A Second Bank CLOSED by FDIC: Who’s Next and What Should We Do?

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Author of Be Ready for Anything and Bloom Where You’re Planted online course

After Silicon Valley Bank had its deposits seized by the FDIC, on a Friday, as predicted, there’s a sense of unease across the country. Depositors have been unable to access their funds, and we’re all wondering, “Am I next?” Many of us are quickly making a transition to physical investments we can hold in our hands because the future of banking is incredibly concerning.

On Sunday night, a second bank was closed by regulators and its deposits have also been put in control of the FDIC. Signature Bank out of New York was shut down to “protect consumers and the financial system” according to a joint statement released by the U.S. Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation.

According to that statement:

Depositors of the Silicon Valley Bank will have access to all of their money – following the bank’s failure on Friday – at no loss to American taxpayers…

…”Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the joint statement read. “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”

The statement said Treasury Secretary Janet L. Yellen had approved actions enabling the FDIC to complete its resolution of SVB “in a manner that fully protects depositors.”

Depositors will have access to all of their money starting Monday, March 13. The taxpayer will bear no losses associated with the resolution of SVB.

Notably, the regulators’ statement also announced the shutdown of New York-based Signature Bank.

“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” the joint statement read.

So that’s two down.

And while they’re saying that isn’t a bail-out, it sure sounds like a bail-out. More on that shortly.

What we could be facing is anything from “watch and wait” to bank runs to a market collapse. I’ll update throughout the day.

Update: 10:30 AM Eastern: Trading Halted

I’ve gotten word that trading has been halted due to volatility with at least three banks, right after President Biden’s comments that our banking industry was safe.

Banks mentioned by the Wall Street Journal are:

  • PacWest Bancorp
  • Zions Bancorporation
  • First Republic Bank
  • Regions Financial

First Republic has already dropped by 60% as per The Street.

Major banks have NOT shut down trading yet but are seeing drops in value:

  • Wells Fargo is down 7.5 percent
  • Bank of America is down 7.4 percent
  • Citigroup is down 5.8 percent
  • JP Morgan is down 2.7 percent

This does not mean that the banks have failed. It means that the stock market has lost some faith in them. We’re definitely still in a wait-and-see holding pattern.

UPDATE: 3 PM Eastern Time: More Banks Halt Trading

Newsweek compiled a list from the NASDAQ of banks that have halted trading today. Here’s the list:

  • Western Alliance Bancorporation Common Stock
  • PacWest Bancorp
  • First Republic Bank Common Stock
  • Zions Bancorporation N.A.
  • OceanFirst Fnl Dp Sh Pfd A
  • Customers Bancorp, Inc – Common Stock
  • East West Bancorp, Inc.
  • Metropolitan Bank Holding Corp. Common Stock
  • First Horizon Corporation Common Stock
  • Regions Financial Corporation Common Stock
  • Comerica Incorporated Common Stock
  • Bank of Hawaii Corporation Common Stock
  • KeyCorp Common Stock
  • Customers Bancorp, Inc 5.375% Subordinated Notes Due 2034
  • Macatawa Bank Corporation
  • Texas Capital Bnc
  • United Community Bk Dep
  • The Charles Schwab Corporation – Common Stock
  • Coastal Financial Corp Cm St
  • Huntington Banc Dep Shs J
  • Magyar Bancorp Inc
  • Macatawa Bank Corporation

The bank stocks were halted due to volatile, rapid swings in price.

Beware the banking information blackout

I started writing this article on Sunday afternoon, and I’m finishing it at 3 am US time and will update today, Monday, March 14th, as the situation unfolds.

Congress has already talked about censoring any “bad actors” who dare to talk about this banking collapse.

Please watch your email (sign up here) or check back directly to get updates.

A number of sources I cited in my Sunday research have already been removed. If you click and face broken links, that’s why. I took screenshots of some things but not of others. (Unfortunately – silly me.) This is also why you may see sources here that I don’t generally use.

I’ll provide the best information I can during this crisis and my best assessment of what’s going on.

Who’s next?

You’re probably wondering who’s next. What banks will be targeted by the FDIC for shutdown, and is it one that YOU use?

While it’s impossible to predict – Signature Bank was not included in the warning lists that I’ve found – here’s what we know about banks with numbers that look similar to SVB, as well as some really interesting information about the collapse of Silicon Valley Bank that you may not have heard yet.

These banks are concerning some experts.

