Silicon Valley Bank scrambles to reassure clients after 60% stock wipe-out

[denniz07]

So guys, what do you think what are safe banks right now : ) ?
I mean for sure there are too big to fail. But what about smaller banks or lets say just rigions like europe, swiss, asia, or from middle east?
Would you consider brokers like ibkr or swissquate safer ? (since guess they do not lending)
Currently have some exposure to QNB, Société Générale, Sumitomo Mitsui , hope it goes well...

The strange thing is that banks collapse very fast. So credit rating and also stock price is a bad indicator. In Swiss you have Kantonalbanken which are kind of safe, since you have state garantees.

 

[Martin Everson]

So guys, what do you think what are safe banks right now : ) ?

Firstly stay away from any crypto type banks with huge balance sheets. Also there is no safe bank. Peter Schiff would tell you his bank was safe as a 100% reserve bank but look what happened to it . There is simply too many risks to say any bank is truly safe even ZKB for example.

Not even investing in US Treasuries via Treasury Direct bypassing banks is safe. As if debt ceiling is not increased a potential default could happen. Also US government default is not a zero risk probability sadly when politics are at play.

Republicans are preparing to let some bills go unpaid as the debt ceiling crisis looms. Janet Yellen says their plan is just 'default by another name.'

In general the way banks are interconnected its difficult to calculate exposure in terms of counter-party risk with the bank you use. You can only diversify where and how you hold your money and have a plan B in case contagion occurs and its get out of control .

The strange thing is that banks collapse very fast. So credit rating and also stock price is a bad indicator.

Your right it can be a lagging indicator of a banks health. For example Lehman Brothers was rated "A" by Standard and Poors up to six days prior to its collapse...lol. An "A" rated bank should not collapse in days...period!!!

Lehman Brothers collapse: was capitalism to blame?

Roman Frydman and Michael D. Goldberg: The near-meltdown in 2008 was a failure of contemporary economic models' understanding of the role and functioning of financial markets

www.theguardian.com

 

[drumtraks]

In general the way banks are interconnected its difficult to calculate exposure in terms of counter-party risk with the bank you use. You can only diversify where and how you hold your money and have a plan B in case contagion occurs and its get out of control .

I find it amazing how financially literate people keep doing the mistake of concentrating assets in one bank alone. Especially startups.

 

[JackAlabama]

So guys, what do you think what are safe banks right now : ) ?
I mean for sure there are too big to fail. But what about smaller banks or lets say just rigions like europe, swiss, asia, or from middle east?
Would you consider brokers like ibkr or swissquate safer ? (since guess they do not lending)
Currently have some exposure to QNB, Société Générale, Sumitomo Mitsui , hope it goes well...

The strange thing is that banks collapse very fast. So credit rating and also stock price is a bad indicator. In Swiss you have Kantonalbanken which are kind of safe, since you have state garantees.

None.
Bitcoin is your safest bank, just need to stomach some vola.

 

[369]

None.
Bitcoin is your safest bank, just need to stomach some vola.

bitcoin is a bankers product which will be exposed at the end.controlled opposition to catch people like us.Make your money with it but don't belive its any kind of solution

In dubai there are bank accounts which deposit are covered 1:1 with physical gold.However i don't know what the minimum deposit is.In 2013 it was 500k EUR.
I would also call russian banks save and domestic ones from HK,CN,SG,BR
I think swiss banks are safe too.Their debt will be paid with gold which swiss has more than enough

 

[pfser]

I'm afraid it can be another black swan, and there's no safe place, try to diversify your assets as much as possible.

bitcoin is a bankers product which will be exposed at the end.controlled opposition to catch people like us.Make your money with it but don't belive its any kind of solution

In dubai there are bank accounts which deposit are covered 1:1 with physical gold.However i don't know what the minimum deposit is.In 2013 it was 500k EUR.
I would also call russian banks save and domestic ones from HK,CN,SG,BR
I think swiss banks are safe too.Their debt will be paid with gold which swiss has more than enough

Regarding Swiss banks (I know that Robert Kiyosaki is not one to follow in terms of predictions, but be careful)

Credit Suisse will collapse next, Robert Kiyosaki warns

Swiss regulator FINMA announced it was trying to identify any potential risk of contagion from SVB's meltdown to Switzerland's banks and insurers.

www.newsweek.com

 

[Martin Everson]

Regarding Swiss banks (I know that Robert Kiyosaki is not one to follow in terms of predictions, but be careful)

Credit Suisse will collapse next, Robert Kiyosaki warns

Swiss regulator FINMA announced it was trying to identify any potential risk of contagion from SVB's meltdown to Switzerland's banks and insurers.

www.newsweek.com

These folk are talking a CS collapse into existence know what they are doing . Wonder how many Put options he has.

