There was a buyer of assets of the bankrupt American bank Silicon Valley

History with the collapsed on March 10, 2023, the American bank Silicon Valley Bank continues. It became known that there was a buyer for the assets of a bankrupt financial institution.

The American banking holding First-Citizens Bank & Trust Company has expressed a desire to acquire the assets of Silicon Valley Bank. The information is confirmed in the press release of the holding on its official website. First-Citizens Bank already has considerable experience in buying bankrupt banks - it has more than 20 credit institutions on its account.

The US Federal Agency (FDIC) will also become the owner of a part of the assets of the collapsed bank. According to some reports, First-Citizens is acquiring $72 billion in bank loans and $56 billion in deposits. The remaining assets of Silicon Valley Bank will go to the FDIC.

According to information released by First-Citizens, starting today, 17 US branches of Silicon Valley Bank will operate as divisions of First Citizens Bank. This bank is the 30th in terms of assets in the US. Recall that Silicon Valley Bank was 16th in the list of the largest US banks.

Silicon Valley Bank has become the largest bank to fail since 2008.

Washington called the deal a positive moment, especially against the background of the fact that insurers promise to continue working with the bank in its new jurisdiction.

Comments

[Uncle lee]

Previously, enterprises worked - they produced products! And now only banks are working - they issue papers! And from the collapse of a bank of papers will not decrease!
Kozma Prutkov, financier. Thought number 13.

[Gnefredov]

There used to be non-capitalist countries. Many non-capitalist countries. And there were aborigines who could be robbed for colored beads. Now the aborigines have ended and non-capitalist countries and everyone wanted to live well. So the bright city on the hill has to boil in its own fanatics.

They do it wrong. It is better to release an unmeasured amount of toilet paper for the future, otherwise it will end unexpectedly, as cans end. Toilet paper will come in handy then!

[Sarmat Sanych]

Foreign clients began to "endure" in the literal sense of the word European and American banks. They do not yet impose restrictions on the possibility of withdrawing funds from accounts, fearing that this measure will only increase panic in the market and provoke a domino effect.

However, the volume of funds already withdrawn turned out to be so significant that it forced the leadership of the central banks of Europe, Great Britain, Japan, Switzerland and Canada to apply for emergency assistance from the US Federal Reserve in order to replenish the necessary cash reserve to maintain normal bank stability indicators.

This news only indicates that the central banks of Western countries no longer entertain illusions and do not hope for an influx of rich clients from Asia and the Middle East.

Earlier it was reported that Asian and Middle Eastern clients are rapidly transferring their capital to Chinese banks.

This led to the fact that only in the last 2 weeks the banking system of the USA, Europe and Japan has lost up to 20% of the market value in total.

I note that the outflow of capital from the European banking system began in the middle of last year after European central banks froze the assets of Russian clients and the state.

According to Deutsche Bank AG, over the past 6 months, the outflow of capital from the European banking system has reached $83 billion. These are record numbers for the last 15 years. That is, since the financial crisis of 2008, which temporarily undermined confidence in the international banking system.

At that time, this trust was quickly restored by pumping banks with unsecured cash. The distribution of free money in 2008 became possible due to near-zero inflation, cheap energy resources and the absence of any problems with the supply of fuel and food on the world market.

At that time, the world did not yet know the number of sanctions restrictions that Western officials have now adopted to confront Russia.

However, despite the fact that the conditions of 2023 in the global economy are significantly different from those of 2008, the collective West has decided to fight the current banking crisis with the same means as before.

Over the past week, the US Federal Reserve has allocated $300 billion to Western central banks to fill the liquidity gap. It is clear that pumping Western banks with excess printed dollars will lead to a further increase in inflation in all countries that have turned to the American monetary authorities for help.

[tralflot1832]

The results of the transaction will not be visible immediately, maybe this is not the right option.

