29 Replies to “Trust The Experts”

    1. Au contraire. They play their role in the Kayfabe shell game that is our modern fiat currency usurious empire of lies. They are insurance companies and they charge a premium for an insurance certificate they give you. If your company fails, they have insurance to cover the costs of their court adjudicated losses.

    1. $42 Billion ran out the door. 42,000 Million Dollars.

      It was not Mom and Dad closing their Christmas Account. It was well connected Billionaires tipped off by their buddies, pulling hundreds of millions and billions of dollars out of SVB in one single day. $42 Billion to be exact.

      They saved their own personal butts, and F**K! the people that did not have the right connections.

  4. “The financial statements are fairly stated unless they’re not.”

    – Mark Steyn’s immortal summary of the Auditor’s Opinion on financial statements.

  6. “In a footnote, Silicon Valley Bank said the fair-market value of its held-to-maturity securities was $76.2 billion as of Dec. 31, or $15.1 billion below their balance-sheet value. The fair-value gap was almost as large as Silicon Valley Bank’s $16.3 billion of total equity—which, KPMG could point out, is something anyone reading the financial statements could have seen.”

    And it only got worse from there

  9. Wonder how many Arthur Andersen people continued to fail upwards until they reached their Peter Principle Pinnacle at KPMG

  11. “Both bank audits were for 2022, so auditors weren’t scrubbing the banks’ books for the time period when they ran into trouble. But auditors are supposed to highlight risks faced by the companies they audit. They are also supposed to raise important issues that occur after companies close their books and before the audit is completed.”

    Did the auditor miss anything? If they did not, what the hell happened in 2 months?

    1. Name me a major financial disaster where the Big 4 accounting firms weren’t playing the role of Inspector Clouseau harrassing the seeing eye minkey and helping the bank robbers get away.

      1. I was with a firm for a few years that was annually audited on behalf of our equity and banking partners.

        1. The auditing staff typically had been at the job all of 4 weeks
        2. Our ONE Jewish Accountant easily hid all the irregularities. The Freshman auditors were no match for him.
        3. The Equity Partners eventually invaded one of our projects. Literally INVADED it … with police … and found all the irregularities … in the flesh. There was no firm after that. Just a cascade of lawsuits.

  12. It is all about chasing and grabbing hordes of filthy lucre…always and ever thus.
    Oh, and also screwing the little tax payer plebe.
    Right?

  13. A Democrat bank in a Democrat area lending money to Democrat green grifters…..what could possibly go wrong?

  14. Does anybody get the drift that the governments are working on plan that there are gonna be the rich and poor.
    The rich will have the government backing of getting richer, and the poor get the government backing to get more dependent on the government.
    Solves many problems, the plebeians will be blessed with welfare buying cheap stuff made in Asia and the rich will be rich.
    Work will be optional. Until it all crashes in a complete and utter disaster.

    Talking about those rich that scam the plebeians and the government.
    Fascism at its best.

    Those involved in the free enterprise that innovate, create and produce on their own are not included, all power to them to get rich.

    1. Scumbag Andrew Weissman destroyed Aurther Anderson. Decision was overturned 9-0 by Supreme Court.

      Too late though.

      Weissman belongs in jail.

  16. First they say it this way
    Accounting rules said it didn’t have to recognize losses on the assets as long as it didn’t sell them.
    Then they say it this way
    Most of the capital hole in Silicon Valley Bank’s balance sheet was in government-sponsored mortgage bonds that Silicon Valley Bank classified as “held to maturity.” That label allowed Silicon Valley Bank to exclude unrealized losses on those holdings from its earnings, equity and regulatory capital.

    If it’s “held to maturity” then a YTM calculation should reveal that they can’t keep up with the Feds prime rate. I suspect this was happening throughout 2022 with an annual inflation rate of 8.38% further exasporating losses.

    Fed. Lending Rate
    17-Mar-22 3.50%
    05-May-22 4.00%
    16-Jun-22 4.75%
    28-Jul-22 5.50%
    22-Sep-22 6.25%
    03-Nov-22 7.00%
    15-Dec-22 7.50%

    So, if your auditing a bank that holds a lot of bonds in 2022 yikes! 4 points in 9 months with an inflation rate sustained at 8+% for the year.
    I don’t see how the hemorrhaging gets overlooked as the bonds that matured during the audit would have to show chronic losses regardless of the ones which had yet to reach maturity.

    Audit = Peer Review = Corruption

    1. Most banks worldwide own lots of tbills and the bond market tanked this year. It’s just starting to become a problem.

    2. Page 125 of their annual report shows the $15.1 billion hole on their balance sheet, most of which is in the 10+ year time frame. There is no first quarter report yet, but those numbers are likely worse now.

    3. One would think that the $$BIG$$ depositors … with $ tens of millions in SVB … would have highly paid money managers doing the basic observations and calculations that you have just performed … and gotten their clients the hell OUT of there … lickety split. It’s not as though The FED hasn’t made their intentions clear for all of 2022.

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