This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.Kate Linebaugh: And it's Sunday night and we are not watching the Oscars. We're watching a banking crisis unfold.
Kate Linebaugh: Silicon Valley Bank collapsed on Friday. Then on Sunday, the government took over another bank, Signature Bank and announced sweeping measures designed to steady the financial system. Kate Linebaugh: Silicon Valley Bank did business with well known tech companies like Roku and Roblox, as well as thousands of lesser known startups. And until recently, business was pretty good, especially during the pandemic.
Charles Farrell: Not good in that scenario means that you would have to accept a lower price. So if you paid 100 for it, somebody might only be willing to pay you 75 or 80 for it. Charles Farrell: Coming down. So the industry, all these startups are spending money. They are in the lingo, I'm told this is what they say in California, they are burning cash.Charles Farrell: So on Wednesday, March 8th after the market closed, Silicon Valley Bank said, we've had to sell $21 billion worth of all of these long-term bonds and we lost $2 billion on that sale. That's not very good.
Charles Farrell: Oh, it's not a good mood at all. I mean, there's not a lot you can get done without a bank. If you lose access to your bank, you can't make your payroll, you can't pay your vendors, you can't pay your Cloud software subscription, the like Tuesday, all office poke bowl thing that you have, you can't pay for that. So the bank is vital and central to business and to operations and to suddenly lose access to your money is really, really, really disturbing.
Charles Farrell: So this is acutely concerning for the government and for regulators. This is the thing that you really don't want to have happen in the banking system. You don't want to have this loss of trust.
charlesforelle Transitory.....
charlesforelle No all banks are vulnerable we bailed out the big banks not so long ago so the CEOs could get mega bonuses
charlesforelle How is this not a bank bail out as Biden regime said the customers at the closed banks, even those with balances above the federally insured limit, would get all their money back?
charlesforelle No need for me to LISTEN to any episode of your Journal podcast! I know CORRUPTION and GREED from many FINANCIAL INSTITUTIONS and OUR OWN LEFTIST GOVERNMENT led not only banks failures, also the collapse of our society AND THAT'S WHAT THE LEFT WANT AND YOU and BIDEN are obliging!
charlesforelle SVB BankRun Bailout “[LarrySummers], … has been tweeting up a storm this weekend, advocating for a complete bailout of Silicon Valley Bank, which collapsed on Friday after a bank run reportedly led by billionaire PeterThiel.
charlesforelle Well, our government (both Biden and Trump) spent way too much money, printed money to pay which caused inflation, raised rates to fight inflation, and this tanked the value of bonds. I want to know what SVB was thinking buying bonds 10+ years in duration
charlesforelle MeGain has a false ego. She thinks people want to hear her or see her. No one wants her around. She is fake and everything out of her mouth is a lie
charlesforelle The Biden government's struggle? Had Dante lived, government would have been the stuff of the Divine Comedy.
charlesforelle According to your opinion piece it is because 12 white men weren’t running it.
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