XJO - Bear Posts only (Factors which might cause the markets to fall), page-14502

Excellent post @kacy !

When SVB happened I asked myself why there were no reserve requirements ie: Sarbanes-Oxley act which was enacted after the aftermath of the GFC?
Looks like during the Covid crisis the Fed changed the reserve requirements:




Also the SVB crisis was an old school bank run ie: 45B was withdrawn in one day. The bank had the clients assets but was not liquid as they were in long dated govt bonds.
The solution to SVB was FDIC. As far as I know clients did not lose any funds ? FDIC gurantees upto 250K (like in Aust). It then takes over the bank & sells its assets to pay the clients.
To stop another crisis most banks have now access to BTFP which is one way to shore up their balance sheets.
What happens on March 11 ? Sure hope no more "old school banks runs" ?

Looking at SVB you could say this would not have happened if we did not have a once in 100 year pandemic where monetary policy (removing capital reserve requirements, rate hikes, stimulus payments.....) had to be enacted on the fly without knowing all of the consequences?