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Thread: Silicon Valley Bank

  1. #31
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    Quote Originally Posted by LDAHL View Post
    That’s true. They lowered the threshold for “enhanced federal supervision” from $50 million to $250 billion of consolidated assets. SVB was around 210. Sen Warren is claiming that would have prevented the failure, but the reserve policies at SVB were so obviously bad, just normal reporting should have caught it. They were covering short term liabilities with long term assets.

    The midsize county government I worked for reported details on reserve securities maturities and marked to market data every quarter to monitor our solvency. We had nightly sweeps of excess funds into short term treasuries, collateral agreements, and other measures to handle bank risks. I have to wonder about the various corporate treasurers affected not using the many available tools to mitigate the risks of a bank failure. A bank deposit is essentially a loan, and it seems many of them weren’t doing their due diligence on a major counterparty.

    That sounds like government accounting, because that would be a raising anywhere else.

  2. #32
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    Quote Originally Posted by ToomuchStuff View Post
    That sounds like government accounting, because that would be a raising anywhere else.
    Should have said lowered.

  3. #33
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    Quote Originally Posted by LDAHL View Post
    Should have said lowered.
    You did!
    $250 Billion is more then $50 million.

  4. #34
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    Should have said raised. Or better yet, should have said nothing.

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