RE:RE:RE:RE:RE:RE:A long slogYa I heard about the SVB to HSBC transaction for a buck. That was done for the branch in the UK a couple of days ago. I don't think HSBC bought the rest of the SVB Bank
I'm not comparing the Bank stress tests of 2008 to current stress tests. Though that part of the US system leaves a lot to be disired. But now that you brought that up. This Trumpazz was a real azz during his presidency. Their lending Institutions are even more volitile today because of the removal of those stress tests. I was comparing the connection from the US Federal to the Fredie/May relationship. As of 2008, the Fed has become more proactive with the Fredie's/May relationship. And Insuring that the connection between them is stronger. I'm sure the Fed saw Canada's system of Housing Insurance & they tried to emulate the relationship between CMHC & Canadian Banks. The US Fed is a little lawless or detached when it come to Knowing what Freddie/May were doing. When they saw how the Canadian system wasn't affected by 2008 mortgage fiasco? I'm sure they envied our system.
If you will? Freddie/May is the Market Maker of the Banking Institution Mortgage Market. Where Freddy/May is the go between the Banks & Lending Institutions and the Fed. What I was saying is, is that the Feds had to get a bit more proactive in their relationship with Freddie/May for the simple reason of protecting against that kind of meltdown, through insuring that Freddie Mac & Fanny May do their stress test of future mortgages more carefully. I'm sure the Fed is way more hands on now with Freddie/May just for that 2008 reason. The Fed has to Insure that all Mortgage Holders mortgages are safe. So these SVB type insidents are better controlled going forward. That's exactly why we got Biden almost immediately jumping in, to tell depositholders & mortgage borrowers, that their savings are safe. If you noticed that when SVB went under, the Canadian Branch was taken oven over by the Can. Gov't & Freeland went public saying that Canada's Banking regulator took over the SVB Canadian Branch. Just so to give Canadians exposed to SVB comfort. As for Shareholders & Execs of SVB? Well they deserve what they get. They are the eyes of the Bank IMO.
clubhouse19 wrote: 859
In 2008 as part of the dodd frank bill the FDIC limit was raised to 250k due to the crisis then.
in 2018 Trumpass eliminated stress lmeasures for smaller banks like SVB and thus one of the reasons for SVB tanking.
Big difference between what went on in 2008 bailout with this one,
in 2008, shareholders and Execs were saved..
SVB shareholders have been gutted and all execs loat jobs while HSBC bought what was left for 1.00 .
I think you will get many more depositers now using multiple accounts to paut their cash into
BBDB859 wrote: I think you're right on this US Gov't support of their Banks tied to the Canadian Housing formula, Flamingo. Because in 2008 when they had that Financial meltdown the US had to tie their Financial system to the housing industry and that was done through all the headaches from the Fanny May & Freddie Mac's. They wanted that fiasco to never happen again. So they took a page out of the Canadian Handbook on deposit structures for Home buying &
Insuring the home Buyer's according to that deposit structure.
flamingogold wrote: I think what we just witnessed with the US banks is over, or more importantly, how the government will react to it. They just set a precedent... ie. they will protect depositors against losing their money. This was necessary to prevent further bank runs and a full on financial collapse. Critics have already come out saying this is not how capital markets are run. Maybe so, but just like Canadian housing, the US financial system is too big to fail.