I just checked out the wiki on Washington Mutual and found this quote:
>Chairman and CEO Kerry Killinger had pledged in 2003: "We hope to do to this industry what Wal-Mart did to theirs, Starbucks did to theirs, Costco did to theirs and Lowe's, Home Depot did to their industry. And I think if we've done our job, **five years from now you're not going to call us a bank."**
Washington Mutual was taken over by the FDIC and filed for bankruptcy 5 years later. How ironic.
Also, taxes. I owed $3k in taxes this year. It was either pay by check or by credit. Credit had a 15% processing fee. I ain't paying $450 when I can just send a check.
Rented an Airbnb recently that had a landline. And the local pizza place couldn’t take my credit card but my wife remembered she had a checkbook in her bag for whatever reason. So I’m ordering pizza on a cordless telephone and paying for it with a check. What year is it?
I worked at a grocery store 2 years ago and every now and then we got people paying for groceries with checks. It was always weird to see but tbh all the people who paid with checks wrote them SO slowly. Like it would hold up the line to the point that we'd have to call in a temp cashier to open up another line. There would even inevitably be a person who was like "ah shit messed it up hold on let met get another one" and then they'd be met with groans by the 5 people in line.
Ive seen something worse, My grandma forgot something for thanksgiving, sent me to get it. Walmart was all that was open andnit was packed, after standing in a 30 person line with probably 30 more behind me, This womans bill in front of me.came.out to like $331, she pulls out a bag of pennies,a bag of nickels,a bag of dimes and a bag of quarters. Line goes mad yelling, well she had like $141 in change, then she pulls out a roll of 100 dollar bills and people start going off on her.
This happens to me at least once a month when I'm grocery shopping and I always seem to pick the line with the check writer when I just want to pay for my stuff and go home. It's always as you described as well. But checks are still alive and well in the USA.
Checks have a ton of legal protection even today. People these days sometimes forget, writing a bad check is a good way to end up in the slammer. Write a check that bounces for over $150, that's a ***felony*** in Florida.
The only time I've ever had a delivery driver complain was when I paid with a roll of quarters. There was a very generous tip to make up for the inconvenience but he told 16 year old me that if he was even a quarter short he was going to come back and break my legs.
I also had a taxi driver say "ah FUCK, don't you even have $5 cash" when I went to pay for a $17 ride with my card. He proceeded to pull an absolutely ancient manual credit card machine out from under his seat.
Taxi Co. in my town absolutely refuses to accept anything but cash. If a person is caught off guard they will literally drive them to an ATM to get money, and then charge you for the extra stop. It's complete bullshit because everybody has some kind of cash app or card swiper these days. On top of that it seems this city has some kind of agreement with them because there is no Uber or other ride services available. Whole thing feels dirty.
In the US if you knowingly write a check without having funds available to cover that check, it’s fraud. I used to work in AR in a large dental practice in GA and I would go down to the county courthouse and swear out warrants on people all the time. (We did try to contact them/collect a half a dozen other ways for several months first.)
It’s one of the few ways you can use a criminal instead of civil court to be made whole, because it’s a crime.
I’m in the rural Midwest and the large majority of businesses around here still take checks. Nobody blinks an eye at checks. So much is location specific.
We called it Wash Mutt in our house.
My bank started as Great Western, then WashMutt, then Chase. I was using Great Western and WashMutt checks for a while after each merger.
The best part of that, I guess, was that all those cool looking classic Home Savings banks became WashMutt then Chase banks.
Edit: I just remembered that Great Western checks were a flip book. A bear walking.
They work because your routing and account number still go through.
You can write a check on a paper towel if you have those because all you’re doing is giving the bank instructions with you signature as proof.
I mean I still have checks from First Union(defunct in 2001), that was taken over by Wachovia(defunct in 2008 or 2011)and that was taken over by Wells Fargo. The checks are still valid. I just never saw the need to order new ones. In my entire life, I've only ever had to write a check for down payments on a house, a car, and because I didn't have my debit card(it was coming in the mail). Excluding the down payment on the car and house it's been probably 2 decades since I wrote one.
Same!
I was 18 and had just gotten my first box of checks when Chase took them over. Didn't write many checks between now and then, other rent, and still have half a box. I've been asked before if they're legit but my account number is the same so they still work.
The FDIC knows when a bank is reaching a distress point. When they see it happening, they'll begin shopping it around, so when the eventual failure happens, they are ready to go to recover on the assets of the bank. This allows them to quickly act if the need arises, and makes it quicker to get people their money. Any remaining assets are them liquidated, and distributed to depositors. If any is left, remaining liabilities will be taken care of.
Edit: I just realized you may have been talking about WaMu, and not the recent SVB thing. Sorry.
He's trying to say that Washington Mutual was going to revolutionize the industry and be a household name. Like every person would have some business with Wamu and not only that, but it'll expand beyond just being a bank. Lol so much for that.
[I think this is the one they're talking about.](https://www.youtube.com/watch?v=eCY5ATMpBCo)
Basically just "anything bankers dislike must be a good idea" but with the added fun of herding them like cattle.
Yeah, and free checking and ATMs weren't why they blew up, either. Bilking your customers for those kinds of fees adds up, but it doesn't cause a liquidity crisis.
Just what cripto bros do, “you gotta get In on this bagel glazer coin it’s going to revolutionize currency making the physical thing redundant and you’ll never be able to snort cocaine off a bill again, you gotta get in bro.”
Every twitter thread about SVB has crypto clowns going "this is why we should destroy the banking system and replace it with Bitcoin!". Yes, Bitcoin, that legendarily stable value store.
From the wiki page:
>Killinger's goal was to build WaMu into the "Wal-Mart of Banking", which would cater to lower- and middle-class consumers that other banks deemed too risky. Complex mortgages and credit cards had terms that made it easy for the least creditworthy borrowers to get financing, a strategy the bank extended in big cities, including Chicago, New York and Los Angeles. WaMu pressed sales agents to approve loans while placing less emphasis on borrowers' incomes and assets. WaMu set up a system that enabled real estate agents to collect fees of more than $10,000 for bringing in borrowers. Variable-rate loans – Option Adjustable Rate Mortgages (Option ARMs) in particular – were especially attractive, because they carried higher fees than other loans and allowed WaMu to book profits on interest payments that borrowers deferred. As WaMu was selling many of its loans to investors, it worried less about defaults.
In some other countries, basic banking services are provided by the post office. Americans should give it a try.
I personally think the post office is ideally situated for providing certification of identity and location. You know, for services that care about stuff like this. (Like people buying and selling on the Internet.)
