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HSBC to Buy UK Arm of Silicon Valley Bank

bbc.co.uk

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Re: HSBC to Buy UK Arm of Silicon Valley Bank

#111

Post by ClumsyPilot »

mattmanser wrote: post #106
Teandw wrote: post #74

Earlier quoted context omitted.

I'm not sure you understand what's happening here or the basics of business and liquidation. "Normal companies can't go bankrupt in one day" - They didn't go bankrupt. They went into liquidation. Massively different thing. You can have a company with billions of quid saved up in the bank that goes into liquidation. Liquidation is quite common and happens daily in the UK to 'normal' companies. Companies that were prof…

To me it sounds like you don't understand them either? What you seem to be talking about about is cashflow insolvency. You can have a wildly profitable contract that pays in 120 days, but have no cash on hand to pay debtors. The work you are doing is profitable, you just can't afford to pay your debtors right now. Profit != cashflow, that's why it's called cashflow insolvency instead of profit insolvency. You seem to…

> And they are claiming it won't cost the tax payer anything. But they're making 0% loans to banks when high inflation is happening

I can think of a few methods to turn a profit with a zero-interest loan. There is definately opportunity cost.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#113

Post by mnw21cam »

harvey9 wrote: post #98
varispeed wrote: post #95

Earlier quoted context omitted.

Yes, he was doing books for his parents' pharmacy.

Whatever you think of the bloke, there's a bit more to his CV than that.

Yeah, he tripped and threw the curry he was trying to serve over my wife's shoes. It's all she talks about whenever she sees him on TV.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#114

Post by blibble »

substation13 wrote: post #104
distcs wrote: post #101

Earlier quoted context omitted.

It is really sad to see comment threads like this that devolve into shallow and petty dismissals devoid of any actual content or substance!

Fair point, so I will flesh this out a bit. The typical pattern we see in PMQs every week is this: 1. Valid concern from the opposition 2. Rishi ignores the concern 3. Rishi says something about "the member from Islington North" 4. Jeering from the back benches (both sides) 5. Opposition moves on to another topic Or perhaps this: 1. Government back-bencher asks "Does the PM agree that we are doing a fantastic job on…

PMQs is supposed to be theatre

the real work happens in the boring debates and committees which aren't all over the press

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#115

Post by mnw21cam »

jeromegv wrote: post #107
substation13 wrote: post #104

Earlier quoted context omitted.

Fair point, so I will flesh this out a bit. The typical pattern we see in PMQs every week is this: 1. Valid concern from the opposition 2. Rishi ignores the concern 3. Rishi says something about "the member from Islington North" 4. Jeering from the back benches (both sides) 5. Opposition moves on to another topic Or perhaps this: 1. Government back-bencher asks "Does the PM agree that we are doing a fantastic job on…

I don't know about the UK parliament, but the Canadian parliament is quite similar in political structure and the "debates" at the chamber are a bit of a clown show as well. Just someone doing a speech and zingers, the same side applaud, the other side boos, and it goes on and on for a few hours. If the population actually saw what was happening over there, they wouldn't be too impressed. The medias tend to only feat…

People who love sausages, respect the law, and work with IT standards shouldn't watch any of them being made. -- Peter Gutmann

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#117

Post by russnewcomer »

tankerkiller wrote: post #99
kasey_junk wrote: post #75

Earlier quoted context omitted.

The US regulators really frown on the big banks snatching up failed bank assets. They allow it when they have to but the median regulator driven take over is done by banks in the same tier as the one acquired. I actually wonder if that’s why the uk arm of svb was able to be purchased but the US one wasn’t. It’s probably just the relative size differences but I’m curious if the fdic got no bids for svb or didn’t get a…

The FDIC generally doesn't do "bids" based on this article https://www.npr.org/2009/03/26/102384657/anatomy-of-a-bank-t... it seems that the FDIC basically just shows up at a competing bank, tells them their buying the failed bank, and that's the end of it.

My father, controller at a mid-sized regional bank, was involved in a couple of these when I was growing up, and worked at the FDIC as an examiner in the 80s. My memory from the last takeover he did shortly after this NPR article was that the FDIC had given him the vaguest of hints that his bank was on a list that could be selected to takeover a bank in the next month or so, then called him on a Wednesday afternoon, told him he needed to be half a state over by Friday morning (which I also gathered was a little out of norm but the FDIC person was someone my Dad had dealt with for a while and there was mutual trust) for a meeting, and then they took over the bank on Friday. There was the impression from my dad that they could have tried to refuse, but his bank wanted to expand in that area anyway, the FDIC knew that, and decided it would be best to have a larger, not-in-the-market-but-near-it bank take over this smaller community bank.

My dad also was the lead in his bank purchasing other banks in the 90s, and that was a months long, tiring and stressful process that they knew how to manage, and he said that receiving a bank from the FDIC was a different level of acute stress.

Edit Just unlocked a memory, I think one of the reasons that my dad's bank got selected was also that they ran the same backend banking software, since it was going to be a crash acquisition.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#118

Post by varispeed »

mnw21cam wrote: post #113
harvey9 wrote: post #98

Earlier quoted context omitted.

Whatever you think of the bloke, there's a bit more to his CV than that.

Yeah, he tripped and threw the curry he was trying to serve over my wife's shoes. It's all she talks about whenever she sees him on TV.

Is that when he was working at Indian restaurant "for fun"?

edit: "Chancellor Rishi Sunak 'did shifts for fun' in Southampton Indian restaurant"

https://www.dailyecho.co.uk/news/18237824.chancellor-rishi-s...

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#120

Post by shapefrog »

russnewcomer wrote: post #117
tankerkiller wrote: post #99

Earlier quoted context omitted.

The FDIC generally doesn't do "bids" based on this article https://www.npr.org/2009/03/26/102384657/anatomy-of-a-bank-t... it seems that the FDIC basically just shows up at a competing bank, tells them their buying the failed bank, and that's the end of it.

My father, controller at a mid-sized regional bank, was involved in a couple of these when I was growing up, and worked at the FDIC as an examiner in the 80s. My memory from the last takeover he did shortly after this NPR article was that the FDIC had given him the vaguest of hints that his bank was on a list that could be selected to takeover a bank in the next month or so, then called him on a Wednesday afternoon,…

> got selected was also that they ran the same backend banking software

It can not be overstated just how important this would have been. These backed systems are complex, expensive and horrible. Implementing a (mondern) new backend at a bank is a multi year multi $10million process.

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