 

[whatname]

The whole US banking sector is rotten, and EU isn't doing much better. Think Wirecard 2.0. Sketchy s**t that is happening.

 

[JackAlabama]

bitcoin is a bankers product which will be exposed at the end.controlled opposition to catch people like us.Make your money with it but don't belive its any kind of solution

In dubai there are bank accounts which deposit are covered 1:1 with physical gold.However i don't know what the minimum deposit is.In 2013 it was 500k EUR.
I would also call russian banks save and domestic ones from HK,CN,SG,BR
I think swiss banks are safe too.Their debt will be paid with gold which swiss has more than enough

The completely incompetent swiss national bank sold gold at its lowest price. They have not what you claim. We do not live in being secretly gold covered fantasy land.

However, banking at an institution which is widely used by the locals will likely result in what has now happened with SVB and result in a bailout by money printing. If it applies to foreigners, is another question, but it seems highly likely.
So ubs, cs, the cantonal banks and the big regional banks might be ok.
Banking at an private banking house which no local has hardly heard of and it is deemed as "a place for the evil rich" might lead to losses. Again, speculation.

 

[FantomOffshore]

I'm afraid it can be another black swan, and there's no safe place, try to diversify your assets as much as possible.

Regarding Swiss banks (I know that Robert Kiyosaki is not one to follow in terms of predictions, but be careful)

Credit Suisse will collapse next, Robert Kiyosaki warns

Swiss regulator FINMA announced it was trying to identify any potential risk of contagion from SVB's meltdown to Switzerland's banks and insurers.

www.newsweek.com

Robert Kyosaki his company filed for banktruptcy last week.

bitcoin is a bankers product which will be exposed at the end.controlled opposition to catch people like us.

I would find a criminal creator like Le Roux (absolute mastermind) far more plausible than shadowy bankers who had the time to secretly build a highly technical product based on math far beyond any economist, let alone your average banker, to catch "people like us".

Lehman Brothers

And if I remember the course of events right, two of Bear Stearns hedge-funds imploded more than a year prior to the Lehman collapse. Timing or predicting the course of events is extremely hard without insider info.

A strategy I like in times like these is holding most of my non-crypto money in Altria, which is better than cash imo, and waiting for high volatility events to happen at which point I sell some Altria to buy distressed securities.

Meta last year was an incredible opportunity, I really thank the Youtubers for bashing their VR platform. One or two of those 80/100% plays a year and you basically never have to work lol (which carries all kinds of dangers in itself).

 

[369]

The completely incompetent swiss national bank sold gold at its lowest price. They have not what you claim. We do not live in being secretly gold covered fantasy land.

However, banking at an institution which is widely used by the locals will likely result in what has now happened with SVB and result in a bailout by money printing. If it applies to foreigners, is another question, but it seems highly likely.
So ubs, cs, the cantonal banks and the big regional banks might be ok.
Banking at an private banking house which no local has hardly heard of and it is deemed as "a place for the evil rich" might lead to losses. Again, speculation.

In switzerland there is so much gold stored it will be easy for them to pay all debt once the new monetary system will be established.
Remember retailers gold price won't be gold price between central banks

I would find a criminal creator like Le Roux (absolute mastermind) far more plausible than shadowy bankers who had the time to secretly build a highly technical product based on math far beyond any economist, let alone your average banker, to catch "people like us".

Its not about plausibility but facts.
Its no secret in the inner circle who created it since 2011.
Also if you have any logic thinking and some knowledge what happened to projects or people who tried to create an alternative currency to fiat they have been instantly busted and put into jail.
Governments had so many opportunities to kill bitcoin but they never did.Instead they even pushed it forward when in public saying at the beginning beh to bitcoin.
I mean even without the information of the creator isn't it so obvious that bitcoin is clearly not their enemy when big banks joined bitcoin already in 2010

 

[backpacker]

So guys, what do you think what are safe banks right now : ) ?
I mean for sure there are too big to fail. But what about smaller banks or lets say just rigions like europe, swiss, asia, or from middle east?
Would you consider brokers like ibkr or swissquate safer ? (since guess they do not lending)
Currently have some exposure to QNB, Société Générale, Sumitomo Mitsui , hope it goes well...