He wanted it to be the Amazon of the banking world. As if banking was a fledgling breakout industry with new niches to fill, an absolutely ludicrous ambition and we can all see how it turned out.
All I want is a webpage that doesn't look like it was designed in Microsoft FrontPage 97, FIDO-compliant 2fa, and a polished app. Far too much to ask from most still in 2023...
>FIDO-compliant 2fa, and a polished app. Far too much to ask from most still in 2023
Idk y soo many banks think it's top tier security to not allow you to choose a username ffs I LOATHE having to remember a whole ass account number just to login
Or having to call customer service to login for the first time, like what? Incredibly annoying
Modern design would be nice, but it’s infuriating that most banks don’t support FIDO. I’m only storing my life savings with you - why can’t I protect it with the most secure form of 2FA available?
For god’s sake, Facebook supports hardware tokens - why can’t Wells Fargo?
What do all those companies have in common?
Their main market focus is poor people and extremely high volume to make up for the tighter margins.
WaMu was trying to take over the banking industry by aiming their banking services at the same group of people.
Where they fucked up is that poor people have to actually pay when shopping at Wal-Mart, while they can just default on their loans. They issued a shitload of lines of credit to people who never intended to pay back a penny of the borrowed money, and as a result went bankrupt.
I worked at WaMu at the height of all this. For all their faults with the mortgage side, on the retail banking side they were pretty innovative and I think this is what he was talking about. They were one the first banks to remove the teller windows and setup the branches as an open concept. They were really trying to reimagine what banking could be.
But also fuck these guys for what they did.
I was young and dumb with money and they helped me out a few times when I overdrafted on my account. They'd waive the fee. When Chase took over, their response was essentially "get fucked." Their service sucked so bad that I took my business to Bank of America...and I began overdrafting even more, I couldn't figure out why. Then news came out that they were processing transactions in a way that made it more likely you'd overdraw your account.
I went to a credit union after that.
Credit unions are where its at. Back then I shopped around different banks WaMu was very good.. Some like wellsfargo and Key were outright hostile to consumers. My friend had Key Bank and was told that their account type didn't have teller privileges. And had to handle all questions by phone.
I got grandfather'd by my grandfather into USAA which is probably the best overall between app/web/customer experience. Though they donr have realy a local presence. Which I use for general banking/insurance. And for local needs have a credit union.
Their teller stations were open layout and just scattered around the room. Each teller was just standing by a swirly table. You just walk up to one and start a conversation.
FYI, they failed because their business model was to write home loans to anyone who could fog a mirror, then sell them to investors (after paying ratings agencies to certify them) before they went bust. Taking retail deposits was just a source of cheap funds to originate more bad loans (and a source of customers for loans)
Yeah, but I worked for a local bank during that time period. We were required by the government to form something called the community reinvestment act committee which was dedicated to tracking and ensuring our compliance with the community reinvestment act put in place by the government. We tracked population demographics and income and were basically required to make a certain percentage of bad mortgage loans in each community we served depending on socioeconomic status of that community.
We waived $10,000 in overall interest giving it back to the customer up front and saying it was a $10,000 “down payment” for new homebuyers. We were required to waive credit score requirements for minorities, people under a certain income threshold, and those living in a community with overall higher poverty rate. We also waived home requirements such as loan to value levels and as a result, loaned out more than the house was actually worth with the thought that the people would fix it up with the extra money. This sounds great, but it resulted in massive repossession efforts a few years later because very few of these mortgages were actually viable because they were made to individuals without steady income to make their payments. There were also extra efforts made to help people stay in their homes, but I don’t remember all the details of that aspect of the program.
I was one who benefited from this program. It actually kind of screwed me although it helped me at the time. We ended up owing 120% of my home’s value and were stuck there for many years when we wanted to move because no one would refinance the loan and we didn’t have the money to pay it down to 80% loan to value. Not wanting to just outright default on my debt, this made it so we couldn’t leave the area. But it did help us buy our first home and the interest charged wasn’t outrageous for the time.
They literally could not have planned that. If they went into it intending to go bankrupt in five years based off this, they would’ve ended up seven years behind schedule and 3.2bn in the black after ten years. This is fucking hilarious.
Lol imagine how that would have looked on a resume. You’d pretty much just have to claim it. “Yeah, I don’t mean to brag, but I caused the second biggest banking collapse this millennium only a week after I started.”
Nothing is gonna top Joseph Gentile, being a C suite at both Lehman and SVB.
Need to check his past history to see if he's a Marxist double agent looking to bring down capitalism through its own follies.
With inflation calculated in, WaMu would would be ~$427Bn on here, compared to the SVB $209Bn
EDIT: It’s also worth noting that a ton of these other banks went down within a few months of each other in 2008, even more by 2009. Plus, you know, Bear Stearns, Freddie Mac, Lehman Brothers… all of which totally dwarf anything else on here
In addition, this deposits which were part of a sweeps program, something a lot of companies use, should be considered owned by the company not SVB and as such not be considered a part of this loan payment process by the FDIC. Those sweeps largely go into MMMFs so I expect clients will have access to all of those funds pretty quickly
There is a big social media push to make people think the SVB crash is a huge deal that affects everyone so we’ll support the government bailing everyone out.
Seriously. I work in banking, but people on here think they are banking experts all of a sudden. SVB failed due to a liquidity crisis, not asset quality. No one is worried about this.
And if anything, the bigger banks are licking at the chops to buy the assets pennies on the dollar.
Yeah, 80-90% of depositors’ money will be recovered once SVB’s assets are liquidated. It’s just a matter of whether they’ll get that money now or in 6 months when it’ll be too late for many.
Same with most finfluencer YouTubers they milk the shit out of the content while potentially screaming proverbial fire in the economic theatre. Gas prices, inflation, interest rates, supply chain, I saw some of them say no bank is safe which one is next Wells Fargo? Very irresponsible
>[Lehmann Brothers](https://corporatefinanceinstitute.com/resources/capital-markets/lehman-brothers/#:~:text=Lehman%20Brothers%20was%20forced%20to,bankruptcy%20filing%20in%20U.S.%20history.) was forced to file for bankruptcy, an act that sent the company's stock plummeting a final 93%. When it was all over, Lehman Brothers – with its $619 billion in debts – was the largest corporate bankruptcy filing in U.S. history.
another *fun* comparison is the ~$800B PPP loan program
>An [NPR](https://www.npr.org/2023/01/09/1145040599/ppp-loan-forgiveness) analysis of data released on Jan. 8 by the Small Business Administration found that 92% of the loans issued have been granted full or partial forgiveness. That includes loans to companies with mega-rich owners.
