I want to say this in not financial advice. I have previously written about the current events at the time of the silicon valley collapse https://activerain.com/blogsview/5778134/silicon-valley-bank-failed-but-what-happen-
What I would like to highlight from that blog post is this
"22 of 23 of the analyst as of last Wednesday had a buy rating on the now failed bank."
I like to see CNBC show the disclosures when analysts come on their shows with a breakdown of potential conflicts of interest of what stocks they may own, also good idea to highlight if they do any research papers for paid opinions for public traded companies.
There was another post the same day to break it down further on how I had seen what was happening.
https://activerain.com/blogsview/5778117/the-collapse-of--sivb-silicon-valley-bank-financial-group
I think worth pointing out from that post
"along with the SVB took full value on extended long term bonds before they actually matured. Ceo for 5/3 Bank talked about their bonds at fifth third are offered "available for sale" they also have lines of credit available etc Fifth third bank Timothy Spence today on CNBC called it "hide to maturity" which really stood out to me. This is saying without saying they were hiding their losses on their books."
The banks were given a bridge bank setup for deposits, as I understand it now banks are also allowed to value bonds as full maturity value
Fitch had a rating of stable on the bank as of Jan 2023 with an AA- rating overall.
https://www.sec.gov/news/press-release/2022-205
SEC Charges S&P Global Ratings with Conflict of Interest Violations
FOR IMMEDIATE RELEASE
2022-205
Washington D.C., Nov. 14, 2022 —
SEC Charges Ratings Agency with Failures in Connection with Ratings of CLO Combo Notes
ADMINISTRATIVE PROCEEDING "Under the trade name DBRS Morningstar"
File No. 3-20542
September 13, 2021
https://www.sec.gov/news/statement/lizarraga-statement-credit-ratings-060723
Ending SEC Reliance on Credit Ratings June 7, 2023
"As part of enacting comprehensive reforms to the credit ratings system, Congress, in the Dodd-Frank Wall Street Reform and Consumer Protection Act, directed all federal agencies to reduce reliance on and references to credit ratings in agency regulations. Today’s adoption is the Commission’s final step in fulfilling this Congressional mandate."
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