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Brew

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Posts posted by Brew

  1. 26 minutes ago, Mullet Free said:

    If every bank knows their deposits are fully insured, don’t lending underwriting standards go down? Aren’t banks given green light to do whatever they want with customer deposits?
     

    It’s been a long weekend so I could be completely missing the obvious here, but why would fully insured deposits impact loan underwriting standards? I can’t think of anything they do that would be dictated by the FDIC coverage outside of  it giving them more leverage for deposit concentrations. Right now the average person with excess cash knows to spread it around in banks. That goes away with guaranteed deposit coverage which may actually drive interest rates on deposits up as it would be more competitive and it is artificially held down with the FDIC coverag. I guess that could lead to lowering underwriting standards as they have to take on riskier loans at higher rates to make the spread.

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  2. 1 minute ago, SL Xpress said:

    I don't see it as problematic as you do. If the scenario doesn't fit making depositors whole, don't make them whole. That wasn't the case here. Collecting premiums to insure all deposits in the entire banking system doesn't sound like a good policy to me. 

    I’m having a hard time coming up with a scenario where it doesn’t make sense for depositors to be made whole. I also can’t think of a scenario where they weren’t eventually made whole although I’m sure they exist. The catch here is the timing and guarantee and the class of assets that have to be dealt with.

    Generally the FDIC has a buyer in place quickly so timing isn’t usually an issue although I can think of a couple of local banks the regulators operated for quite a while after taking over.

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  3. 36 minutes ago, chainsaw said:

    I hate to say it but if it looks like a bailout, it doesn't matter whether it's "really" a bailout. They're going to call it the Big Tech Bailout.

    Is it a bailout if there is no real bailout? Again, at the moment we’re talking about timing differences on access to money unless the disposition of the bank assets goes terribly wrong.

    Idiots are going to call it whatever they want, because they are idiots and looking for clicks on social media. I hate social media, everyone’s inherent need to share their opinions and spew garbage slowly (or maybe not so slowly any more) pushes us closer and closer to the cliff’s edge.

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    • Like 2
  4. 40 minutes ago, SimonBolivar said:

    We need to see a $2B bank fail to see how the whole "FDIC now de facto insures 100%" bit lasts. It certainly seems you are protected to keep as much as you want in any medium to large bank and you're fine.

    We do a lot of work in the banking sector and have had bank clients go under. I don’t know that I have seen any where depositors lose money although I’m sure it happens. This isn’t some big anomaly. Banks typically have the asset coverage, it just takes time to convert it to cash. They are covering the timing shortfall by allowing access today, but this is a big bank with a lot of assets to work through the liquidation process on.

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  5. 7 hours ago, henrygandorf said:

    saturday night surprise in the grocery store stash room. 

    image.thumb.jpeg.b08024c3ab4bb872c37835351148e3ad.jpeg

     

    thing is, i don’t love rye. who wants to play “let’s make a deal”?

    Based on your pictures from stopping by the grocery store, the list of things you can’t get your hands on has to be short. Anything out there you know you are interested in? I might be willing to part with my handle of Buffalo Trace I haven’t opened yet.

    • Haha 1
  6. 18 minutes ago, Chopper said:

    Interesting. Maybe you need to get your eyes checked.

    Are you really this stupid? They give you examples in what you linked if you would just read them. You don’t get $250k per account type. You don’t get multiple CD’s. It is per depositor, per insured bank, for each account ownership category not type. All of the accounts you listed are added together up to $250k per depositor, not $250k per bank account type. 

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  7. 1 minute ago, Sawbonz said:

    Lol. Wanting these assholes to be required to take reasonable precautions to prevent catastrophic failure = wanting the US financial system to crash and burn

    In your example who is the asshole, the bank or the depositors or are they all assholes?

    • Like 1
  8. 1 hour ago, Chopper said:

    FDIC coverage is $250,000 per depositor, per insured bank, for each account ownership category. In theory much more than $250k per depositor is eligible to be insured. That's because the different types of accounts that can be FDIC-insured for every depositor are: Checking accounts, Negotiable Order of Withdrawal (NOW) accounts, Savings accounts, Money Market Deposit Accounts, and Time deposits such as certificates of deposit, Cashier's checks, money orders, and other official items issued by a bank.

