Silicon Valley Bank is Dead

Discussion in 'The Mainboard' started by Menelaus, Mar 10, 2023.

  1. Menelaus

    Menelaus The Red-Haired King
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    Anyone else following this? FDIC just took receivership of the bank. Have several friends that work there and are all scared shitless.
     
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  2. wes tegg

    wes tegg I'm a Guy's guy, guys.
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    Wow. Biggest bank failure since 2008.
     
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  3. RalfBully

    RalfBully #21
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    Never even heard of that bank
     
  4. killerwvu

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  5. LuPoor

    LuPoor Cuddle with the homies watching Stand By Me
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    HTH
     
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  6. Jake Barnes

    Jake Barnes Team Mac OG
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    I assume they handle a lot of tech accounts?
     
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  7. wes tegg

    wes tegg I'm a Guy's guy, guys.
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    They broke rule #1 for a bank — don’t run out of money.
     
  8. Lawnole23

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    Who?
     
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  9. Taques

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  10. ashy larry

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    are my ape pictures safe
     
  11. killerwvu

    killerwvu Restoring WVU's E-Rep 1 Post At A Time
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    That seems to be the bare minimum lol
     
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  12. Truman

    Truman Well-Known Member
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    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.
     
  13. dblplay1212

    dblplay1212 Well-Known Member
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  14. Name P. Redacted

    Name P. Redacted I have no money and I'm also gay
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    I saved a copy of them all so you’re good
     
  15. Where Eagles Dare

    Where Eagles Dare The Specialist Show On Earth
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    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
     
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  16. Pile Driving Miss Daisy

    Pile Driving Miss Daisy It angries up the blood
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    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?
     
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  17. Lyrtch

    Lyrtch My second favorite meat is hamburger
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  18. Bruce Wayne

    Bruce Wayne Billionaire Playboy
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    Hey let's do the thing that almost crashed the entire world economy. Surely we can do it better this time around
     
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  19. southlick

    southlick "Better Than You"
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  20. pperc

    pperc Well-Known Member
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    deeply following this. it's a big fucking deal. they weren't just a small bank.
     
  21. pperc

    pperc Well-Known Member
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    this isn't true completely
     
  22. wes tegg

    wes tegg I'm a Guy's guy, guys.
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    The 18th biggest in the US by total assets.
     
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  23. pperc

    pperc Well-Known Member
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    nm
     
  24. Where Eagles Dare

    Where Eagles Dare The Specialist Show On Earth
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    It's a bit different than before. No onenis defaulting like they did during the housing crisis
     
  25. wes tegg

    wes tegg I'm a Guy's guy, guys.
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    Im going off Wikipedia, but there’s no chance it’s 8th.
     
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  26. BP

    BP Bout to Regulate.
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    16th largest bank in the US
     
  27. Where Eagles Dare

    Where Eagles Dare The Specialist Show On Earth
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    Teg is right. They wwre 16th in December
     
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  28. pperc

    pperc Well-Known Member
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    16th by commercial banks... i tihnk
     
  29. Owsley

    Owsley My friends call me Bear
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  30. Where Eagles Dare

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    Not too far off. After the big 4 assets drop off the cliff
     
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  31. $P1

    $P1 Ball State #1
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    15th in the latest TMB top 25, though
     
  32. TC

    TC Peter, 53, from Toxteth
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    Black Friday?
     
  33. Butthead

    Butthead narmas, narmas

    Eric Bachman, is your refrigerator running?
     
  34. Tobias

    Tobias dan “the man qb1” jones fan account
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    it’s actually called “the valley bank”
     
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  35. pperc

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    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.
     
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  36. wes tegg

    wes tegg I'm a Guy's guy, guys.
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    then again (relatively) after like 13.
     
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  37. bwi2

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    they’re disrupting the financial failure space
     
  38. Lyrtch

    Lyrtch My second favorite meat is hamburger
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  39. Butthead

    Butthead narmas, narmas

    Uhh how is this part legal?

     
  40. devine

    devine hi, i am user devine
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    How does this impact me
     
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  41. One Two

    One Two Hot Dog Vibes
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    Why is this guy acting like this is novel?

     
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  42. One Two

    One Two Hot Dog Vibes
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    You’re fine. Meat Church was a good investment
     
  43. bbb

    bbb Well-Known Member
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    This is why I put all my money into gold and bury it.
     
  44. ButchCassidy

    ButchCassidy Well-Known Member
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    Doge coin to the moon!

    I have no idea what’s going on.
     
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  45. BP

    BP Bout to Regulate.
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    So the CEO sold over 3 million in stock in the last 2 weeks

    :dubioustrump:
     
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  46. Arrec Bardwin

    Arrec Bardwin La Araña Discoteca
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    I think he’s more just saying how turbo fucked a lot of Silicon Valley Tech Bros are.
     
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  47. pperc

    pperc Well-Known Member
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    they were providing liquidity to people - banks give loans. that's what they do.
     
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  48. Arrec Bardwin

    Arrec Bardwin La Araña Discoteca
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    [​IMG]
     
  49. pperc

    pperc Well-Known Member
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    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
     
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  50. Arrec Bardwin

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