General > General Technical Chat

Silicon Valley Bank Collapses

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RJSV:
   "SPOF" (thanks, coppice);
That meant opposite of 'Diversify your holding's, but I'm afraid that once we've focussed on diversity, they be thinking about race and ethnicity.
   That level of incompetence INVITES such disasters.

Rick Law:

--- Quote from: Stray Electron on March 13, 2023, 10:56:40 pm ---...
 Their reply was that SVB was VERY good to deal with and had a very good website and gave better benefits than the other banks so most of their customers dealt with them exclusively. I talked to another family member that lived in the area until recently and he said the same.
...

--- End quote ---

They (SVB) may very well be nice people, just not very business savvy.  They operated for months (April 2022 to Jan 2023) without their Chief Risk Management Officer.

Nice, may be.  Smart?  No.

Well, at least they have their Chief Diversity office all that time so their C-suite is not a ghost town.  Businesses need to go back to being a business, sooner better.

Red Squirrel:
This whole fiasco shows how important it is to not put your eggs in one basket when it comes to money.  Good to have a backup plan such as cash on hand and a secondary bank account.  Ideally you want to have enough cash to cover about a month worth of expenses, or at least the more critical ones like mortgage/rent and property taxes as not paying those means you basically lose your house and you may not even be allowed to go in to get your stuff as they'll condemn it. 

james_s:

--- Quote from: Rick Law on March 14, 2023, 12:42:39 am ---They (SVB) may very well be nice people, just not very business savvy.  They operated for months (April 2022 to Jan 2023) without their Chief Risk Management Officer.

Nice, may be.  Smart?  No.

Well, at least they have their Chief Diversity office all that time so their C-suite is not a ghost town.  Businesses need to go back to being a business, sooner better.

--- End quote ---

The people that clients interact with may be both nice and smart, the people making the decisions in the back may be neither. If they're as large a bank as it sounds like, they probably have (had) thousands of employees.

VK3DRB:
Every engineer will have learnt control theory. This is a classic example of an unstable system having an abrupt stimulus, creating an undesirable outcome, and chaos. The Chinese real estate implosion and the virus, Vlad the Terrible, and the resulting huge interest rate rises are stimulus to the unstable global financial system.

As I write this, three banks have failed. If the banking system is inherently unstable, they will fall like a house of cards in the next few weeks. This is a symptom and not a cause.

Time to buy gold.

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