January Market Update is the first of many posts where I’ll share some of the highlights from my research and thoughts about the markets, what’s impacting markets, and most importantly what we should do about it moving forward.
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Lance Roberts and Michael Lebowitz make a great team when it comes to unpacking what’s happening in the market. Lance gave me permission to repost his content and today’s post relates to SVB BANK CRISIS.
Because of the enormity of the Silicon Valley Bank collapse, I wanted to share a few related thoughts, insights, and context moving forward. Please note that this situation is constantly evolving, so follow @JimMunchbach on Twitter and YouTube for new developments and frequent updates.
This Slate.com article highlights a some increasingly baffling online tantrums from prominent investors were trying to shift blame for the SVB banking crisis onto anyone but themselves…
BTFP Crisis Facility for Banks allows banks to take advances from the Fed for up to a year by pledging Treasurys, mortgage-backed bonds and other debt as collateral so that banks can meet customer withdrawals without having to sell their bonds at a loss, which is what SVB did sparking a run on the bank.
Over the weekend, the Federal Depository Insurance Corporation (FDIC) placed Silicon Valley Bank into receivership. SVB failure created a panic and a large number of depositors demanded their money causing a good old fashioned “run on the bank”.
In light of the SVB bank failure, the FDIC acted quickly to protect insured depositors. FDIC is working to arrange a sale to a healthy bank, and will be paying depositors. Here’s a list of FDIC FAQs for Depositors, Creditors, and Borrowers
