If they have the solution, why are banks still failing?

[serveria.com]

The stock of Silicon Valley Bank, one of the biggest banks in the US collapsed to 65% before trading was halted. This is the largest bank failure since the 2008 financial crisis.
The bank's parent failed to get a buyer making the California Department of Financial Protection and Innovation close Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation as receiver. Customers were scared and began to pull out their funds to avoid unforeseen circumstances.

Economists are warning that the fall of SIVB might spread and have a bad effect on the entire banking sector. The shares of many banks in the US and Europe dropped because of this incident.  According to Reuter U.S. banks have lost over $100 billion stock market value in two days, with European banks losing around another $50 billion in value.

I have always seen bad news about the cryptocurrency industry making headlines in national and international newspapers. The government and bankers criticize the industry and portray the banks as the only remedy to the financial problems of the world. SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.

https://www.investors.com/news/silicon-valley-bank-liquidity-crisis-sends-shockwaves-through-financial-industry/
https://www.reuters.com/business/finance/us-bank-stocks-add-losses-regulators-shutter-svb-financial-2023-03-10/

Yes, it was a huge blow to the EU banks, most banks lost 10-15% in hours. It's incredible how fast information spreads nowadays. And it's shocking how fast people are withdrawing their funds from the bank account in case of such emergency. Let's just hope domino effect doesn't start...

[Findingnemo]

There will be some economist and financial advisors are talking about this somewhere but it didn't get enough buzz when something hit the cryptocurrencies which itself shows how boring the traditional stock market investment for the new generation investors. Mamy banks failed after covid but this isn't just another bank so it should be debated by the people who said banks are safe choice over their own custody.

[serveria.com]

I guess the problems for the European banks turned out much more serious than initially thought. Credit Suisse, second biggest Swiss bank (after UBS) is tanking after the news  that there will be no help from their investor Saudi National Bank.

[Smartprofit]

The stock of Silicon Valley Bank, one of the biggest banks in the US collapsed to 65% before trading was halted. This is the largest bank failure since the 2008 financial crisis.
The bank's parent failed to get a buyer making the California Department of Financial Protection and Innovation close Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation as receiver. Customers were scared and began to pull out their funds to avoid unforeseen circumstances.

Economists are warning that the fall of SIVB might spread and have a bad effect on the entire banking sector. The shares of many banks in the US and Europe dropped because of this incident.  According to Reuter U.S. banks have lost over $100 billion stock market value in two days, with European banks losing around another $50 billion in value.

I have always seen bad news about the cryptocurrency industry making headlines in national and international newspapers. The government and bankers criticize the industry and portray the banks as the only remedy to the financial problems of the world. SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.




https://www.investors.com/news/silicon-valley-bank-liquidity-crisis-sends-shockwaves-through-financial-industry/
https://www.reuters.com/business/finance/us-bank-stocks-add-losses-regulators-shutter-svb-financial-2023-03-10/

Despite the fact that the leaders of Silicon Valley Bank are reputable people in the banking industry, they made a number of serious mistakes in managing banking risks. 

As far as I know, the risk manager left this bank a few months ago.  This woman, probably, perfectly understood what kind of crisis the bank was in. 

However, the bank's management completely ignored the fact of dismissal and did not even begin to take a new risk manager in her place.  This vacancy remains unfilled. 

That is, the bank's management decided not to pay attention to the fact that the financial situation of the credit institution is deteriorating. 

That is, the bankruptcy of this bank is a combination of several factors - the negligence and dishonesty of the bank's management, as well as imperfect procedures for assessing the assets of credit institutions (in particular, very strange rules for the revaluation of securities, the application of which led the bank to disaster).

[beerlover]

Economists are warning that the fall of SIVB might spread and have a bad effect on the entire banking sector. The shares of many banks in the US and Europe dropped because of this incident.  According to Reuter U.S. banks have lost over $100 billion stock market value in two days, with European banks losing around another $50 billion in value.

