Matt Ryder and Pat discuss the collapse of Signature Bank, Silicon Valley Bank, and Credit Suisse, examining what triggered the banking crisis and what it means for sales and finance professionals.
Hey guys, what's up? Welcome to another episode of Coffee is for Closers. It's Matt and Pat. We're back. Pat and Matt, we're here today we're going to talk about is the impending financial doom of the world and how it may or may not affect your sales. So if you don't want to lose all your money, watch past the intro. Ex special forces sniper turned entrepreneur, I've scaled numerous businesses to eight figures. My name is Matt Ryder, this is my podcast and I'm telling you to put that co down. So we did a whole thing on FTX we did where I had a big win about losing 30 grand and I was like, I was playing with crypto and I was like, you know what, I don't enjoy this. I'm just going to buy some bitcoin and some Ethereum. Just hold it, leave it, just be. It just doesn't exist anytime. That's the beauty of crypto and just disappear. And then same just happened with a real bank, a couple of them. Yeah. So in the last couple weeks, signature bank out of New York, gone. Silicon Valley bank, gone. First Republic bank which is like a regional bank, pretty big like top 10 bank in the US might go down but they might get saved. They have a 111% loan to deposit ratio. So I get that fractional lending happening. Credit Suisse which has been an institution for those who have like been interested in the banking space. Credit Suisse has been in trouble for about two years. They heavily over invested in Asian speculative markets and this didn't learn their lesson from. Well, they came out of 2008 really well but like by happenstance it wasn't through skill and so like they didn't. There was no one there that had to learn a lesson. So but I think that that will that so they got bought by ubs which is a really, really, really, really good bank. Like very, very traditional and very safe in their like practices. But they like that that will get overturned I would think by the Supreme Court of Switzerland. Oh really? Yeah, Almost have to. Right. So what happened for those of you who don't know? So Credit Suisse is a bank right out of Switzerland and it's Credit Suisse been around for a long time. They had a lot of like investment offshoots but this is like the main actual bank bank. So what they did is they were bought by UBS for 3.2 billion. Even though they had 40 billion under sort of asset stuff like that, they had to do it. So that company's worth at least $40 billion right as a trade sale but they were bought for 3.2 billion now what happened was the Switzerland government enacted emergency powers and forced UBS to buy it okay with 48 hours notice to do the due diligence okay so UBS was by is a private company by the government forced how did that come to because they they knocked an emergency power so Credit Suisse was going to go down right like it was gonna go bankrupt because they didn't have any money and like that was starting to run on the bank I'm pretty sure so to stop the run they closed it closed all withdrawals the Switzerland government enacted emergency powers and enforced GPS to buy it Wow I can't imagine how that would work though so they did it it's completely against the law the emergency powers are there for wars they're not there for banking crisis like that that's not written in they had to do some heavy interpretation as to why they could do it and there's already a law signed speed.
