Silicon Valley Bank is Dead

Cliffs

 

HTH

 

I assume they handle a lot of tech accounts?

 

Who?

 

are my ape pictures safe

 

That seems to be the bare minimum lol

 

My understanding, which is iffy at best is they tried to run it like a tech start up. Very fake it til you make it.

Their holdings fell behind what they're legally required to have on hand. The rising interest rates kind of fucked them and they were going to sell securities to get back in the green. Started a run by their depositors ect.

 

Seems bad.

 

I saved a copy of them all so you’re good

 

They invested a bunch in MBS that had a yield of like 1.95%. The price of those assets cratered over the last few months of rate increases as the MBS yield is 2.5x that, at the moment.

They took massive loses from those securities decreasing. Not sure if it is a "tech" thing or just too much exposure in 1 asset class

 

A couple of my tech buddies that are way smarter than me are definitely concerned, like possibly lots of tech companies may not be able to make payroll because of this. I've no idea how the FDIC works though, just that they're supposed to only guarantee $250,000 for each account right?

 

Hey let's do the thing that almost crashed the entire world economy. Surely we can do it better this time around

 

deeply following this. it's a big fucking deal. they weren't just a small bank.

 

this isn't true completely

 

nm

 

It's a bit different than before. No onenis defaulting like they did during the housing crisis

 

16th largest bank in the US

 

Teg is right. They wwre 16th in December

 

16th by commercial banks... i tihnk

 

Not too far off. After the big 4 assets drop off the cliff

 

Black Friday?

 

Eric Bachman, is your refrigerator running?

 

it’s actually called “the valley bank”

 

This was a giant component.

it was run like a real bank, not like a tech startup AT ALL.

the ceo fucked this company badly by first announcing a realized loss ($3B i think) on prior low interest rate "safe" investments" - the MBS ones you describe - then announcing they need to raise $2.5B for liquidity purposes. then just a ton of exposure to VC-backed companies which would never take risk on a bank after a spook like that and a moody's downgrade and we saw a modern day run on a bank that was actually perfectly solvent from a depositor to asset perspective.

As of 12/31 they still had more assets than deposits but not sure where that stands now. hopefully liquidation leads to everyone getting their non-insured deposits back but it's going to fuck payroll for a lot of companies depending on how long the liquidation takes.

 

they’re disrupting the financial failure space

 

Uhh how is this part legal?

 

How does this impact me

 

Why is this guy acting like this is novel?

 

You’re fine. Meat Church was a good investment

 

This is why I put all my money into gold and bury it.

 

Doge coin to the moon!

I have no idea what’s going on.

 

So the CEO sold over 3 million in stock in the last 2 weeks

 

I think he’s more just saying how turbo fucked a lot of Silicon Valley Tech Bros are.

 

they were providing liquidity to people - banks give loans. that's what they do.

 

its not just tech bros... it's going to be far broader. you had many regional banks have their stocks halted today. PacWest, First Republic, etc... any bank runs on those and this is going to be a big problem for companies to make payroll

 

Yes but he was talking about how they were a one stop shop for most VC/Tech Founders.