While it’s impossible to say which banks are next to fall, there are some institutions that are sitting in precarious situations. According to Morningstar.com, these banks “raised similar red margin flags to those of SVB.” They show negative accumulated other comprehensive income “as a percentage of total equity capital.” (NOTE: Since I wrote this article last night, the article on Morningstar.com has been taken down. Hmmm….some of that censorship that Congress was talking about?)

  • Customers Bancorp Inc. of West Reading, PA
  • First Republic Bank of San Francisco, CA
  • Sandy Spring Bancorp Inc. of Olney, MD
  • New York Community Bancorp Inc. of Hicksville, NY
  • First Foundation Inc. of Dallas, TX
  • Ally Financial Inc of Detroit, MI
  • Dime Community Bancshares Inc. of Hauppauge, NY
  • Pacific Premier Bancorp Inc. of Irvine, CA
  • Prosperity Bancshare Inc. of Houston, TX
  • Columbia Financial, Inc. of Fair Lawn, NJ

But these aren’t the only organizations at risk as per Morningstar. These had some of “the highest ratios of negative AOCI to total equity capital less AOCI.”

  • Comerica Inc. of Dallas, TX
  • Zions Bancorporation of Salt Lake City, UT
  • Popular Inc. of  San Juan, PR
  • KeyCorp of Cleveland, OH
  • Community Bank System Inc. of DeWitt, NY
  • Commerce Bancshares Inc. of Kansas City, MO
  • Cullen/Frost Bankers Inc. of San Antonio, TX
  • First Financial Bankshares Inc. of Abilene, TX
  • Eastern Bankshares Inc. of Boston MA
  • Heartland Financial USA Inc. of Denver, CO
  • First Bancorp FBNC of Southern Pines, N.C.
  • Silvergate Capital Corp. of La Jolla, CA
  • Bank of Hawaii Corp. of Honolulu, HI
  • Synovus Financial Corp. of Columbus, GA

Some reports say that Silvergate, a crypto-focused bank, has already gone under.

Stuff you couldn’t make up

It’s extremely interesting to note one specific fact about Joseph Gentile, the CAO of SVB. Gentile seems to have a history of being at the helm of ships that sink in a very dramatic fashion. In fact, his job before SVB was at…

Lehman Brothers.

Yes. That Lehman Brothers.

His bio says:

Prior to joining the firm in 2007, Mr. Gentile served as the CFO for Lehman Brothers’ Global Investment Bank where he directed the accounting and financial needs within the Fixed Income division.

It’s like one of those “crisis actors” that a certain factions swear show up at every horrible mass casualty event.

Except, this one is absolutely and irrefutable true.

Is Gentile simply the worst banker on the planet? The victim of horribly bad karma? Or is there something more at play here? An article on Breitbart goes further into the background of Mr. Gentile.

SVB employees got their bonuses hours before things went south.

Anyway, mere hours before the FDIC took over, SVB employees were paid bonuses.

The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday of March, said the people, who declined to be identified speaking about the awards. The payments were for work done in 2022 and had been in process days before the bank’s collapse, the sources said.

This year, bonus day happened to fall on SVB’s final day of independence. The institution, in the throes of a bank run triggered by panicked venture capital investors and startup founders, was seized by the Federal Deposit Insurance Corporation (FDIC) around midday Friday…

…The size of the payouts couldn’t be determined, but SVB bonuses range from about $12,000 for associates to $140,000 for managing directors, according to Glassdoor.com.

I’m sure that all of this was mere coincidence. Right?

A few years ago, SVB lobbied congress and won.

This story of risk started years ago. It’s not just a recent thing. Back in 2018 the CEO of SVB, Greg Becker, lobbied Congress to have the Dodd-Frank provisions on regional lenders relaxed. And he won.

In 2015, SVB Chief Executive Officer Greg Becker urged the government to increase the threshold, arguing it would otherwise lead to higher costs for customers and “stifle our ability to provide credit to our clients.” With a core business of traditional banking — taking deposits and lending to growing companies — SVB doesn’t pose systemic risks, he said.

On page 215 of this document from the Senate Committee on Banking, Housing, and Urban Affairs, you can read Becker’s testimony. I’ve taken screenshots.


Make of this what you will.

SVB is affecting everyday people like you and me.

Incidentally, some people are trying to blow off the significance of the SVB failure, since it’s a higher-risk bank heavily involved in venture capital and start-ups. They feel that such a bank isn’t going to affect the everyday person.

Tell that to the Etsy sellers who’ve had their Friday payment delayed by the closure. I’m not sure how many people this affects but I do know that Etsy is a platform that has allowed many people a way to earn a living in this crazy economy. I personally know several moms who’ve been able to stay home with their children due to the money they make from their Etsy business, and I also know people who do this full-time for a living.

