Silicon Valley Bank is Dead

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

  1. ~ taylor ~

    ~ taylor ~ Well-Known Member
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    Oh god, is "contagion" is a new industry buzzword, isn't it?
     
  2. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    Will be interesting if the sale had to be sweetened
     
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  3. Lyrtch

    Lyrtch My second favorite meat is hamburger
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  4. Krieger

    Krieger Pita Predator
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    it is
     
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  5. Tiger Tiger Woods Y'all

    Tiger Tiger Woods Y'all Putting big balls in little holes, circa 1995
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    Can you imagine not having excess SIPC insurance. Lol not me.
     
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  6. chuckmasterflex

    chuckmasterflex Attack and dethrone God
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    I thought it was a decent enough movie
     
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  7. pperc

    pperc Well-Known Member
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    these are commercial banks. companies have millions and millions of dollars in these accounts. they are not, primarily, for individuals. $750k is basically nothing for 99% of the companies banking there.
     
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  8. pperc

    pperc Well-Known Member
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    should they keep it under their mattresses or idk, in a bank?! all of these companies had plenty to cover payroll, in cash, in a checking account. it's now inaccessible while FDIC liquidates SVB.
     
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  9. Name P. Redacted

    Name P. Redacted I have no money and I'm also gay
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    Maybe the executives at these companies should do a better job?
     
  10. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    I understand that.

    But also companies should do dd on who they are banking with and be fiscally responsible.
     
    CaneKnight likes this.
  11. pperc

    pperc Well-Known Member
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    100% correct. bond holders will lose first.

    haven't heard about a buyer. that's interesting.
     
  12. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    Again if we're saying all deposits should be insured fully no matter what that should just be nationalizing banking.
     
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  13. beerme

    beerme Well-Known Member
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    From everything Ive read this is just a one off small issue unless the regulators force luquiditation of the asset portfolio then look out below. But this company could not have mismanaged this any worse (obviously). This was a creation of their own doing
     
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  14. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    National wealth fund now
     
    Tug likes this.
  15. pperc

    pperc Well-Known Member
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    this was one of the biggest banks in the US, not a mom and pop shop. certainly now everyone will be banking with BofA and JPM as they'll view them as much more stable. is that a win?
     
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  16. pperc

    pperc Well-Known Member
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    almost certainly did. that's a big risk to me taking the sale route vs. liquidation
     
  17. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    Ok so we should insure all deposits fully at all banks at all times.
     
    Tug likes this.
  18. Fran Tarkenton

    Fran Tarkenton Hilton Honors VIP
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  19. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    How did you get confused at the summers tweet earlier.

    How
     
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  20. pperc

    pperc Well-Known Member
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    if you understood that why did you make a post about doubling or tripling $250k?
     
  21. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    Because the previous poster brought up individuals increasing their insured balances.

    Maybe you have them blocked
     
  22. Tiger Tiger Woods Y'all

    Tiger Tiger Woods Y'all Putting big balls in little holes, circa 1995
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    We got MMillys with chase and wells fargo. If chase or wells fargo fails the world is fucked so who cares about our money.

    I wouldnt use a regional bank for these specific reasons.
     
  23. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    This is cringe but I agree with you regarding investing in the banks that if they fail I'm hunting humans next
     
  24. pperc

    pperc Well-Known Member
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    especially their communication / PR
     
  25. pperc

    pperc Well-Known Member
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    sure, but again, i already told you i don't agree with it. in this case, my strong belief and strong assumption is that there is enough assets to cover
     
  26. bertwing

    bertwing check out the nametag grandma
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    I’m keeping my mortgage locked in for 30 years just to prove dbl wrong
     
  27. Where Eagles Dare

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    I'd assume most do. Most of that could get wiped out then 10,000s of normal workers aren't getting paid bc a single bank went bad in 45-60 days
     
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  28. Where Eagles Dare

    Where Eagles Dare The Specialist Show On Earth
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    Their Q4 balance sheet was apparently fine, unless they lied :idk:
     
  29. Tiger Tiger Woods Y'all

    Tiger Tiger Woods Y'all Putting big balls in little holes, circa 1995
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    Cringe was the point
     
  30. Where Eagles Dare

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    :laugh:

    Per their public FDIC filings they were banking with a fiscally responsible bank.
     
