SVB Financial Group Annual Report

Quote: rxwine

I will await the Republicans to suggest some iron-clad proposal, no bail-outs, ever under any circumstances exceeding regulatory requirements. I won't hold my breath though until it happens.

I think you were close. It should read:

I will await the Republicans to suggest some iron-clad proposal, no bail-outs, ever under any circumstances exceeding regulatory requirements for Democratic account holders.

Quote: Tanko

SVB invested $26 billion in low yield government bonds, which didn’t provide enough income to cover their expenses. The average return on their government bonds portfolio was only 1.79%. Banks make money on loans, but loan demand was way down due to the high interest rates.

Smart depositors withdrew $8 billion from SVB in January. Which caused the bank to sell government bonds at a loss to cover the withdrawals.

Uninsured deposits will be covered by the Deposit Insurance Fund, which Kevin O'leary says will only incentivize bank managers to make even riskier investments..

There are at least twenty other small banks having similar problems. There isn’t enough money in the DIF to cover all of them.

Charles Payne takes off his glasses

JP Morgan was quoted as saying the Fed's balance sheet can expand by $2T as a result of the bank bailout program (recent news).

So it's like injecting cash into the system that wouldn't be there otherwise (QE).

The Fed has been in the opposite mode (QT).

So Biden's bank bailout will force additional inflation if the new QE is greater than the existing QT.


Generally, it's a way for banks to continue investment in climate change and finance it without regards to the negative economic consequences.

Quote: SOOPOO

Gavin Newsom has been lobbying the Biden administration to bail out the corrupt failed California bank. Guess how many personal accounts/business ties he and his wife had with the bank? I need more fingers. The entitled rich politicians have no shame!

I agree.

It's a serious issue (conflict of interest).

Another potential issue with the Biden bank bailout that I foresee:


If a bank uses the Biden facility because of their portfolio being underwater, then the bank's name will go on a list along with the amount.

If the bank is publicly traded and they're on the list, then traders can theoretically drive their stock downward in the markets.


So the list will likely have to be intentionally hidden in order to take advantage of the American public, more than they already are.

Otherwise, they couldn't continue to finance climate change.

Quote: rxwine

Quote: Tanko

Uninsured deposits will be covered by the Deposit Insurance Fund, which Kevin O'leary says will only incentivize bank managers to make even riskier investments..

Is the medicine worse than the disease or vice versus?

You're kidding, right?


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First Republic falls 25% as regional bank stocks continue to sink

MAR 16 2023
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First Republic had the third highest rate of uninsured deposits among U.S. banks, behind SVB and Signature Bank, which was closed by regulators over the weekend, according to a note from Raymond James.
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https://www.cnbc.com/2023/03/16/first-republic-falls-25percent-as-regional-bank-stocks-continue-to-sink.html

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First Republic Achieves Carbon Neutrality For 2021 Projected Operations, Announces Environmental Commitments

Nov. 29, 2021

SAN FRANCISCO – First Republic Bank (NYSE:FRC), a leading private bank and wealth management company, today announced it has achieved carbon neutrality across its projected operations for the full year 2021,1,2 reflecting its commitment to environmental sustainability.

First Republic reached carbon neutrality for projected Scope 1, Scope 2 and certain operational Scope 3,3 CO2e emissions from its facilities and activities, such as business travel and employee commuting, subject to a pending independent audit. The Bank’s emissions were measured using the Greenhouse Gas (GHG) Protocol's Corporate Accounting and Reporting Standard and are limited to those within the Bank’s operational control.
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https://news.firstrepublic.com/news-releases/news-release-details/first-republic-achieves-carbon-neutrality-2021-projected

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