Here’s what we know, from ESeller365.

“As you may have seen, we recently experienced a delay in our ability to issue payments to some of our sellers. This was related to the rapid and unexpected collapse of Silicon Valley Bank.

“We apologize for any inconvenience this has caused. Our teams have been working around the clock to implement a solution and ensure sellers are paid within the next few business days via our other payment partners.

“We are committed to helping you run your business — and providing a reliable experience is a critical part of that commitment. Please know our teams are working tirelessly to minimize future disruptions and continue to serve you as best we can.”

While there’s no prediction in that email when sellers will be paid, some vendors have stated that the new date showing up in their dashboard is March 13.

ESeller365 says that Etsy may not even be directly banking with SVB.

It’s also very possible Etsy didn’t even have its funds directly with SVB. But instead, one of its payment partners did, which could’ve caused this disruption as well.

That should certainly demonstrate the kind of ripple effects the closure of one bank, a relatively regional bank that is ranked in size in America, can have. As someone who is also reliant on my online business, I sincerely hope that these sellers are paid quickly and can get back to business as usual.

Here are some of the businesses that use(d) SVB

ZeroHedge provided a list of a number of businesses that had well over the insured $250K on deposit at SVB and could be affected. If they are, it could result in massive numbers of employees being laid off, vendors not getting paid, and other catastrophic ripples through the economy. (Visit ZH’s article at the previous link to get the details on each of these – many of the businesses listed have added statements.)

  • USDC – Crypto Stablecoin run by Circle
  • ROKU
  • RBLX – Roblox
  • DNA – Gingko Bioworks
  • RKLB – RocketLab USA
  • LC – Lending Club
  • PAYO – Payoneer
  • PTGX – Protagonist Therapeutics
  • ACHR – Archer Aviation
  • COHU –
  • IGMS – IMG Biosciences
  • RYTM – Rhythm Pharmaceuticals
  • SYRS – Syros Pharmaceuticals
  • EYPT – EyePoint Pharmaceuticals
  • ATRA – Atara Biotherapeutics
  • ISEE – Iveric Bio
  • VERA – Vera Therapeutics
  • XFOR – X4 Pharmaceuticals
  • CTMX – CytomX Therapeutics
  • AXSM – Axsome Therapeutics
  • WVE – Wave Life Science
  • JNPR – Juniper Networks
  • QS – QuantumScape

Perhaps if SVB had been less worried about their ESG policies and more concerned about their stewardship of people’s money, folks would not be facing the current predicament.

We sincerely hope these businesses will be able to recover from the closure without difficulty.

Billionaire warns of meltdown if there’s no bailout

Bill Ackman, the billionaire CEO of Pershing Square Capital Management, is adamant that if the government doesn’t bail out SVB, further disaster is imminent.

He posted on Twitter. (Spacing is mine for clarity)

The gov’t has about 48 hours to fix a-soon-to-be-irreversible mistake. By allowing  @SVB_Financial to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank.

Absent @jpmorgan @citi or @BankofAmerica acquiring SVB before the open on Monday, a prospect I believe to be unlikely, or the gov’t guaranteeing all of SVB’s deposits, the giant sucking sound you will hear will be the withdrawal of substantially all uninsured deposits from all but the ‘systemically important banks’ (SIBs).

These funds will be transferred to the SIBs, US Treasury (UST) money market funds, and short-term UST. There is already pressure to transfer cash to short-term UST and UST money market accounts due to the substantially higher yields available on risk-free UST vs. bank deposits. These withdrawals will drain liquidity from community, regional and other banks and begin the destruction of these important institutions. The increased demand for short-term UST will drive short rates lower complicating the @federalreserve’s efforts to raise rates to slow the economy. Already thousands of the fastest growing, most innovative venture-backed companies in the U.S. will begin to fail to make payroll next week.

Had the gov’t stepped in on Friday to guarantee SVB’s deposits (in exchange for penny warrants which would have wiped out the substantial majority of its equity value), this could have been avoided, and SVB’s 40-year franchise value could have been preserved and transferred to a new owner in exchange for an equity injection. We would have been open to participating. This approach would have minimized the risk of any gov’t losses, and created the potential for substantial profits from the rescue.

Instead, I think it is now unlikely any buyer will emerge to acquire the failed bank. The gov’t’s approach has guaranteed that more risk will be concentrated in the SIBs at the expense of other banks, which itself creates more systemic risk.

