SVB failure

[Anonymous]

Anonymous wrote:

Anonymous wrote:How does this affect a typical dc resident who is not in tech? What about a government employee with a tsp?

The most likely impact would be if your TSP is invested in a mutual fund that includes SVB. But any impact from that should be temporary.

It could be more than that.
Multiple major banks just lost a combined 52 billion in market value according to Forbes. It could result in a string of job losses from banks and tech companies connected to SVB which as impact elsewhere. If there's more of a contagion, it impacts the bond market. It will take time to figure out the impact.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does this affect a typical dc resident who is not in tech? What about a government employee with a tsp?

The most likely impact would be if your TSP is invested in a mutual fund that includes SVB. But any impact from that should be temporary.

It could be more than that.
Multiple major banks just lost a combined 52 billion in market value according to Forbes. It could result in a string of job losses from banks and tech companies connected to SVB which as impact elsewhere. If there's more of a contagion, it impacts the bond market. It will take time to figure out the impact.

Which ones really lost value? Citigroup is barely down. Same for BofA. JP Morgan is up. Goldman is the only one down by anything at all significant.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think we can let the 18th largest bank, which is primarily a commercial bank, in the US fail. The moral hazard of not letting it fail is worse.

Also, this will be an organized collapse. Equity and debt holders will be wiped out, as they should be. Customers will end up with 90%+ on the dollar, a very small haircut. The only issue is the time, payouts will rollout quickly but some companies may get hit because they don’t have the cushion to handle it. Some weak startups will likely fail, most would have anyways but just a bit quicker now.

You have no idea what you’re talking about. Luckily no one is trusting you to make decisions.

Lol….this comment is so enlightening, brilliant even!

[Anonymous]

One thing is a guarantee. The political will to bail out a commercial bank, focused on VC startups, will be 0%.

No, what ifs, this bank has failed and will be liquidated in as orderly a fashion as possible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think we can let the 18th largest bank, which is primarily a commercial bank, in the US fail. The moral hazard of not letting it fail is worse.

Also, this will be an organized collapse. Equity and debt holders will be wiped out, as they should be. Customers will end up with 90%+ on the dollar, a very small haircut. The only issue is the time, payouts will rollout quickly but some companies may get hit because they don’t have the cushion to handle it. Some weak startups will likely fail, most would have anyways but just a bit quicker now.

You have no idea what you’re talking about. Luckily no one is trusting you to make decisions.

Lol….this comment is so enlightening, brilliant even!

Thanks!!!!!!

[Anonymous]

Anonymous wrote:I used to work at SVB. I am not surprised at all. Management there were handing out loans left and right when the tech boom hit. I left SVB that fall because I saw what was coming.

I don’t know how regulators don’t see this stuff. Someone asked me to look into this bank in 2019, took me 30min and I told him not to invest in it because of the risk profile. Greed is greed and this bank was concentrated and greedy. No guarantee it was going to fail, but signs were there that it was risked then most banks.

[Anonymous]

Anonymous wrote:I hope they don’t bail out people with accounts beyond the 250k and what they can liquidate. But the VC community is heavily Democrat and includes many big donors, so I feel like there will probably be a bail out.

Bless your heart. The big world must be so confusing to you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I used to work at SVB. I am not surprised at all. Management there were handing out loans left and right when the tech boom hit. I left SVB that fall because I saw what was coming.

I don’t know how regulators don’t see this stuff. Someone asked me to look into this bank in 2019, took me 30min and I told him not to invest in it because of the risk profile. Greed is greed and this bank was concentrated and greedy. No guarantee it was going to fail, but signs were there that it was risked then most banks.

Forbes put SVB on the 2023 Best banks list at number 20.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I used to work at SVB. I am not surprised at all. Management there were handing out loans left and right when the tech boom hit. I left SVB that fall because I saw what was coming.

I don’t know how regulators don’t see this stuff. Someone asked me to look into this bank in 2019, took me 30min and I told him not to invest in it because of the risk profile. Greed is greed and this bank was concentrated and greedy. No guarantee it was going to fail, but signs were there that it was risked then most banks.

Forbes put SVB on the 2023 Best banks list at number 20.

Forbes hasn't been anything other than shill operation for years - no actual journalism there. No one would cite their rankings any more seriously than some random website.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I used to work at SVB. I am not surprised at all. Management there were handing out loans left and right when the tech boom hit. I left SVB that fall because I saw what was coming.

I don’t know how regulators don’t see this stuff. Someone asked me to look into this bank in 2019, took me 30min and I told him not to invest in it because of the risk profile. Greed is greed and this bank was concentrated and greedy. No guarantee it was going to fail, but signs were there that it was risked then most banks.

Forbes put SVB on the 2023 Best banks list at number 20.

Forbes hasn't been anything other than shill operation for years - no actual journalism there. No one would cite their rankings any more seriously than some random website.

I'm the PP who wrote this, but I did it sort of as irony.

[Anonymous]

Over 4,700 banks in the US, with 24T in assists (14T in the big 6). SVB has somewhere south of 200B (lots of withdrawals recently).

Less than 1% of total banking assets. This bank has real assets, bonds, treasuries, loans etc. that will pay out eventually. The loss here is a blip. I have no concerns but feel free to make your own opinion.

[Anonymous]

ROKU just reported it has $487million of uninsured funds deposited in SVB. It is approximately 25% of its operating costs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I used to work at SVB. I am not surprised at all. Management there were handing out loans left and right when the tech boom hit. I left SVB that fall because I saw what was coming.

I don’t know how regulators don’t see this stuff. Someone asked me to look into this bank in 2019, took me 30min and I told him not to invest in it because of the risk profile. Greed is greed and this bank was concentrated and greedy. No guarantee it was going to fail, but signs were there that it was risked then most banks.

Meredith Whitney?

[Anonymous]

FTX part 2?

[Anonymous]

Anonymous wrote:ROKU just reported it has $487million of uninsured funds deposited in SVB. It is approximately 25% of its operating costs.

Now for the overreaction leading to a big fall in its stock. Then the bounce back. ROKU will be fine, they will have 25% of their cash tied up for a while and maybe lose a few million as a one time hit.