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Bank Failures Visualized

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Re: Bank Failures Visualized

#151

Post by lottin »

yieldcrv wrote: post #20
themagician wrote: post #10

Earlier quoted context omitted.

I have faith that we can top S&L. We have the technology. We have the talent. There are six banks with over a trillion in assets in the US. I have faith that one of them has been doing some wild book cooking. I'd place a bet on Citibank, followed by Wells Fargo. There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on… shame on you. Fool me… you can't get fo…

If you like absurdity, FTX has recovered 7.3 billion out of the 8.6 billion hole and plans on relaunching the exchange to make the last billions back in fees Most noteworthy is that this quick 8 month turnaround is partially thanks to the blockchain, and under no new laws being passed

How is any of this partially thanks to the blockchain?

Re: Bank Failures Visualized

#152

Post by 0xDEF »

Both SVB and Signature Bank were atypical banks with atypical depositors.

SVB catered to risky tech startup and Signature Bank was involved in risky crypto shenanigans.

On SVB:

>As a regional bank in the Bay Area, SVB offered services specifically designed to meet the needs of the tech industry, and soon became the largest bank by deposits in Silicon Valley and the preferred bank of almost half of all venture-backed tech startups.

On Signature Bank:

>By 2021, cryptocurrency businesses had represented 30 percent of its deposits.

>Banking officials in the state of New York closed the bank on March 12, 2023, two days after the failure of Silicon Valley Bank (SVB). After SVB failed and in light of the closure of the cryptocurrency-friendly Silvergate Bank earlier in the week, nervous customers withdrew more than $10 billion in deposits.

First Republic Bank was also an atypical bank that offered high interest rates for high-net-worth depositors by not insuring deposits and having a very high loan-to-deposit ratio:

>Fitch Ratings and S&P Global Ratings downgraded First Republic's credit rating, citing "a high proportion of uninsured deposits" from wealthy customers who are more likely to move their money elsewhere and a loan-to-deposit ratio of 111%, meaning that it had lent out more money than it had in deposits from customers.

Re: Bank Failures Visualized

#153

Post by lottin »

beginnings wrote: post #75

National governments should control their own money, scrap interest entirely. Let the market decide what each currency is worth for international trading. The status quo international banking system is designed to enslave, and governments can't do anything about it because the banks are above them. How anyone can defend the current system is beyond me. It's not remotely close to being the best we can do, it's a scam…

> National governments should control their own money, scrap interest entirely. Let the market decide what each currency is worth for international trading.

Isn't this how the current system already works? Except for the "scrap interest entirely" part, which I'm not sure know what it means.

Re: Bank Failures Visualized

#154

Post by theteapot »

nologic01 wrote: post #148

It makes perfect sense to focus on events defined in a uniform way across the dataset (in this instance US FDIC insured bank failures). Otherwise what you are depicting is an arbitrary collation of events that may have very different causes. What I derive from the visualization (btw Bostock is a genious) are a couple of simple yet still tentative observations: * A new cluster of failures might be forming. The pattern…

> There is at this point a remarkable absence of small bank failures.

Not sure it's that remarkable? 1. not adjusted for inflation as others have commented. 2. There are less banks in the US, maybe up to 1/2 as many as in 2008 (https://www.statista.com/statistics/184536/number-of-fdic-in...). 3. You may only be seeing the leading edge of something similar to 2008-2010 range - too early to tell.

Re: Bank Failures Visualized

#155

Post by lottin »

yalogin wrote: post #73

Weird part about this whole thing is, we have been repeatedly told that banks are good and they learned a lesson in 08. Now both tech and banking are in trouble again.

A bank is a business and businesses fail sometimes. This is inevitable.

Re: Bank Failures Visualized

#156

Post by [deleted] »

jeremyjh wrote: post #78
fragsworth wrote: post #31

Earlier quoted context omitted.

You are correct. Additionally, the size of the bank(s) are not really what matters. I want to see the scale (sum) of what was actually lost when they went bankrupt, and how much we (the public) have to put up to keep the system from collapsing. Does anyone have an actual visualization of how much we ponied up to keep our banking system from collapsing? Did the public just provide a reasonable interest rate loan for a…

There were winners and losers, but the government made money on TARP. That doesn't fit anyone's narrative very well, so you don't hear that much about it, but its a fact. So far not a public dollar has been lost in the current crisis. FDIC, like other insurance, is paid for by the insured. Every FDIC bank in the country is paying the cost of this. https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program

[deleted]

Re: Bank Failures Visualized

#157

Post by NoMoreNicksLeft »

kortilla wrote: post #103
NoMoreNicksLeft wrote: post #71

Earlier quoted context omitted.

> Banks don't work that way any more because it's a really bad way to run a bank. As compared to what we have now? With dubious financial instruments so opaque I'd have to spend 30 years lurking underneath desks on Wall Street eavesdropping on conversations just to have any clue at all how the fuck those work? I'm almost comforted when there's a Bernie Madoff, because at least I can wrap my head around how a Ponzi sc…

> And while we haven't quite reached that pinnacle of absurdity, it did hit 37,000 not so long ago. Why do you think this is absurd? You know inflation means we’ll get there even without ridiculous multiples, right?

What sort of inflation would take it from 2700 to 37,000 since 1987? How close to the CPI is that, exactly? It seems a little off.

Re: Bank Failures Visualized

#158

Post by yieldcrv »

Mistletoe wrote: post #150
yieldcrv wrote: post #46

Earlier quoted context omitted.

SBF is not involved, its the new management and the bankruptcy court https://www.reuters.com/technology/bankrupt-crypto-exchange-...

I’d like to see a list of those assets because this one consisted of a bunch of garbage tokens largely worth nothing. https://cryptoslate.com/breakdown-of-current-ftx-assets-show... The top token in that list, Serum, listed as worth $1.9 billion, had a trading volume of only $2 million yesterday on Binance. -2% depth is $60,000 lol. https://coinmarketcap.com/currencies/serum/markets/

we can debate liquidity and depth of the market for those assets, but they're also just using the same standard as what was lost as well, so does it really matter?

unless we’re going to start with “they didn't lose $8.6bn and an independent valuation put all lost assets at $2bn so now everyone’s solvent what an amazing turnaround”

Re: Bank Failures Visualized

#159

Post by yieldcrv »

lottin wrote: post #151
yieldcrv wrote: post #20

Earlier quoted context omitted.

If you like absurdity, FTX has recovered 7.3 billion out of the 8.6 billion hole and plans on relaunching the exchange to make the last billions back in fees Most noteworthy is that this quick 8 month turnaround is partially thanks to the blockchain, and under no new laws being passed

How is any of this partially thanks to the blockchain?

because the clawbacks are easier to track through multiple hops, even when the initial recipient had already done other things with the funds

Re: Bank Failures Visualized

#160

Post by Scoundreller »

Night_Thastus wrote: post #39
photochemsyn wrote: post #28

Community-scale banks (aka credit unions) are a better idea for local-regional communities (aka cities and towns and agricultural regions) because their managers have to live with their clients. Take a community of 100,000 families, in an economic system where they're all collecting income and paying bills and so on. The idea behind a bank is that they hold the community's money securely while making their own money…

I've always used a credit union, and I love it! I can easily get a real person in front of me, there's not a million layers of bureaucracy, and most importantly - no bullshit fees . I don't constantly get my bank drained just for having an account in the first place.

To join mine, I bought a $5 share (as a minor) and continue to get a $5 dividend many many years later (but I gotta close the account to get the accrued dividends...).

I gotta go to the AGM one day. I hear it's catered.

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