For those who make the case that depositors be damned as it would create a moral hazard to save them, consider the feasibility of a world where each depositor must do their own credit assessment of the bank they choose to bank with. I am a pretty sophisticated financial analyst, and I find most banks to be a black box despite the 1,000s of pages of @SECGov filings available on each bank.

SVB’s senior management made a basic mistake. They invested short-term deposits in longer-term, fixed-rate assets. Thereafter short-term rates went up and a bank run ensued. Senior management screwed up and they should lose their jobs.

The @FDICgov and OCC also screwed up. It is their job to monitor our banking system for risk and SVB should have been high on their watch list with more than $200B of assets and $170B of deposits from business borrowers in effectively the same industry.

The FDIC’s and OCC’s failure to do their jobs should not be allowed to cause the destruction of 1,000s of our nation’s highest potential and highest growth businesses (and the resulting losses of 10s of 1,000s of jobs for some of our most talented younger generation) while also permanently impairing our community and regional banks’ access to low-cost deposits.

This administration is particularly opposed to concentrations of power. Ironically, its approach to SVB’s failure guarantees duopolistic banking risk concentration in a handful of SIBs. My back-of-the envelope review of SVB’s balance sheet suggests that even in a liquidation, depositors should eventually get back about 98% of their deposits, but eventually is too long when you have payroll to meet next week.

So even without assigning any franchise value to SVB, the cost of a gov’t guarantee of SVB deposits would be minimal. On the other hand, the unintended consequences of the gov’t’s failure to guarantee SVB deposits are vast and profound and need to be considered and addressed before Monday.

Otherwise, watch out below.

Today will certainly be interesting.

But there WON’T be a direct bail-out, according to Yellen

Despite Ackman’s pro-bailout argument, Janet Yellen, the Secretary of the Treasury, has stated that no bailout will be forthcoming for SVB, although they are working to help depositors.

Yellen, in an interview with CBS’ “Face the Nation,” provided few details on the government’s next steps. But she emphasized that the situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry.

“We’re not going to do that again,” she said. “But we are concerned about depositors, and we’re focused on trying to meet their needs.”

With Wall Street rattled, Yellen tried to reassure Americans that there will be no domino effect after the collapse of Silicon Valley Bank.

“The American banking system is really safe and well capitalized,” she said. “It’s resilient.”

People with deposits at SVB will supposedly have access to all their money today, according to Yellen, and it won’t cost the American taxpayers any money.


It sounds a lot like a bail-out. I remember 2008 and the bail-outs and they sounded a lot like this. Zero Hedge agrees:

The Fed also said that it is prepared to address any liquidity pressures that may arise, which in turn has just unveiled the first bailout acronym of the new crisis: the Bank Term Funding Program, or BTFP. Some more details:

The financing will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral.  These assets will be valued at par.  The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution’s need to quickly sell those securities in times of stress.

The Fed explains that the Department of the Treasury will make available “up to $25 billion from the Exchange Stabilization Fund as a backstop for the BTFP.” And while the Federal Reserve – which was completely clueless about this banking crisis until Thursday  – does not anticipate that it will be necessary to draw on these backstop funds, we anticipate that the final number of needed backstop liquidity be somewhere north of $2 trillion.

What is more notable is that the BTFP – or Buy The Fucking Pivot – facility, will pledge collateral at par, not at market value, thus giving banks credit for all those hundreds of billions in unrealized net losses, and allowing banks to “unlock liquidity” based on losses which the Fed and TSY now backstop!

Well, good. I’m sure everything’ll be just fine now. And it won’t cost taxpayers anything.

This crisis is not over. Here are my thoughts.

I can’t predict where this is going to go. I hope, sincerely, that the bleeding can be staunched and that this catastrophe doesn’t continue to spread through our banking system.

If it does, it would certainly be one way that CBDCs could be implemented with little backlash. Imagine Americans losing their money in a banking crisis, the money not being insured (as described here), and then being offered a way to recoup their account balances as long as they’re willing to take that wealth digitally.

I’ve said this every single time I’ve written about the economy lately. If you have savings you want to assure yourself you can keep, it’s time to consider holding physical gold and silver. I’m not talking about trying to do all your transactions with silver dimes. This is a strategy for money that isn’t currently being used and is just sitting there, presumably safe in the bank. I have advisors I strongly recommend, and they don’t charge a penny for consultations. Go here to learn more, or call them at 866-517-1257. Investing in precious metals is not just the domain of the wealthy. It’s for any of us who want to protect what we’ve worked hard to save.