    I am open to correction but I don't believe there's even a limit on the number of insurable CDs that one individual or bank can have.

     

    This is not how FDIC insurance works. Maybe you should read up on FDIC insurance.

    • Haha 1
  9. Looks like we’re sitting on about $100k in ACH’s hung up in this mess. It’s interesting reading through the barrage of emails coming from our processor and making sure to point out it’s not their fault. Dumbasses kept processing into Friday night/Saturday morning instead of immediately blanket shutting the ACH option down when the shit hit the fan. Also, have talked to several clients with $250k CD’s with them.

  10. 3 minutes ago, GringoSalado said:

    It does make a ton of sense for the bank. But also prompts borrowers to exceed the insured limit.

    Most of the borrowers that are in the scale of requiring the operating accounts to be held by the bank are going to exceed FDIC limits. $500m is excessive, but I have plenty of clients that exceed the limits. Our firm accounts exceed the limits. There is no reasonable way for a company of legitimate size to not exceed the limits operationally. Early stage funded companies that are going to need money in the future should be a lot smarter. Companies running 7 figures a week in cash in/out have to somewhat trust the banking system. There are ways to secure collateral and sweep to other banks, but neither are reasonable options for most at that level.

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    • Like 1
  11. 59 minutes ago, wildcat09 said:

     

    The quoted tweet is fucking amazing. These people are so stupid.

    So reading through the original tweet, that dude bought shares of SVB on Thursday and then was part of the problem by moving all his funds he could late Thursday/Friday. Some of these people are special.

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  12. 5 minutes ago, Bevo said:

    One issue that could come up in the future is the power of social media. Presumably, people could crowd source companies and cause stock fluctuations from which they could profit. It seems like it would be pretty easy to do with small companies on the exchange.

     

    Social media and the exacerbated version of group think that apparently comes along with it in today’s world will be the end of us.

  13. 12 minutes ago, GringoSalado said:

    I can't find a link but upthread somebody posted that SVB incented clients to keep more deposits with them via favorable loan terms? So it sounds like Roku et. al. may have maintained deposits in excess of insured-levels not because they did no risk mgmt. but because they needed/wanted those better terms. Maybe we shouldn't allow that (banks to encourage customers to exceed insured deposit level).

    It also sounds like a lot of their customers don't have significant revenue so their deposited loan is how they make payroll, next week and every week after that. So without any cash flow to fund ops, you are more likely to see a bank run.

     

    But I'm an idiot.

    All banks do this. If you are going to use them for lending for operational purposes, they typically require your main operating account be with that bank also. I can’t think of any that I deal with that don’t require that.

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  14. 5 minutes ago, 52-80 said:

    I anticipated there would be a lot of populist handwringing against the bailout, as if they’re “sticking it” to Peter Thiel and Vinod Khosla and Marc Andreesen. Against the reality of virtually nobody talking about or advocating for them, but instead the deposits of companies supporting their employees and operations. 
     

    There is a potential ripple effect from this, which is mainstream learning that their deposits are “unsafe”, causing a run on all the other banks in the US. Think retirees with decent amount of cash, yanking it from their regional banks. 
     

    People are ignorant enough on things (see first paragraph), that they would be equally ignorant about fractional reserves to pull off the second paragraph.

    My neighbor is a Region President for a bank. He ran a large local bank (small/medium size town but one of those banks where they know all their large customers well) that was acquired by one of the top 15 banks last year. He said this morning his phone hasn’t stopped ringing since this broke. They are seeing people move around funds that have large concentrations, but not just pull out deposits as of now. Going to be an interesting few days.

  15. 52 minutes ago, Chopper said:

    They (the Fed) tried to find a buyer but hadn't been able to line one up before Friday.

    Roku, per the article I read, had 25% of their cash on hand at SVB. Also according to the article I read while it's a problem for them, they're able to deal.

    However, the FDIC coverage limits of $250k per eligible account are an incentive for people or businesses with a lot of cash on hand to spread it around among several or many banks. The incentive is the solution. That seems rare but it's the fact in this circumstance.

