Silicon Valley Bank failed but what happen?

By
Managing Real Estate Broker with ERA American Real Estate

My opinion is going to be bias I will admit to what I have experienced in life just as anyone else in relation to investing and how I view the real estate market and investments my first investment exposure was when I was in elementary school just playing around with buying shares always checking the newspaper tickers page.

I really got into investing when I had my first company video game store at 16 and into my name at 18 just before the tech crash my first attempt was to buy the shovel they all said well I picked up the coax cable through corning GLW a 80% + decline this was with good buy ratings and featured constant with exposure on CNBC. That was my first exposure to watching and investing in the market with a freeze on credit to tech and tech related companies.

I have spent time reading on the topic of economics over the years I feel it has a relation to interest rates which impact real estate in turn is well established.  Double movement is what I think some people are asking for with their view on this topic with regards to banks and regulators right now.  

Bonds now valued at par the federal reserve came out to try to reassure people with deposits at their banks and to try to stop runs on banks this means they are allowing borrowing to banks for 20 and 30 year bonds who currently have losses that will be showing on their books for holding the bonds to cover risk I covered the topic here on why they need to borrow funds at some banks here  https://activerain.com/blogsview/5778117/the-collapse-of--sivb-silicon-valley-bank-financial-group 

The marble cards NFT posted as main pic on this post and the post above I created Marble Date 7/15/21.

If your not familiar with Glass Steagall act it was what formed out of the great depression where banks werent to enter into higher risk commercial side banking with deposit funds by consumer in a nutshell.

I watched last night before the Asia markets opened to see if they had a buyer with Silicon Valley Bank no one showed up so the FDIC came out before the market opened with this "Depositors will have access to all of their money starting March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer https://www.fdic.gov/news/press-releases/2023/pr23017.html

https://www.reuters.com/business/finance/us-fdic-corp-transfers-svb-deposits-new-bridge-bank-2023-03-13/ This one mentions the bridge bank setup so people can access their funds.

News has kept coming out one headline is that KPMG gave Silicion Valley Bank a clean audit report 14 days before it collapsed. They also gave Signature Bank a clear 11 days before. 

I am currently watching CNBC Jim Cramer who talked about SVB as a top 10 available in the market and gainers just in the last month on his show he said he got it wrong. 

https://www.bloomberg.com/news/articles/2023-03-10/svb-chief-sold-3-6-million-in-stock-days-before-bank-s-failure 

Its been mention when a bank says they need to do a capital raise its normal for a run on the bank to be possible. "Silicon Valley Bank shocked investors and depositors  last week by announcing a $2.25 billion capital raise to stabilize its balance sheet. " -Forbes editor pic with headline : Silicon Valley Bank Proxy Shows Board's Secret Yearlong Risk Panic.

Keep in mind Forbes awarded SVB with "Top Women Wealth Advisors, Best-In-State 2023

Top Next-Gen Wealth Advisors, 2022

Top Next-Gen Wealth Advisors, Best-In-State, 2022

Silicon Valley Bank or someone now have deleted some of their socials but that's something about the internet you can normally find anything that was posted for a period of time and when you are impacted the tech sector they will likely have saved most to the internet archive machines like this one of now deleted Twitter  https://web.archive.org/web/20230127222705/https://twitter.com/SVBPrivate 

I should note I follow a decent amount of announcers over the years on CNBC so when Stephanie Link was asked how was Shannon Saccocia a CNBC contributor I had to take a look and her Twitter profile reads "Chief Investment Officer, @SVBPrivate @ CNBC Contributor. Dreaming is free"

22 of 23 of the analyst as of last Wednesday had a buy rating on the now failed bank.

 

 

Posted by

Brandon Jordan, Realtor,E-PRO,ERA American Real Estate
 

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Brandon Jordan 
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ERA American Real Estate
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