SVB failure

[Anonymous]

Anonymous wrote:

Anonymous wrote:Never heard of it until now. Are they too big to fail or should we let them die?

I think they are too big to fail. I think the impact of a failure would be huge.

PP here. To be clear, this is just my personal opinion, I have no personal ties to SVB and I’m not a banking specialist.

[Anonymous]

Anonymous wrote: Ashley Tyrner, CEO of Boston wellness firm FarmboxRx, said she had at least $10m deposited with SVB and has been frantically calling her banker. She called it 'the worst 18 hours of my life.'

'Clutching my pearls' for her right now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Never heard of it until now. Are they too big to fail or should we let them die?

I think they are too big to fail. I think the impact of a failure would be huge.

Their failure would be painful but necessary. We have to teach banks a lesson in how they do business. They can’t continue to operate in a culture of no moral hazard.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never heard of it until now. Are they too big to fail or should we let them die?

I think they are too big to fail. I think the impact of a failure would be huge.

Their failure would be painful but necessary. We have to teach banks a lesson in how they do business. They can’t continue to operate in a culture of no moral hazard.

This is simplistic thinking.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never heard of it until now. Are they too big to fail or should we let them die?

I think they are too big to fail. I think the impact of a failure would be huge.

Their failure would be painful but necessary. We have to teach banks a lesson in how they do business. They can’t continue to operate in a culture of no moral hazard.

This is simplistic thinking.

And your solution is to, what, cut them a check?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never heard of it until now. Are they too big to fail or should we let them die?

I think they are too big to fail. I think the impact of a failure would be huge.

Their failure would be painful but necessary. We have to teach banks a lesson in how they do business. They can’t continue to operate in a culture of no moral hazard.

This is simplistic thinking.

And your solution is to, what, cut them a check?

Unfortunately that is probably what will happen. Np.

[Anonymous]

Anonymous wrote:

Anonymous wrote: Ashley Tyrner, CEO of Boston wellness firm FarmboxRx, said she had at least $10m deposited with SVB and has been frantically calling her banker. She called it 'the worst 18 hours of my life.'

'Clutching my pearls' for her right now.

Using insurance money to fund CSA boxes seems wildly inefficient

SVB won’t have any clients too big to fail

https://www.forbes.com/sites/robinseatonjefferson/2020/01/16/insurance-company-provides-free-fruits--vegetables-to-members-with-new-farmboxrx-program/amp/

[Anonymous]

Anonymous wrote:

Anonymous wrote: Ashley Tyrner, CEO of Boston wellness firm FarmboxRx, said she had at least $10m deposited with SVB and has been frantically calling her banker. She called it 'the worst 18 hours of my life.'

'Clutching my pearls' for her right now.

I mean, it’s bad. If my employer lost cash reserves over $250k overnight it would be bad. Like not making payroll or paying any bills bad.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: Ashley Tyrner, CEO of Boston wellness firm FarmboxRx, said she had at least $10m deposited with SVB and has been frantically calling her banker. She called it 'the worst 18 hours of my life.'

'Clutching my pearls' for her right now.

I mean, it’s bad. If my employer lost cash reserves over $250k overnight it would be bad. Like not making payroll or paying any bills bad.

Yes. It’s a big deal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: Ashley Tyrner, CEO of Boston wellness firm FarmboxRx, said she had at least $10m deposited with SVB and has been frantically calling her banker. She called it 'the worst 18 hours of my life.'

'Clutching my pearls' for her right now.

I mean, it’s bad. If my employer lost cash reserves over $250k overnight it would be bad. Like not making payroll or paying any bills bad.

Pretty much any business with more than 250K in cash deposits would be trouble if they came in one morning and only had access to 250K of it.

[Anonymous]

I don’t think you all understand what happened. FDIC took over the bank. All FDIC-insured deposits are guaranteed and FDIC will pay a dividend out against non-insured funds. Branches will open as usual on Monday.

For all practical purposes, the bank essentially switched ownership.

[Anonymous]

Will this finally kill crypto so we don't have to hear about that scam anymore?

[Anonymous]

Anonymous wrote:I don’t think you all understand what happened. FDIC took over the bank. All FDIC-insured deposits are guaranteed and FDIC will pay a dividend out against non-insured funds. Branches will open as usual on Monday.

For all practical purposes, the bank essentially switched ownership.

My rink dink business has about $1.2 in the operating checking account this afternoon. If I can only access 250K of it Monday morning I have a major problem.

[Anonymous]

Anonymous wrote:I don’t think you all understand what happened. FDIC took over the bank. All FDIC-insured deposits are guaranteed and FDIC will pay a dividend out against non-insured funds. Branches will open as usual on Monday.

For all practical purposes, the bank essentially switched ownership.

This isn’t a bank for mom and pop. These are startups and VCs, which banked their operating capital at SVB. It was a symbiotic relationship since SVB dabbled in VC as well. But they had balances much bigger than $250k. I thought I read about 90% of funds were not FDIC insured.

Now that doesn’t mean it’s loss, but it means assets are frozen until court bankruptcy is processed, and there will be a haircut for what is recovered.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don’t think you all understand what happened. FDIC took over the bank. All FDIC-insured deposits are guaranteed and FDIC will pay a dividend out against non-insured funds. Branches will open as usual on Monday.

For all practical purposes, the bank essentially switched ownership.

My rink dink business has about $1.2 in the operating checking account this afternoon. If I can only access 250K of it Monday morning I have a major problem.

Why not spread over 4 banks?