- May 22, 2004
- Favorite Player
10 years of FIF
Rumours of a UBS takeover have been wild since the morning.And the SNB gave CS 50 bio last night.... Not as a rescue package but to shore up liquidity.....
WHat have i told you guys snb cannot afford CS to go bust, especially not unorderly.
Those rumoura have calmed down a lot in switzerland.... ..Rumours of a UBS takeover have been wild since the morning.
Any news from the front?
It's not like SVB was exempt from stress testing. Based on the assets they have, their bank gets stressed tested once every two years - even with the Dodd Frank rollbacks. Are we even sure another stress test would have caught this? It clearly didn't catch it last time they were stressed tested.Trying to catch up a bit on this ...
I think I am mostly on board with @Adriano@10 and @brehme1989
Yea, it is fucked up; there is nothing "systemic risk" about SVB and CS, except for bond market thing (and technically they should have adverse measure in place, stress test for political risk, the ripple effects etc.) ; but the true cause of the insolvent, deposit flight, is due to a very diversifiable source. (Most of the depositors are start ups/tech) Also as mentioned before a poor A-L duration matching management. CS is even more fucked up, the more I read about it.
Like how could regulations make it worse, Dodd-Frank Act was actually rolled back, I am pro-regulation. Especially in this kinda environment. Crazy libertarians always think the market is efficient, and like if there is no regulators then people will choose wisely where to deposit their money, and make sure the bank is responsible and all that shit. Like really, are we all supposed to be expert in all kinds shit like airline safety, medical knowledge to choose which doctor or airline etc. If so I would be flying my plane and prescribed my own drugs.
And fuck this bailout shit, privatized profit and socialize lost at its finest, even for the business depositors I mean it is poor business management for them too.
Definitely nothing like the 08 though.
I think @Adriano@10 captures most of it anyway, some of my stuffs are kinda repeating but man I share the anger.
Yes and no, they clearly fell under the 250 bio treshold so they were exempt from many of the harsher dodd frank regulations.... One could argue that the fed could have still intervened but we all know thats not how regulators work....It's not like SVB was exempt from stress testing. Based on the assets they have, their bank gets stressed tested once every two years - even with the Dodd Frank rollbacks. Are we even sure another stress test would have caught this? It clearly didn't catch it last time they were stressed tested.
I'm fine with stress testing them more. Do it twice a year. Unless the actual regulation and supervision improves, nothing will change.
I wonder if people who write this understand banking? Like what the fuck did he expect yellen to say? She cannot say we have a problem with X and y bank unless the fdic has already stepped in cause the moment she says this there s a fucken bank run and the Bank is toast... But sure go ahead and blame her for not telling the truth...
Yes like i said in my last post things changed quite fast and it looks like the SNB wants the UBS to take the CS as in i guess they dont want retail banking arm of CS to fall to a foreign entity and within Switzerland only UBS can take up CS..
Its only when thr tide goes that you realise who has been swimming naked.
I dunno how tf u calm markets with bullshit lik3 this if anything jm terrified now