March 12, 2023
The bank had $209 billion in assets as of Dec. 31, 2022. SVB’s collapse is the second-largest bank failure in history, trailing only that of Washington Mutual Inc., and the largest of its kind since the 2008 financial crisis.
Startup founders in California’s Bay Area are panicking about access to money and paying employees. Fears of contagion have reached Canada, where the bank’s loan book has doubled in the past year. SVB’s unit in the UK is set to be declared insolvent, has already ceased trading and is no longer taking new customers. On Saturday, the leaders of roughly 180 tech companies sent a letter calling on UK Chancellor Jeremy Hunt to intervene.
“The loss of deposits has the potential to cripple the sector and set the ecosystem back 20 years,” they said in the letter seen by Bloomberg. “Many businesses will be sent into involuntary liquidation overnight.”
This is just the beginning. SVB had branches in China, Denmark, Germany, India, Israel and Sweden, too. Founders are warning that the bank’s failure could wipe out startups around the world without government intervention. SVB’s joint venture in China, SPD Silicon Valley Bank Co., was seeking to calm local clients overnight by reminding them that operations have been independent and stable.
“This crisis will start on Monday and so we call on you to prevent it now,” UK startup founders and chief executive officers said in the letter to Hunt. The companies listed in the letter include Uncapped, Apian, Pockit and Pivotal Earth.
More than 85% of Silicon Valley’s Bank’s Deposits Were Not Insured
The notice on the door fails to state that more than 85% of deposits are not insured.
What does this mean for the customer who held the funds of hundreds of U.S. tech companies and was a crucial player in the valley’s economy? On Friday the collapse of the Silicon Valley Bank became the second largest bank failure in U.S. history after a rapid run on its deposits. Some $175 billion in customer accounts were taken over by the Federal Deposit Insurance Corporation (FDIC), which is now tasked with returning money to the bank’s customers.
Chart below from Reddit states – Only $5.7B out of $211.7B are insured
On Friday, March 10, 2023 we wake to the news – the collapse of the Silicon Valley Bank, the institution favoured by Big Tech – Est. in 1983, the Santa Clara. Silicon Valley Bank provided banking services and took deposits for Silicon Valley startups, venture capital firms and tech heavyweights. After talks to sell itself and efforts to raise outside capital failed, by Friday afternoon, the feds had shuttered SVB entirely and placed its assets under the control of the Federal Deposit Insurance Corp. The SVB was placed under the control of the Federal Deposit Insurance Corporation(FDIC), which guarantees deposits up to $250,000. A former FDIC chair, Sheila Bair, told NBC’s Meet the Press SVB was a $200bn bank in a $23 Trillion dollar industry. Since the first report of the fall of the Silicon Valley Bank, some financial experts are stating that this is the first domino of many banking institutions to tumble. I am the opposite of an alarmist, I call bullshit faster than anyone I know, but after taking a day to fit all of the puzzle pieces together, I personally have concluded that we are on the brink of a 2008 financial crisis. However, this financial disaster will be much worse than the 2008 crumble, this one will not just affect the U.S., this will affect the world! Silicon Valley Bank is the favoured institution of Big Tech companies. Take a minute to think about how this collapse will trickle down to the little guy making a living through online channels. Hundreds of thousands of people have created an income from the use of Big Tech giants. Those who sell on Etsy, Ebay, Amazon, FaceBook, etc. How about the monetized broadcasters and others who depend on YouTube? And if you still think this won’t have any effect on the rest of the world, SVB had branches in Canada, the UK, China, Denmark, Germany, India, Israel and Sweden. From what I have read so far, this appears to be evolving into a depression worse than 1929.
Read some of the comments on this tweet from Kim Dotcom, the perspectives are quite interesting.
New York Post
Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron’
Silicon Valley Bank CEO Greg Becker tried to calm tech investors and entrepreneurs who he conceded are “starting to panic,” – Meanwhile the same CEO of SVB, Gregory Beckersold 11% of his shares 12 days before announcement. Daniel Beck, the CFO, sold 32% of his holdings CMO Michelle Draper sold 28%.
SVB spooked investors after disclosing this week that it had taken a $1.8 billion hit from a $21 billion fire sale of its bond holdings. The bank faced a cash crunch due to surging interest rates and a recent meltdown in the tech sector led many customers to pare their deposits. Shares of SVB Financial, the bank’s parent, had plunged by a whopping 60% on Thursday. The stock was down by another 60% in premarket trading Friday until being halted.
Biden’s destructive Russia sanctions are destroying decades-long dominance of dollar as world’s reserve currency; collapse will follow
There is more than meets the eye with the collapse of SVB – There is the Shadow Banking System – The financial power located within its own entity in London that is not part of England. The Rothschild/Rockefeller Federal Reserve – The centre of the Khazarian mafia.
Note – The CEO, CFO and CMO of the Silicon Valley Bank all dumped their shares 12 days before the collapse on Friday.
Tomorrow will be an interesting day – Stay Tuned!
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6 thoughts on “The Beginning of the End – The Banking Collapse – The First Domino Has Fallen”
Another one bites the dust! Just saw Signature Bank in NY closed citing “systemic risk”
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Funny (NOT) that Biden would give so much money to Ukraine to launder while the USA is on brink of destruction! Arrest, prosecute and eliminate Biden and corrupt Dems! 🤬🤬🤬🤬🤬🤬🤬🤬
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It’s all white hats, WEF is dead in the water. They needed china to manufacture all of that digital stuff, and that deal is off the table now. China hates the marxists more than us, they never wanted communism, it was forced on them. Payback’s a bitch.
Thank you Gina! 😊
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How are you dear Gina? And your family?
div>Sending love and best wishes ❤️
From my phone: Ursula Pretzlik CH 7250 Klosters
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Most welcome and all is fine here in Ottawa – lots of snow and looking forward to Spring! Hope all is well with you too my friend.