Silicon Valley Bank (UK)

[AtW]

I'm not saying they won't be, I am saying they shouldn't be because they risked everything, even with risk managers at board level (), and there is a bigger threat if casino banking is underwritten by the Treasury. I really hope they are "fecked", but I highly doubt our current gov't has the presence/insight to see the long-term costs.

Treasury is ok with taxes from bank profits, they ought to be ok with bailing the depositors for small banks and full bailout for systemic, that should be the only difference really - both safe for deposits, this tulip finally shines the light how inadequate 85k guarantee is for businesses

[AtW]

apparently his muskiness is interested in helping. should make loads of people happy!

Twitter bank - get approved in less than 288 characters…

[jamesbrown]

Treasury is ok with taxes from bank profits, they ought to be ok with bailing the depositors for small banks and full bailout for systemic, that should be the only difference really - both safe for deposits, this tulip finally shines the light how inadequate 85k guarantee is for businesses

The idea that business profits should be returned to shareholders/owners and failures socialised to taxpayers is completely laughable. Low interest rates followed by a pandemic really haven't helped in this regard. It's time for these businesses and their moron CROs to take the kicking they deserve or, indeed, to survive with market-driven intervention if they are worthy (which is why I have no problem with short-term liquidity support).

[AtW]

The idea that business profits should be returned to shareholders/owners and failures socialised to taxpayers is completely laughable. Low interest rates followed by a pandemic really haven't helped in this regard. It's time for these businesses and their moron CROs to take the kicking they deserve or, indeed, to survive with market-driven intervention if they are worthy (which is why I have no problem with short-term liquidity support).

Depositors are not shareholders/owners, who should be wiped out even in case of bailout of bank

Treasury makes enough from banking taxes to guarantee that depositors are safe in the UK - all of them, 100%, as it ******* ought to be.

[eek]

Depositors are not shareholders/owners, who should be wiped out even in case of bailout of bank

Treasury makes enough from banking taxes to guarantee that depositors are safe in the UK - all of them, 100%, as it ******* ought to be.

Nope - if you have more than £100,000 in a bank you should be clever enough to manage your money and put it in multiple places.

[jamesbrown]

Depositors are not shareholders/owners, who should be wiped out even in case of bailout of bank

Treasury makes enough from banking taxes to guarantee that depositors are safe in the UK - all of them, 100%, as it ******* ought to be.

Depositors are moron CROs who don't know how to manage risk and instead place an existential fraction of their company's assets with hipster banks who like to bet on long-dated Treasuries as interest rates rise, all completely transparently to anyone who wanted to look. They should get back their FSCS-protected amount and whatever is left at the end, as it ******* ought to be.

[AtW]

Depositors are moron CROs who don't know how to manage risk

Honest depositors should not worry about risk - especially for businesses it should be 0 to enable them to focus on other things, like making fecking money.

[AtW]

Nope - if you have more than £100,000 in a bank you should be clever enough to manage your money and put it in multiple places.

So you think it's good idea for all businesses who have more than £100k to split cash among say 4-5 "too big to fail" banks in the UK?

And you think UK banks are easy about opening a business account to hold a wad of cash?

[jamesbrown]

Honest depositors should not worry about risk - especially for businesses it should be 0 to enable them to focus on other things, like making fecking money.

How the fook do you run a business without worrying about risk? If I can manage risk by not depositing all of my assets into a hipster doofus bank that is transparently making stupid “investments” then CROs should be able to do the same. Fook 0 risk. ZIRP and the pandemic has turned some of us into big babies. Bring back the moron risk premium.

[jamesbrown]

Good thread on the latest here:

https://mobile.twitter.com/EdConwayS...25402241630210

Finding a buyer would obviously be the best outcome for all concerned and I hope that succeeds. It sounds promising. Socialising the losses would be the worst possible outcome in the long run and hopefully won’t happen, but our incredibly weak gov’t is likely to choose the most politically expedient solution in extremis (i.e., throw money now and ask questions later).