Nostr Web Client

"Following generations of taxpayer support and government involvement, politicians, regulators, and lobbyists have supplanted the market in determining what counts as capital, how it is calculated, and how much is enough. This artificial mechanism has resulted in a decline of both the level and quality of capital among the world’s largest banks. As the regulators have supplanted the market in setting bank capital standards, they increasingly rely on ever more arcane and complicated methods to determine how much capital a bank should hold. They assign risk weighs to the different asset categories held by banks. In contrast, the absence of the largest banks having sufficient equity capital as they entered the Great Recession, required governments to infuse public funds into many of them. It will be at significant public cost if that lesson must be relearned should bank capital weaken."

BTCNews.Today 2y ago

Notable Tweets & Notes - Block 780875 / March 15, 2023

https://btcnews.today

#bitcoin

BTCNews.Today 2y ago

Banks are designed to fail – and they do

by @martinwolf_ / @FT

https://btcnews.today/2023-03-16/1227#1227

#bitcoin

"The fundamental lesson we have to relearn is that even in a modest crisis deposits cannot be sacrificed, and rules on haircuts for provision of liquidity will go out of the window. Banks are wards of the state partly because they are at the heart of the credit system, but even more because their deposit liabilities are so politically important. The marriage of risky and often illiquid assets with liabilities that have to be safe and liquid within undercapitalised, profit-seeking and bonus-paying institutions regulated by politically subservient and often incompetent public sectors is a calamity waiting to happen.

BTCNews.Today 2y ago

“From a source I trust: @SVB_Financial depositors will get ~50% on Mon/Tues and the balance based on realized value over the next 3-6 months. If this proves true, I expect there will be bank runs beginning Monday am at a large number of non-SIB banks. No company will take even a tiny chance of losing a dollar of deposits as there is no reward for this risk. Absent a systemwide @FDICgov deposit guarantee, more bank runs begin Monday am.”

- @BillAckman on Twitter

https://twitter.com/billackman/status/1634662286844411904

BTCNews.Today 2y ago

“Hearing rumors that the FDIC is blocking GSIBs from buying SVB on the grounds that it would create too much concentration with our largest banks. If true, they really need to understand that not finding a suitable buyer over the weekend will result in much greater concentration in GSIBs than letting one buy it, and this will happen across industries as businesses and people move balances out of smaller banks in fear the same thing will happen to them. Do the right thing. Protect deposit holders while you still can!”

- @DavidMarcus on Twitter

https://twitter.com/davidmarcus/status/1634622108893609984?s=12

BTCNews.Today 2y ago

Notable Tweets & Notes - Block 780243 / March 11, 2023

https://btcnews.today

#bitcoin

BTCNews.Today 2y ago

“To fund the redemptions, Silicon Valley Bank sold on Wednesday a $21 billion bond portfolio consisting mostly of U.S. Treasuries. The portfolio was yielding it an average 1.79%, far below the current 10-year Treasury yield of around 3.9%. This forced SVB to recognize a $1.8 billion loss, which it needed to fill through a capital raise.”

- Reuters

https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/

BTCNews.Today 2y ago

Fed Chair Powell Calls Crypto a Mess, Lays Out Concerns

- @pymnts

https://btcnews.today/2023-03-11/1208#1208

#bitcoin

BTCNews.Today 2y ago

Why Was There A Run On Silicon Valley Bank?

- Noah Smith / @Noahpinion

https://btcnews.today/2023-03-11/1209#1209

#bitcoin