FDIC's announcement of the #Silicon-Valley-Bank #banking #collapse
on 02023-03-10another note on #banking #collapse of #Silicon-Valley-Bank; the Chief Risk Officer left in April 02022 and wasn't replaced until January. Earlier this week they lost US$1.8 billion on a sale of US$21 billion of available-for-sale (AFS) securities (as opposed to HTM). “Out of its total $173 billion deposits at end 2022, $152 billion are uninsured.”
on 02023-03-10#Silicon-Valley-Bank's 10-Q giving numbers up to the end of September 02022 says on p. 92, “Because we are a Category IV firm with less than $250 billion in average total consolidated assets, less than $50 billion in average weighted short-term wholesale funding and less than $75 billion in cross-jurisdictional activity, we currently are not subject to the Federal Reserve’s LCR or NSFR requirements, either on a full or reduced basis. It is possible that, as a result of further growth, we may exceed one or more of those thresholds and therefore become subject to LCR and NSFR requirements or other heightened liquidity requirements in the future, which would require us to maintain high-quality liquid assets in accordance with specific quantitatie requirements and increase the use of long-term debt as a funding source.” #banking #collapse
on 02023-03-10#Silicon-Valley-Bank is a major outlier on this #banking note from almost a year ago, which contains a scatterplot of held-to-maturity percentage of securities (HTM%) and securities % of total assets; SVB has 60% of its assets in securities and 78% of those securities held to maturity. Perhaps related to its #collapse today.
on 02023-03-10#Silicon-Valley-Bank building managers in New York called the police at 9:20 AM ET on depositors attempting to close their accounts in this morning's run on the bank, which was shut down by the FDIC a few hours later. #collapse
on 02023-03-10#Silicon-Valley-Bank was not required to follow the Basel III Liquidity Coverage Ratio (LCR) or Net Stable Funding Ratio (NSFR) requirements because it had less than US$250 billion in average total consolidated assets, according to their latest 10-K (or maybe 10-Q), and #USA implemented Basel III only for the largest banks. #banking #collapse
on 02023-03-10the #collapse of #Silicon-Valley-Bank is the second biggest #banking failure in history #USA
on 02023-03-10A commenter (“cj”, with a 14-year-old HN account purporting to be bp@brandonpaton.com) reports that #Silicon-Valley-Bank will have a run tomorrow morning at 8:30.
on 02023-03-09A nascent run on #Silicon-Valley-Bank, probably due to #SBF's #FTX
on 02023-03-09