SVB Bank collapse

[Nudga]

Is this another 2008 financial collapse? Should we be worried or will it be

Problem
Reaction
Solution
CBDC

??

[Ldr]

Brexit! 

[Glyn_Wigley]

Brexit! 

Nah, it's all Gordon Brown's fault, just like last time!

[BillyStubbsTears]

How apt that the Silly Con bank has gone bust.

[drfchound]

It must be awful to be so angry all day, every day.

[Dagenham Rover]

SVUK taken over by HSBC

[ravenrover]

Depositors safe, investors up the swanee

[Colemans Left Hook]

Silicon - Granite wot next ??   

this link is pre- the granite collapse

https://www.thisismoney.co.uk/money/markets/article-1620633/Granite-Northern-Rocks-money-making-vehicle.html

as they say "turned out nice" NOT.


Obviously the "Silica" bank was built on sand

[Branton Red]

BoE and HMG have acted quickly to solve this issue.

Credit where it's due.

[danumdon]

BoE and HMG have acted quickly to solve this issue.

Credit where it's due.

Agree, it looks like quick intervention both here and in the US may have staved off another financial crash. at least another three or four midsize US banks were looking like they were terminal.

[ravenrover]

Not a penny of tax payers money involved says Hunt with the silent C

[BillyStubbsTears]

I'm not at all sure this is over yet.

The problem with SVB was that it's business model was basically an unhedged bet on interest rates staying low.

There's talk among people who know a lot more than me about this being a systemic thing, with much of the new high tech companies' business models based on the same bet.

I do hope to God that's wrong and this is a soon to be forgotten blip. The last thing we need right now is another 2008.

[Dagenham Rover]

I'm not at all sure this is over yet.

The problem with SVC was that it's business model was basically an unhedged bet on interest rates staying low.

There's talk among people who know a lot more than me about this being a systemic thing, with much of the new high tech companies' business models based on the same bet.

I do hope to God that's wrong and this is a soon to be forgotten blip. The last thing we need right now is another 2008.

Bit like smaller energy companies

[Colemans Left Hook]

I'm not at all sure this is over yet.

The problem with SVB was that it's business model was basically an unhedged bet on interest rates staying low.

There's talk among people who know a lot more than me about this being a systemic thing, with much of the new high tech companies' business models based on the same bet.

I do hope to God that's wrong and this is a soon to be forgotten blip. The last thing we need right now is another 2008.

you could say they "put their shirt on interest rates staying low "  in the trade there is a definition for this and it also starts with an "N" . I would call it a "Naked Business Plan"


 What is a Naked Position?

In securities trading in general, a naked position refers to a securities position, long or short, that is not hedged from market risk. Both the potential gain and the potential risk are greater when a position is naked instead of covered or hedged in some way

another trade word the few people on here with a sense of humour would find funny is a haircut something  some of our follically challenged members rarely need.

A haircut refers to the lower-than-market value placed on an asset being used as collateral for a loan. The haircut is expressed as a percentage of the markdown between the two values.

[SydneyRover]

And .....

''"A rising tide floats all boats….. only when the tide goes out do you discover who's been swimming naked." This is Warren Buffett's addendum to the famous 'rising tide' quote''

[SydneyRover]

Is this another 2008 financial collapse? Should we be worried or will it be

Problem
Reaction
Solution
CBDC

??

Do you think recent events will change the Edinburgh Reforms timetable Nudga?

[Nudga]

Is this another 2008 financial collapse? Should we be worried or will it be

Problem
Reaction
Solution
CBDC

??

Do you think recent events will change the Edinburgh Reforms timetable Nudga?

I think it will speed up CBDC's and net zero finances.
Net zero being linked to your carbon footprint.

[ravenrover]

Now nearer home, Credit Suisse in trouble