[Eugene-Eugene]

what result? The Fed will cover everyone with emissions even without treasuries, it’s just that new grandmas will inflate the bubble, and this will not give inflation, since the funds will not go beyond the banking sector ... They sponsor themselves, they thank themselves for this

[Sarmat Sanych]

tralflot1832, there are no "transaction results" either "immediately" or "after", the doctor said to the morgue - that means to the morgue.
The geopolitical and financial and economic events of recent years have led to a significant fragmentation of global cash flows. During the 2008 crisis, the world was very connected, which led to the fact that the problems in the US and European financial markets spread around the world, especially affecting emerging markets. Any instability in world markets led to the fact that the national currency of developing countries, stocks and bonds went to the bottom due to high integration into the global capital market, low capacity and liquidity of national markets. The degree of integration was very high. The capital market, in essence, was available only in Western markets (dollars, euros, pounds, yen, francs, etc.).
Funding was mainly in dollars and euros, and at all levels (business lending, placement of bonds of national issuers), direct and portfolio investments.
For 15 years the world has changed, and the role of national markets is growing, as well as funding in national currencies.
Here is a curious moment: the banking crisis in the US and Europe in 2023 has a very weak impact on emerging markets, and the shares of banks in Russia, China and Turkey even rose over the month (in dollar terms, taking into account changes in the national exchange rate)! According to our own calculations, on February 20, the capitalization of all world banks available for open trading was a little more than $ 10 trillion, and by mid-March 2023 (now even less) $ 9.1 trillion - the strongest drop since March 2020, where the US is minus 17% (as of March 27 much more), the UK and Japan minus 12% (now also more collapse), France minus 16% (similar), Italy minus 14%, Switzerland minus 19%.
At the same time, China plus 2% (less on March 27). Russia plus 21%!!!. Other emerging markets are strong: India, Saudi Arabia, UAE and South Africa are down 5%, and Indonesia, Malaysia, Vietnam and Thailand are down 4%. Brazil and Mexico stand out negatively with 8-9% losses, but twice as good as developed markets.
It was also unimaginable in 2008-2015, when emerging markets fell more than developed ones. The world is changing.

Fronts:
In just one week, Americans withdrew more than $100 billion from US bank accounts, according to the Fed.
A new study shows that 190 Western banks could fail if half of uninsured depositors withdraw their money.
Small US banks have a whopping $2,3 trillion in commercial real estate debt.
Now the focus is on Europe's biggest lender Deutsche Bank, whose shares fell more than 15% last Friday as the value of collateral against a default on its debt soared.
The new contender for the US banking collapse is PacWest Bank, $PACW, its current situation:
At least 20% of deposits withdrawn since January
1,4 billion secured funding mechanism
Borrowed 3,7 billion from FHLBs
Borrowed 10,5 billion from the Fed
Borrowed 2,1 billion from BTFP
4,9 billion deposits withdrawn from the venture investment segment
Stocks dropped 60% in 2 weeks
PacWest's total deposits are $27 billion, down from $9 billion as of March 33,2.
35% of bank deposits are not insured.
And how is he holding up?
The Central Bank of the Russian Federation increased the volume of gold in reserves by more than 1 million ounces over the year - INTERFAX The Bank of Russia resumed disclosing the volume of monetary gold in the composition of the RF gold reserves, at the beginning of March it amounted to 75 million ounces (2,34 thousand tons) for $138 billion.
Last week, 11 banks placed $30 billion worth of deposits with First Republic in an effort to restore depositor confidence in the financial company. Depositors withdrew $70 billion of funds from the bank after the news of the closure of Silicon Valley Bank. The total losses of American banks already exceed $650 billion. Experts unanimously: "if people get scared now and take money from banks, this will lead to the financial collapse of the entire system."
On March 20, the maximum activity of private investors since the beginning of 2023 was recorded on the Moscow exchange stock market. 1,1 million private investors concluded transactions during the day. For comparison, the average daily number of active clients who closed deals in 2022 was 625 people.
For the third year in a row, supply in the US commercial real estate market is at a minimum, the collapse this year is already more than 40%, - CNN Business.
"Shares in the collapsed credit giant fell more than 60%, falling below the $3,2 billion paid to UBS Group AG, while UBS's own share price is down more than 8%"
"The Bank of Indonesia announced its preparation to replace VISA and MASTERCARD when introducing its own payment system"
"Kenya refuses to pay for oil in dollars"
The 42 million Americans receiving food stamps for the poor began receiving $90 a month vouchers in March instead of $235. The official reason for the decision is that the Biden administration is strengthening the economy.
- Dad, are you going to drink less now? - No, kids, now you will eat less.