We could be looking at a full-on stock market collapse, or bank runs. This article discusses what to do in the event of a stock market crash.

What can you do if you’re worried about your money? Keep in mind that I’m not a financial advisor. This is based on what I’ve done myself.

  1. Withdraw cash – but know that this probably will be limited. Expect long lines, angry people, and empty ATM machines.
  2. Spend it – pay your bills early online or purchase essentials using your debit card. Fill up your vehicles and take care of the month’s expenses early so you can ride this out. (Hopefully, things will have eased in a few days or weeks.)
  3. Switch it to precious metals. This is a strategy to use for the money you want to save and have hold its value.

Make the best decisions you can but realize that a great deal of this is out of your hands. You can only do what you can do.

And on that note…

Don’t panic.

Whatever you do, try not to panic.

This is something we’ve all prepared for and we knew it was coming at some point. It feels urgent right now because we’re watching it happen. But collapses have occurred before and will occur again. Even though this may be a more extreme scenario, know that we’re all in a similar boat and we’ll get through it.

Make your decisions calmly and rationally. Then go out and take a walk in nature, play a game with your kiddos, or watch a non-stressful movie. This is one of those big circle, little circle things that Selco talks about. There’s a limit to what you and I can do regarding the situation. Once that’s done, it’s out of our control. After that, all you can do is keep your cool and be ready to adapt.

What are your thoughts?

Is your bank one of the ones thought to be at risk? Have you been affected by this? What do you foresee happening next? What do you think about all the “coincidences” that led up to the fall of SVB?

Let’s talk about it in the comments section.

About Daisy

Daisy Luther is a coffee-swigging, adventure-seeking, globe-trotting blogger. She is the founder and publisher of three websites.  1) The Organic Prepper, which is about current events, preparedness, self-reliance, and the pursuit of liberty; 2)  The Frugalite, a website with thrifty tips and solutions to help people get a handle on their personal finances without feeling deprived; and 3) PreppersDailyNews.com, an aggregate site where you can find links to all the most important news for those who wish to be prepared. Her work is widely republished across alternative media and she has appeared in many interviews.

Daisy is the best-selling author of 5 traditionally published books, 12 self-published books, and runs a small digital publishing company with PDF guides, printables, and courses at SelfRelianceand Survival.com You can find her on FacebookPinterest, Gab, MeWe, Parler, Instagram, and Twitter.

Picture of Daisy Luther

Daisy Luther

Daisy Luther is a coffee-swigging, globe-trotting blogger. She is the founder and publisher of three websites.  1) The Organic Prepper, which is about current events, preparedness, self-reliance, and the pursuit of liberty on her website, 2)  The Frugalite, a website with thrifty tips and solutions to help people get a handle on their personal finances without feeling deprived, and 3) PreppersDailyNews.com, an aggregate site where you can find links to all the most important news for those who wish to be prepared. She is widely republished across alternative media and  Daisy is the best-selling author of 5 traditionally published books and runs a small digital publishing company with PDF guides, printables, and courses. You can find her on FacebookPinterest, Gab, MeWe, Parler, Instagram, and Twitter.

Leave a Reply

  • Sure sounds like they’re trying real hard to stave off panic. Even stock futures are up. Do what feels right for you and yours but I’d definitely get some cash, top off the cars, and grab a few of those other hard assets you may have been putting off on buying. Watch your trusted news/info sources closely because they’re clearly in the mode to stop real information at all costs.

    • Good idea to stock up on food, water filtration/purification devices, sturdy clothing, firewood, medications, solar generator, etc, with some of that newly liberated cash from your savings account, if you can do so.

      If the banking system fails, the supply chain may go with it, so it might be wise to get essentials now.

  • Wow. I had no idea about the list of banks thought to be in trouble and yikes, my IRA is at one of them. I’d incur a serious penalty if I removed my funds as they’re in a CD. They’re far below the FDIC insured limit but still it’s worrisome. That’s the money I was counting on to survive in old age.

  • It’s actually 3 banks. One quietly closed last Wednesday the 8th. Silvergate Bank. I found this easily last night when I looked up the second one yesterday, but then this morning, I could barely find this info… Copied and pasted below.

    “During March 2023, three large banks in the United States with significant exposure to the technology sector and cryptocurrency have collapsed. The first bank to fail, Silvergate Bank, announced it would wind down on March 8 due to losses suffered in its loan portfolio.”

    I don’t have time to look up more, but I know you can!

