US last week with the collapse of Silicon Valley Bank, the country's 16th-largest bank, followed two days later by the collapse of Signature Bank.

After Credit Suisse shares plunged on Wednesday, a major investor - the Saudi National Bank - said it would not inject further funds into the Swiss lender.

The worries spread across financial markets with all major indexes falling sharply.

"The problems in Credit Suisse once more raise the question whether this is the beginning of a global crisis or just another 'idiosyncratic' case," wrote Andrew Kenningham of Capital Economics.

The Swiss National Bank, which is Switzerland's central bank, and the Swiss Financial Market Supervisory Authority sought to calm investor fears, saying they were ready to help Credit Suisse if necessary.

...
https://www.bbc.com/news/business-64964881

 

[Technics 1210]

I know that. But the startups pulling out cash due to their failure made SVB sell their investments for loss. It’s the primary reason for its collapse.

SVB started losing money as rates went up, not because startups were going bust (which what you said, news broke of their loss, and that's when start ups starting withdrawing money.

Remember, SVB had a massive pot of cash during Covid (during which tech companies profited massively) and ratger than reload the money, SVB invested in Government bonds.

The trigger were interest rate rises, and this is why their is panic among the banking sector because no one has any idea of the exposure banks have to government bonds etc, and precisely why the central banks are now thinking about pausing rate hike.

 

[Technics 1210]

Credit Suisse posted a loss of $1.5 billion in Q4 and the stock is down 97% in 5 years with a 40% probability of default.

SBI posted a $1.8 billion Quarterly profit while the stock is up by 230% in the last 5 years.

The irony is, the former giving a sell report on the latter.))

It is all rigged, but CS has an asset book of over $1 TRILLION.

 

[JaDed]

Credit Suisse posted a loss of $1.5 billion in Q4 and the stock is down 97% in 5 years with a 40% probability of default.

SBI posted a $1.8 billion Quarterly profit while the stock is up by 230% in the last 5 years.

The irony is, the former giving a sell report on the latter.))

CS has 20k crore worth of assets in India.

 

[Technics 1210]

[MENTION=43583]KingKhanWC[/MENTION]

https://www.royalmint.com/invest/bullion/bullion-bars/gold-bars/kaaba-20g-gold-bullion-minted-bar/

Well over premium, but nice of Royal Mint!

 

[daytrader]

Multi-billion dollar rescue deal for First Republic bank

A group of big US banks has injected $30bn (£24.8bn) into a smaller regional bank, First Republic, which had been seen as at risk of failure.

The move came as authorities in the US are trying to quell panic over the health of the banking system, after a series of bank collapses in the US.

Worries about the sector have spread globally, raising fears of a crisis.

US regulators called the move "most welcome", while the banks said their action reflected their "confidence".

They said the banking system had plenty of cash and made big profits.

"Recent events did nothing to change this," they said. "The actions of America's largest banks reflect their confidence in the country's banking system."

Reports of plans for the aid from the 11 banks, led by JP Morgan and Citigroup, helped lift financial markets and sent shares in First Republic surging more than 20% at one point, triggering trading halts.

But a sell-off started again in after-hours trade in a sign that concerns remain.

The San Francisco-based firm had seen its share price plunge nearly 70% over the last week, as investors worried it was the next bank at risk of a rush of customers withdrawing their deposits.

"This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system," US financial officials said.

...
https://www.bbc.com/news/business-64973321

 

[daytrader]

Indian Startups Have Deposits Worth $1 Billion In SVB: Minister
Hundreds of Indian startups had more than a billion dollars of their funds in SVB, according to his estimate, Minister Rajeev Chandrashekhar said.

Indian startups had deposits worth about $1 billion with embattled Silicon Valley Bank and the country's deputy IT minister said he had suggested that local banks lend more to them going ahead.
California banking regulators shut down Silicon Valley Bank (SVB) on March 10 after a run on the lender, which had $209 billion in assets at the end of 2022.

Depositors pulled out as much as $42 billion on a single day, rendering it insolvent. The US government eventually stepped in to ensure that depositors had access to all their funds.

"The issue is, how do we make startups transition to the Indian banking system, rather than depend on the complex cross border US banking system with all of its uncertainties in the coming month?" India's state minister for technology, Rajeev Chandrashekhar said late Thursday night in a Twitter spaces chat.

Hundreds of Indian startups had more than a billion dollars of their funds in SVB, according to his estimate, Mr Chandrashekhar said.

...
https://www.ndtv.com/business/india...svb-minister-3868571#pfrom=home-ndtv_bigstory

 

[KingKhanWC]

[MENTION=43583]KingKhanWC[/MENTION]

https://www.royalmint.com/invest/bullion/bullion-bars/gold-bars/kaaba-20g-gold-bullion-minted-bar/

Well over premium, but nice of Royal Mint!