ECB: We will raise the rate [and choke the banks] to fight inflation. ECB: We will bail out the banks and flood everything with fiat money, causing inflation.
*adjusting glasses* Here we have a classic case of schizophrenia, colleagues. You can also take a pill for diarrhea and a pill for constipation - and bet on who will win.

Shares of all banks in the US, Japan, the European Union, Canada, Switzerland and Britain collapsed to a record:
https://hodmysley.ru/akcii-zapadnyh-bankov-rekordno-obvalilis/
The largest American and world bank JP Morgan Chase has stopped issuing cash in some states.
Deutsche Bank is writing a will. Shares of BNP Paribas, Commerzbank and Societe Generale fell more than 10%. Trading in BNP Paribas shares has been suspended.
Another 186 US banks may fail - Wall Street Journal.
The amount of withdrawn deposits in the US as of mid-March exceeded $200 billion, the largest in history, and continues to grow. The huge amount of liquidity flowing out of the banks will lead to higher inflation, as a result, the American architects of monetary policy should look for other tools than playing with the interest rate to reduce the money supply.
"Buffett Discusses Banking Crisis With Biden Administration"
S&P has assigned a junk rating to First Republic Bank shares.
New data on US Treasuries has been released - as usual, I remind you, with a delay of one and a half months (i.e., the speech published in mid-March about changes for January 2023): China - threw off securities for $ 8 billion (it was 867, it became 859, less than $850 billion is expected in February), the Saudis significantly reduced investments (by 8.7 billion with 111 billion in total), Brazil (by 3.4 billion), etc.
Biden has already reassured the Americans and the shares of many banks have collapsed.
After the Swiss bank collapsed and the Swedish pension fund lost money, Deutsche Bank was on the verge of collapse, Ursula von Derlein decided to reassure the Europeans. In principle, as a gynecologist, she will explain what awaits the European banking system in the near future.
Investors are moving into precious metals.
The price of gold, silver and even copper climbed up. This is an indicator of systemic distrust in the dollar.
The funny thing about the current US banking crisis is that the market definitely does NOT see the dollar as a defensive asset. Traditionally (Washington taught the whole world to this for a long, long time, and with rather sadistic methods), everything worked quite the opposite: in any panic, in any problems, in any crisis (regardless of the genesis) - everyone had to run to buy bucks, and who does not buy bucks (for euros, yuan, rubles, tugriks) - that l @ x. Now, in response to the banking crisis, the dollar index - DXY - (the benchmark way of assessing "how strong the buck") - fell the Friday before last and fell even more the following Monday. The bucks also fell against gold and even bitcoin (although for the crypto industry, whose main banks are being shot one after another, this is little consolation). Significantly. And it speaks very clearly about what actions are expected from the Fed to stop the crisis (spoiler: "dollar fanatics" will not like them).
Foreign clients began to "endure" in the literal sense of the word European and American banks. They do not yet impose restrictions on the possibility of withdrawing funds from accounts, fearing that this measure will only increase panic in the market and provoke a domino effect. However, the volume of funds already withdrawn turned out to be so significant that it forced the leadership of the central banks of the West to seek emergency assistance from the Fed in order to replenish the necessary cash reserve to maintain normalized sustainability indicators. This news only indicates that the central banks of Western countries no longer entertain illusions and do not hope for an influx of rich clients from Asia and the Middle East. Earlier it was reported that Asian and Middle Eastern clients are rapidly transferring their capital to non-Western jurisdictions. This led to the fact that in the last 2 weeks alone, the banking system of the USA, Europe and Japan has lost a total of 20% of the market value. The outflow of capital from the European banking system began in the middle of last year after European central banks froze part of the assets of Russian clients and the state (albeit not found by 80%).
15.03.2023/XNUMX/XNUMX Liz Truss on the BBC: "The financial crisis will affect the whole world, but it will not particularly affect Russia, since all its large banks are practically withdrawn from the global financial system. This was done before my appointment as prime minister.
Boris Johnson with the leadership of the EU were the initiators of the withdrawal of Russian banks from the SWIFT system and other wrong actions. I have always been an opponent of such actions and knew how it could end. But they didn't listen to me....
Is it clear to you? Liza then turns out to be for Putin all the time drowning)))

