[FriedTofu]

Here's how the second-biggest bank collapse in U.S. history happened in just 48 hours

As dust begins to settle on the biggest American bank failure since 2008, members of the VC community lament the role other investors played in SVB's demise.

www.cnbc.com

The roots of SVB’s collapse stem from dislocations spurred by higher rates. As startup clients withdrew deposits to keep their companies afloat in a chilly environment for IPOs and private fundraising, SVB found itself short on capital. It had been forced to sell all of its available-for-sale bonds at a $1.8 billion loss, the bank said late Wednesday.


The sudden need for fresh capital, coming on the heels of the collapse of crypto-focused Silvergate bank, sparked another wave of deposit withdrawals Thursday as VCs instructed their portfolio companies to move funds, according to people with knowledge of the matter. The concern: a bank run at SVB could pose an existential threat to startups who couldn’t tap their deposits.

SVB customers said CEO Greg Becker didn’t instill confidence when he urged them to “stay calm” during a call that began Thursday afternoon. The stock’s collapse continued unabated, reaching 60% by the end of regular trading. Importantly, Becker couldn’t assure listeners that the capital raise would be the bank’s last, said a person on the call.

“When you say, `Hey, get your deposits out, this thing is gonna fail,′ that’s like yelling fire in a crowded theater,” Falvey said. “It’s a self-fulfilling prophecy.”

Another venture investor, TSVC partner Spencer Greene, also criticized investors who “were wrong on the facts” about SVB’s position.

“It appears to me that there was no liquidity issue until a couple of VCs called it,” Greene said. “They were irresponsible, and then it became self-fulfilling.”

Investors implore the government to step in after Silicon Valley Bank failure

Voices from tech and finance are increasingly calling for the federal government to push another bank to take over the failed Silicon Valley Bank.

www.cnbc.com

Venture capitalist and former tech CEO David Sacks called for the federal government to push another bank to buy SVB’s assets, writing on Twitter, “Where is Powell? Where is Yellen? Stop this crisis NOW. Announce that all depositors will be safe. Place SVB with a Top 4 bank. Do this before Monday open or there will be contagion and the crisis will spread.”

VC Mark Suster agreed, tweeting, “I suspect this is what they’re working on. I expect statements by Sunday. We’ll see. I sure hope so or Monday will be brutal.”

Investor Bill Ackman made a similar argument in a lengthy tweet, writing, “The gov’t has about 48 hours to fix a-soon-to-be-irreversible mistake. By allowing @SVB_Financial to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank. Absent @jpmorgan @citi or @BankofAmerica acquiring SVB before the open on Monday, a prospect I believe to be unlikely, or the gov’t guaranteeing all of SVB’s deposits, the giant sucking sound you will hear will be the withdrawal of substantially all uninsured deposits from all but the ‘systemically important banks’ (SIBs).”



Benchmark partner Eric Vishria wrote, “If SVB depositors aren’t made whole, then corporate boards will have to insist their companies use two or more of the BIG four banks exclusively. Which will crush small

These venture bros sparked a bank run on a bank that specialize in financing for their industry and now have the nerve to ask the government to step in to help secure their money. If a bank as responsibly run as SVB can be killed off due to overexposure to tech start ups and crypto, this might be the first publicly facing domino of the consequences of banks gambling in crypto for returns to fall.

I like how that one rich guy say if the world woke up to uninsured deposit it meant the whole system will fall. As if people didn't know deposits are only insured up to a degree beforehand.

 

[BruiserKC]

Here's how the second-biggest bank collapse in U.S. history happened in just 48 hours

As dust begins to settle on the biggest American bank failure since 2008, members of the VC community lament the role other investors played in SVB's demise.

www.cnbc.com

Investors implore the government to step in after Silicon Valley Bank failure

Voices from tech and finance are increasingly calling for the federal government to push another bank to take over the failed Silicon Valley Bank.

www.cnbc.com

These venture bros sparked a bank run on a bank that specialize in financing for their industry and now have the nerve to ask the government to step in to help secure their money. If a bank as responsibly run as SVB can be killed off due to overexposure to tech start ups and crypto, this might be the first publicly facing domino of the consequences of banks gambling in crypto for returns to fall.

I like how that one rich guy say if the world woke up to uninsured deposit it meant the whole system will fall. As if people didn't know deposits are only insured up to a degree beforehand.

And deregulation also set the tone. SVIB heavily pushed for banking regulations to be rolled back. They didn’t have the cash on hand necessary in the event of emergencies you might want to have.