I have always seen bad news about the cryptocurrency industry making headlines in national and international newspapers. The government and bankers criticize the industry and portray the banks as the only remedy to the financial problems of the world. SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.

One other reason is that there are banks who are not focusing on just making a profit but growing instead. By that I mean that they could end up with a loss, and that would be terrible as a business of course because why lose money when the whole aim of a company is to profit, but they aim at a bigger profit later on in their future so they make a loss today to make a bigger profit later.

And this doesn't always work and they make bad decisions and not only they lose money now, but they don't earn anything in the future as well. This was one of the reasons for Silvergate and SVB as well, because they made terrible business decisions with their investments.

[suzanne5223]

First, it is nice that issues like Silicon Valley Bank happened so that people will know that the only to be safe is through decentralization and being their own bank which is exactly the path led by Satoshi but what I hate about the issue is some US government official that blames the SVB collapse on cryptocurrency whereas the person to blame is the  CEO, and all the team involving.
I read that the SEC is looking into the issue and I believe it will be the exact thing that causes the FTX collapse.

[Fortify]

The stock of Silicon Valley Bank, one of the biggest banks in the US collapsed to 65% before trading was halted. This is the largest bank failure since the 2008 financial crisis.
The bank's parent failed to get a buyer making the California Department of Financial Protection and Innovation close Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation as receiver. Customers were scared and began to pull out their funds to avoid unforeseen circumstances.

Economists are warning that the fall of SIVB might spread and have a bad effect on the entire banking sector. The shares of many banks in the US and Europe dropped because of this incident.  According to Reuter U.S. banks have lost over $100 billion stock market value in two days, with European banks losing around another $50 billion in value.

I have always seen bad news about the cryptocurrency industry making headlines in national and international newspapers. The government and bankers criticize the industry and portray the banks as the only remedy to the financial problems of the world. SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.

There are certain banks that are failing, not because they are necessarily insolvent, but more to do with the fact that they were heavily weighted in certain assets. Both in the companies that they supported (risky cryptocurrency or start-ups) but also in the way they stored money. What would normally have been seen as highly safe and responsible, owning US treasury bonds, actually turned out to be a rather bad idea in this case. As they locked up money in assets that were paying 1.35%, however if they had that same cash available now they could get treasuries paying 4%+ and nobody wants to buy those older long-maturity bonds from them when rates are so good directly purchasing shorter debt issues from the government.

[harapan]

SVB wasn't even mismanaged. I doubt when this gets reviewed there would be any legal finding of misconduct unlike with FTX.

SVB had banked on U.S. treasury bonds for a sizeable chunk of their portfolio and were ripped when the federal reserve starting raising interest rates. They started trying to raise capital desperately and it caused a panic and everyone ran to withdraw their balances simultaneously. The fact is that this type of situation can happen to literally any bank if every customer decides to withdraw their cash. If the banking institution isn't to secure emergency funding, within a day the entire institution collapses.

They got greedy and yea, they were unlucky too. They shouldn't have invested such large amount of customers funds in a long term investment without thinking about the repercussions if things went south, and I believe they thought about it but they went ahead with it anyway. When the federal reserve started raising interest rates they panicked and got desperate as you said so that led to the panicking of the public. SVB would have been okay eventually if people did not panic but you can't blame the public for panicking because what normal human wouldn't panic when the bank is panicking?

[blockman]

The stock of Silicon Valley Bank, one of the biggest banks in the US collapsed to 65% before trading was halted. This is the largest bank failure since the 2008 financial crisis.

There's the latest news about Credit Suisse, aren't they now the biggest falloff this season?

First, it is nice that issues like Silicon Valley Bank happened so that people will know that the only to be safe is through decentralization and being their own bank which is exactly the path led by Satoshi but what I hate about the issue is some US government official that blames the SVB collapse on cryptocurrency whereas the person to blame is the  CEO, and all the team involving.
I read that the SEC is looking into the issue and I believe it will be the exact thing that causes the FTX collapse.