[rocket757]

There was a buyer of assets of the bankrupt American bank Silicon Valley

. And what is wrong? By the standards of the stripes, that ruined bank is a small shadow of an average hand ...
They will carry out reorganization, redistribution of assets...
Who as a result will lose everything or a lot, again, clients / investors of a certain price group. Everything as usual.
Here's how things will go on, that's the question???
The causes of the crisis are somewhere out there, around the corner, which they don’t even know about, not something that would be known for sure.

[Sarmat Sanych]

rocket757, how long will you ignore reality? Read above for tralflot, immediately the brain will start working. The collapse of the Western financial system, and with it the industrial system, is a reality that is expected by none of the experts, they are trite underdeveloped managers.
Here's more to add:
Unprecedented events are taking place these days in the USA and Europe. American and European rating agencies are racing against each other to rewrite the ratings of American and European banks in the direction of deterioration.

In fact, these rating agencies are forced to state the obvious - the complete collapse of the US and EU banking system.

It is curious that back in early March, rating agencies Moody's and S&P assessed the condition of the Californian bank First Republic Bank (which at that time ranked 14th in terms of assets in the US) as financially stable (A-). Only after the problems of this bank became known to all people, even those far from viewing economic news, the rating of this bank was slightly worsened to investment grade (BB).

The detachment of the ratings of Western rating agencies from reality is proved by the simple fact that in just 2 days of news about financial difficulties, banks managed to hastily withdraw up to $40 billion from it.

However, clients of 3 other US banks that filed for bankruptcy last week were far less fortunate. They closed so quickly that they did not allow most customers to withdraw at least part of the funds stored in their accounts.

I note that the banking system of the US and Europe began to burst at the seams due to the fact that the monetary authorities began to aggressively raise interest rates to fight inflation.

After the financial crisis of 2008, American and European banks, in order to avoid a repetition of the negative scenario associated with the collapse of prices in the real estate market, leading to a decrease in the collateral value of housing, redirected most of the funds to purchase securities.

For several years, while the monetary authorities of the United States and Europe were printing unsecured money, this made a profit. Freshly printed cash went to the stock markets and resulted in a significant increase in the shares of American and European companies.

However, after the monetary authorities decided to suspend the operation of the printing press to reduce liquidity and reduce consumer demand, investors began to sell securities, which accelerated their collapse.

As a result, the market value of bank assets denominated in securities turned out to be lower than the funds spent on their acquisition. The outflow of large clients from Asia and the Middle East only exacerbated the situation in the banking industry of the GXNUMX countries.

[rocket757]

What's wrong?
A specific bank, of an average hand, could support it, but they didn’t do it directly ... after all, the sums there are not great, according to the striping authorities. Why did they do it this way and not otherwise???
I specifically wrote that we will look at the further development of events GENERALLY, because from what Uncle Joe claims to reality, there may be a gap the size of infinity ...
Time goes by and facts / events will be added up in one piggy bank ... and what will come of it, one can only guess.
By the way, the same people you spoke about so unflatteringly also note that events are heading in the direction that is for all countries that have been under the wing of Uncle Sam, they can bring them many, many problems.
However, everyone will have problems, and God forbid, if the most exceptional ones decide to do what they have done more than once.