  31. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    Welp they should have noticed, stop blaming others
     
  32. Where Eagles Dare

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    Okay so you're intentionally being dumb bc one guy said something you don't like. Got it
     
  33. Tiger Tiger Woods Y'all

    Tiger Tiger Woods Y'all Putting big balls in little holes, circa 1995
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    government should only bail banks and or other things out when its of direct or indirect benefit to me
     
  34. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    But seriously if we're just securing all deposits we should just run the banks and socialize the benefits of that
     
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  35. pperc

    pperc Well-Known Member
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    i do
     
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  36. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    I'm coming to realize most people here weren't paying much attention in 08-11
     
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  37. Detlef Schrempf

    Detlef Schrempf Back to Back to Back AAU National Champs
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    I’m coming to realize some people are absolutist assholes interested in arguing with brick walls.
     
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  38. Where Eagles Dare

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    Okay, fine
     
  39. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    He must read this thread
     
  40. Krieger

    Krieger Pita Predator
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    I interviewed with them in January and they were completely business as usual
     
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  41. One Two

    One Two Hot Dog Vibes
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  42. pperc

    pperc Well-Known Member
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    FWIW, this is based on a discussion with FDIC (not my notes):

    What's happened?

    • SVB has $160B deposits, 10% are insured, 90% uninsured ($144B)
    • there's $18B shortfall based on current (12.5% of the $144B)

    Will I get my money?

    • We expect typically will get btwn 87.5% and 100% of funds eventually

    How long will it take?

    • Insured deposits - Mon we should get instructions from the bank for removing $250K for each account
    • Accelerated receipt of uninsured deposits - dividend for all account holders, that could be available in 1-2 weeks (potentially sooner) will be in amt of 15-30% of uninsured deposits
    • Remainder of deposits will trickle in as FDIC liquidates short-term and long-term assets (3-9 months)
     
    ~ taylor ~ likes this.
  43. Bert Handsome

    Bert Handsome I'm sorry, the card says Moops
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    Haven't read yet but Levine is the best at explaining this stuff

     
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  44. LeonardWashington

    LeonardWashington Leader of Tuanon
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    This is pretty huge. Pretty much all the VCs and tons of startups bank there.

    I’d expect a lot of small businesses will go under because of this
     
  45. NothingIsOT

    NothingIsOT Prom pic
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    Silvergate happened like two weeks ago. And no one seemed to care. What is the difference and why the sudden interest in $250k FDIC? I’m failing to see why the publicity is exponentially bigger for SVB vs. Silvergate.
     
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  46. Fat Drunk & Stupid

    Fat Drunk & Stupid Barning Hard
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    My wife's company uses Rippling for their HR/payroll. Rippling used SVB for payroll payments. NOTGREATBOBGIF.


    She just received a message that paychecks from Rippling for Chase accounts should hit today. Other banks Sat or Monday. So hopefully, payrolls start getting fulfilled this weekend.
     
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  47. Redav

    Redav One big ocean
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    Can we get government funded healthcare while we're insuring billion dollar deposits? That would be cool
     
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  48. pperc

    pperc Well-Known Member
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    Silvergate was a crypto bank with $6B in assets when it failed. SVB banked broadly with startups (both large and small) and had $209B in assets. (I say had because the bank is dead, not because those assets are gone)
     
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  49. Lyrtch

    Lyrtch My second favorite meat is hamburger
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  50. Gotch Yarbrough

    Gotch Yarbrough Canada eh?
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    Is this a serious question? The scale isn't even comparable.