Now even Republicans want to bail the bank out and the investors. Here’s what the Biden administration should do…

Honor the FDIC- protected deposits.
That’s it.

It’s time to end this “too big to fail” nonsense. If that means the bank goes completely out of business, so be it. Actions have consequences.

 

[FriedTofu]

And deregulation also set the tone. SVIB heavily pushed for banking regulations to be rolled back. They didn’t have the cash on hand necessary in the event of emergencies you might want to have.

Now even Republicans want to bail the bank out and the investors. Here’s what the Biden administration should do…

Honor the FDIC- protected deposits.
That’s it.

It’s time to end this “too big to fail” nonsense. If that means the bank goes completely out of business, so be it. Actions have consequences.

I don't think the old regulations would have kept them solvent anyways. This is a bank run caused by venture capitalists who got spooked over the collapse of another crypto bank and got their partners to move funds from this bank. No non-major banks could withstand many of their huge clients asking to withdraw a huge percentage of the funds on a short notice without facing a liquidity issue. I think they saw a withdrawal of a quarter of their holdings in a single day. Way more than the 10% cash on hand recommendation. Their problem isn't a lack of cash on hand, but overinvesting in long term assets when interest rate was close to zero because they had too much cash a few years back and facing a run when interest rates shot back up.

Their on the book assets can cover, but they don't have the liquidity because the money is stuck in longer term bonds. Selling those older bonds is much harder due to recent interest rate hikes that created more attractive shorter term higher return bonds. To get liquidity they would have to sell low and probably still be unable to cover a bank run.

 

[BruiserKC]

Sorry, the government isn’t saving the crypto bros.

https://twitter.com/i/web/status/1634928918963851266

 

[Freelancer]

Let them go under, F em. Who's gonna bail us out.? Nobody, that's who.

 

[NascarStan]

Depending on how bad tomorrow is on Wall Street I really got lucky with when I moved out of the US.

 

[Rain]

At what point should I be selling my 80k aud worth of Hbar

I trust crypto more than banks but I’m not gonna hold onto 80k in cash

 

[FriedTofu]

Sorry, the government isn’t saving the crypto bros.

https://twitter.com/i/web/status/1634928918963851266

Eh the crypto bros are the depositors here too. They are being saved along with every other depositors. It is the shareholders of the banks that are fucked. And really I don't think they are the villain in this situation. But the bank wanted to do business with Crypto bros so this is the risks being realized.

What the failures of Signature, SVB and Silvergate mean for the crypto sector

The failure of crypto-focused banks once again showed the vulnerability of stablecoins, which can lose their peg in unusual financial situations.

www.cnbc.com

Another bank with heavy exposure to crypto, Signature Bank, was closed over the weekend. Crypto banks failing a lot recently has to be a sign of a systemic flaw of the industry existing alongside traditional banking. Crypto prices are already rallying so the VC crypto bros that started the bank run are making out both by making gains and operating as usual while competitors have their funds tied up and operating in uncertainty until depositors are made whole. Disgusting.

 

[TheDonald]

I really hope the government doesn´t bail them out. They basically dug their own grave by hiring people that were not qualified for these jobs and didn´t assess the risks of their investments in bonds, put all eggs in to one basket and relied heavily on the interest rates to be low, which killed them when they went up. Let them go down and blacklist the people who were in charge.

 

[FriedTofu]

I really hope the government doesn´t bail them out. They basically dug their own grave by hiring people that were not qualified for these jobs and didn´t assess the risks of their investments in bonds, put all eggs in to one basket and relied heavily on the interest rates to be low, which killed them when they went up. Let them go down and blacklist the people who were in charge.
View attachment 160609

That is hindsight 20/20 and conservative media trying to tie this to anti-woke propaganda. The bank had too much cash deposit from 2019 onwards. Like triple the amount of what they were used to handling due to cheap money from low interest rates and the nature of their costumer base. They can't be having all the cash on hand on the balance sheet. So they picked the most conservative and safest asset to dump the extra cash on at the time. Bonds are also usually easy to sell off most of the time compared to other safe assets.

If there was any outsized risk, it was their entire business model of catering towards venture capitalists and startups making them vulnerable to a small group of funds who can dictate most of their costumers to start a bank run. No bank could have survived a run at 25% of its deposits in a single day.

 

[WrestleFAQ]

Went woke. Went broke. Leftist idiots gonna leftist idiots.

Sadly, Biden and his gang of corporist, globalists stooges will be bailing them out, at our expense.

