Money Sense

[DKG]

The Fed had four consecutive jumbo sized 75-basis-point hikes. The smart money is on the Fed hiking interest rates a half percentage point at their next meeting March 21 and 22.

In addition to this the jobs numbers for February come out today. Anthing above three hundred thousand new jobs last month will mean a higher than expected interest rate hike.

[DKG]

Major stock indexes fell on Thursday as shares of banks across the US collapsed following a stark warning from one of Silicon Valley's biggest lenders, which said it hopes to raise billions of dollars to help shore up cash during the challenging economy—adding to industry concerns stoked by the collapse of crypto bank Silvergate and the threat of rising interest rates.



Though it surged in early trading, the Dow Jones industrial average fell 543 points, or 1.7%, to less than 32,255 on Thursday, as the S&P 500 and tech-heavy Nasdaq shed 1.8% and 2.1%, respectively.



Dragging down sentiment throughout the day, Silicon Valley-based startup lender SVB Financial said it sold $21 billion of its securities portfolio and hopes to raise nearly $2.3 billion to help bolster its financial position amid a "very challenging" market and interest rate environment that has led to lower customer deposits—an announcement that pushed shares down a staggering 60%.

[DKG]

U.S. stocks got smoked on Friday after a crucial jobs report came in warmer than expected and jitters over the stunning failure of Silicon Valley Bank (SIVB) rattled investors.



The S&P 500 (^GSPC) plunged 1.4%, while the Dow Jones Industrial Average (^DJI) declined by 1.1%. Contracts with the technology-heavy Nasdaq Composite (^IXIC) slid by 1.8%. The plunges Friday added to a brutal week for Wall Street. All three indexes had their worst weeks since at least November.



Bond yields fell. The yield on the benchmark 10-year U.S. Treasury note down to 3.68% Friday.

[DKG]

Treasury Secretary Janet Yellen announced Sunday that the federal government wouldn't bail out the now-collapsed Silicon Valley Bank (SVB) but said it will work to aid depositors who are worried about their money.

[DKG]

U.S. regulators on Sunday announced they were intervening to close Signature Bank, marking the second U.S. bank to fail days apart and the third-largest bank failure in U.S. history.



The bank has been placed into receivership under the Fed's emergency lending authority, the Federal Deposit Insurance Corporation (FDIC).



According to a December 2022 securities filing, N.Y.-based Signature Bank held more than $110 billion in assets and some of the biggest stakes among banks in the nation in the cryptocurrency industry.



Meanwhile, shares of First Republic Bank plunged more than 60 percent in premarket trading on March 13, despite the lender reassuring customers that their deposits are safe amid concerns surrounding the collapse of Silicon Valley Bank (SVB) and Signature Bank. It has over $176 billion in deposits.

[Herman]

Figures, Jim Crow Joe is blaming his predecessor for another disaster on his watch.



https://www.theblaze.com/news/barney-frank-reacts-2018-regulation-rollback?utm_source=theblaze-breaking&utm_medium=email&utm_campaign=20230314Trending-SquiresNoFaAm&utm_term=ACTIVE%20LIST%20-%20TheBlaze%20Breaking%20News">https://www.theblaze.com/news/barney-fr ... ing%20News">https://www.theblaze.com/news/barney-frank-reacts-2018-regulation-rollback?utm_source=theblaze-breaking&utm_medium=email&utm_campaign=20230314Trending-SquiresNoFaAm&utm_term=ACTIVE%20LIST%20-%20TheBlaze%20Breaking%20News

Democrats, including President Joe Biden and Sen. Elizabeth Warren (D-Mass.), are blaming Donald Trump for the sudden collapse of two banks, Silicon Valley Bank and Signature Bank.



But Barney Frank, a leading sponsor of the Dodd-Frank Act, sharply disagrees.



The law, signed by then-President Barack Obama in 2010, made significant changes to Wall Street regulations and federal financial regulatory agencies in the aftermath of the financial meltdown in 2008. The bill, though controversial, was theoretically designed to protect Americans.



What are the accusations?

Democrats say Trump is responsible because he signed a law rolling back some of the regulations enacted by the Dodd-Frank Act.



Biden: "During the Obama-Biden administration, we put in place tough requirements ... to make sure the crisis we saw in 2008 would not happen again. Unfortunately, the last administration rolled back some of these requirements."

Warren: "In 2018, the big banks won. With support from both parties, President Donald Trump signed a law to roll back critical parts of Dodd-Frank regulations."

It's true that Trump signed that law. But what Biden and Warren failed to mention is that rolling back the regulations had widespread bipartisan support. In fact, 17 Senate Democrats and 33 House Democrats supported the bill, demonstrating that it was hardly a one-sided effort.



"I don't think that had any impact," Frank said. "They hadn't stopped examining banks."



Frank is no partial analyst. After all, he sat on the board of the New York-based Signature Bank until Sunday when it was shut down. But his perspective is strengthened by the fact that he does not believe the rollback of regulations he helped craft contributed to the rapid downfall of Silicon Valley Bank and Signature Bank.



Frank, who served on Signature's board since 2015, said his bank was in "good shape" but was hit with a run generated by "the nervousness and beyond nervousness from SVB and crypto." The bank's digital assets business made it the "unfortunate victim of the panic that really goes back to FTX," the cryptocurrency exchange that failed last year.

"I think, if it hadn't been for FTX and the extreme nervousness about crypto, that this wouldn't have happened — even to SVB or to us," Frank explained. "And that wasn't something that could have been anticipated by regulators."



Frank reiterated his feelings about the 2018 rollback in an interview with the Wall Street Journal.



What is Frank saying?

In an interview with Politico, Frank said he doesn't think the 2018 rollback had any impact on the failure of the banks.

[Thiel]

Barney Frank is one hudred percent right. The 2018 changes to the Dodd-Frank act which a lot of senate Democrats supported, would not have stopped SVB's demise. It was too reliant on one sector-high tech startups.

[DKG]

The Dow is down 600 this morning. The Nasdaq without financials listed is down 200. Credit Suisse in Europe is in trouble, although I don't have details.



Things have really changed in the past week. We were expecting the Fed to raise rates a half point on March 22. They might not touch rates.

[Lokmar]

I should probably cash out my 401K and pay the house off and start over. I'd be money ahead compared to what I'll lose soon.

[DKG]

The big US banks are as secure as Canadian banks.

[Herman]

Dang, it is global banking turmoil now.

[DKG]

In the previous financial crisis, the nation's biggest banks were the villains. This time, they may be the heroes.



Wall Street titans whose actions once angered voters on the right and left have become safe havens for anxious Americans and a source of financial backing for wounded institutions.



Tens of billions of dollars in deposits have flowed into the coffers of giant banks such as JPMorgan Chase and Bank of America following the panic surrounding the March 10 failure of Silicon Valley Bank, industry executives said.



Consumers and businesses spooked by the abrupt collapse of a bank with more than $200 billion in assets are fleeing to the perceived safety of the mammoth institutions that sparked populist outrage with their risky behavior before the 2008 crisis.

[Anonymous]

Dang, it is global banking turmoil now.

Gold and Silver are doing well at the moment. Gold is too high to purchase today. I wouldn't  put another dime into a bank. I've always had a nice silver collection and bought lots of  Gold during the pandemic. To me holding Gold is like a trade that is marketable anywhere in the world.

[DKG]

What is seamoron doing in my thread.

[Anonymous]

What is seamoron doing in my thread.