  • I expected something like this when Powell said to expect more interest rate hikes. Banks have been betting that he would start easing again soon and some still think so. The banks have invested their funds all wrong for this interest rate environment. That means it isn’t over yet. I closed a CD and took a penalty to get the money out of my bank, it isn’t on the list but I’m going to pay off my house loan.

  • I saw Prosperity Bankshares of Houston Texas on the list. What does it mean for customers? How can I protect my money?

    • We are with Prosperity Bank as well. Anticipating these happenings, our bills are set up to pay on the day we get paid. Groceries, utilities, livestock feed, etc are also on the list to take care of immediately when paid. Usually all that is left, is for any project supplies and fuel and gold/silver. This may not be the end all – be all for protecting our money, but for now that is our game plan.

  • Wait and see what kind of verbal gymnastics they come up with to make it sound like it is not a bail out that is a bail out.

    Daisy is right about having cash on hand. But that should be a given even prior to any kind of financial disaster. We try to not allow the vehicles to get below half a tank. Pantry is well stocked, so it is the freezer.
    Be interesting to see if there is a spike in people buying gold and sliver.

    Censorship, eh? Imagine that. Some yahoo does not want information getting to people so they can make a decision on what to do with their money? What is next? Pass a law not allowing people to take too much of their own money out of a bank?

    • I noticed that the cost of solver and gold went up today. So, that’s something that should have already been bought. Buying in a panic is always a bad idea.
      But, you are right about the spike in buying G&S.

      • I want to see how it plays out over the next few days and weeks.
        In the past I have not been a fan of precious metals. Might be time to rethink that strategy.
        And, paying off the farm. We already put an extra payment a month at the principal as is.

        • That’s one thing I’m so glad about: my house is paid for! It’s not a mansion and I’ll still have to pay taxes every year, but my cost of living here went down by 2/3. I also keep my personal funds in a smaller, local bank that doesn’t play these kinds of games. My IRA is 1/3 cash right now. I took some off of the table at a small profit, which beats a huge loss any day of the week.

          Have we considered the possibility that the feds want an excuse to nationalize the banking system?

  • The problem is that this goes a lot deeper than we know.
    It was indirectly caused by government financial policies and the public.
    Banks generally buy government bonds to back deposits and generate that interest you get on your account, but the yield has been very low. Recently it has gone up allowing an increase rate to be offered to “new” depositors. However the “old” are covered by bonds producing less interest, So if they want to match that rate on old accounts, it creates a “loss” on the institution’s books that must be made up elsewhere. If they don’t match those rates they risk loosing the account to another financial institution.
    Now with inflation, every one is wanting higher interest on their accounts. When it is offered elsewhere the move their money. People also start withdrawing money if they think the institution has a problem, even if it does not, potentially actually causing a problem.
    Also I suspect the crash of Crypto currency values did not help matters. Several major crypto exchanges banked there.

    Now with the government also tightening the money supply to curb inflation this creates a big problem for financial institutions to balance their ledgers to keep the banking regulators happy. Borrowing money to balance the ledgers ” “losses” is at an ever increasing interest rate, creating further “losses”.
    SVB just got caught up in the federal machine and could not find away to balance the scales. They sought to sell more stock in the company, but that created a drop in share prices and scared investors away. Just one problem after another. Nothing was going their way.
    Given enough time they probably would have sorted it all out. The feds did not
    really give them the time to look for other alternatives.

    Can this happen elsewhere? Yes. The same government policies apply across the Board and all have exposure to the same risks. Smaller financial institutions are at greater risk and those with a less conservatize approach to running their operations.
    How they manage those risks and how much they have in reserves to cover such scenarios varies from financial institution to financial institution. So a total “bank crash” or “bank run” is not a expectation, except in alarmist circles.

  • Janet Yellen went on national TV, Face the Nation, and looked everyone that was watching in the eyes and told a bold faced lie. Get out while you still can. Pay off your mortgage/s and car/s, and invest in hard assets, gold, silver, junk silver, sterling jewelry, et cetera that you can personally possess. Do NOT allow a third party to hold your assets. When everything goes under, the third party will take your assets to save themselves and their families. We will be bartering for what we need until a new honest monetary system is introduced. The too big to fail big banks took YOUR deposits and played in the derivatives market AND LOST! This IS going to fall on the tax payer, because the FED is going to print money out of thin air to prop up the failing banks. I got out of the FDIC insured banks after the 2008 bank collapse and purchased hard assets to protect my wealth. You can find more info at roadtoroota Rumble channel. Bix Weir is on other channels that are telling the truth about what is going on. Bix was in the banking system for more than 20 years, and got out years back, because he saw the crooked stuff going on back then. He and the others know what they are talking about. FYI: Stay away from the Central Bank Digital Currency, CBDC. It is run by the same corrupt bankrupt system and will be used to control you and what you can and cannot purchase. You want to purchase a weapon? Sorry, purchase denied. You want to purchase ammo for a weapon you already have? Sorry, purchase denied. You want to purchase REAL food, not the fake toxic crap they want you to eat? Sorry, purchase denied. It doesn’t get any clearer than that, does it?

