The Silicon Valley Bank Failure Explained Simply

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[Newsthink]

*Do you think the SVB collapse could be an indicator of more widespread issues in the banking industry?*

[peterwilliams]

With changes in the economy leading to instability in the stock market, some individuals may face a decrease in their investments in an effort to benefit from the current market conditions, I am considering liquidating my $725k portfolio consisting of bonds and stocks. Someone else in the same situation? Please tell me in the comments!..

[JJs_playground]

I think SBV was a combination of many factors leading to the perfect storm.
-Peter Thiel making that tweet
-SBV put a lot of money into Treasury bonds
-SBV not having a risk officer for 8 months
Relaxing reserve rules (The dodd-frank act)

Companies need to keep at least 10% of deposits in cash reserves.

[Filip.]

Excellent job. There are some points that still require explanation and further information.
How come a bank CEO can quit and sell their stocks in less that a month? tbh this Industry should be much more regulated and if top management executives have that much freedom there is no doubt this will happen again and again, isn’t?!!! I can’t believe this is possible!!!

[the_reconnaisant]

Damn, , , it’s like 2008 but without housing nor worldwide chaos 😂

[gavinbalajadia]

Printing money causes inflation. In fact it is the definition of inflation.

[per]

Signature Bank: Barney Frank, former Chair of the House Financial Services Committee, co-author of Dodd-Frank Act-was on Signature Board at time of collapse.

[clentmendelebar]

You are the only one who made a video about SVB that I understand. It was greatly explained in the most basic level. Thank you!

[T_]

When you say "customers withdrew $40b in a day"- how? As there's no cash on hand, I get that, physically how did these customers "get" their money? A bank check? ACH? IOU? Why wouldn't they simply use Quicken (or whatever) and cut a check to an account at another bank? Details please.

[TheARAM]

I wonder if she does her editing? If so, she is a great journalist and editor.

[tengkualiff]

3:20 Is there a possibility of foul play?

[MeAndMyRoyalEnfield]

Being a full time traveler on my motorcycle & tent I often go months with no mainstream news, which I don't trust. I had no clue about this. You I trust. Thank you! Sharing with my children.

[collectorguy]

Banking is not a good business model if they're at risk of a stampede wiping them out. If assets are liquid, don't pay much interest. If assets are committed to stay, pay better interest. As things are, people who keep their money parked are subsidizing those withdrawing often. Different needs require different account types. Banks should align incentives so customers behave predictably.

[jasonstupak]

Appreciate your videos. Bonuses were already scheduled a long time ago though, just bad visual timing. Same with shares sold, that's usually arranged way in advance to prevent insider trading. Taxpayers will still end up paying through higher inflation now. Everything else in your video was well explained. Thanks.

[secrets.]

SVB was a pretty solid bank. They did one error, when the CEO said they couldn't find any buyer. That is the only error they did. The rest is entirely because of the Fed. I already predicted that banks are going to collapse thanks to the Fed. I was right. It is crazy to think that within 1 year rates went up by 4%. The Fed purposely postponed rate hike and then aggressively hiking rates. When what they should have done is to slowly raising rates back in 2021 instead of raising 4% in a single year.

[SA-Aries]

Whats now about Dow jones?? Will it fall??

[Viivek]

You do realise that fed increased interest rate to calm down inflation right? It was bank's executives fault to sell those bonds in the first place which lead to this crisis.

[BiggMo]

FDIC’s cash fund is 1.6% of the trillions it has in liabilities. How can this bailout logic be sustained?

[rabbitinnh]

The bank is guilty of being gullible. Both the treasury secretary and the Federal reserve chairman we're insisting that inflation was transitory, so the Bank bought longer-term
Treasuries low interest rates. Only to have the Federal reserve reverse its position and start rapidly increasing interest rates. Maybe it was the rapid succession of a 6.8 trillion-dollar budget, 1.9 trillion dollar bill, followed by 1.2 trillion dollar bill. It seems that basic economics was at work here, and that overrides the political desire to spend without consequence.

[albertwesker]

make a video about paul dirac, please ma'am