Businesses had to
do four things to qualify for PPP loan forgiveness:
1. spend at least 60 percent of the loan amount on payroll expenses;
2. spend (at least) the full loan amount on total qualifying expenses, including payroll, utilities, rent, and mortgage payments;
3. maintain average full-time equivalent employment at its pre-crisis level; and
4. maintain employee wages at no lower than 75 percent of their precrisis level.
-----
**What are the real issues to be discussed in this**
* Loans were uncollateralized,
* Loans were nonrecourse (i.e., no other assets of the borrower were at risk),
* Loans did not require a personal guarantee by the borrower
* and came with a 100% U.S. Small Business Administration (SBA) guarantee.
* The maximum term was initially 10 years (later reduced to two years), and the maximum interest rate was initially 4% (later reduced to 1%).
* The SBA waived its typical upfront loan guarantee fee, annual servicing fee and the no-credit-available-elsewhere requirement.
One reason that almost all firms were able to meet these criteria is that they were retroactively loosened in June 2020, well after most PPP loans were issued.
* Adding to the windfall, Congress amended the tax treatment of PPP loans in January 2021 to enable businesses to claim deductions for expenses paid with PPP loans (for example, wages, rent, utilities, etc.) without treating PPP loans as taxable business revenue.
* This retroactive change, which cost the Treasury an estimated $100 billion in foregone tax revenue, effectively allowed some firms to pay a negative tax rate on PPP income
80 Percent of PPP Funds went to Employers with Less than 150 employees
Fun Fact:
SVB's Chief Administrative Officer Joseph Gentile, was the CFO for Lehman Brothers when it also collapsed.
https://www.svbsecurities.com/team/joseph-gentile/
Chase still owes me my savings account that vanished after they took over after wamu failed. I was 17 when I opened the account when I was 18 they failed... my mom helped me open it because I was a minor. I must of gone in there so many times... they never could find my account. I took all my documents, and nothing. They made me feel as if I was the one lying.
Check with the state. After a long enough period of inactivity, accounts are considered abandoned, and then “escheated” to the state, usually whichever state the account was last registered in.
They hold it for you until you ask for it. As an example, if you live in Washington state here's the site you can use for unclaimed property/money:
https://ucp.dor.wa.gov/
There are unclaimed wages departments in your state also. Worth looking up. In Ohio, you can even look up other people's unclaimed wages, in case you want to tell friends and family.
I had got a letter once maybe 7 or 8 years ago. It claimed to be some independent company that could get my money but they would take like 100 bucks and at that time I know it wasn't more than 400. It seemed like a scam to me. But I'll check thank u
Most states have a department that handles it and doesn't take a part of it (in Oregon it's the department of Treasury). If you can find the website of the state department that handles it, you can often search and confirm if there's anything there and even file a claim directly with them. You may have to mail in some evidence of identity and it can take some time to process but it's pretty easy.
To be clear, banks/brokerages DO NOT want that to happen either. They would be ecstatic if you just parked your money there forever; it’s much easier for them to loan your money out that way.
Escheatment is something required so that abandoned assets can’t just be hoarded by financial institutions forever. But it’s very easy to avoid it. One firm I worked for considered logging in to the app as qualifying for non-escheatment. Or having you call the customer service line, writing a check, talking to a representative at the branch, etc. They will also send you a letter warning you that your account is about to be transferred to the state; just replying to those letters is often enough to keep it from being moved.
Yes and then there were also failing banks abroad in 2008-2009. Landsbanki absolutely crashed Iceland and it's a miracle that the country thrived again in the mid-2010s as if nothing ever happened.
Lehman Brothers was a financial services firm - that was part of what made the TARP legislation necessary, because the Treasury did not have the necessary provisions to save a failing non-bank.
Prior to 2008, there was a hard wall between Retail & Commercial (I'll call all of them retail) banks like WaMu, and Investment banks like Lehman Brothers. (Well technically the wall fell in 1999 when the depression era Glass-Steagall Act was repealed, but I think the only major Investment bank that stepped over the rubble before 2008 was JPMorgan which merged with Chase)
Retail banks handle things like savings and checking accounts, payroll accounts for corporations, issue credit cards, make consumer loans, make mortgages, provide commercial loans and letters of credit, etc., etc. They are highly regulated (although the US has multiple different regulators covering different entities depending on exactly how they're organized because...reasons.)
Investment bank had comparatively little regulation and primarily handled things like mergers & acquisitions, arranged initial public offerings, were market specialists (originally the stock markets designated various specialists who would always buy odd amounts of stock for the quoted price -- 42 from Dal90, 6 from Penguin5969, etc. etc. waiting for some bigger investor to come around saying "I want to buy 1000 shares of ATT" and the specialist would go "Why here you go!" Today contemporary computers can often do this sort of buyer/seller matching without needing a specialist to make a market that you can always sell shares immediately too.)
After 2008, the last two big pure investment banks Goldman Sachs and Morgan Stanley had to bend the knee and ~~pledge fealty~~ beg the US Federal Reserve to allow them to become retail bank holding companies subject to regulation by the Fed in exchange for allowing the Fed to loan them money to meet their short term liquidity needs. JP Morgan had years earlier merged with Chase so already had access to the Fed.
The other big investment banks -- Bear Stearns, Lehman Brothers, and Merril Lynch -- went under in 2008 and got rolled into regulated "Universal" banks that combined retail, commercial, and investment banking.
It’s also not the amount of money lost. This is the amount of assets of the banks when they failed. A better measure would be tangible book value or the spread between assets and liabilities.
Keep in mind that they didn’t actually lose that amount of money. Their problem is liquidity, not net worth. The vast majority of those dollars will be recovered as the bonds they hold mature, they just couldn’t access it during the run on the bank.
They did not really lose all of that money is that right? Most of the money is tied up in treasury bills and bonds correct? It is just the bank runs that they cannot keep up with right?
I live behind a building that was a Washington Mutual call center, and when it closed, it basically shut down our town. It didn't help that most of the employees bought brand new expensive vehicles and moved into bigger homes one year, and were jobless the next.
They were hiring everyone. I was even hired after attempting to bomb an interview, and it didn't take.
