(EDITOR’S NOTE: Orange-linked text is clickable for additional information.)
"Silicon Valley Bank has been closed by regulators, which have taken control of the bank’s deposits, the Federal Deposit Insurance Corp. announced Friday.
The California Department of Financial protection and Innovation closed SVB, and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.
The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB’s branch offices will also reopen at that time, under the control of the regulator.
The FDIC’s standard insurance covers up to $250,000 per depositor, per bank. It is unclear exactly how larger accounts or credit lines for companies will be impacted by the closure. The FDIC said it will pay uninsured depositors an advanced dividend within the next week.
The move represents a rapid downfall for SVB. On Wednesday, the bank announced that it was looking to raise more than $2 billion in additional capital after suffering a $1.8 billion loss on asset sales."
'The ninth-best performer to date has been SVB Financial (the bank’s parent company). Don’t yawn,' Cramer told viewers during a Feb. 8 episode of 'Mad Money.'
Cramer listed SVB Financial among his 'biggest winners of 2023 … so far' alongside blue-chip stocks such as Meta, Tesla, Warner Bros. Discovery, and Norwegian Cruise Line.
'This company is a merchant bank with a deposit base that Wall Street has mistakenly been concerned by,' Cramer said in the clip.
Cramer touted the fact that the bank was 'less dependent upon private equity and venture capital offerings.'
He said the stock was the “fourth-worst performer of 2022” though it was worth buying because “being a banker to these immense pools of capital has always been a very good business.”
The House on Friday passed a bill to require the director of national intelligence to declassify information on the origins of Covid, sending it to President Joe Biden's desk.
The bill, which would declassify information about the virus's origins and any information linking it to a Chinese lab, passed the House unanimously, 419-0, with 16 members not voting. The Senate passed the measure by unanimous consent last week.
The passage of the bill, titled the Covid–19 Origin Act of 2023, comes after it was revealed that the U.S. Energy Department had concluded with 'low confidence' that the pandemic 'likely' originated from a laboratory leak in the Chinese city of Wuhan. That was according to a classified report delivered to key lawmakers on the House and the Senate Intelligence committees, two sources previously confirmed to NBC News.
FBI Director Chris Wray, meanwhile, said in a recent interview with Fox News that the 'FBI has for quite some time now assessed that the origins of the pandemic are most likely a potential lab incident in Wuhan.'”
“Not Quite What You Were Expecting” Friday, Ripped From The Headlines. Things To Ponder:
“Hey! You Didn’t Really Need That Money, Did You?”
If you had “major bank failure” in your betting squares for 2023, you’re a winner!
In case you haven’t heard, Silicon Valley Bank (“SVB”) the 16th largest bank in the US, was closed by regulators this morning, just 48 hours after they stated they were “a healthy bank…”
Here’s big issue number 1: 97.3 percent of all the deposits at Silicon Valley Bank are/were in excess of the $250,000 insurable threshold…
And big issue number 2: Much of “big tech” has/had money parked there…
Which leads to big issue number 3: Who’s getting paid back when?
Well, they are saying starting on Monday, but looking at this headline, we’re wondering what’s really going on:
“Boogeyman Alert - Shadow Banks Are Going To Get You!
Not really…
Well, not as bad as the big banks.
Interesting timing for this piece to be written… as the economy is in a death spiral (in large part thanks to big banks) and these major banks are technically insolvent, the regulations that the government “has in place” don’t really address the problem.
Wondering how that could be possible?
Click Here and see how the government took away ANY NEED FOR BANK RESERVES.
That means, if 100 of us all hit our local bank for cash at the same time… they ain’t got it.
Sounds SUPER safe, doesn’t it?”
Then, there’s the FDIC… the group that’s supposed to help you out when banks go bye-bye… they can only cover 1.38% of total deposits…
“Rich guys who run the banks hold your money for ransom say that it’s coming, we’re worried about us, and good luck to you, then they drop this nugget:
“The banks said that their customers continue to spend on discretionary items, including travel. Customers at the four banks collectively spent 10% more on their credit cards compared with a year ago.
They also stopped paying off the charges so quickly. Credit card balances rose a collective 17% at the four banks.”
Research tip: That last quote is a leading indicator of a problem. People are having to borrow to live… But, there’s a bigger problem…
It looks like the FDIC program really has no way to insure your deposits… and the banks don’t have any money either…
Surprise!
This video with Seth Holehouse of Man In America and Kirk Elliot breaks it all down in 30 minutes. Just click on it to watch it:
Then, there’s this:
THIS IS NOT FINANCIAL OR PROFESSIONAL ADVICE. PLEASE CONSULT A PROFESSIONAL:
We’d keep an eye on your bank accounts… and all of the banks right now…
Financial contagion happens at both the international level and the domestic level. At the domestic level, usually the failure of a domestic bank or financial intermediary triggers transmission when it defaults on interbank liabilities and sells assets in a fire sale, thereby undermining confidence in similar banks. An example of this phenomenon is the subsequent turmoil in the United Statesfinancial markets.[2]
Know. Your. Foe.
“And Then Came, Cramer…”
Yes, that’s Jim Cramer of CNBC… the “investment professional” who seems to have a knack for missing things…
A Lot.
So Jim, decided that Silicon Valley Bank was a great bet last month, and told people so… here’s a clip of him doing it:
Be REALLY careful who you listen to.
Enough said.
“Great News! We Know Where COVID Came From… And We Voted On It…”
Seriously though, why does it take an act of congress to find out where a “deadly contagion” came from, or to “declassify the records?”
Because someone doesn’t want something to get out…
In the newsroom, we’ve been wondering out loud what happens when it does get out to the public…
We don’t think people will take kindly to getting played… and having their lives decimated.
Here’s the crazy thing…
They are NOT SLOWING DOWN on these weird things with deadly contagions… we covered that fact earlier this week… Click Here to read it.
What does this mean?
The economy Your future is hanging in the balance… literally.
The people running things have no clue how to fix the problem… Even if they did, it’s too big to fix now.
They’ll be using any assets you have left in their hands (i.e.: pensions, 401k’s), and rob you blind to try and “fix” the problem.
You’ll be less wealthy, with fewer supplies, and less freedom to speak your mind.
Those aren’t good things.
Why should I care?
There’s so much to unpack…
Your wealth…
Your legacy…
Anything you plan to leave for future generations…
Getting the basics to live…
All of these things are teetering on the edge.
You should REALLY care.
What Should I Do?
Start thinking about the basics that people will need, and look at those things as potential avenues to protect yourself and as an investment.
Do you know why Berkshire Hathaway’s stock is so expensive?
They touch 90% of your life every day, and you don’t even realize it. That’s inflation/deflation/recession/depression insurance. You’ll still need toilet paper and toothpaste.
You should also tell as many people as you can about what’s happening. Don’t leave people behind, while we still have a window to help them.
A quick way to do that: Share this newsletter… heck, take from it, and do your own. We give you permission…
Take the time to learn more about Parallel Economies, and find alternatives to the things you use today… food, money, and transportation.
Share this email with everyone you know. Sign up for a free or paid subscription. Paid members will receive our in-depth solutions.
Ripped From The Headlines is your daily digest of what’s happening in the world. We help you to understand what it means, why you should care, and what you should do.
Have a tip on a story, case, or issue that needs to be covered? Email us: asksherloc@protonmail.com. Confidentially assured.
