So SVB failed because
It was trying to sell a Bond at a lower yield percentage which lead to investors pulling out money and collapsing the stock? TC: 40K less than FDIC insured 🪦 SVB
Cool. What's your point? 🤔 That diversity caused the issue? You poor right wing chicken heads just see ghosts everywhere huh?
UK? I doubt the issue happened because of UK branch
Go woke and go broke obviously
Because of CCP (CCP virus) and Russia
You can't be what you can't see
What a good quote of Jays to highlight on an app called Blind
Because they had too many VCs/startups and not enough normal companies or people, all the VCs got scared because they are a small and talkative group, they caused a bank run.
Looks like svb took a huge loss when they bought t bills at a much lower interest rate than of course, try to sell after the fed kept hiking rates. That and the need to raise money caused a lot of nervous vcs who are already watching their money 💰 to pull them out and effectively caused the bank to go under.
I don’t blame depositors for bank run
Covid (supply chain shortage) + Ukraine war (grain shortage) = groceries ⬆️ = inflation = Hawkish feds = Bonds ⬇️ = Stupid bank not diversifying = 💩
😂😂😂😂 Stupid bank not diversifying
I read a Bloomberg piece around this. This was caused primarily by interest rate hikes, but also sub optimal risk management on the part of SVB. https://www.bloomberg.com/news/articles/2023-03-15/svb-bailout-shaped-by-biden-administration-over-72-hours Early March- Moody's informs SVB that it would lower it's Bond status to the brink of junk. If you read Moody's announcement, SVBs depositor status and issuer status were both lowered to close to junk and junk respectively. https://www.aa.com.tr/en/economy/moodys-lowers-rating-of-silicon-valley-bank-amid-sudden-demise/2842949# Soon after- SVB Hires Goldman Sachs to help raise capital. GS sells a lot of its portfolio at a $1.8B loss. It then pitches a plan to investors to raise $2.25B from General Atlantic and other investors. This made investors even more nervous. March 9th- Peter Theil, out of a fiduciary responsibility to his customers asks them to withdraw all their money from SVB because only 250K would be secured by FDIC. By mid day all founders fund companies had withdrawn their funds totalling $42B. March 10th- Full fledged Bank run since then.
No, go woke go broke. https://twitter.com/SVB_Financial