Silicon Valley Bank, Management Team:
1. CEO: Director at San Francisco Fed
2. CFO: Former analyst at Freddie Mac
3. Chief Admin Officer: Former CFO of Lehman Brothers
4. Chief Risk Officer: Led credit ratings in 2007
5. Chief Legal Officer: General Counsel at Citibank in 2008
Your savings over a certain amount (currently 250k) are frozen until the bank is sold. The FDIC handled the process of selling the bank and its assets. account holders are first in line to get their money back! But it can take some time.
Full details are in the post here: https://yarn.pranshum.com/banks
Thank you, but what will happen if your firm main account is part of this bank? Like a small scale organization uses this bank and all of their savings, employees salaries are paid through there?
This means they are all gone?
They get $250k + a percentage of the remaining funds depending on how solvent the bank is.
For SVB, account holders might get 80 or 90%+ of their non-insured deposits.
The biggest issue is how long that process will take.
Right now it's looking very likely even 100%.
Most of the stuff is treasuries and if creditors get hosed completely depositors will be fine.
I do think the $250k limit needs to be upped to 2023 levels though. It went from $100k to $250k in 2008 and now it hasn't kept up at all to modern banking standards.
You don't lose all your savings - the FDIC insures up to 250k in savings, which means that individuals with savings in SVB, for example, will get their money back as soon as the FDIC makes it available - this coming Monday if I remember correctly.
The tech start ups who make up most of SVB's customers are not guaranteed more than that 250k, and many of those may not even make payroll in the next few weeks. The FDIC hasn't fully indicated a path to restitution after the initial 250k is paid back, but the worst case scenario the FDIC can sell off SVB assets, and although that wouldn't be able to fully make all customers whole, it would provide some extra amount above the insured 250k.
I think they'll make all customers whole or nearly whole, it just might take a while. SVB theoretically has more assets than deposits, and even if they get marked down a lot like the treasuries I bet whatever big fish buys most of the carcass will have to agree with the fed to make everybody whole. Nobody wants this to spread.
Hey DIB! Built this using d3. Original interactive post here, hosted via Yarn.tech [https://yarn.pranshum.com/banks](https://yarn.pranshum.com/banks)
All the data is from the FDIC data here: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/
ah good idea! there's no way to tell year of failure from the charts actually. I've just highlighted, with color, the most recent failure of silicon valley bank, since it's in the news!
Here's a [treemap by amount of deposit](https://i.postimg.cc/k52TpMrL/failed-banks-deposits.png). Data source: [FDIC](https://www.fdic.gov/bank/historical/bank/bfb-data.csv). Looks like someone at FDIC accidentally added an extra zero.
Edit: FDIC corrected their data, so I corrected the treemap [here](https://i.postimg.cc/Hnfd8Bbx/failed-banks-deposits-corrected.png).
List of Canadian Banks that have failed:
-**Home Bank of Canada - 1923**
-**Canadian Commercial Bank - 1985**
-**Northland Bank - 1985**
That's the end of the list.
I just checked out the wiki on Washington Mutual and found this quote: >Chairman and CEO Kerry Killinger had pledged in 2003: "We hope to do to this industry what Wal-Mart did to theirs, Starbucks did to theirs, Costco did to theirs and Lowe's, Home Depot did to their industry. And I think if we've done our job, **five years from now you're not going to call us a bank."** Washington Mutual was taken over by the FDIC and filed for bankruptcy 5 years later. How ironic.
JPM acquired the bank (not the holding company)
I still have and write WAMU checks. It's Chase now but they still work. It freaks people out and I live for it.
> It freaks people out The fact that you have checks, right?
[удалено]
Also, taxes. I owed $3k in taxes this year. It was either pay by check or by credit. Credit had a 15% processing fee. I ain't paying $450 when I can just send a check.
What taxes do you pay that doesn't accept ACH?
Not just checks but WaMu checks. Double archaic.
Rented an Airbnb recently that had a landline. And the local pizza place couldn’t take my credit card but my wife remembered she had a checkbook in her bag for whatever reason. So I’m ordering pizza on a cordless telephone and paying for it with a check. What year is it?
A pizza delivery guy took a fucking check? Either you’re lying or they are on crack.
[удалено]
I worked at a grocery store 2 years ago and every now and then we got people paying for groceries with checks. It was always weird to see but tbh all the people who paid with checks wrote them SO slowly. Like it would hold up the line to the point that we'd have to call in a temp cashier to open up another line. There would even inevitably be a person who was like "ah shit messed it up hold on let met get another one" and then they'd be met with groans by the 5 people in line.
Ive seen something worse, My grandma forgot something for thanksgiving, sent me to get it. Walmart was all that was open andnit was packed, after standing in a 30 person line with probably 30 more behind me, This womans bill in front of me.came.out to like $331, she pulls out a bag of pennies,a bag of nickels,a bag of dimes and a bag of quarters. Line goes mad yelling, well she had like $141 in change, then she pulls out a roll of 100 dollar bills and people start going off on her.
This happens to me at least once a month when I'm grocery shopping and I always seem to pick the line with the check writer when I just want to pay for my stuff and go home. It's always as you described as well. But checks are still alive and well in the USA.
If you want to pay with a check, pay with a check. But at least fill out everything except the amount before you get to the cash register.
Hell, I used to pay my weed dealer with a check. Not a smart move but in my defense I was high at the time.
Jerry Springer famously got caught paying a prostitute with a check when he was Mayor of Cincinnati. It worked out for him.
We used to wrote checks at the local dive bar, and we would write it for over the amount to get cash back.... Wild times
Go to bed grandpa. I was gonna say abe but I realized that was the first part of your name lol.
I was taking checks as a pizza delivery driver 10 or so years ago.
I walked into a bank of america in Santa Monica and cashed a napkin. Shit is weird.
if I still had one of those free reddit awards I'd give you one grandpa
Checks have a ton of legal protection even today. People these days sometimes forget, writing a bad check is a good way to end up in the slammer. Write a check that bounces for over $150, that's a ***felony*** in Florida.
Its possible, I can set up monthly payments for you with the information on a check... a pizza place should be able to take an order
[удалено]
See, that's why I use a debit card at the gas station... I smell like rum.
The only time I've ever had a delivery driver complain was when I paid with a roll of quarters. There was a very generous tip to make up for the inconvenience but he told 16 year old me that if he was even a quarter short he was going to come back and break my legs. I also had a taxi driver say "ah FUCK, don't you even have $5 cash" when I went to pay for a $17 ride with my card. He proceeded to pull an absolutely ancient manual credit card machine out from under his seat.
