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Bank Failures Visualized

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Re: Bank Failures Visualized

#31

Post by fragsworth »

thehumanmeat wrote: post #2

That needs to go back to the 80s to capture the SnL crisis. It dwarfs 08 in bank failures. It better indicates the conglomeration of the many banks into the few we have today.

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 few months to a year? Or was it a sweet 0% loan for...ever? The important details are lost in the media reports and it would be nice to get a sense for what really happened.

Re: Bank Failures Visualized

#32

Post by senectus1 »

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

wth?

you got a good link for this? I stopped paying attention a while ago

Re: Bank Failures Visualized

#33

Post by rrrrrrrrrrrryan »

FormerBandmate wrote: post #7
thehumanmeat wrote: post #2

That needs to go back to the 80s to capture the SnL crisis. It dwarfs 08 in bank failures. It better indicates the conglomeration of the many banks into the few we have today.

08 was artificially low because many banks got merged at a fire sale. Wachovia, Merrill Lynch, Bear Stearns, and National City stick out. Other financial institutions got essentially nationalized and stock became mostly worthless like Citi and AIG, although the government sold most of their stock in 2011 Credit Suisse is about the same size as SVB, Signature Bank, and First Republic combined but it got “acquired” by…

It depends on what we're trying to visualize. From an investor's perspective, a bank whose assets get sold for pennies on the dollar in a fire sale is essentially a failure. Lehmann Brothers was also a massive (investment) bank failure with huge second order effects on the economy.

This graphic seems to be modeling things from a taxpayer perspective. These banks failed and the government needed to step in to do something to ensure people could get their deposits.

Re: Bank Failures Visualized

#34

Post by peter303 »

rr808 wrote: post #23
thehumanmeat wrote: post #2

That needs to go back to the 80s to capture the SnL crisis. It dwarfs 08 in bank failures. It better indicates the conglomeration of the many banks into the few we have today.

> conglomeration of the many banks into the few we have today There are still thousands of banks in the USA. I dont really see why there should be more than 100. Canada has 5 big ones and a few dozen tiny ones. Same in UK and Australia.

Deposit banks were banned from crossing state lines and investing in equities markets after the Great Depression. These limitations were removed in the 1990s.

Re: Bank Failures Visualized

#35

Post by readthenotes1 »

senectus1 wrote: post #32
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

wth? you got a good link for this? I stopped paying attention a while ago

[dead]

Re: Bank Failures Visualized

#36

Post by Mistletoe »

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

Are you sure about that $7.3 billion? Last I checked, SBF was counting illiquid nonsense like Serum and MAPS tokens in that number.

Re: Bank Failures Visualized

#37

Post by krona »

steve_adams_86 wrote: post #22

Are there no small failures this time around because of ongoing consolidation? This seems to be a dominant trend in economics across the board. Does anyone have a good answer why?

The trend is a form of preferential attachment. https://en.wikipedia.org/wiki/Preferential_attachment

Re: Bank Failures Visualized

#38

Post by edrxty »

themagician wrote: post #10
thehumanmeat wrote: post #2

That needs to go back to the 80s to capture the SnL crisis. It dwarfs 08 in bank failures. It better indicates the conglomeration of the many banks into the few we have today.

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…

This may be my favorite all time HN comment.

I totally buy it too.

Re: Bank Failures Visualized

#39

Post by Night_Thastus »

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.

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