Bank Runs, SIVB blow up, etc thread

Finance
247

It smells to me like these BaaS companies are a disaster waiting to happen since they do not seem to be regulated in any way. They’re not bank, they’re not part of a bank-holding company, they seem like the ones doing bookkeeping for banks but their books are essentially not audited like a bank’s books would be.

It seems to me like when using a fintech, the ledger for your FDIC-insured deposits should be held at the bank holding these deposits, and at the same time at the fintech itself, not just at an intermediary like Synapse. At the very least, calling the fintech deposits FDIC-insured should come with more stringent record-keeping requirements and supervision.

If the meantime, I’d stay away from any fintech using BaaS companies or FBO accounts.

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248

$50m failure, over half that being bailed out by the fdic.

Allegations of fraud and regulatory concerns over unsafe practices prompted its closure, leaving Millennium Bank to acquire its deposits and most assets.

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249

Not sure if this is the correct thread. Feel free to move the post elsewhere as needed.

Credit excesses affecting some banks:

250

Looks like the right place to post this.

After Chase wrote off $170M, and BoA reassured that their syndicated loans at First Brands were asset-backed, it’s hard not to be at least a bit concerned about the direction of sub-prime auto loans in the context of the current economy and potential impact on bank balance sheets.

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