Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
RNS says bought for £1
According to the BBC
https://www.bbc.co.uk/news/business-64937251
Definitely behind the sofa ,chitty chitty bang bang all over again hair would have turned white if I had some not even 7 am yet
"Lovely jubbly"
Did anyone really believe the "World is nigh?" lol, considering the true blame lay on the shoulders of the US regulators for not doing their job !
The W' clan have ventured away from the den recently and on Saturday I went to a cash machine, no cash, then another and again, no cash.
So I stood scratching my head, then it dawned on me, the local community had panicked about their savings and had obviously hammered the cash points.
Crazy, absolute crazy as they must have thought it was another Northern Rock scenario lol.
Bit of balancing about to kick in this week (Might even be today in fact) 2 yr Bond and a yield bounce, should reflect good on the big banks.
The Feds really need to plough on with the hikes, they know it and most of us know it, though now they will need to keep a close eye on the potential impact on smaller banks, each time they raise rates.
US tech sector is going to get a rough ride the next 6 months now, though nothing new there as the liquid funds were drying up anyway.
Now with SVB it appears they (tech) have had the KY and margarine confiscated taken away.
Which leaves me with the same opinion I had on Friday post US open "Nothing to see here, move on"
Will admit as I would be fibbing through my incisor's if I hadn't questioned myself for adding some @ 155.52 / naked with no S, too long in the game to be concerned, so those self doubts lasted brief seconds.
Interesting day / week ahead, though all those cowering under the table, can come out now.
Good luck to all on the open, lets hope some common sense digs in way of support.
Regards W'
In a statement, the Fed said it would make additional funding available to eligible depository institutions to “help assure banks have the ability to meet the needs of all their depositors”.
It added that it is “prepared to address any liquidity pressures that may arise”.
The new facility, the Bank Term Funding Program (BTFP), will offer loans of up to one year to lenders who pledge as collateral US Treasuries, agency debt, mortgage-backed securities and other “qualifying assets”.
https://www.ft.com/content/8e0be2f4-0b41-4768-b586-49180980ba90
SVB depositors will get all their money (feat. SBNY shutdown)
https://www.ft.com/content/72c25414-aabe-432a-a785-a8b2bd6887f9
The latest update from City AM. The sentence that pricked up my ears was: “Most analysts expect that sell-off to continue this week.”
Regards MrA
https://www.cityam.com/silicon-valley-bank-uk-what-we-know-and-what-we-dont-on-sunday-evening/
Typically with Mergers and Takeovers, the stock price of the Aggressor normally goes down with the price of the takeover target going up. I appreciate that the takeover target here is ‘dead in the water’, so the markets will decide whether the ‘emergency takeover price’ paid by Barclays, if it indeed buys Silicon Valley Bank, is a bargain price or not… and reflect it in Barclays share price within minutes of any Purchase announcement made. But as we have seen the markets remain anything but “normal” at the moment.
Regards MrA
No idea how true this is but on the BBC news Barclays are said to be considering buying the bank.
£85k wrong !
Ns&i = £1m
Chris Whalen and Peter Schiff also offer some interesting (and differing) opinions on this topic. Advice: Do not listen to the latter if you are of a nervous disposition or close to your bedtime :) Yes, he is the ultimate perma bear, but I also enjoy hearing his take on financial stuff. Good to read as widely as possible, to avoid falling into an echo chamber IMO. Anyway, it will not take long to see if this gets contained effectively or otherwise. IMO, it might take a few days to see the direction of travel here, so not going to read too much into Monday market action, here or across the pond.
They cant just dump 200bn of mbs and bonds overnight as that could tank the market and cause waves. Thats predominantly why the us federal government stepped in; for an orderly wind down of these assets as to not cause any reverberations as SVB could no longer contain the runaway bank run and panic.
But on the macro scale, thats as far as this will go. Theres simply no way mainstream banks will face this problem. Banks that are classified crucial for a functioning society are under such tight restrictions that barring a mass panic of epic proportions, they simply can't run out of cash and be forced to firesell underperformimg assets. If (very very very very unlikely) a bank such as JPMorgan or hsbc reported this issue....it would be 2008 on steroids and we wouldnt be talking here, we would be desperatlely pulling deposits from every account we own. Fortunately, the US govt will fence in SVB, or at the very least stop the travel upwards. But with many fintech banks and small startups in the financial sector, who knows how many of these could have similar issues where they have blown all deposits on low yielding assets, with no new inflows to diversify and increase PF yield. When you deposit money with these companies, unless they are backed by FSCS you put your money in the hands of the CEO and their competence. But this will certainly bring in new levels of scrutiny for this sector, despite govt lobbying for red tape to be cut to bring in innovation to this sector. But this incident once again highlights the massive risks involved if you let your guard down.
There will be repercussions for companies/individuals who have huge sums tied up here however...and we will find out how deep of a hole SVB put themselves in. I expect many will be forced to take a haircut, perhaps even a buzz cut.