  • This is not going to end in a day or two. The financial system is in a hurricane, but the maniacs at the helm are drunk and giving orders to the sailors to empty the sails. Now we are all going to be tossed around. As the smaller banks get tossed overboard they will be consumed by sharks, the real predators, biggies like JPM, CHASE, CITI, etc. will gobble them up for pennies on the dollar.

    Two tier banking, I read this morning. (paraphrased)

    “Tier one: protected too “big to fail” types (JPM, CHASE, CITI)

    Tier two: uninsured or uninsurable smaller banks

    Why would anyone chose tier 2?”

    I pretty much agreed with that take on things.
    I had popcorn for breakfast this morning after chores just in time for the opening bell. I’m going to have popcorn for lunch and dinner too.

  • A tweet from Peter Schiff,

    “According to @POTUS the government bank #bailout won’t cost taxpayers any money. That’s a lie. While it’s true that no one’s taxes will be raised to pay for it, the #Fed will print lots of money to cover the cost. That’s #inflation and everyone will pay higher prices as a result.”
    — Peter Schiff (@PeterSchiff) March 13, 2023

    Was expecting inflation to raise more this year, but this just might make it go from a expectation to a certainty.

  • If you can, find a small regional bank or credit union to work with. Get out of the big banks. I did that in 1987 and am still there. Not perfect, but the odds are better..
    This is going to be like 2008 on steroids.
    As some have said, fill up the cars, buy PMs if you can.
    Too bad they didn’t let things work themselves out in 2008 instead of papering over it.
    Like the old saying, “May you live in interesting times.”

  • Reading some comments from economists, Wall St types.
    Some are saying the government is not being as open with the banks as they were in the 08′ financial crisis.

    (Tin On!)
    Allowing the crisis to unfold with minimal intervention (never let a crisis go to waste!), they then can make the case for a government digital currency.
    You know, prevent from people from taking their own money out of a bank. Cannot have people doing what they want with their own money after all, right (wink! wink!)?
    The average American cannot be responsible for their own money, so it is in the average American’s best interest for the government to do it for them (actually, there could be a legit argument for exactly that). Ties in with that whole China social credit score model.
    Oh, you bought too much alcohol/chocolate/meat/fast food/seeds/precious metals/GUNS (you are on a list!!!!!!!)/anything self resilience. Lower your score!
    Oh, you have too much in savings. You did not do your consumer spending based support of the economy. Lower your score!
    Do not overtly support DEI, drag queen shows for six year olds, minor attracted persons, pronouns, 97 different sexes? Lower your score!
    You listen to the wrong kind of music (assuming they still allow such a thing), watch the wrong kind of movies (Ishtar, okay, yeah, I would lower your credit score too), read the wrong kind of books (1984, Brave New World, anything Harry Potter)? Lower your score!
    Free speech? The 2ndA? The Constitution? Lower your score!!!
    (Tin Off!)

    Or, the current WH admin is really that incompetent.
    They are trying to pin the blame on Trump for relaxing the Dobb Frank banking regulations.
    What they fail to mention is that, yes, Trump did sign it.
    However, with the help of Democrats who passed it in the House (258-159) and in the Senate (67-31, 17 Democrat Senators).

  • me, i’m going to keep stocking food, water and med’s. for the long term.
    get my garden planted, and can asap in mason jars, ya can’t depend on electricity always being there anymore.
    money is a very good thing in any form, but you can’t eat it and it may come to a point when we can’t give it away

  • Thank You Daisy for this excellent and thoroughly researched article. Perhaps you should be working at a bank.

    I disagree with those who think that smaller local banks are safer than large banks. While you can find seemingly good arguments on both sides the fact is size matters. The sophistication of cyber hackers increases daily and as in warfare as one side increases the size of its weapons and armaments the other side does too. While we all like to root for the little guy when it comes to your money facts and logic should be your only consideration. As larger banks escalate the level of their cybersecurity smaller banks with less resources to match the increasing cybersecurity sophistication of the larger banks become more attractive targets.