The strange thing is that banks collapse very fast. So credit rating and also stock price is a bad indicator. In Swiss you have Kantonalbanken which are kind of safe, since you have state garantees.

Why bother about all of this ... .
Put your money in a bunch of well diversified mutual funds/ETF's. In a bank account I would not keep much more than what is insured by FDIC and the like.

 

[Martin Everson]

However, banking at an institution which is widely used by the locals will likely result in what has now happened with SVB and result in a bailout by money printing.

Bail-out won't happen in Switzerland. A bail-in will happen as explained by Finma. Zero chance they would throw Swiss tax payer money at these criminal enterprises self inflicted damage wounds.

Swizterland Banks’ recovery and resolution planning

In EU it will be same as they have EU BRRD directive meaning bail-in not bail-out. All these regulations came in after the last financial crisis. So just be ready to take a haircut or receive garbage shares in a bank that's failed above 100k deposit protection.

 

[JackAlabama]

Bail-out won't happen in Switzerland. A bail-in will happen as explained by Finma. Zero chance they would throw Swiss tax payer money at these criminal enterprises self inflicted damage wounds.

Swizterland Banks’ recovery and resolution planning

In EU it will be same as they have EU BRRD directive meaning bail-in not bail-out. All these regulations came in after the last financial crisis. So just be ready to take a haircut or receive garbage shares in a bank that's failed above 100k deposit protection.

That has yet to be seen.
They can print money to do it so the tax payer will not notice it. Easy game and it saves a lot of anger.
However a private bank can be made easily made gone as no one of the locals use it.
Would not give anything on what finma writes.

I still hold my statement:
However, banking at an institution which is widely used by the locals will likely result in what has now happened with SVB and result in a bailout by money printing.

First its better to hold Bitcoin.
Then its better to hold Tether usdt.
Then banks at the very last place

 

[Martin Everson]

First its better to hold Bitcoin.
Then its better to hold Tether usdt.
Then banks at the very last place

Hope your not being serious here?

 

[backpacker]

Would not give anything on what finma writes.

Unfortunately.
FINMA is not exactly the most trustworthy organization ....

 

[JackAlabama]

Hope your not being serious here?

I am very serious with this. Market tests over audits is my well known mantra.

Unfortunately.
FINMA is not exactly the most trustworthy organization ....

Yah sadly.
Now calls are made to the snb according to FT. Lets see how that goes. Id expect a bailout by the genious snb.

Subscribe to read | Financial Times

News, analysis and comment from the Financial Times, the worldʼs leading global business publication

www.ft.com

 

[backpacker]

Now calls are made to the snb according to FT. Lets see how that goes. Id expect a bailout by the genious snb.

This is highly likely and would fit into the current sentiment in Switzerland.
I expect some sort of "sophisticated" bailout where shareholders will loose most (not all) of their money. The latter might already have been discussed with Saudi Arabia and is one reason why they now officially state that they do not want to increase their stake.

As expected -> Swiss National Bank says it will provide Credit Suisse with liquidity if necessary

 

[FantomOffshore]

In switzerland there is so much gold stored it will be easy for them to pay all debt once the new monetary system will be established.
Remember retailers gold price won't be gold price between central banks


Its not about plausibility but facts.
Its no secret in the inner circle who created it since 2011.
Also if you have any logic thinking and some knowledge what happened to projects or people who tried to create an alternative currency to fiat they have been instantly busted and put into jail.
Governments had so many opportunities to kill bitcoin but they never did.Instead they even pushed it forward when in public saying at the beginning beh to bitcoin.
I mean even without the information of the creator isn't it so obvious that bitcoin is clearly not their enemy when big banks joined bitcoin already in 2010

So what is your prediction, then, if you are so sure? You sound like a guy who is awfully convicted of his case, which is completely fine. But please, just, if you talk tough, put your money where your mouth is. You are long or short, what exactly?

 

[uplana]

Well, well, I don't think Credit Suisse will go anywhere... that is my prediction.