Silicon Valley Bank / Rippling

[ClonerJams]

Some online banks are offering even higher rates for high yield savings accounts right now; good time for you to take advantage. Just make sure they're FDIC insured.

 

[simply1]

Things sure change fast, banks have been offering pretty low interest rates because they didn’t really need the deposits.

 

[Dr.bannedman]

easy swing on banks today from early lows

 

[flycy]

Resurrecting this thread since the other has gone off the rails into a **** waging contest about who knows more about banking.

Another informative piece about the events and what now. Keep in mind, he is a VC, so he does have some bias, but I've followed him for some time and he is generally reasonable with his opinions.

https://continuations.com/post/711778254532575232/the-banking-crisis-more-kicking-the-can

He does hit the nail on the head with fractional banking being the cause (along with fiat currency), and like 2008 and every time before the taxpayer will end up footing the bill through debt and inflation when another private bank, the fed, "creates" liquidity. The only way things will ever change is if banks are allowed to fail. Bigger banks have always been bailed out with the excuse the little guy will be hurt if they aren't bailed out. Whereas that is somewhat true, big money gains by far the most from the bail outs and the system marches on unchanged.

This is just the start, they've quelled the panic for now, but these two banks are not outliers.

 

[somecyguy]

He does hit the nail on the head with fractional banking being the cause (along with fiat currency), and like 2008 and every time before the taxpayer will end up footing the bill through debt and inflation when another private bank, the fed, "creates" liquidity. The only way things will ever change is if banks are allowed to fail. Bigger banks have always been bailed out with the excuse the little guy will be hurt if they aren't bailed out. Whereas that is somewhat true, big money gains by far the most from the bail outs and the system marches on unchanged.

This is just the start, they've quelled the panic for now, but these two banks are not outliers.

Absolutely right. But no politician will have the backbone to say 'it's ok to fail'. In a matter of 3 days Yellen went from 'we aren't doing that again' to 'we're covering everyone'.

So now the precedent has been set, which of course is going to encourage even more risk taking. It's a bad situation.

But the other eventual end result is that the Big4 are going to continue to get bigger and bigger, either through cheap buyouts of distressed banks or directly through transfers of deposits from regional banks to them. As I posted earlier, BoA picked up $19 billion in additional deposits over the weekend.