[Sarmat Sanych]

The largest US and EU corporations are cutting hundreds of thousands of jobs due to losses: https://youtu.be/y0wyOBJFVp0
In the US, the collapse of the real estate market by 37%, the mortgage rate soared 3,5 times over the year:
https://youtu.be/dfSdz8MRonE
Now the situation in the US banking sector flies into a cycle of positive feedback from the following points:
1. Banks go negative to raise rates
2. People withdraw deposits
3. The Fed covers the missing money with a machine
4. Inflation is rising
5. The Fed is raising rates to deal with inflation.
And the only way to contain inflation when the rate is raised could only be the introduction of super-tight restrictions on the movement of money, which the United States will not be able to go through. The Fed must choose - either inflation or the banks are kirdyk. It is clear that he chose :)
The process in the US has begun. Naturally, at first, the completely exaggerated banks "fell" - all this crypt (the price of which is zero), all these start-ups (the price of which is zero, the IT business is collapsing in the USA - all the large hardware and software companies showed a minus + they fired a bunch of people). But the process is irreversible. There are no drivers for the economy, the infrastructure is worn out, the return of business from China is stupidly impossible (goods will start to cost 3 times more, which again will spur the crisis), energy policy is simply Achtung. Those really if you look - then in the States for a year they gave in + only companies living in the war - Lockheed and so on. But the whole problem is that these companies are self-contained. They are not public, the profit goes there - who needs it, and the state receives a penny from this. And the production of weapons for the US domestic market in a good way - does not affect at all. So - they will fall, without options and further. What economists have been talking about for a long time. Believers in "America Strong" kept joking - like, well, when - and so, right now, right before your eyes, gee)
This, according to classical theories, is reduced somewhere and added in parallel. But the financial cap has long been divorced from reality, the laws of conservation do not work in it, it is a chthonic void, where trillions arise from nowhere and, upon impact with reality, disappear into the nowhere that gave birth to them. And the reality of dough lovers from the air always bales on the head in the last act of the drama ...
“If we give our bookkeeping to an American economist with a Harvard degree, he will tell us that our United States has $1000 of tangible assets in the form of a door, and $10000 of financial assets in the form of bonds and deposits. That is, that the value of our total property has increased 110 times in a day. day to tear leaves from a notebook, instead of picking coconuts ”©

[rocket757]

Stripes is a large country and it has potential in various areas ... the question is who and how can use what is there ???
You can say different things about modern rulers/leaders, but there were hard times in the past, but there were leaders who managed to pursue a recovery policy...
Maybe now there will be a new Roosevelt ... now they are not visible, but what if! A person of a smaller scale is unlikely to be able to do as then.
If you look at the last ones / allies of striping in the geyrop .... Aloizovich was also engaged in restoring the power of Germany, he built autobahns and other things, various things, he collected the entire geyrop up to the wing ... but the end result was TERRIBLE, still have to remember with a shudder.
What can be concluded??? But there is no unequivocal answer, one most correct recipe, so that the world would suddenly recover and everything would become good and blessed!
We need to mind our own business, we have enough of them and ... then see the boom.

[aars]

First-Citizens is reportedly acquiring $72 billion in bank loans and $56 billion in deposits.

There is no information about the price of the deal.

[Prisoner]

What would you burn with her. This is very useful information.

[begemot20091]

Quote: Captive

What would you burn with her. This is very useful information.

exactly - information for all readers of VO. Here, everyone has a "high" economic education. Even me in the minibus, I pay in cash without taking out of the wide trousers .... hammocks with cards. Soon we will start to find out on the portal who from Dom-2 picked up Neisseria gonorrhoeae