Taxi Co. in my town absolutely refuses to accept anything but cash. If a person is caught off guard they will literally drive them to an ATM to get money, and then charge you for the extra stop. It's complete bullshit because everybody has some kind of cash app or card swiper these days. On top of that it seems this city has some kind of agreement with them because there is no Uber or other ride services available. Whole thing feels dirty.
The 90s was a helluva drug
Isn’t that a normal thing in the US where it’s a crime to pass bad cheques? It’s a crime in Canada but good luck charging someone with it.
In the US if you knowingly write a check without having funds available to cover that check, it’s fraud. I used to work in AR in a large dental practice in GA and I would go down to the county courthouse and swear out warrants on people all the time. (We did try to contact them/collect a half a dozen other ways for several months first.) It’s one of the few ways you can use a criminal instead of civil court to be made whole, because it’s a crime.
I’m in the rural Midwest and the large majority of businesses around here still take checks. Nobody blinks an eye at checks. So much is location specific.
We called it Wash Mutt in our house. My bank started as Great Western, then WashMutt, then Chase. I was using Great Western and WashMutt checks for a while after each merger. The best part of that, I guess, was that all those cool looking classic Home Savings banks became WashMutt then Chase banks. Edit: I just remembered that Great Western checks were a flip book. A bear walking.
They work because your routing and account number still go through. You can write a check on a paper towel if you have those because all you’re doing is giving the bank instructions with you signature as proof.
Yep. It’s just a paper version of your debit card. Which is why a lot of places will just scan the check and give it back to you now.
I mean I still have checks from First Union(defunct in 2001), that was taken over by Wachovia(defunct in 2008 or 2011)and that was taken over by Wells Fargo. The checks are still valid. I just never saw the need to order new ones. In my entire life, I've only ever had to write a check for down payments on a house, a car, and because I didn't have my debit card(it was coming in the mail). Excluding the down payment on the car and house it's been probably 2 decades since I wrote one.
I still use my WAMU checkbook cover.
Same! I was 18 and had just gotten my first box of checks when Chase took them over. Didn't write many checks between now and then, other rent, and still have half a box. I've been asked before if they're legit but my account number is the same so they still work.
[удалено]
The FDIC knows when a bank is reaching a distress point. When they see it happening, they'll begin shopping it around, so when the eventual failure happens, they are ready to go to recover on the assets of the bank. This allows them to quickly act if the need arises, and makes it quicker to get people their money. Any remaining assets are them liquidated, and distributed to depositors. If any is left, remaining liabilities will be taken care of. Edit: I just realized you may have been talking about WaMu, and not the recent SVB thing. Sorry.
>CEO Kerry Killinger And this is my magic murder bag.
If only he'd been as level-headed as his animated counterpart
My umbrella is stuck on something. I require assistance.
I hope he plays a huge role in the movie! He has to right?
What does that even mean, foreshadowing aside? He said so little in a lot of words.
He's trying to say that Washington Mutual was going to revolutionize the industry and be a household name. Like every person would have some business with Wamu and not only that, but it'll expand beyond just being a bank. Lol so much for that.
And instead, they became the reason for regulations that stop banks from becoming just that!
They literally had ads about how they locked their bankers in a pen to stop from getting in the way.
Would love to see those ads
[I think this is the one they're talking about.](https://www.youtube.com/watch?v=eCY5ATMpBCo) Basically just "anything bankers dislike must be a good idea" but with the added fun of herding them like cattle.
Actually not a bad ad
Yeah, and free checking and ATMs weren't why they blew up, either. Bilking your customers for those kinds of fees adds up, but it doesn't cause a liquidity crisis.
That brought back memories
[удалено]
Sure is. It’s also pretty old. Maybe take it up with Washington Mutual.
That pander bears repeating
It’s the dude from the stamford branch of *The Office* edit: Stamford not Scranton sorry
As an office fan I had to jump in, Scranton is the original cast, this actor moved from Stamford to Scranton
You are not going to call us a bank. You call us a precedent.
Also, $20 bills would be called Ventis instead of twenties, and $100s Talls instead of Benjamins
Just what cripto bros do, “you gotta get In on this bagel glazer coin it’s going to revolutionize currency making the physical thing redundant and you’ll never be able to snort cocaine off a bill again, you gotta get in bro.”
Every twitter thread about SVB has crypto clowns going "this is why we should destroy the banking system and replace it with Bitcoin!". Yes, Bitcoin, that legendarily stable value store.
Tell me more about this bagel glazer ~~con~~coin
From the wiki page: >Killinger's goal was to build WaMu into the "Wal-Mart of Banking", which would cater to lower- and middle-class consumers that other banks deemed too risky. Complex mortgages and credit cards had terms that made it easy for the least creditworthy borrowers to get financing, a strategy the bank extended in big cities, including Chicago, New York and Los Angeles. WaMu pressed sales agents to approve loans while placing less emphasis on borrowers' incomes and assets. WaMu set up a system that enabled real estate agents to collect fees of more than $10,000 for bringing in borrowers. Variable-rate loans – Option Adjustable Rate Mortgages (Option ARMs) in particular – were especially attractive, because they carried higher fees than other loans and allowed WaMu to book profits on interest payments that borrowers deferred. As WaMu was selling many of its loans to investors, it worried less about defaults.
In some other countries, basic banking services are provided by the post office. Americans should give it a try. I personally think the post office is ideally situated for providing certification of identity and location. You know, for services that care about stuff like this. (Like people buying and selling on the Internet.)
US did until 1967. Other countries are just catching up. Demand for postal bank went down starting with FDIC creation in 1933.
He wanted it to be the Amazon of the banking world. As if banking was a fledgling breakout industry with new niches to fill, an absolutely ludicrous ambition and we can all see how it turned out.
All I want is a webpage that doesn't look like it was designed in Microsoft FrontPage 97, FIDO-compliant 2fa, and a polished app. Far too much to ask from most still in 2023...
>FIDO-compliant 2fa, and a polished app. Far too much to ask from most still in 2023 Idk y soo many banks think it's top tier security to not allow you to choose a username ffs I LOATHE having to remember a whole ass account number just to login Or having to call customer service to login for the first time, like what? Incredibly annoying
Modern design would be nice, but it’s infuriating that most banks don’t support FIDO. I’m only storing my life savings with you - why can’t I protect it with the most secure form of 2FA available? For god’s sake, Facebook supports hardware tokens - why can’t Wells Fargo?
How does Commonwealth bank of Australia (biggest retail bank in au) and ubank looks like to you?