    Size also matter when it comes to the stupidity of the people managing the bank. The idiocy of hiring people based on Diversity, Inclusion, Equity aka race, gender quotas DIE, seems to have spread to almost all companies. If race and gender trump competence then what hope is there? When it comes to DIE size matters, because it takes longer for this poison to destroy a large company than a small company. Get Woke Go Broke.

    The consequences of a banks failure to some one with an account under the FDIC limit of $250,000 maybe nothing to worry about at least on paper. So some would say just stick with the local bank with its more personal service. But it is still an inconvenience.

    Let’s take a look at an actual example. National Bank of Blacksburg in Virginia with assets of $1 billion was hacked twice in eight Months. JP Morgan Chase with assets of $3.20 trillion had a massive data breach in 2014. I am sure there have been many more bank hacks since then. But which bank is most likely to go under because of hacks or bad investment decisions made by stupid DIE/Woke bank managers. JPMorgan Chase ithe biggest bank in the United States based on the size of its assets of $3.20 trillion or National Bank with assets of $1 billion?

    Hackers Breached Virginia Bank Twice in Eight Months, Stole $2.4M
    July 24, 2018 Brian Krebs

    National Bank of Blacksburg

    Chase Bank Hacked, Info Stolen for 83 Million Accounts
    By Melanie Pinola PublishedOctober 3, 2014

    Last night, JPMorgan Chase & Co revealed the scope of a data breach that affects 83 million households and small business accounts…

  • I feel like I’m watching a bad remake of a bad movie from 2008 with a new crew of bad actors. I know the main story line but no telling what twists will show up on the screen.
    I don’t even want to watch it but it can’t be avoided. Like trying to avoid a televised football game at the local bar – it’s in your face.
    2008 really hit hard. Not looking forward to this show.

  • The sky is not falling but caving to Wall Street comes into play. Face it, uteri are more regulated than banks. Had the law not been changed from $50B to $250B, SVB’s mismanagement problems (as well as some other banks) would have come to light a while back. Social media is having a heyday, as are people hawking “safe places” for your money. As in none have your best interest at heart. How regulated are companies such as ITM? Crypto, well, Sammy boy (one could call him the millennial Madoff) might be doing some hard time and he likely won’t be the only one.
    Don’t be surprised if a few more banks are frozen when stock volatility happens. Which is highly likely given the tin foil hat/make a buck off panic/love to cause trouble folks.

  • Well, I guess the one bright spot of being in the low income bracket, is there’s not a whole lot in the bank to lose. Thankfully, the pantry is full and the Hens are laying regularly. The ammo dump is full, and the guns are locked and loaded.

    • Yes, I take some comfort in this too! Those of us used to living frugally with weather this MUCH better…

  • Honestly, what is frustrating is that this entire SCAM of a system, where the Federal Reserve and banks are basically making up the rules of the game as they play it, with the approval of the government…it all needs to go. The part that frustrates me is that the corrupt few with power are applying a defibrillator to what should be left for dead. The Big Short was just a taste of what is to come.
    Biden says it’s safe (and effective?) but now we will head into hyperinflation. I can’t see how it can be avoided now. Just like in 2008, the crooks/inept have got away with it, ZERO consequences for them, and the rest of us will live with the fallout. The value of our money is already pitiful…now it will be even less. Wayyyyy less.
    On the positive side, this pushes me to do more to build alternative means of “currency”…before they use this as an excuse to force a digital currency down our throats. Barter, trade etc.
    Silver and gold are smart, land is smart, livestock, heirloom seeds, preserved food, alcohol, even good fine art, firearms, ammo…*some* cash, but that is going to lose value even more rapidly in the next 6 months.

  • Credit Suisse is on the ropes and not looking good.
    The Saudis refused to throw more money at the bank.
    Some are saying forget SVB, Credit Suisse is the real threat to the banking industry.
    Read this transcript from billionaire investor Carl Icahn: https://www.cnbc.com/2023/03/14/cnbc-transcript-icahn-enterprises-chairman-carl-icahn-speaks-with-cnbcs-scott-wapner-on-closing-bell-today.html

    We just may have seen the beginning of the next financial crisis.

  • Daisy, could I have your permission to post a link to this article in my Dying Time Newsletter? Full attribution of course.

    I think what is happening is perfectly aligned with the Socialist plan to replace our dollars with their CBDC as a means of overtly controlling our ability to spend our money as we see fit. It’s an end run around the Second Amendment as well as the First (seeking to purchase a book or contribute to a cause the Federals don’t like–sorry your government crypto won’t allow that–same for gun or ammo purchases).

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