SVB collapse highlights $620 billion dollar hole lurking in banks’ balance sheets. Bring me back to 2019 please. Everything sucks today. https://finance.yahoo.com/news/regulators-close-silicon-valley-bank-after-bank-fails-to-raise-new-capital-165322606.html
What happens to the stock? Does it trade again? Or is delisted? Also what happens to the put/call options?
$620 billion wipe out in a two days
This way worse than I expected. It is going to be looking like bloodbath on Monday. The big question is why Friday to break the news. Are the feds going to use the weekend to check balance sheets over the weekend to see how deep the toxicity is in the system.
Yes, Feds typically take over failing banks on Fridays.
SVB really put all their eggs in one basket not much different than crypto
What happens to workers in that company during such situation?
Good question.
No longer employed probably. We are still waiting to hear more info as FDIC talks with higher ups
SVB is the largest capital provider to startups. Even tho it’s FDIC insured they still hold startups’ operating cash and smaller startups in need of funding need loans from banks like SVB. My question is what happened to their op cash and loans?
Vc are capital providers. Svb benefited by holding the deposits for all these newly founded cash rich tech companies. Sure svb deal in some corporate bonds but bulk of their investing holding are in MBS and US treasuries.
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Across all U.S. banks, unrealized losses on available-for-sale and held-to-maturity securities totaled $620 billion at the end of 2022, according to the Federal Deposit Insurance Corp. FDIC Chair Martin Gruenberg highlighted this risk during a speech on March 6 to an international banking conference.