A lesson out of all of this. Dont put all your eggs in one basket. Those fortunate enough to have over £85k in cash deposits....diversify. This way, your deposits are backed by government and no matter what happens...you get your cash back.
As for companies who had millions tied up in this bank who say they can't make payroll....they should find a new CFO. Unacceptable risk to not diversify deposits and have contingency accounts for such an event.
Interestingly, soon as I read the title of this thread, I was going to link that post but seems like that’s the one you linked. Great explanation that.
Jezmaster
Pretty much sums up the issues at SVB.
https://www.marketwatch.com/story/the-government-has-about-48-hours-to-fix-a-soon-to-be-irreversible-mistake-bill-ackman-warns-some-businesses-may-not-be-able-to-meet-payroll-after-svbs-failure-1cb2e6d9?adobe_mc=MCMID%3D10759843543874452832792930826354676349%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1678576624
I remember reading somewhere that Lehman was technically solvent. Trouble was, everything was so convoluted and opaque that many, many months passed before this was discovered - long after the doors had shuttered there. If anyone is familiar with a youtube channel called Wealthion, they cover the SVB topic and some of the potential ramifications that may result in the weeks/months ahead. No shortage of media coverage I'm sure, but I like listening to this one, among others, for a weekly general market update (US focused, but often spans global financial issues at the time too).
I'm not clever enough to know how complete/accurate this is, but it read well enoughs:
https://www.reddit.com/r/Economics/comments/11nucrb/silicon_valley_bank_is_shut_down_by_regulators/jbq7zmg/
"When money was cheap as dirt in 2021 and people were making huge deposits- SVB bought government bonds. At the time the fed rate was low as ****. Let's say 1%
Fast forward to today- the free money spigot has been turned off so VCs are also reducing funding to startups. In order to keep operating, startups need to withdraw money from the bank. SVB had a ton of money tied up in these government bonds. The bonds themselves are secure but don't pay out until they mature- however you can sell your bonds to someone else for cash. Problem is- the fed has been hiking interest rates steadily so a bond from 2021 may only pay out 1% but a bond purchased today may pay out 5%. Nobody is going to buy a 2021 bond unless it was cheap so SVB needed to take a loss because the bonds they bought in 2021 pale in comparison to bonds you can buy today that pay out 5%. So they basically had to take an L to provide liquidity to their clients.
EDIT:
For what it's worth- SVB was solvent. They weren't upside down. The deathknell for SVB was Foundersfund- a VC- telling startups to pull their money out of SVB because they felt it too risky. This created a run on the bank. This then caused several other VC firms to tell their portfolio companies to pull their money as well.
SVB had assets- just not instantaneous liquidity for everyone to pull their money because again- locked up in government bonds.
SVB likely could have rode it out had the VCs not instigated a run."
Silicon Valley Bank: Regulators take over as failure raises fears
https://www.bbc.co.uk/news/business-64915616
That is true, Investing101. Vix still below 25 too, although that can change quickly, of course. Not long to wait to find out. Even if this does herald the next bump in the road (not sure it can be called a black swan, given that this was one of several banks under the spotlight for at least a few months already), then we all have some powder dry to deploy when we feel the time is right. Personally, I am not feeling nearly nervous enough yet! Some of the buys I made in April/May 2020...that was scary stuff! If the whole thing is going to collapse and never return, then a few quid in the stock market would be the least of our troubles. If it comes out the other side (historically far more probable of course), then the old buy when others are fearful mantra will work well again. GLA.
I'll probably add a few here if it goes sub 150.
If everyone is expected a red day on Monday, it’s likely to be a bullish day because the stock market is just like that now.
Having done a little more reading into SVB, baronbog is right to point that out. Still not saying it will necessarily be carnage on Monday, but I am now absolutely certain that the Fed and others will indeed be working very hard this weekend. This is a bigger potential threat to the banking sector than some may think. Not every one of them has JPM's financial strength...and the likes of that bank can only buy up/buy out so many of the more vulnerable financial institutions. People have been talking about the Fed pivot for months now. IMO, it is getting pretty close now.
Lol @JayK
Prime
‘ To put some perspective on SVB's standing in banking they are/were ranked something like 2500th in the world (I think) with a cap of $16 billion and funded predominantly by venture capital.’
A bit misleading … they were the 16th biggest bank in the US and not 17 months ago had a cap of $43B … so a lot more that Barclays.
With Barclays track record for ****-ups they will probably have found a way to be more affected by this than other banks. Bloody shambles!
Who knows what the domino effect will be here - but it's possible that this is an industry related thing, as SVB mainly targeted the tech sector which hasn't had much investment recently. A lot of tech shares and investment trusts had a poor last couple of quarters, so it's possible that this will be reasonably easily contained. Kudos to the regulators for acting swiftly.
Some US banking stocks on Wall Street have recovered some of the lost ground this afternoon, but mostly after London closed so we saw little reaction - JPMorgan closed up 2.2% for example.
If there's an upside for Barclays (and yes I am grasping at straws) it's that the share buy back kicks into gear on Monday. Buying back shares at sub £1.60 is going to make that money go a bit further.