 

[Flairwhoo84123]

There basically trying to say it not a bailout, while it's a bailout, especially for the depositors, funny also how mortgage back securities are also playing a role again, this could be somewhat of a repeat maybe in smaller or larger scale of 2008. This is under senile Biden watch, so the left is like "meh, Yellen got it under control , no woke didnt do this, it all good".

 

[FriedTofu]

Credit Suisse to borrow up to $54bn from Swiss central bank

A slump in the troubled lender's shares has intensified fears about a broader bank crisis.

www.bbc.com

Everybody's getting spooked in the finance sector. I think everybody is exposed to made up assets in crypto that are worthless but could play it dumb when interest rates were low. No longer the case now.

 

[bander71]

Went woke. Went broke. Leftist idiots gonna leftist idiots.

Sadly, Biden and his gang of corporist, globalists stooges will be bailing them out, at our expense.

Really after all that is written here, you write this.

 

[BruiserKC]

I like this idea by Charlie Bilello. Offer supplemental deposit insurance for a fee and let those who want it pay for it. Roughly 85% of the deposits in SVB would have been uninsured.

https://twitter.com/i/web/status/1635011088315203584

https://twitter.com/i/web/status/1635025667787227136

Went woke. Went broke. Leftist idiots gonna leftist idiots.

Sadly, Biden and his gang of corporist, globalists stooges will be bailing them out, at our expense.

Really after all that is written here, you write this.

It has nothing to do with wokeness. It is about incompetence and banks taking unnecessary risks with money. Besides, if they just let the bank collapse and do nothing, MAGA would blame Biden for that as well. They complain regardless.

 

[bander71]

Adding to that this video shows someone who wrote a book on wokeness not being able to define it. I'd like to see what explanation can be given for how the bank went under due to wokeness. Kevin McCarthy is frustrated with the idiots in his party mouthing this and using the inflation reason as to why this happened which as least makes more sense than wokeness. Even though the banks have themselves to blame for not diversifying their investments and being cheerleaders for when Trump rolled back regulations for mid-size banks in 2018.

 

[Freelancer]

I like this idea by Charlie Bilello. Offer supplemental deposit insurance for a fee and let those who want it pay for it. Roughly 85% of the deposits in SVB would have been uninsured.

https://twitter.com/i/web/status/1635011088315203584

https://twitter.com/i/web/status/1635025667787227136

It has nothing to do with wokeness. It is about incompetence and banks taking unnecessary risks with money. Besides, if they just let the bank collapse and do nothing, MAGA would blame Biden for that as well. They complain regardless.

It's a cult

 

[WrestleFAQ]

SVB was a woke bank, ran by woke people, operating on woke principles, in a U.S. and world economy being damaged by woke politicians. It's a woke failure, top to bottom.

Everything woke goes broke.

Intellectually broke. Morally broke. Economically broke.

If it's woke, it's broke. That ain't no joke.

SVB hired woke board obsessed with diversity

Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups.

www.dailymail.co.uk

Only ONE member of failed SVB's board had experience in banking

Tom King, 63, was the only member of Silicon Valley's board of directors with experience in the financial industry, while the others include a former Obama employee and a major Hillary Clinton donor.

www.dailymail.co.uk

SVB donated $73M to Black Lives Matter movement, social justice causes

A report from August 2020 highlighted the fact that around two-thirds of the bank’s workforce met the “diversity” criteria. Another report that year touted SVB’s achievements in support…

nypost.com

LOL


LOL (again)


LOL (again... again)

https://twitter.com/i/web/status/1634035956188688385

Globalist boot licker and corrupt California governor Gavin Newsom reportedly lobbying for a bailout while having many personal investments with the bank:

https://twitter.com/i/web/status/1635966823891095552

SVB is now using their leftist bail out in their marketing. With everything insured by our corrupt government, they can go as stupidly woke as they want and never face consequences:

https://twitter.com/i/web/status/1635982686111121408

https://twitter.com/i/web/status/1635293724904423429

https://twitter.com/i/web/status/1635603771689517056

At least we can get some good humor out of leftists destroying of the world. Might as well laugh as the world crumbles around us:
https://twitter.com/CantaloupeNews/status/1634970920149483520

 

[Dr. Middy]

Woke woke woke woke woke woke woke woke

Woke woke woke woke

Woke woke woke woke woke woke woke woke

Woke woke woke!

 

[RealDealNow]

I broke my egg yolk
A burning oak will surely smoke
Most folk can take a joke
Hogan defeated Nash via fingerpoke
My eyes open in the morning
Does this mean that I am woke?