thanks!
Was just reading an NYT article about it after my banking buddy texted me about it: https://www.nytimes.com/2023/03/10/business/silicon-valley-bank-stock.html?smid=nytcore-ios-share&referringSource=articleShare
Bank run on SVB. Bank collapsed and taken over by feds. Deposits insured up to $250k. Payroll starts Monday.
Funny how Datadog and Twitter had an outage just yesterday
Is this beginning of end?
I don’t think the actual story is public yet. The official story about bond liquidity and attempts to fundraise wouldn’t have caused the regulators to act so swiftly and drastically. I’m sure way more is still to come out. Personally I’m bummed. Can’t tell you how many Giants, Dubs and 49er games I’ve watched in their suite over the years.
They were living large. Knew someone working there went on assignment overseas for months. Apartment in best part of town, nanny, plane tickets, etc.. I agree there are probably some fishy deals that will get uncovered.
Who’s next?
Bank run can happen when confidence is low, no single reason could lead to it
Their press release didn't help, poor timing and not worded well at all.
Gone with the wind
Bank had a lot of liquidity, invested a lot into bonds. FED rate hikes ruined the bonds, bank was forced to sell bonds at a loss. They got "corrected" by JPow
I still blame crap tech founders not managing their cash. At the slightest sign of trouble, they fall into cash burn mode. Less about Svb having to sell because of the fed but their customer base was weak companies that couldn’t manage their cash burn well enough.
Lol isn’t it the bank’s job to manage risk? @netflix that’s their entire business model
https://www.netinterest.co/p/the-demise-of-silicon-valley-bank One of the clearer write ups
Well written!