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Started By
Message
Silicon Valley Bank is now under receivership
Posted on 3/10/23 at 11:58 am
Posted on 3/10/23 at 11:58 am
The Bank has collapsed in about 24 hours and California Dept of Finance has now shut them down and placed the FDIC as receiver. Is this the largest bank to ever collapse this quickly?
I work with clients who utilize SVB and their funds are now locked up until FDIC can sort it out. Massive implications. Hopefully isolated to SVB, but certainly every regional / national bank is sitting on massive unrealized bond losses. Hopefully the other banks have better diversification of industry sectors that won’t feel what Tech is feeling.
What was once a blue chip success story is now up in smoke.
How did they not forecast a liquidity crunch sooner? Or why did they not try the preferred stock raise sooner rather than the liquidation of the bond portfolio? SVB industry peers are all taking massive hits to stock price and trading was already halted in FRC/PacWest/Western Alliance.
Again, hopefully isolated and not the tip of the iceberg for the financial sector…
Yellen Saying No Bail Out At This Time
Auction Underway, Final Bids Due Sunday
I work with clients who utilize SVB and their funds are now locked up until FDIC can sort it out. Massive implications. Hopefully isolated to SVB, but certainly every regional / national bank is sitting on massive unrealized bond losses. Hopefully the other banks have better diversification of industry sectors that won’t feel what Tech is feeling.
What was once a blue chip success story is now up in smoke.
How did they not forecast a liquidity crunch sooner? Or why did they not try the preferred stock raise sooner rather than the liquidation of the bond portfolio? SVB industry peers are all taking massive hits to stock price and trading was already halted in FRC/PacWest/Western Alliance.
Again, hopefully isolated and not the tip of the iceberg for the financial sector…
Yellen Saying No Bail Out At This Time
Auction Underway, Final Bids Due Sunday
This post was edited on 3/12/23 at 12:18 pm
11
Posted on 3/10/23 at 12:08 pm to catfish 62
SI, SBNY, SVB were all doomed to fail once the SEC started cracking down on cryptoassests.
SBNY the only one still standing from just two weeks ago
SBNY the only one still standing from just two weeks ago
Posted on 3/10/23 at 12:21 pm to UltimaParadox
True, but didn’t think SIVB had nearly as massive as crypto exposure as SI
Posted on 3/10/23 at 12:30 pm to catfish 62
They don't directly, but they banked the two largest crypto venture capitalist funds Seqouia and a16z. As well as stablecoin issuer Circle.
Exposure is there, but not directly.
This chart sums it up
Exposure is there, but not directly.
This chart sums it up
This post was edited on 3/10/23 at 12:39 pm
Posted on 3/10/23 at 12:44 pm to catfish 62
quote:Meh. I always hated the idea of venture lending. Surprised it took this long, although I guess it just needed the further push over the edge of stupidly buying 3 year treasuries in a rising rate environment.
What was once a blue chip success story is now up in smoke.
Good riddance. This will be mostly contained. Sure, there'll be some other stupid banks, but this is nothing.
Posted on 3/10/23 at 12:54 pm to Big Scrub TX
quote:
This will be mostly contained. Sure, there'll be some other stupid banks, but this is nothing.
Bingo
Posted on 3/10/23 at 1:06 pm to UltimaParadox
At Silicon Valley Bank, north of 93% of the bank's $161 billion in deposits are uninsured per a recent regulatory filing,
@MaxJReyes
writes.
@MaxJReyes
writes.
Posted on 3/10/23 at 1:08 pm to OleVaught14
quote:Yikes
At Silicon Valley Bank, north of 93% of the bank's $161 billion in deposits are uninsured per a recent regulatory filing,
@MaxJReyes
writes.
Posted on 3/10/23 at 1:10 pm to OleVaught14
quote:
At Silicon Valley Bank, north of 93% of the bank's $161 billion in deposits are uninsured per a recent regulatory filing,
@MaxJReyes
writes.
Makes a ton of sense, this was not a retail bank with everyday customers.
They banked Venture Funds and held money for companies like Circle which were under intense withdraw pressure. Since not many banks would even do business with these people I am sure they had a lot of money over the 250K limit there
Posted on 3/10/23 at 1:20 pm to catfish 62
quote:
How did they not forecast a liquidity crunch sooner? Or why did they not try the preferred stock raise sooner rather than the liquidation of the bond portfolio? SVB industry peers are all taking massive hits to stock price and trading was already halted in FRC/PacWest/Western Alliance.
Because everyone under estimates a liquidity event and how fast it happens.
Posted on 3/10/23 at 1:24 pm to Alltheway Tigers!
quote:And this one was unique as the economist Justin Wolfers tweeted in that the customers were generally in the same community, and word travels much faster than if it was just a bunch of random people.
Because everyone under estimates a liquidity event and how fast it happens.
Posted on 3/10/23 at 1:24 pm to catfish 62
quote:
How did they not forecast a liquidity crunch sooner?
They did - the CEO sold $3.57 million of stock within the last two weeks.
Posted on 3/10/23 at 1:25 pm to Alltheway Tigers!
Payroll processors that use SVB to issue payments cannot send direct deposits...and this may have something to do with all the complaints about Wells Fargo direct deposits today.
https://twitter.com/alexmeshkin/status/1634251503019110401
https://twitter.com/Aaronontheweb/status/1634244562641190912
https://twitter.com/alexmeshkin/status/1634251503019110401
https://twitter.com/Aaronontheweb/status/1634244562641190912
quote:
Then again, if your company did payroll through Rippling (which uses SVB), you're not getting paid this week
Posted on 3/10/23 at 1:32 pm to catfish 62
A bank run? What is this the 20s?
Oh, snap.
I’ll see myself out.
Oh, snap.
I’ll see myself out.
Posted on 3/10/23 at 1:34 pm to saint tiger225
quote:
Yikes
I hope most of them are woke tech nerds. Please be all of Zuckerberg's wealth in one account!
Posted on 3/10/23 at 1:35 pm to Coach Buzzcut
quote:
They did - the CEO sold $3.57 million of stock within the last two weeks
And. Here. We. Go.
Posted on 3/10/23 at 1:35 pm to Coach Buzzcut
quote:
CEO sold $3.57 million of stock within the last two weeks.
Classic insider trading. Should be an open and closed case. Unless, he has paid off some people.
Posted on 3/10/23 at 1:38 pm to bikerack
quote:
Then again, if your company did payroll through Rippling (which uses SVB), you're not getting paid this week
That’s, uh, not ideal
Posted on 3/10/23 at 1:53 pm to catfish 62
The obvious question - who is next?
Posted on 3/10/23 at 1:57 pm to HeartAttackTiger
quote:
The obvious question - who is next?
SBNY
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