Signature Bank
- Today Treasury Secretary Janet Yellen issued a statement on the USA Federal Reserve Bank Organization website, informing the public that in order to protect the US Banking system Silicon Valley Bank had been forced into receivership, a synonym for forced closure.
- This rare Sunday morning statement also stated that Signature Bank was also forced into receivership, i.e. closed, foir the same reasons.
- It's Sunday in the USA People!
- Bureacrats don't work on Sunday, this was obviously planned.
- I never heard of Signature Bank until last week when several Crypto Startup companies with millions of dollars of bank held assets announced they were moving their funds to Signature Bank.
- IRONICALLY, the week before Silcon Valley Bank closed Coinbase announced it was moving it's funds out of Silicon Valley Bank to Signature Bank in an Abundance of Caution.
- HILARIOUS
- In the words of the Comedian Dave Chapelle:
This shit is getting real.
- I am not a wearer of a Tin Foil Hat, but this rumored Operation Choke Hold is starting to look like much more then a rumor.
- The Federal Reserve Bank Website states that it's been 868 days since the last closure of a bank regulared by the Federal Reserve System, and now there have been three in one week!
- I know we have been exposed to a lot of failures in the cryptocurrency system, so we are numb to this, but banks within the Federal Reserve Sytem don't fail! The entire reason the Federal Reserve System exists is to tightly regulate banks, audit them frequently and PREVENT FAILURES!
- Hmmmm most reports say the historical rise in interest rates has caught many banks in a bind with millions of dollars worth of securities bought in a lower interest rate envirnment, now devalued due to the bond market devaluing them in light of higher interest rate securities, so the banks are selling them at a loss and applying to the Federal Reserve System to bail them out, i.e. give them money to replace the losses they made on those investments.
- The system has worked this way for generations, and only comes to light when the Press shines a light on it and calls it a bail out.
- But now it's complicated, the Federal Reserve has started forcing these banks to close instead.
- One might rightly wonder if this is a plot to close all the banks that offer banking services to these cryptocurrency related businesses.
- Admittantly the power of social media in encouraging people to remove their money from banks just like it encourages them to remove their money from failing centralized exchanges may play a part and demonstrably played a part in Silvergate' Banks failure, as well as perhaps Silicone Valley Bank, as a bank run creates asset losses on top of investment losses that may be to large for the Federal Reserve to bail these banks out.
- This is an amazing time to be interested in Finance because very boring subjects like balance sheets, investment losses, and bail outs are becoming more then theoretical concepts taught in a class room. These ideas have become real.