Although we don't wish for this to happen to the innocent investors and people that are trusting them. But it's giving shed light on what you've said about these people that this can be the reason why there have been projects that are going against centralization in the world of finance.
And this will open the idea to them that the cryptocurrency that they've been accusing of fraud and giving bad impression to many is the one that can be the best option right now which is bitcoin.

[bittraffic]

One reason was that according to the tinfoil hat men, the government is forcing people to use CBDC and wants crypto to fail.

If they fail, they won't let bank runs going to be publicly announced by the media and then those banks such as SVB and Silvergate were bought by bigger banks that have close connections to the government such as JPM.

[suzanne5223]

First, it is nice that issues like Silicon Valley Bank happened so that people will know that the only to be safe is through decentralization and being their own bank which is exactly the path led by Satoshi but what I hate about the issue is some US government official that blames the SVB collapse on cryptocurrency whereas the person to blame is the  CEO, and all the team involving.
I read that the SEC is looking into the issue and I believe it will be the exact thing that causes the FTX collapse.

Although we don't wish for this to happen to the innocent investors and people that are trusting them. But it's giving shed light on what you've said about these people that this can be the reason why there have been projects that are going against centralization in the world of finance.
And this will open the idea to them that the cryptocurrency that they've been accusing of fraud and giving bad impression to many is the one that can be the best option right now which is bitcoin.

After 14 years of the existence of Bitcoin, we can't actually say they didn't know or be aware of the benefit introduced by Bitcoin but the general public has a very poor understanding of Bitcoin and how it is the most essential factor. Everything they believe in is the negative statement said about Bitcoin by the world leader who totally doesn't like the idea of power shifting to decentralization.
Until the general public understands the best alternative to deal with the collateral damage caused by the government economy and management practice is decentralization people will still be the victim of issues like this and I like the Bitcoiner the put the bus with the words "Be your own bank" at the doorstep SVB.

[Myleschetty]

They never had any solution and if the world noticed they would have known that the institutions are subject to corruption due to their centralized ways of operation.
Nevertheless, the Simpsons appear to have already known that the SIVB collapse will happen because they already had a movie for it before the SIVB happened just like they once predicted Bitcoin

[Smack That Ace]

SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.

Because it really isn't the job of the economists or 'gurus' to prevent a certain bank from going insolvent — it's the CEO, the team in general, and the board of directors' jobs.

But some of these CEO and board of Directors claim that they have wealth of experience in financial matters. The way they attack cryptocurrency firms will make one believe that they have all the solutions and are infallible.

After all, no matter how talented they are, they are human and will make mistakes from time to time. Why don't you hypothesize that the collapse of these banks will benefit other banks, their competitors? When a big man falls, there will always be another big man to take his place, and that is competition.
Another thing is, why do we care what they say about crypto? They are working for centralized companies, they are lashing out, smearing cryptocurrency, decentralized, also part of their job, they are defending their interests. Like us, crypto investors, and to protect it, we also spread bad news about banks. They and we are the same.

[iv4n]

What's funny is that, on their twitter account, just 4 days ago, SVB twitted that they are

Proud to be on @Forbes' annual ranking of America's Best Banks for the 5th straight year and to have also been named to the publication's inaugural Financial All-Stars list

And now what?

- https://twitter.com/SVB_Financial/status/1632818336391213059?t=E3JtoDRGK_HgGo613tHVAA&s=19

Forbes proving once again their rankings are fake and you can just pay to be mentioned

There are many interesting comments when we start scrolling down. This is hilarious what they are doing and how this is passing from year to year.

SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.

Because it really isn't the job of the economists or 'gurus' to prevent a certain bank from going insolvent — it's the CEO, the team in general, and the board of directors' jobs.

But some of these CEO and board of Directors claim that they have wealth of experience in financial matters. The way they attack cryptocurrency firms will make one believe that they have all the solutions and are infallible.