Lovely

I was speaking to a economic expert, he was suggesting the US $ is only strong due to the high interest rates. He believes when other currencies backed by Gold, start to move in and interest rates go down, the $ is done as the worlds global currency, which could mean the end of paper money!

Any other metals you think may be worth investing in? The Taiwan chip issue may see a huge rise in Silicon as other nations will want to attempt to produce their own?

 

[Firebat]

Good explanation

<iframe width="560" height="315" src="https://www.youtube.com/embed/n8aaIq8Aa4w" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>

 

[Technics 1210]

Lovely

I was speaking to a economic expert, he was suggesting the US $ is only strong due to the high interest rates. He believes when other currencies backed by Gold, start to move in and interest rates go down, the $ is done as the worlds global currency, which could mean the end of paper money!

Any other metals you think may be worth investing in? The Taiwan chip issue may see a huge rise in Silicon as other nations will want to attempt to produce their own?

Silver and Palladium are definitely worth investing in too. Silver is a metal used in electronics and semiconductors etc, and when this all blow over Silver should rocket, and Palladium for sure, as hydrogen based energy is becoming a trend.

 

[Bhaag Viru Bhaag]

Good time to invest in cryptos.

 

[daytrader]

Credit Suisse bank: UBS said to be in takeover talks with troubled rival

Switzerland's biggest bank, UBS, is reported to be in advanced talks to buy all or part of its troubled rival Credit Suisse.

Shares in Credit Suisse have fallen sharply in recent days after it said it had found "material weakness" in its financial reporting.

An emergency $54bn (£44.5bn) lifeline from the Swiss National Bank has not resolved the issue.

Regulators are trying to facilitate a deal before markets reopen on Monday.

There are concerns that Credit Suisse shares could continue to plummet, after they fell 24% on Wednesday.

This prompted a general sell-off on European markets, and fears of a wider financial crisis.

The Swiss government held an emergency meeting on Saturday night, but so far there has been no official statement on the progress of the negotiations.

UBS is said to have asked the Swiss government to cover about $6bn (£4.9bn) in costs if it were to buy Credit Suisse, according to sources quoted by Reuters.

Any deal may also result in significant job losses.

The problems have coincided with the failure of two lenders in the US - Silicon Valley Bank and Signature Bank - raising fears over the health of the banking system

Credit Suisse, which was founded in 1856, has faced a string of scandals in recent years, including money laundering charges.

It reported a loss of 7.3bn Swiss francs ($7.9bn; £6.5bn) in 2022 - its worst year since the financial crisis of 2008 - and has warned it does not expect to be profitable until 2024.

UBS, however, made a profit of $7.6bn in 2022.

As well as being a domestic bank with 95 branches, Credit Suisse has a global investment banking operation and manages the assets of rich clients.

...
https://www.bbc.com/news/business-65004605

 

[ElRaja]

lol, SNB should count their lucky stars CS fallout didnt impact UBS reputation, instead they are going to load UBS with CS's crap, rumour is 0.25c in CS stock, lol.

 

[daytrader]

UBS agrees to takeover of stricken Credit Suisse for $3.25bn
Swiss government forces through takeover at well below market value amid fears of global banking crisis

The Swiss government has forced through the takeover of stricken bank Credit Suisse by rival UBS for almost $3.25bn (£2.65bn) – well below its market value – amid fears that a failure to protect depositors would trigger a new global banking crisis.

After a weekend of frantic talks, the Swiss government and the banking regulator brokered a deal once it became clear a $54bn loan to Credit Suisse from the Swiss central bank had failed to halt the precipitous slide in its share price.

“The takeover of Credit Suisse by UBS is the best solution” in the current situation, said the Swiss president, Alain Berset.

He said the takeover was made possible after the Swiss federal government, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank agreed to support the deal.

An £8bn insurance scheme to protect UBS from losses was described by Karin Keller-Sutter, the Swiss finance minister, as “like a backstop and insurance that only comes into effect if certain losses occur”.

Private investors who supported Credit Suisse with $16bn of credit were also expected to be wiped out by the deal.

...
https://www.theguardian.com/busines...t-object-to-takeover-as-ubs-considers-1bn-bid

 

[MenInG]

Central banks move to keep dollars flowing
With fears spreading through global stock markets, central banks rushed yesterday to keep cash flowing through the world's financial systems.

With investors nervous after the failures of two smaller US banks and the rescue of Credit Suisse, six central banks, including the Bank of England, announced they would boost the flow of US dollars from Monday.

