Silicon Valley Bank is ngmi

What's happening with Silicon Valley Bank and does this mean there is a crisis? Find out.

[DanSme]

Joe, I'm a retired CPA/CBA (Chartered Bank Auditor) with 35+ years of experience (25 with the FRBKC). Let's do some short videos on basic banking and introductions to how bank supervision and regulation work. This is particularly relevant to the SVB mess.

[themossinator]

Thanks Joseph for the clear explanation of what is going on here

[adama]

Love your channel separates real info from all the noise put there thanks

[AllNighterHeider]

Thanks JW, really appreciate the explanation 👍

[berkcancinar]

came across your channel through a LinkedIn post, thanks a lot for the wonderful explanation! subscribed :)

[angrybear]

thank you so much for these video recaps and explainers!

[meflower]

Thank you Joseph! You are the authoritative opinion for me on matters of the financial system

[ttam]

Is it common for banks of this size in the USA to have such poor risk management?

Obviously their deposit base is particularly shaky being so concentrated with flighty money but it looks to me like they have been killed by repricing risk. Didn't sufficiently hedge their HQLA portfolio and when their liabilities came due they had to realise their neg position, scaring investors and starting a run.

Scary if a bank of this size manages IRRBB like this.

[SavanaT]

Joseph mentions "Federal Home Loan Banks" that banks can borrow from. Quasi govt institutions? I've never heard of these type of banks before... Too many secrets in the banking/govt system. 🤯🙏

[somecallmemomo]

Very clear explanation, thanks for posting :)

[SavanaT]

I thought banks can "create money" from nothing. Why do they need customer deposits to make the loans? Aren't all customer deposits held at the FED and earning interest for the bank or just sitting at the bank? Any loans the banks made was "created from nothing"... as they say. Can anyone square this? What exactly is the theory of money creation? Joseph said before that banks don't care about customer deposits... Can someone please explain? Thank you...

[davemcclure]

excellent summary and clear explanation about what is going on with SVB.

Q: so what do you think about FRB? they would appear to be the next likely bank at risk, with perhaps similar insolvency / liquidity concerns?

i noticed they are the 2nd largest exposure risk (17%) for SF FHLB, only slightly lower than SVB (20%)…

[soundbrowser]

guten Abend Thank you for your efforts!

[bphilipnyc]

Why is it unlikely to not lead to a financial event? (Not disagreeing, is it just that you think their exposure and circumstances were unique?)

[juicyjoo]

SMASHED LIKE! refreshing delivery espec with all the drama laced booolshiet out there!

[paulinkeles]

Link to 800 page manual?
Also I’ve read in ibd that Elon is considering “buying” svb? What would he be “buying” ? Price tag
Hypothetically

[axl]

They knew rate hikes are coming, why they didn't park the money at the Fed?

[zofg]

im puzzled why they didn't hedge their interest rate risk? Surely the Fed gave them enough time to do so? Are they seriously so inexperienced because of low rate environment that a college student will know that you have to hedge interest rate risk when the Fed say they are doing so? Are there any convincing theory for this other than they are incompetent and badly managed?

[aricwaters]

what is the chance insurance run into liquidity problem? so thry have to sell the treasuries and suffer mark to maket loss?

[ghunpkh]

Could you please explain in easy terms(bad English knowledge)why high quality assets were pledged?