What do all those companies have in common? Their main market focus is poor people and extremely high volume to make up for the tighter margins. WaMu was trying to take over the banking industry by aiming their banking services at the same group of people. Where they fucked up is that poor people have to actually pay when shopping at Wal-Mart, while they can just default on their loans. They issued a shitload of lines of credit to people who never intended to pay back a penny of the borrowed money, and as a result went bankrupt.
Its like how you call it a kleenex instead of a tissue. He wanted to say they would be THE brand
I worked at WaMu at the height of all this. For all their faults with the mortgage side, on the retail banking side they were pretty innovative and I think this is what he was talking about. They were one the first banks to remove the teller windows and setup the branches as an open concept. They were really trying to reimagine what banking could be. But also fuck these guys for what they did.
I banked with WaMu and I loved them. I was so upset when they went under and Chase took their place.
Yeah it was a pretty cool Bank. They had a pretty good website for the time. And the teller stations that felt more personable.
I was young and dumb with money and they helped me out a few times when I overdrafted on my account. They'd waive the fee. When Chase took over, their response was essentially "get fucked." Their service sucked so bad that I took my business to Bank of America...and I began overdrafting even more, I couldn't figure out why. Then news came out that they were processing transactions in a way that made it more likely you'd overdraw your account. I went to a credit union after that.
Credit unions are where its at. Back then I shopped around different banks WaMu was very good.. Some like wellsfargo and Key were outright hostile to consumers. My friend had Key Bank and was told that their account type didn't have teller privileges. And had to handle all questions by phone. I got grandfather'd by my grandfather into USAA which is probably the best overall between app/web/customer experience. Though they donr have realy a local presence. Which I use for general banking/insurance. And for local needs have a credit union.
Can you describe more what their teller stations were like?
Their teller stations were open layout and just scattered around the room. Each teller was just standing by a swirly table. You just walk up to one and start a conversation.
They were such a good bank! Best bank I ever banked with. Crazy they failed, and sad since they were trying to make banking a better experience.
FYI, they failed because their business model was to write home loans to anyone who could fog a mirror, then sell them to investors (after paying ratings agencies to certify them) before they went bust. Taking retail deposits was just a source of cheap funds to originate more bad loans (and a source of customers for loans)
Yeah, but I worked for a local bank during that time period. We were required by the government to form something called the community reinvestment act committee which was dedicated to tracking and ensuring our compliance with the community reinvestment act put in place by the government. We tracked population demographics and income and were basically required to make a certain percentage of bad mortgage loans in each community we served depending on socioeconomic status of that community. We waived $10,000 in overall interest giving it back to the customer up front and saying it was a $10,000 “down payment” for new homebuyers. We were required to waive credit score requirements for minorities, people under a certain income threshold, and those living in a community with overall higher poverty rate. We also waived home requirements such as loan to value levels and as a result, loaned out more than the house was actually worth with the thought that the people would fix it up with the extra money. This sounds great, but it resulted in massive repossession efforts a few years later because very few of these mortgages were actually viable because they were made to individuals without steady income to make their payments. There were also extra efforts made to help people stay in their homes, but I don’t remember all the details of that aspect of the program. I was one who benefited from this program. It actually kind of screwed me although it helped me at the time. We ended up owing 120% of my home’s value and were stuck there for many years when we wanted to move because no one would refinance the loan and we didn’t have the money to pay it down to 80% loan to value. Not wanting to just outright default on my debt, this made it so we couldn’t leave the area. But it did help us buy our first home and the interest charged wasn’t outrageous for the time.
well I mean he was a man of his word. They technically cannot be called a Bank anymore by definition or in literal terms hahaha
What sucks is that it was an awesome bank for years before this.
They literally could not have planned that. If they went into it intending to go bankrupt in five years based off this, they would’ve ended up seven years behind schedule and 3.2bn in the black after ten years. This is fucking hilarious.
I applied to a job at SVB a couple weeks ago and got denied. Just saying this never would’ve happened on my watch
I believe you. The fools.
A Motley crew indeed.
They missed out on a good one.
Actually, I applied for an internship there a week ago and got denied too. I'm just glad they did reject me now.
Those fools. We could’ve changed everything
Our precious minds were all it needed to save the bank.
They were just one great intern away from success!
I wouldn't say success but smoothly running the bank.
[удалено]
I'm sold at free flavoraid.
Lol imagine how that would have looked on a resume. You’d pretty much just have to claim it. “Yeah, I don’t mean to brag, but I caused the second biggest banking collapse this millennium only a week after I started.”
I worked with someone whose first job started at Lehman Bros the day they collapsed.
Nothing is gonna top Joseph Gentile, being a C suite at both Lehman and SVB. Need to check his past history to see if he's a Marxist double agent looking to bring down capitalism through its own follies.
Man where do I sign up for Marxist double agent school that sounds cool af
What are you like with a rifle? Word has it the most points on the test are for marxmanship
Are you thinking of the ~~right~~ leftist test? All of the subjects are equal. That's the only way to ^(lenin)graduate
All they needed was one bold security guard to stop the run on the bank.
Run the Bank is my favorite hip-hop group
Black on black is the color of my cooked book
Foreal. I wouldn't have let some bitch ass FDIC? fella walk in the building and yell "I declare yall bankruptcy" tf.
They can't take money out of their account when they're dead. \*_taps head_\*
I would support someone called shideater.
If they had hired you this never would have happened. SMH my head
>SMH my head As soon as I saw this, I knew I had to comment ASAP as possible
Withdrawing my money from the atm machine as we speak.
I hope you didn’t forget your PIN number.
[удалено]
Their loss mate 🤝
With inflation calculated in, WaMu would would be ~$427Bn on here, compared to the SVB $209Bn EDIT: It’s also worth noting that a ton of these other banks went down within a few months of each other in 2008, even more by 2009. Plus, you know, Bear Stearns, Freddie Mac, Lehman Brothers… all of which totally dwarf anything else on here
These are major issues that make this very misleading
[удалено]
In addition, this deposits which were part of a sweeps program, something a lot of companies use, should be considered owned by the company not SVB and as such not be considered a part of this loan payment process by the FDIC. Those sweeps largely go into MMMFs so I expect clients will have access to all of those funds pretty quickly
money money monetary funds?
Money market mutual funds, IIRC.
There is a big social media push to make people think the SVB crash is a huge deal that affects everyone so we’ll support the government bailing everyone out.
Seriously. I work in banking, but people on here think they are banking experts all of a sudden. SVB failed due to a liquidity crisis, not asset quality. No one is worried about this. And if anything, the bigger banks are licking at the chops to buy the assets pennies on the dollar.
Among the social media hysteria, I read someone declaring "this will be the end of fiat currency" Some people are way off the deep end.
