Goldilocks and Seeds of Wisdom
Thank you RJ
RJ: Good afternoon Dinar Recaps,
Goldilocks posted the following comment:
Banks not ready for this transition may find themselves being bought out by larger Bank institutions who are.
Remember, we talked about this over a year ago as possibly happening for banks struggling to make the transition into the new digital economy.
Everything is falling apart. At the same time, it is falling into place.
RJ: Goldilocks posted the following:
Harry Wilson Finance Reporter
HSBC’s getting a bank with loans of around £5.5 billion and deposits of about £6.7 billion. SVB UK posted a profit of £88 million before taxes last year, according to the statement.
Russell Ward Asia Finance Editor
The UK government has announced that Silicon Valley Bank’s British arm has been sold to HSBC. The Treasury said in a statement today:
“Customers of SVB UK will be able to access their deposits and banking services as normal from today.”
The transaction was facilitated by the Bank of England and the Treasury, and no taxpayer money was involved, the statement said.
Alex Wickham Government Reporter
Let’s catch up on what has been happening in the wake of the collapse of Silicon Valley Bank, including the impact on markets:
The Fed, the Treasury and the FDIC said all depositors’ money is safe and set up a new Fed lending program with funds from the Treasury.
The Fed is “prepared to address any liquidity pressure that may arise” and is creating a new “Bank Term Funding Program” offering loans to depository institutions that pledge assets “valued at par”
Signature Bank was closed by New York state financial regulators on Sunday. An auction of SVB assets got underway as the FDIC attempts to fully recover clients’ uninsured deposits and make initial payouts as soon as Monday US time. Some buying interest has emerged globally for SVB assets
HSBC acquires SVB UK for £1. British Prime Minister Rishi Sunak said the UK financial system is “sound” and authorities will have more to say soon. “I’ve been working with the chancellor all weekend and indeed on the plane flight over, talking with the Bank of England and our regulators about finding the best solution”
Still, Goldman Sachs said it no longer expects the Fed to hike rates this month. DoubleLine Capital CIO Jeffrey Gundlach tweeted the steepening US Treasury yield curve “is highly suggestive of imminent recession” and said the only way for the Fed to backstop the system is to “print money”
Pershing Square founder Bill Ackman praised the action by the Fed, FDIC and Treasury, saying it ensured depositor confidence in banks. “The investors who didn’t adequately oversee their banks will be zeroed out and the bondholders will suffer a similar fate”
Several Asian regulators said they are monitoring the situation, while downplaying SVB’s impact on the region. The US dollar weakened against its major peers. Nasdaq futures gained Asian stocks recovered from early declines. US 2-year Treasury yields tumbled
From Gipper’s News Reader
RJ: Goldilocks posted the following comment:
Yes, the reset of the banking system is underway.
RJ: Goldilocks posted 3 articles followed by a comment:
HUGE: THE US GOVT SAYS IT WILL BACK SILICON VALLEY BANK CUSTOMER DEPOSITS
Yellen approved actions enabling the FDIC to complete its resolution of SVB in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13.
Similar efforts would be made to ameliorate customer losses from the downfall of Signature Bank, which was closed on Sunday by NY state authorities.
Not everyone would have their funds protected, however. “Shareholders and certain unsecured debtholders will not be protected. Senior mgmt has also been removed.
Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law,” the statement read.
The Fed will also “make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.”
OUTRAGEOUS: Silicon Valley Bank Provided Massive Amounts of Capital to Chinese Tech Ventures – Now Biden FDIC and Federal Reverse Are Bailing It Out – Clearly Biden Is Working for China
Silver could be the new oil… but we don’t have enough of it
There is a bigger picture here that most cannot see.
Let’s try to remain open to what’s going on in designing the New Global Economy.
Things are not always as they appear. “Where we go one we go all.”
It is taking an entire Global Nation to pull this reset off.
Goldilocks’ Telegram Room
Goldilocks on the Seeds of Wisdom Team Website
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