Silicon Valley Bank Collapse

[ZenOps]

If the masses decide to "give up" and just take the money and run, it could be ugly tomorrow for everything. Banks, stocks, everything.

[rage2]

The math says most of the deposits will be paid out in full. Something like 96 cents on the dollar on uninsured. The loss is purely from the stockholders.

[Buster]

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The math says most of the deposits will be paid out in full. Something like 96 cents on the dollar on uninsured. The loss is purely from the stockholders.

thats optimistic.

[ExtraSlow]

A perfect outcome then. Excellent.
Companies that don't understand thier risks, or who think they are immune to them, should expose shareholders to that risk.
Governance and due diligence matter for retail investors.

[Buster]

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A perfect outcome then. Excellent.
Companies that don't understand thier risks, or who think they are immune to them, should expose shareholders to that risk.
Governance and due diligence matter for retail investors.

Depositors and shareholders are two different things. The depositors will come out oky it looks like. The Shareholders are going to get wiped out.

[ExtraSlow]

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Depositors and shareholders are two different things. The depositors will come out oky it looks like. The Shareholders are going to get wiped out.

Yeah, that's what I understood as well. Thumbs up to that.

[Buster]

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Yeah, that's what I understood as well. Thumbs up to that.

oh, i think i misunderstood your post then...you are quite correct.

[CompletelyNumb]

Why do we think depositors will come out ok?

[Buster]

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Why do we think depositors will come out ok?

They might not stil.

[CompletelyNumb]

Just curious if you saw something I didn't.

I have a handful of clients exposed to this, as well as dozens other arms length. Not a great time in Cali right now.

[pheoxs]

The bank bought 20 billion in bonds, then due to interest rates rising had to sell them at a substantial loss to get cash out in order to fund people withdrawing their money. Depositors are definitely not guaranteed to get all of their money bank if they are the last ones out.

[Maxt]

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Inevitable. On a side note: Ontario has brought back "shop" as a course requirement for high schoolers because tech is done and baked because of AI.

Are you sure it wasn't to showcase more giant fake titties?

[mr2mike]

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Are you sure it wasn't to showcase more giant fake titties?

Best investment for that guy. A few $100 and now on a paid leave.

[ZenOps]

Bailout incoming. Shame.

[holden]

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The bank bought 20 billion in bonds, then due to interest rates rising had to sell them at a substantial loss to get cash out in order to fund people withdrawing their money. Depositors are definitely not guaranteed to get all of their money bank if they are the last ones out.

They are the first ones out, plus government/regulators will backstop the depositors so that confidence remains in the banking system.

[rage2]

The biggest issue is time. It takes time, manpower, and money to sell off the assets. Lots of startups are already on the brink, so it’s a big issue to get money released asap. I believe the big 4 are offering bridge loans, there’s a cost, better than nothing.

[AndyL]

Interesting how soon we forget...

More interesting - is that there's little online reference besides globe & mail paywalled articles.

Remember the quebec '95 referendum and bank of montreal's near failure? And they had a considerable time to plan for the run - knowing it would be coming...

[mr2mike]

This addon should help you out @AndyL
https://github.com/iamadamdev/bypass-paywalls-chrome

[ZenOps]

I'd buy that for a dollah!

https://www.cbc.ca/news/business/sil...s-uk-1.6776860

"Meanwhile, the U.K. Treasury and the Bank of England announced early Monday that they had facilitated the sale of Silicon Valley Bank UK to HSBC, Europe's biggest bank, ensuring the security of 6.7 billion pounds ($11.1 billion Cdn) of deposits. HSBC paid the nominal sum of one pound to take over the assets."

[DonJuan]

*puts on ZenOps hat*

But what about the Peter Thiel part to this story?

https://www.bloomberg.com/news/artic...bank#xj4y7vzkg

*takes off ZenOps hat*