Such measures were last taken during the 2008 financial crisis and at the height of the Covid pandemic.

Until at least the end of April, British banks can now go direct to the Bank of England to borrow money, instead of borrowing on the open market.

The central banks say this move will lessen the impact on the supply of credit to households and businesses.

 

[daytrader]

US raises interest rates despite banking turmoil

The US central bank has raised interest rates again, despite fears that the move could add to financial turmoil after a string of bank failures.

The Federal Reserve increased its key rate by 0.25 percentage points, calling the banking system "sound and resilient".

But it also warned that fallout from the bank failures may hurt economic growth in the months ahead.

The Fed has been raising borrowing costs in a bid to stabilise prices.

But the sharp increase in interest rates since last year has led to strains in the banking system.

Two US banks - Silicon Valley Bank and Signature Bank - collapsed this month, buckling in part due to problems caused by higher interest rates.

There are concerns about the value of bonds held by banks as rising interest rates may make those bonds less valuable.

Banks tend to hold large portfolios of bonds and as a result are sitting on significant potential losses. Falls in the value of bonds held by banks are not necessarily a problem unless they are forced to sell them.

Authorities around the world have said they do not think the failures threaten widespread financial stability and need to distract from efforts to bring inflation under control.

Last week, the European Central Bank raised its key interest rate by 0.5 percentage points.

The Bank of England is due to make its own interest rate decision on Thursday, a day after official figures showed that inflation unexpectedly shot up in February to 10.4%.

...
https://www.bbc.com/news/business-65041649

 

[daytrader]

£55bn withdrawn from Credit Suisse before rescue

Credit Suisse has revealed the scale of the bank run that triggered its state-backed rescue in March.

The Swiss banking giant said 61.2bn Swiss francs (£55.2bn; $68.6bn) left the bank in the first three months of the year.

It came as the lender reported what are expected to be its last ever financial results.

Its forced sale to rival Swiss bank UBS is expected to be completed soon.

Credit Suisse's flagship wealth management division saw the amount of assets it managed drop to 502.5bn francs at the end of March, almost 29% lower than the same period last year, Credit Suisse said in a statement.

"These outflows have moderated but have not yet reversed as of April 24, 2023," it added.

Credit Suisse clients started pulling money out of the bank after it was caught up in the market turmoil that followed the collapses of Silicon Valley Bank and Signature Bank in the US in March.

In Switzerland, authorities put together a rescue package for Credit Suisse. It included more than 200bn francs of financial guarantees and saw UBS agree to take over Credit Suisse.

Credit Suisse had been loss-making and had faced a string of problems in recent years, including money laundering charges.

It reported a loss of 7.3bn Swiss francs in 2022 - its worst year since the financial crisis of 2008 - and had warned it did not expect to be profitable until 2024.

...
https://www.bbc.com/news/business-65370751

 

[daytrader]

First Republic makes last ditch bid to find rescue deal

US regulators are racing to find a rescuer to buy First Republic Bank in a deal that could be announced as soon as Sunday.

The Federal Deposit Insurance Corporation has reportedly asked six banks to bid for the embattled lender.

Shares in First Republic plunged last week after it admitted customers had withdrawn $100bn in deposits in March.

At that time, its competitor Silicon Valley Bank had collapsed, prompting fears of a wider banking crisis.

SVB's failure was swiftly followed by the demise of another US lender, Signature Bank.

According to reports, the Federal Deposit Insurance Corporation (FDIC), a US financial regulator, sought bids for First Republic by the end of last week and has been assessing them over the weekend.

Investment banking giant JP Morgan Chase is believed to be one of the banks invited to bid for First Republic, according to news agency Reuters. Bank of America is also understood to have been approached.

JP Morgan and Bank of America declined to comment. The FDIC has been contacted for comment.

Concerns about the global banking industry gathered pace last month as problems at Silicon Valley Bank emerged.

Central banks around the world have been sharply raising interest rates over the past year to dampen the rate of price rises, otherwise known as inflation.

It has hurt the values of the large portfolios of bonds bought by banks when rates were lower, raising concerns that other firms faced similar situations.

At the same time in Europe, Swiss banking giant Credit Suisse - which had been engulfed in its own problems for a number of years - said it would have to borrow $54bn from the country's central bank to shore up its finances.

Credit Suisse has since been rescued by long-time rival UBS.

Like Silicon Valley Bank, First Republic is a mid-sized US lender. In March, a group of 11 US banks stepped forward to pump $30bn into First Republic in an attempt to stabilise the business. They included JP Morgan.

...
https://www.bbc.com/news/business-65441302