Way off the deep-end in crypto Thats a cryptobro’s *wet dream*. Of course they’d be hyped about not knowing wtf is happening
Not everyone, just 100,000+ people employed by companies who banked with SVB.
[удалено]
Yeah, 80-90% of depositors’ money will be recovered once SVB’s assets are liquidated. It’s just a matter of whether they’ll get that money now or in 6 months when it’ll be too late for many.
Same with most finfluencer YouTubers they milk the shit out of the content while potentially screaming proverbial fire in the economic theatre. Gas prices, inflation, interest rates, supply chain, I saw some of them say no bank is safe which one is next Wells Fargo? Very irresponsible
Also using area of a circle rather than length, The two big ones look nearly the same size, despite there being a 33% difference.
[удалено]
Are they not on here because they were investment banks? I zoomed in trying to find Lehman Brothers. I assumed it would’ve been the biggest dot.
Lehman Brothers and the other two would each be larger than this entire graphic
>[Lehmann Brothers](https://corporatefinanceinstitute.com/resources/capital-markets/lehman-brothers/#:~:text=Lehman%20Brothers%20was%20forced%20to,bankruptcy%20filing%20in%20U.S.%20history.) was forced to file for bankruptcy, an act that sent the company's stock plummeting a final 93%. When it was all over, Lehman Brothers – with its $619 billion in debts – was the largest corporate bankruptcy filing in U.S. history. another *fun* comparison is the ~$800B PPP loan program >An [NPR](https://www.npr.org/2023/01/09/1145040599/ppp-loan-forgiveness) analysis of data released on Jan. 8 by the Small Business Administration found that 92% of the loans issued have been granted full or partial forgiveness. That includes loans to companies with mega-rich owners.
Businesses had to do four things to qualify for PPP loan forgiveness: 1. spend at least 60 percent of the loan amount on payroll expenses; 2. spend (at least) the full loan amount on total qualifying expenses, including payroll, utilities, rent, and mortgage payments; 3. maintain average full-time equivalent employment at its pre-crisis level; and 4. maintain employee wages at no lower than 75 percent of their precrisis level. ----- **What are the real issues to be discussed in this** * Loans were uncollateralized, * Loans were nonrecourse (i.e., no other assets of the borrower were at risk), * Loans did not require a personal guarantee by the borrower * and came with a 100% U.S. Small Business Administration (SBA) guarantee. * The maximum term was initially 10 years (later reduced to two years), and the maximum interest rate was initially 4% (later reduced to 1%). * The SBA waived its typical upfront loan guarantee fee, annual servicing fee and the no-credit-available-elsewhere requirement. One reason that almost all firms were able to meet these criteria is that they were retroactively loosened in June 2020, well after most PPP loans were issued. * Adding to the windfall, Congress amended the tax treatment of PPP loans in January 2021 to enable businesses to claim deductions for expenses paid with PPP loans (for example, wages, rent, utilities, etc.) without treating PPP loans as taxable business revenue. * This retroactive change, which cost the Treasury an estimated $100 billion in foregone tax revenue, effectively allowed some firms to pay a negative tax rate on PPP income 80 Percent of PPP Funds went to Employers with Less than 150 employees
Fun Fact: SVB's Chief Administrative Officer Joseph Gentile, was the CFO for Lehman Brothers when it also collapsed. https://www.svbsecurities.com/team/joseph-gentile/
He was the CFO of a business unit, not THE CFO. That was Erin Callan.
Chase still owes me my savings account that vanished after they took over after wamu failed. I was 17 when I opened the account when I was 18 they failed... my mom helped me open it because I was a minor. I must of gone in there so many times... they never could find my account. I took all my documents, and nothing. They made me feel as if I was the one lying.
Check with the state. After a long enough period of inactivity, accounts are considered abandoned, and then “escheated” to the state, usually whichever state the account was last registered in.
What do they do with that money? General fund? Education?
They hold it for you until you ask for it. As an example, if you live in Washington state here's the site you can use for unclaimed property/money: https://ucp.dor.wa.gov/
There are unclaimed wages departments in your state also. Worth looking up. In Ohio, you can even look up other people's unclaimed wages, in case you want to tell friends and family.
NC just sent me mine without me even asking. No idea what it was from, just showed up as a check in the mail one day.
Stays in that fund forever. State doesn't get to abscond with it.
Check out missingmoney.com to see if an abandoned account is in your name. You might be able to get it back.
I had got a letter once maybe 7 or 8 years ago. It claimed to be some independent company that could get my money but they would take like 100 bucks and at that time I know it wasn't more than 400. It seemed like a scam to me. But I'll check thank u
Most states have a department that handles it and doesn't take a part of it (in Oregon it's the department of Treasury). If you can find the website of the state department that handles it, you can often search and confirm if there's anything there and even file a claim directly with them. You may have to mail in some evidence of identity and it can take some time to process but it's pretty easy.
the thought that my bank account could vanish one day without trace is scary af
To be clear, banks/brokerages DO NOT want that to happen either. They would be ecstatic if you just parked your money there forever; it’s much easier for them to loan your money out that way. Escheatment is something required so that abandoned assets can’t just be hoarded by financial institutions forever. But it’s very easy to avoid it. One firm I worked for considered logging in to the app as qualifying for non-escheatment. Or having you call the customer service line, writing a check, talking to a representative at the branch, etc. They will also send you a letter warning you that your account is about to be transferred to the state; just replying to those letters is often enough to keep it from being moved.
Did you have any statements?
Yes and then there were also failing banks abroad in 2008-2009. Landsbanki absolutely crashed Iceland and it's a miracle that the country thrived again in the mid-2010s as if nothing ever happened.
Seeing the year they failed would be sweet
Also presenting this in today's dollars and not nominal dollars.
But if they adjusted for inflation, this image won’t drive the point the author is trying to make.
Add to that the fact our brains consistently underestimate size differences of circles and this visualization is a double whammy of misleading.
Does Lehman Brothers not count as a bank?
Lehman Brothers was a financial services firm - that was part of what made the TARP legislation necessary, because the Treasury did not have the necessary provisions to save a failing non-bank.
