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

[Darker45]

To be fair to these banks and whoever running them, I don't think they "portray the banks as the only remedy to the financial problems of the world." Are they saying that?

Even if they say so, don't think that they actually know everything. They may appear as if they know it all, but no, they cannot foresee everything. They even failed to assure and pacify their depositors and prevent a bank run. They even failed to keep themselves solvent.

As a matter of fact, the collapse of centralized crypto companies like FTX is almost similar to the collapse of these traditional banking institutions. They may heavily criticize crypto companies and yet they also failed due to irresponsibility resulting to insolvency, lack of foresight, wrong predictions, false assumptions, greed, overconfidence, and others.

[justdimin]

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.

Plus, the long term treasury bonds that they were holding which gave very little return whereas because of the FED rate spike they were forced to give so much back to people who had accounts there. Think about it this way, when you are the second biggest bank in the nation, that means tens of billions of dollars, which means that 2% to 5% difference would be as much as billions as well, which bank could survive something like that?

They weren't capable of predicting how the nation will go, and because of the interest rate increases and them not being ready for something like that, they ended up earning less and spending more for peoples money to be in their accounts.

[Gyfts]

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?

I don't even think they got greedy. U.S. treasury bonds aren't supposed to be high risk investments. People seem to be overlooking the fact that the current predicament by the federal reserved being forced to raise interest rates were entirely manufactured by them. They decided to inject trillions of dollars into the economy and it's banks like SVB that were sitting on a pile of cash without a place to put it. 2020-2022 were uncertain years for investors, U.S. treasury bonds were not a bad idea. At some point, they should have been aware that the interest rates hikes were going to impact those investments and not have had mass sell offs in panic in order to raise liquidity.

I don't blame people for panicking and ultimately the banks are responsible for their investments. Doesn't seem prudent to blame the bank for operating within a system that's inherently corrupted with state sponsored fiscal ineptitude by the federal reserve.

[Mauser]

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.

Why should we be listening to the banks? They are obviously not telling the truth. If a bank manager tells us that they are the only solution to financial management that this comes out of fear of losing their job. The bank managers are not working for the common good, they are not interested in a better works for everybody. The interests of the banks are egoistic and focused on their own bonus payments. The banks we see failing right now are not in trouble because of a bad business model, but rather because of greed. They gave out too many bad loans because they wanted higher returns, risk management was failing and now they are looking for the tax payers to pick up the bill.

[19Nov16]

I think the challenges of banks will be more complicated and more problematic, the transaction system that users expect must be faster and cheaper, but almost every day we hear about criminal cases from banks, those who work in banks can easily steal customer money without being noticed, the latest of course in malaysia when there is a transaction of more than $1 million made with mobile banking and the owner doesn't feel transacted, so be aware.

[Pujangga]

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/

According to reports from experts, the spreaders of FUDs who are organized and can pay for advertisements in many media are bankers or bank companies, they unite to fight cryptocurrencies that are a threat to banks, it cannot be denied that the bank system is indeed fragile and will not be strong.

[Ozero]

It's terrible to see another collapse, they're all connected. There goes the Silvergate bank, this SVB and as in almost all markets have come to this despite that we've been experiencing collapse since last year. But on this particular thing with SVB, I am feeling bad for those start ups that have been reliant to them because they're the major source of those seed and crowd funding of many start ups and that's why the collapse has connection to many retail, start up and tech companies.

First of all, it should be noted that the economies of almost all countries are now experiencing a big drop. Due to the coronavirus pandemic and the enormous costs of fighting it, unemployment has risen sharply and the purchasing power of people has fallen. They are forced to withdraw deposits from banks, and this is one of the reasons why banks lose their profits. First of all, those banks burst, where the organization of work was weak or there were abuses in working with financial resources. But this does not mean that the banking system as a whole will collapse. In any case, the system will stand and will develop further.

