- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Silicon Valley Bank is now under receivership
Posted on 3/10/23 at 9:35 pm to catfish 62
Posted on 3/10/23 at 9:35 pm to catfish 62
I went gambling at the end of the day with SBNY. I bought a few shares could be a loss but what the hell i would probably have spent the money on something stupid anyway. 
0
Posted on 3/11/23 at 6:10 am to gpburdell
quote:
So you had to make your money by taking interest-rate risk: Instead of making loans to risky corporate borrowers, you bought long-term bonds backed by the US government.
There’s no way they didn’t see this coming then and that they had some risk analysis guys running scenarios a long time ago that included this issue.
I’m curious why they didn’t work on preventing this weeks or months ago?
Posted on 3/11/23 at 7:22 am to catfish 62
quote:
Hearing that JPM might be the buyer by Sunday.
Someone is going to get a fantastic deal on their loan book, which is actually pretty good and solid. They didn’t go out and plow these deposits into risky loans.
Posted on 3/11/23 at 7:48 am to THRILLHO
quote:
unusual_whales
@unusual_whales
BREAKING: Many companies have exposure to the now collapsed Silicon Valley Bank.
For example:
- BlockFi: $247M
- $ROKU: 487M in cash equivalents
- $SMGO: $34M
- $AMBA: $17M
- Circle $USDC
- $RKLB, $LC, $COHU, $DNA, and many more
Probably a dumb question, but what happens to these exposed depositors if the bank is sold? Are they saved by just becoming depositors of the buying bank? Or will the buyer just be buying the assets?
Posted on 3/11/23 at 7:48 am to Bruco
Elon has also expressed interest in buying SVB.
Posted on 3/11/23 at 7:55 am to SloaneRanger
quote:
Probably a dumb question, but what happens to these exposed depositors if the bank is sold?
It seems to me that the problem is rooted in SVP having to sell bonds at a loss on their books to cover short term obligations. These assets are still good….so somebody big enough with enough liquidity (or the Fed) could swap or absorb these assets and be able to meet short term obligations….and make some bank as the longer term assets mature as they’ll probably get these for a song. If you have enough liquidity and the backing of the Fed/Treas this would be a sweet deal.
Taking care of depositors in some fashion would probably be part of the deal.
Also, the bigger question is how do other banks fare as the Fed’s rates are sucking savings out of the banks and into higher yielding vehicles? As I understand it, banks can’t compete as their longer duration investment yields haven’t been able to catch up with the quick up tick in short term rates and they can’t sell/transition them in bulk as their market value is less than the value they carry them on their books.
This post was edited on 3/11/23 at 8:06 am
Posted on 3/11/23 at 8:55 am to SquatchDawg
With usdc depegging SBNY must be under a lot of pressure issuing withdrawals. Luckily for them some exchanges have already disabled swapping usdc for now.
Posted on 3/11/23 at 11:18 am to catfish 62
Isolved customers were of course paid and taxes distributed. No banking at SVB.
Posted on 3/11/23 at 12:55 pm to catfish 62
print the shirts!
Posted on 3/11/23 at 1:21 pm to baldona
quote:
There’s no way they didn’t see this coming then and that they had some risk analysis guys running scenarios a long time ago that included this issue.
I’m curious why they didn’t work on preventing this weeks or months ago?
Apparently their Chief Risk Officer left last spring and SVB didn't hire a new one till 8 months later in January.
Posted on 3/11/23 at 1:45 pm to gpburdell
Want a good laugh?
Check the stock transactions of the CEO two weeks prior.
Check the stock transactions of the CEO two weeks prior.
Posted on 3/11/23 at 3:27 pm to Penn
quote:
Check the stock transactions of the CEO two weeks prior.
This dudes going down quicker than a hooker on bourbon street.
Posted on 3/11/23 at 4:05 pm to gpburdell
quote:
Apparently their Chief Risk Officer left last spring and SVB didn't hire a new one till 8 months later in January.
Yeah….I’m no financier but it doesn’t take a genius to see rates we’re going to go up and you better get on the short end of duration….especially with that clientele pulling money all the time.
Posted on 3/11/23 at 5:20 pm to SquatchDawg
quote:
Yeah….I’m no financier but it doesn’t take a genius to see rates we’re going to go up and you better get on the short end of duration….especially with that clientele pulling money all the time.
I am and have no clue how this happened. Chief Risk officer usually doesn’t play too much in this but the CFO, Pres and Board does. There should be a quarterly (or monthly) ALCO meeting (asset / liability committee) in which all assets and liabilities are stressed with models of what happens if rates go up 400bps or goes down 400bps. These ALCO meetings include board members, executive c suite people and usually an outside firm that uses a 3rd party view as the financial consulting firm.
This wasn’t the case of just one executive dropping the balls. There’s a ton of eyes on this stuff. That being said, there may have been some internal Enron cooking here as the CEO sold about $3mm worth of stock last week.
Posted on 3/11/23 at 6:47 pm to gpburdell
quote:
SVB didn't hire a new one till 8 months later in January.
How bad does it suck to be that guy?
Talk about a turd sandwich
Posted on 3/11/23 at 7:23 pm to gpburdell
quote:It’s Matt Levine. In my opinion, he’s by far the best at explaining complicated financial things. Plus it has a lot of snark and humor in it. And it’s not paywalled if you sign up for his newsletter, which just shows in email. I think it’s worth it.
I saw this posted over on Bogleheads from a paywalled Bloomberg article.
Posted on 3/11/23 at 7:45 pm to buckeye_vol
Posted on 3/12/23 at 7:42 am to Im4datigers
People still listen to that guy?
He’s been giving terrible financial “advice” for awhile now
He’s been giving terrible financial “advice” for awhile now
Posted on 3/12/23 at 7:51 am to idlewatcher
Guys the asset write down was only 1.8B. That’s a bad quarter for sure but not something a bank shouldn’t be able to manage or cause everyone to run on the bank.
Something else is going on here. Either the dark money is trying to get QE kicked off again or someone just made a big play to have a ton of money pulled collectively on Thursday.
Something else is going on here. Either the dark money is trying to get QE kicked off again or someone just made a big play to have a ton of money pulled collectively on Thursday.
Posted on 3/12/23 at 8:48 am to STLhog
Panic drove the route
Page 3 of 5
Popular
Back to top
Follow TigerDroppings for LSU Football News