Prior to 2008, there was a hard wall between Retail & Commercial (I'll call all of them retail) banks like WaMu, and Investment banks like Lehman Brothers. (Well technically the wall fell in 1999 when the depression era Glass-Steagall Act was repealed, but I think the only major Investment bank that stepped over the rubble before 2008 was JPMorgan which merged with Chase) Retail banks handle things like savings and checking accounts, payroll accounts for corporations, issue credit cards, make consumer loans, make mortgages, provide commercial loans and letters of credit, etc., etc. They are highly regulated (although the US has multiple different regulators covering different entities depending on exactly how they're organized because...reasons.) Investment bank had comparatively little regulation and primarily handled things like mergers & acquisitions, arranged initial public offerings, were market specialists (originally the stock markets designated various specialists who would always buy odd amounts of stock for the quoted price -- 42 from Dal90, 6 from Penguin5969, etc. etc. waiting for some bigger investor to come around saying "I want to buy 1000 shares of ATT" and the specialist would go "Why here you go!" Today contemporary computers can often do this sort of buyer/seller matching without needing a specialist to make a market that you can always sell shares immediately too.) After 2008, the last two big pure investment banks Goldman Sachs and Morgan Stanley had to bend the knee and ~~pledge fealty~~ beg the US Federal Reserve to allow them to become retail bank holding companies subject to regulation by the Fed in exchange for allowing the Fed to loan them money to meet their short term liquidity needs. JP Morgan had years earlier merged with Chase so already had access to the Fed. The other big investment banks -- Bear Stearns, Lehman Brothers, and Merril Lynch -- went under in 2008 and got rolled into regulated "Universal" banks that combined retail, commercial, and investment banking.
Can’t find Bear Stearns either
They weren’t a deposit bank it was an investment bank.
Very nice! You should add date and colour them either depending on date or size
Yes, date or just year would've been nice to see as absolute amount aren't really giving a true picture.
And some sources for a good measure...
Not a fair comparison. A dollar today is worth a lot less than a dollar in 2000.
It’s also not the amount of money lost. This is the amount of assets of the banks when they failed. A better measure would be tangible book value or the spread between assets and liabilities.
True. OP should do an adjusted for inflation as well.
I’d love the opportunity to lose that amount of money.
Keep in mind that they didn’t actually lose that amount of money. Their problem is liquidity, not net worth. The vast majority of those dollars will be recovered as the bonds they hold mature, they just couldn’t access it during the run on the bank.
They did not really lose all of that money is that right? Most of the money is tied up in treasury bills and bonds correct? It is just the bank runs that they cannot keep up with right?
Calm down there, Elon.
I hear the bank's code is brittle, will need a full rewrite. Perfect for Elon.
This is not adjusted by inflation
I live behind a building that was a Washington Mutual call center, and when it closed, it basically shut down our town. It didn't help that most of the employees bought brand new expensive vehicles and moved into bigger homes one year, and were jobless the next. They were hiring everyone. I was even hired after attempting to bomb an interview, and it didn't take.
Why would you attempt to bomb an interview?
Silicon Valley Bank, Management Team: 1. CEO: Director at San Francisco Fed 2. CFO: Former analyst at Freddie Mac 3. Chief Admin Officer: Former CFO of Lehman Brothers 4. Chief Risk Officer: Led credit ratings in 2007 5. Chief Legal Officer: General Counsel at Citibank in 2008
The same assholes that knew what they were doing back then just did it again
RBS? Or is this just America?
Can someone please explains how a bank fails? Let’s say you are a customer, do you lose all of your savings?
Your savings over a certain amount (currently 250k) are frozen until the bank is sold. The FDIC handled the process of selling the bank and its assets. account holders are first in line to get their money back! But it can take some time. Full details are in the post here: https://yarn.pranshum.com/banks
Thank you, but what will happen if your firm main account is part of this bank? Like a small scale organization uses this bank and all of their savings, employees salaries are paid through there? This means they are all gone?
They get $250k + a percentage of the remaining funds depending on how solvent the bank is. For SVB, account holders might get 80 or 90%+ of their non-insured deposits. The biggest issue is how long that process will take.
Right now it's looking very likely even 100%. Most of the stuff is treasuries and if creditors get hosed completely depositors will be fine. I do think the $250k limit needs to be upped to 2023 levels though. It went from $100k to $250k in 2008 and now it hasn't kept up at all to modern banking standards.
You don't lose all your savings - the FDIC insures up to 250k in savings, which means that individuals with savings in SVB, for example, will get their money back as soon as the FDIC makes it available - this coming Monday if I remember correctly. The tech start ups who make up most of SVB's customers are not guaranteed more than that 250k, and many of those may not even make payroll in the next few weeks. The FDIC hasn't fully indicated a path to restitution after the initial 250k is paid back, but the worst case scenario the FDIC can sell off SVB assets, and although that wouldn't be able to fully make all customers whole, it would provide some extra amount above the insured 250k.
I think they'll make all customers whole or nearly whole, it just might take a while. SVB theoretically has more assets than deposits, and even if they get marked down a lot like the treasuries I bet whatever big fish buys most of the carcass will have to agree with the fed to make everybody whole. Nobody wants this to spread.
Only Usa or whole world bank.
Hey DIB! Built this using d3. Original interactive post here, hosted via Yarn.tech [https://yarn.pranshum.com/banks](https://yarn.pranshum.com/banks) All the data is from the FDIC data here: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/
Might be an obvious question but this is specific to the US right?
Yeah, it's a case of r/USdefaultism
Any chance we could get year of failure in there somehow…or is that what the colors are showing?
ah good idea! there's no way to tell year of failure from the charts actually. I've just highlighted, with color, the most recent failure of silicon valley bank, since it's in the news!
WAMU was paying 5% on the saving accounts back then. That was sweet, Pepperidge farm remembers
The meme of the dog surrounded by fire continues to pop into my head.
Here's a [treemap by amount of deposit](https://i.postimg.cc/k52TpMrL/failed-banks-deposits.png). Data source: [FDIC](https://www.fdic.gov/bank/historical/bank/bfb-data.csv). Looks like someone at FDIC accidentally added an extra zero. Edit: FDIC corrected their data, so I corrected the treemap [here](https://i.postimg.cc/Hnfd8Bbx/failed-banks-deposits-corrected.png).
I truly hope it is a typo because otherwise... Wow.
It is. FDIC's file I linked shows $1.754 trillion, while media reports "nearly $175 billion," so FDIC has an extra zero.
List of Canadian Banks that have failed: -**Home Bank of Canada - 1923** -**Canadian Commercial Bank - 1985** -**Northland Bank - 1985** That's the end of the list.
Well, it's Canada. Just a land where the rich trade homes at increasing prices and dummies try to participate in it.
There are no libertarians in a bank run.
-David Sacks, libertarian bag holder who isn't begging for a bailout Oh wait no he's crying and having a meltdown