    What's rare is for businesses with a lot of cash on hand to put all into one bank. But that's the way it was done in Silicon Valley, which used political muscle to ensure that the bank of their choice could gamble it away while the VC crowd mandated the funds go to the very same bank.

     

    They will be okay isn’t really a solution just for the record. You’re in charge of Roku or any of these different affected companies, how are you managing cash and access to it differently since these guys were idiots for having so much cash in one bank.

    I have a number of clients with 8 figure cash accounts, I’m curious what this looks like. A few of them with limited Daily Cash needs sweep everything they can out to other banks and pay a premium for that, but their access is pretty limited so they still carry balances over FDIC limits in operating accounts. A few have pledged securities for account balances but again that is a pretty limited solution.

  16. 5 hours ago, Chopper said:

    LOL you keep saying that they'll be made whole as if, if you keep saying it, it'll come true.

    Not trying to brag at all but I have more than enough liquid assets to be in the category of those who you (and the dolt longing for freshman year) seem to think want "blood" and to fight a "class war" simply because we don't believe the government should make people whole when they've lost money due to their own, poor financial decisions. I am far from a savvy investor but when I put my money in a bank and when I invested it with a financial advisor, the first question I asked was about the insurance on the account, and how that impacted my investment. It's why I have multiple banks, multiple investment vehicles and multiple accounts. For someone with 10x or 100x millions more than I, if they didn't understand the risks, or weren't willing to take the time to find out, then hiring a financial advisor or company controller should have been step 1.  Limiting your risk is only as complicated as you want to make it.

    I’m curious, what exactly does the process of securing your deposits look like for the size companies we are talking about here that have been hit the hardest. Roku is sitting on $2B+ in cash and has expenses in excess of $1M a day, what is the most reasonable way for them to secure those deposits daily?

  17. 1 hour ago, Poolflood said:

    Looking to get something like this for my daughter.  You mind posting a pic?  

    Was just looking at tank anglaise today with sapphire crown.

    Here’s a (not great) picture of my wife’s 28 mm Oyster Perpetual and Cartier Tank Francaise Medium to give you an idea on comparative size. The Cartier is a bigger watch overall. She is looking for a purple face 31mm Oyster Perpetual now to get a little bigger Rolex. The 28 is a little on the small side.466745B3-10F9-4F93-A516-00B37B03F6E0.thumb.jpeg.546e4918070e7dc8a8d7c3dc20bb5faf.jpeg

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  18. We contract with a company for ACH/Credit card transactions. Looks like that company used an ACH processor that used SVB to clear those transactions. Details coming from them are limited, but it looks like we have a couple days ACH transactions held up in this at the moment. Lots of fun to be on the other side of the country reading about it and then realize you have XXXXXX amount of dollars in flux with them.

  19. 9 hours ago, fattyflattie said:

    Don’t do this to yourself.  Plenty on either side of those consecutive shit shows you can pick up for not much.  

    Fat fingered it, 02 with the 7.3. Price wasn’t horrible compared to what I’ve seen, but going to keep looking.

  20. Looks better now. 3 inch Eibach coil over lift and 315/70/17’s on the stock BD wheels. Looked at an 03 F250 to get for hauling/weekend duty, but just couldn’t pull the trigger on it.471C8CEE-8303-482D-A1BD-96221951B3B2.thumb.jpeg.b8b0bb62cc5edcf77d319a0f58840244.jpeg

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  21. The NFLPA article is an interesting read. I have a good buddy that is an agent, so I have a number of NFL clients and have been to and toured several stadiums. We went to Jax two years ago to see a client play and I can confirm that place is a shithole top to bottom. Training rooms, meeting rooms, the family area, etc were all on par with low end colleges. It was amazing where you meet up with the guys after the games. It was tiny so most of the families over flowed to a roped off outside area where fans were walking by.

  22. 1 hour ago, TonyTexas said:

    I just don’t get why people use boneless/skinless thighs or breasts when baking or grilling chicken. Those should only be used for skillet type meals. 

    I use skinless for everything, bone in/out just depends on what I’m cooking and the timing. Don’t like skin, don’t like the grease/fat that comes with it.

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