Discussion about this post

User's avatar
ALongshot's avatar

Don't see that anyone else in this thread noticed ZH's article last night pointing to JP Morgan's "last minute" hand in all this:

https://www.zerohedge.com/markets/record-bank-run-drained-quarter-or-42-billion-svbs-deposits-hours-leaving-it-negative-1bn

A quote from above: "And while such a course of action by venture capitalists would be understandable, if ethically questionable, what is perhaps more notable is what Bloomberg reported earlier, citing The Infromation: it wasn't just the Peter Thiels of the world:

"Prominent venture capitalists advised their tech startups to withdraw money from Silicon Valley Bank, while mega institutions such as JP Morgan Chase & Co sought to convince some SVB customers to move their funds Thursday by touting the safety of their assets.

"Let us get this straight: the largest US commercial bank was actively soliciting the clients of one of its biggest competitors, and the 16th largest US bank, knowing full well deposit flight would almost certainly lead to the collapse of a bank which courtesy of fractional reserve banking, had only modest cash to satisfy deposit demands: certainly not enough to meet $42 billion in deposit outflows.

"Of course, Jamie, who has suddenly emerged as a key figure in the Jeff Epstein scandal alongside Jes Staley, knows this, and would be delighted with an outcome that kills two birds with one stone: take his name off the front pages and also make JPMorgan even bigger. Actually three birds: remember it was JPM that started that "Not QE" Fed liquidity injection in Sept 2019 when the bank "suddenly" found itself reserve constrained. We doubt that JPM would mind greatly if Powell ended his rate hikes and eased/launched QE as a result of a bank crisis, a bank crisis that Jamie helped precipitate.

"And while we wait to see if Dimon's participation in the Epstein scandal will now fade from media coverage, and whether Powell will launch QE, we know one thing for sure: JPM was a clear and immediate benefactor of SIVB's collapse because in a day when everything crashed, JPM stock was one of the handful that were up."

Spot on Greg!

Expand full comment
Brook’s Golden State Of Mind's avatar

Mhm I read it and hear it first right here with you Greg!!! You are absolutely amazing!!! Love you lots and really appreciate what you do!

Expand full comment
59 more comments...

No posts