After all, no matter how talented they are, they are human and will make mistakes from time to time...

The Emperor's New Clothes - Official Trailer I HD I IFC Films

I guess that the board of directors always gets big bonuses at the end of the year, it doesn't matter if they did a good job or if they made some royal mess with big losses.

[Kodok Bencot]

It must be admitted that the presence of cryptocurrencies is a serious threat to banks, banks can survive because of full guarantees from the government, if there is no regulation to protect it, it is certain that banks will not be able to compete with cryptocurrencies, moreover, sometimes banks are too easy to block accounts so the presence of crypto is a perfect solution. great for storing assets.

[Merit.s]

It is clear that fiat currency and banks will soon face their doom day,and this will have great effect on the world economy. Fiat is becoming worthless gradually and banks are shutting down because they couldn't understand that old things are passing away because they can't resist the present challenge that the world is facing,which in high rate of inflation. Bitcoin was designed to face the present world economy challenges and to overcome it. So many criticism by banks on bitcoin and crptocurrency at large but right now bitcoin is excelling and banks are packing up their bags.

Economists are warning that the fall of SIVB might spread and have a bad effect on the entire banking sector. The shares of many banks in the US and Europe dropped because of this incident.  According to Reuter U.S. banks have lost over $100 billion stock market value in two days, with European banks losing around another $50 billion in value.

People have no trust on banks anymore for the safety of their funds. I guess they might have started seeing bitcoin as an alternative.

SVB recorded six straight quarterly losses, why didn't these financial gurus fix the bank? Yet they claim to be the only solution.

Financial gurus don't understand how to tackle the present economy challenges but claim that they know everything. Moreover mismanagement of public funds can also lead to the crash of SVB,who knows.

[YUriy1991]

Currently the Bank has faced challenges and failures in recent years including increased competition from fintech startups, low interest rates, and regulatory pressures. These factors have depressed the bank's profitability, leading to several failures and mergers. Despite this, it is acknowledged or not that banks still play an important role in the global financial system, providing essential services such as lending, payments, and risk management. While cryptocurrencies offer new possibilities for innovation and decentralization of finance, they also come with their own set of risks and challenges.

I think Not all banks fail why is that nowadays banks have adapted and thrived in the changing financial landscape in order to provide valuable services to their customers. For example, some banks have invested in fintech startups and developed their own digital solutions to compete with technology new.

[Davian144]

It must be admitted that the presence of cryptocurrencies is a serious threat to banks, banks can survive because of full guarantees from the government, if there is no regulation to protect it, it is certain that banks will not be able to compete with cryptocurrencies, moreover, sometimes banks are too easy to block accounts so the presence of crypto is a perfect solution. great for storing assets.

Not only because the government can survive in every country, but also because many users or customers open bank accounts and save their money there (the bank). Because if the customer doesn't have any bank, it won't develop rapidly in the country even though they are protected by the state government.

Cryptocurrency is a bank competitor that is very clear now that banks also need to develop their system in a better direction so that customers want to survive and continue to grow by showing more conveniences that are available to them at this time. Because there are still very many cryptocurrency users who use banks when they need cash withdrawals.

[DOH!]

I think, simply because it is just a tool of the government to run the monetary policy of the country. As a tool it will not be perfect and vulnerable under the influence conditions, only if this set of effects cannot be filled by continued money printing to control. Bank failure as a fact will have to happen when that time comes.

[Semar Mesem]

I think, simply because it is just a tool of the government to run the monetary policy of the country. As a tool it will not be perfect and vulnerable under the influence conditions, only if this set of effects cannot be filled by continued money printing to control. Bank failure as a fact will have to happen when that time comes.

There are many cases of bank failures, of course, because banks do not develop techniques, they are only busy looking for profit and do not care about security issues, in my country there are frequent cases of theft of customer money and thieves can find out and do things that are not fair, so this makes many users worry .