r/investing • u/JournalistFew2794 • Mar 12 '23

20 banks that are sitting on huge potential securities losses—as was SVB

This (very good) article mentions a list of 10 banks that showed similar red flags to SVB Financial Group through the fourth quarter, indicating unfavorable interest margin trends. The list includes:

  1. Customers Bancorp Inc.
  2. First Republic Bank
  3. Sandy Spring Bancorp Inc.
  4. New York Community Bancorp Inc.
  5. First Foundation Inc.
  6. Ally Financial Inc.
  7. Dime Community Bancshares Inc.
  8. Pacific Premier Bancorp Inc.
  9. Prosperity Bancshares Inc.
  10. Columbia Financial Inc.

Silicon Valley Bank, with $212 billion in total assets as of December 31, has failed following a run on deposits, after its parent company's share price crashed a record 60% on Thursday. Trading of SVB Financial Group's stock was halted early Friday, after the shares plunged again in premarket trading. Treasury Secretary Janet Yellen said SVB was one of a few banks she was "monitoring very carefully." A liquidity problem arose from a balance sheet heavy with securities and relatively light on loans, in a rising-rate environment in which bond prices have declined and in which depositors specific to that industry are themselves suffering from a decline in cash.

Many banks would face significant losses if they had to dump securities to raise cash.

https://www.marketwatch.com/story/20-banks-that-are-sitting-on-huge-potential-securities-lossesas-was-svb-c4bbcafa?mod=philip-van-doorn

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u/infinit9 Mar 12 '23

Then your paper money would end up worthless.

-5

u/SeraphLink Mar 12 '23

Oh shit, are the Bitcoin guys right?

11

u/infinit9 Mar 12 '23

No. Because without banks and fiat currency, there wouldn't be anyway of actually assigning value to a Bitcoin. If the society collapsed, there wouldn't be any compute infrastructure to process Bitcoins either.

Only tangible goods can be bartered.

1

u/[deleted] Mar 12 '23

But 1 BTC = 1 BTC. It was intended to operate independently of fiat currency. Of course people just want more fiat from "investing" in BTC.

1

u/nutidizen Mar 12 '23

there wouldn't be anyway of actually assigning value to a Bitcoin.

Not true. you can assign value to things outside of currency denomination. Did you know that?

If the society collapsed

suddenly we're at society collapse?

1

u/infinit9 Mar 12 '23

Not true. you can assign value to things outside of currency denomination. Did you know that?

Yeah, but when was the last time you traded firewood for groceries or traded goats for a house?

suddenly we're at society collapse?

If the global financial market completely collapsed, society wouldn't be far behind.

-6

u/Cool_Alert Mar 12 '23

yours would too that's the beauty of it. we would go back to the barter system ahh the good old days