SVB failure

[Anonymous]

Anonymous wrote:This article is my take as well:

https://www.latimes.com/business/story/2023-0...ntra-was-just-a-scam

This guy brought receipts.

Silicon Valley should write a thank you letter to Powell, Yellen, and the FDIC for saving Silicon Valley from its own herd behavior stupidity.

[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.'

Honest question -- should we care about that?

Should you care about one individual and company? No, probably not.

Should you care that thousands of companies only have access to $250k? Yes. If all of these companies didn't make payroll this week then it would have serious consequences.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The fee should follow up with a significant increase in the amount of insured deposits for commercial accounts.

...which would require larger fees paid by the banks to FDIC. Do you really think they will agree to that?

Do they have a choice? I doubt the FDIC is going to go all King John on them. But maybe they will require banks to insure a higher amount for deposit accounts owned by unsophisticated investors (consumers and small businesses)

They should charge a higher fee for sophisticated investors. They're the ones that caused this and they're who we're placating. Credit flight risk is much more impactful and common with them.

No, they can let sophisticated investors decide for themselves if they want an insured account for a higher cost. And they shouldn’t make them whole if something happens.

That’s exactly what we did, but then at last minute we made them whole without them paying. Genie never going back in that bottle?

[Anonymous]

Lots of people who work at startups like SVB are doing so to put food on the table for their families; not all are rich techbros.

[Anonymous]

Anonymous wrote:Lots of people who work at startups like SVB are doing so to put food on the table for their families; not all are rich techbros.

*Startups that banker with SVB

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The fee should follow up with a significant increase in the amount of insured deposits for commercial accounts.

...which would require larger fees paid by the banks to FDIC. Do you really think they will agree to that?

Do they have a choice? I doubt the FDIC is going to go all King John on them. But maybe they will require banks to insure a higher amount for deposit accounts owned by unsophisticated investors (consumers and small businesses)

They should charge a higher fee for sophisticated investors. They're the ones that caused this and they're who we're placating. Credit flight risk is much more impactful and common with them.

No, they can let sophisticated investors decide for themselves if they want an insured account for a higher cost. And they shouldn’t make them whole if something happens.

That’s exactly what we did, but then at last minute we made them whole without them paying. Genie never going back in that bottle?

It doesn’t sound like those customers were very sophisticated! But well, at the end of the day, the cost to making them whole will be paid for by the banking industry. If the other banks object then they can lobby for higher insurance fees or greater regulation or just say, okay I accept that bank runs will happen once in a while and we will just have to help pay for it.

[Anonymous]

Anonymous wrote:Lots of people who work at startups like SVB are doing so to put food on the table for their families; not all are rich techbros.

The bank had 80%-90% of assets. Deposit holders taking a 10% haircut would not have prevented payroll. That was all a yarn to gin up sympathy.

[Anonymous]

Anonymous wrote:Lots of people who work at startups like SVB are doing so to put food on the table for their families; not all are rich techbros.

Also being a rich techbro is okay.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Lots of people who work at startups like SVB are doing so to put food on the table for their families; not all are rich techbros.

Also being a rich techbro is okay.

So bailing out rich techbro with public money because they ignored FDIC insurance limits is okay?

[Anonymous]

Was joking with some Econ friends who said that now is actually the time to put cash above $250K in SVB since apparently everything is insured.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Lots of people who work at startups like SVB are doing so to put food on the table for their families; not all are rich techbros.

Also being a rich techbro is okay.

So bailing out rich techbro with public money because they ignored FDIC insurance limits is okay?

Bailing out a bank so that employees of startups that bank with SVB can eat next week is okay.

[Anonymous]

Anonymous wrote:Was joking with some Econ friends who said that now is actually the time to put cash above $250K in SVB since apparently everything is insured.

I don’t get the joke.

[Anonymous]

Looks like the fed is going to inject 25billion into the banking system the mortgage rates dropped by .5 percentage, seems like deja Vu and rapid rate cuts coming soon. Overcorrect too late and raised rates too high , idiot feds.
https://www.google.com/amp/s/www.cnbc.com/amp...f-bank-failures.html

https://cointelegraph.com/news/us-fed-announc...o-backstop-banks/amp

[Anonymous]

Anonymous wrote:Looks like the fed is going to inject 25billion into the banking system the mortgage rates dropped by .5 percentage, seems like deja Vu and rapid rate cuts coming soon. Overcorrect too late and raised rates too high , idiot feds.
https://www.google.com/amp/s/www.cnbc.com/amp...f-bank-failures.html

https://cointelegraph.com/news/us-fed-announc...o-backstop-banks/amp

A backstop is not an injection. The Federal Reserve does not expect to have to tap the backstop. This is all just a confidence building measure.

[Anonymous]

Barney Frank, of Frank-Dodd, was on the Board of Directors at Signature Bank

https://investor.signatureny.com/governance/b...rectors/default.aspx