The bank mess happening in the US right now is bound to have some effect here. Your thoughts?

Why would a few banks that had management issues in the US have any effect on Cambodian banks?

CS has been known for risky investments for years.

It was so clear they were in trouble back in October:

https://thedeepdive.ca/credit-suisse-de ... ement-arm/

The biggest issue was that the US Government decided in 2018 to roll back oversight and regulations in the Dodd-Frank Act. They changed the threshold of what was considered a “small” bank from $50 billion in assets to $250 billion in assets. This allowed, and championed, these banks with under $250 billion in assets to be less scrutinized and have less oversight in their dealings.

The problem that SVB ran into is they took a major risk in investing too much money on long-term Treasury Bonds, betting that interest rates would stay low. Because they had about $210 billion in assets there was no one to scrutinize what they were doing because of the lack of oversight due to the law change in 2018.

The Feds interest rates couldn’t stay at 0-.25% forever, and everyone should have known that, so when the Fed raised the rates SVB lost billions of dollars. And then when SVB tried to raise over $2 billion by selling new shares, that caused the bank run.

The banks want less oversight and less regulations, well this is what happens.

It wasn't just that that caused the bank run but peter thiel and the others behind brex (a competitor sv bank) pushing start ups to withdraw and move to brex.

verdebandit wrote: ↑Thu Mar 16, 2023 12:21 am It wasn't just that that caused the bank run but peter thiel and the others behind brex (a competitor sv bank) pushing start ups to withdraw and move to brex.

I agree with that. It was a domino effect. SVB missed their earnings expectation, lost billions in questionable investments, tried but didn’t succeed in raising additional capital, word got out, Thiel stepped in, $42 billion bank run that they couldn’t cover. Bank shut down.

I believe had their been more oversight and scrutiny over SVB’s questionable business decisions this would not have occurred. Just my option obviously.

I do not know if Thiel was able to get all $42 billion that was taken out, but if he did, good for him I guess.

I don't think they got it all but they got a big chunk. I agree with you that raising the dodd frank protection to 250 from 50 based on svb lobvying and their poor investment decisions were the main root causes.