[tjtonmoy]

Banking system is broken from the beginning. It's no surprise that they are falling now. Only reason is that people are now aware of the secret knowledge of banking system. And one thing that creates this crisis is when people choose to withdraw their money in mass amount. Because banks doesn't have their own money, and they lend out money to their customers which is not theirs. It belongs to other customers.
One solution is banks having their own money. But that is impossible and there are any solution to this.

[smile1218]

There are many reasons why banks can fail, even if they seem to have solutions to their problems. One reason is that banks operate in a complex and ever changing environment, and it can be difficult to anticipate all the risks and challenges they may face. Banks may face unexpected shocks or crisis, such as a global financial crises or a pandemic, that can disrupt their operations and cause them to fail. Moreover, banks may struggle to adapt to new technologies or changing customer preferences, which can erode their competitive advantage and lead to declining profits. Banks may also be subject to regulatory and legal challenges that can impact their financial performance and reputation. While banks may have solutions to some of their problems, they still face many uncertainties and risks that can lead to failure.

[Plaguedeath]

Because everything has a risk and you can't expect all things will work like your calculations and predictions.

Banks can survive because of people trust, if majority of people don't trust banks anymore, you can expect many banks will stop failing. Banks isn't transparent and want to control everything, I think people tend to move their wealth to assets especially Bitcoin, not holdings huge fiat anymore.

[retreat]

-snip-

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.

Here the economists only act as advisors, the decision remains with the top-level managers of each bank, whether they will take advice from these economists or not, it's all their own decision. So when their bank goes bankrupt it is not the fault of these economists, because they are only experts, they are not top-level managers who make decisions. Many think that these economists are useless, even though they are quite helpful to the banking system, because some of their views are proven to be able to help banks get out of their problems or provide criticism to the government to be able to review their decisions.

[Dunamisx]

Banking system is broken from the beginning. It's no surprise that they are falling now. Only reason is that people are now aware of the secret knowledge of banking system. And one thing that creates this crisis is when people choose to withdraw their money in mass amount.

I don't even know between banks and the crypto exchanges which one is worst than the other, all of them were just being epileptic in terms of quality service delivery, reliability and trust, we cannot count enough the numbers of banks that have failed already and far gone into bankruptcy because they lack what makes them to independently stand alone.

Because banks doesn't have their own money, and they lend out money to their customers which is not theirs. It belongs to other customers.

The problem is that even banks also lend money from other banks and international financial institutions including government, so they impose some regulations that will hypnotized them to subjects under the MoU signed through the process of getting the loan, yet some people will also depends on banks loan for their survival, the reason while they will never be free from debt, you can't try such with bitcoin in cryptocurrency.

[Republikcoin.com]

According to reports from experts, the spreaders of FUDs who are organized and can pay for advertisements in many media are bankers or bank companies, they unite to fight cryptocurrencies that are a threat to banks, it cannot be denied that the bank system is indeed fragile and will not be strong.

Can you attach the report here? Because I also want to see the report from those experts now. Especially if this can be a very interesting discussion to discuss because it cannot be denied by anyone that cryptocurrency is really popular at this time so those who don't like cryptocurrency will definitely make FUD for the sake of destroying cryptocurrency. But I would absolutely not care about the FUD they create because I have more faith in cryptocurrency life which will stay strong because there are more people who like it.

[Inwestour]

Here the economists only act as advisors, the decision remains with the top-level managers of each bank, whether they will take advice from these economists or not, it's all their own decision. So when their bank goes bankrupt it is not the fault of these economists, because they are only experts, they are not top-level managers who make decisions. Many think that these economists are useless, even though they are quite helpful to the banking system, because some of their views are proven to be able to help banks get out of their problems or provide criticism to the government to be able to review their decisions.

If a top manager is competent in matters, and he must be competent in all matters dealt with by subordinates in his department, then he must control the adoption of all important decisions, approve or reject. Ultimately, the responsibility will always lie with the head of the department, and even the head will have to answer to the bank's management.

The situation with banks became critical, due to the low rate, banks could not survive in these conditions and were obliged to engage in other activities, such as investing, in order to survive, but if this is not the target direction of the bank, then this can lead to poor implementation, which in the end it happened.

[Marvell1]

-snip-

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.

Here the economists only act as advisors, the decision remains with the top-level managers of each bank, whether they will take advice from these economists or not, it's all their own decision. So when their bank goes bankrupt it is not the fault of these economists, because they are only experts, they are not top-level managers who make decisions. Many think that these economists are useless, even though they are quite helpful to the banking system, because some of their views are proven to be able to help banks get out of their problems or provide criticism to the government to be able to review their decisions.

Moreover, banks are also companies, they all have competition with each other, so the bankruptcy of some banks will make us bewildered, but it is something that their other competitors are very happy about. As we have also seen, bankrupt banks have been acquired by other giants at very cheap prices relative to their real value. Don't get too excited when you see a few banks fail and assume the whole banking system will collapse. What's going on is just the rule of elimination, the weak will die, and the strong will take over and grow stronger.

[Paul Pogba]

Bank security systems are a serious issue in my country because there are many cases of theft or account fraud, thieves can easily move money without having to know their traces, this is what makes us always have to be vigilant if we want to save large amounts of money in a bank.

[tjtonmoy]

~Snip

When it comes to whether to choose the banks or crypto exchanges, it becomes hard to decide. Both of them are centralized shit. As long as your crypto is decentralized and stored by you, it's good. The moment you hand over the authority to someone else, and they have control over your assets, it's all bullshit. As I have already said in previous post, banking system is broken. I don't think I need to explain it anymore.
And the thing about the power what banks holds is connected to the whole system. Not only the banks, the whole system in the world that runs it is broken. Peoples are manipulated by the system in order to use it in a way that will make you keep coming back to it. It's a shame to be honest. 

[Russlenat]

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.

Exactly. The people who are managing the bank are the only responsible for the bank to become insolvent. If they are just working for their own money satisfaction and don’t even care on the bank’s prosperity, surely the bank will go into bankrupt. Everything that happens to a certain bank, whether it’s a success or failure, the people that are managing the bank are always liable to it.

[panganib999]

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/

Welp, so much for "banks are better than bitcoin cause hurr durr" now isn't it. The nasty part about this is that when things go south for the banking sector, it is not only them that's affected unlike any other industry failing. It's the whole economy, the whole planet, the whole world that's gonna get royally-fucked by their poor management. It's only going downhill from here, and although this is already old news we're still feeling the effects of it, now we're at the cusp of another looming problem as the US is still taking their sweet-sweet time before doing something about their debt. If people argue that "it's only the US that's getting affected by it" well then I have some news for you buddy, we are all going to be affected.

If they don't do shit about this debt problem before June they'd practically be defaulting on their loans, which will then lead to recession, and a whole ensemble of problems that everyone on this planet will feel, especially ones that are allied with the US. this may even tip the scales of power to China for good, as even though they are also experiencing one of the biggest housing industry scandals in today's day and age they still are practically doing fine for themselves.

[MoonOfLife]

~Snip

When it comes to whether to choose the banks or crypto exchanges, it becomes hard to decide. Both of them are centralized shit. As long as your crypto is decentralized and stored by you, it's good. The moment you hand over the authority to someone else, and they have control over your assets, it's all bullshit. As I have already said in previous post, banking system is broken. I don't think I need to explain it anymore.
And the thing about the power what banks holds is connected to the whole system. Not only the banks, the whole system in the world that runs it is broken. Peoples are manipulated by the system in order to use it in a way that will make you keep coming back to it. It's a shame to be honest. 

So are you using a bank? Do your family, parents, wife, and children use the bank? Many people keep saying banks and CEX are trash, but they still use them every day and are almost inseparable from them. It's a shame that we still use it but always speak ill of it. If all the banks in America collapsed, that would not be enough to prove that the banking system is dead. Why not use banking and crypto together for maximum effect? Why speak ill of a bank when you're going to use it to death?