They did something stupid and risky stupid. What it was looks unknown as of now. Sunday is news day. We shall see.
Obviously no insider trading there. Nothing to see here, folks! 
Guy
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IT’s a possibility. One of several, I’m sure.
And this:
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Insiders…
USDC dropped 0.87 at one point but has mostly recovered. I have some debt denominated in dai, I might clear it now as it is trading at a discount.
Other banks aren’t the issue.
The real question is how many startups/companies SVB is going to put out of business.
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Good report here.
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Scott Galloway—never a dull moment with that guy.
Guy
Won’t someone help the super rich save their gambling money!?!?!?
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I think making payroll is the immediate problem.
Startups with money held at Silicon Valley Bank raced to come up with plans to pay workers after hearing their funds would be locked up over the weekend, said Jai Das, president at Sapphire Ventures, whose investments have included Box and LinkedIn.
“Some of the folks have moved their money out of SVB to other banks,” he said. “Hearing CEOs who are figuring out ways to use their own capital or own funds to fund some of the payroll.”
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Start a go fund me page?
While customers with deposits of up to $250,000 — the maximum covered by F.D.I.C. insurance — will be made whole, there’s no guarantee that depositors with larger amounts in their accounts will be repaid in full.
That reality sent tremors through the banking industry over the weekend. Government officials and economists worried that people with big bank accounts at other regional banks might begin to fear for the safety of their own deposits — which could prompt them to pull their money out and rush toward the perceived security of even bigger banks. That, some warned, could turn what might otherwise be a one-off bank failure into a sweeping crisis.
– New York Times
It’s times like these that some gold makes a good backstop.
That works for me too.
SVB basically saw deposits skyrocket around 2021 and stupidly put them into long-term Treasuries, which then saw their yields rise significantly (yields rise = losses to holders who previously bought those long-term Treasuries).
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The US will guarantee depositors funds
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Signature Bank closed by NY regulators on Sunday.
30% of its deposits were from cryptocurrency sector by Feb. 2023.
SIPC insurance is up to 500K
Is there going to be any contagion to Europe or the rest of the world does anyone want to guess?
The cavalry has arrived once more. It’s been so long that I forgot that the Fed will do anything to backstop the elites. The Fed will now be lending money to banks in return for Treasury/Mortgage bonds. Think about it as margin lending, because if the Fed continues to raise interest rates, those pledged bonds will drop in value, which precipitated this crisis in the first place.
Capitalism is only for little people.
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The Fed has made it clear that no matter what, Wall st will be backstopped no matter what they do. It’s telegraphing to the markets that all risk will be bankrolled by the govt when things go south. Expect everyone to be risk on now.
The stock market is going to moon tomorrow.
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They didn’t hedge interest rates at all. When you invest into 10 year treasuries, your return is locked for 10 years. Back in 2021 interest were very small and new treasuries currently have way higher yield. Meaning 10 year treasuries issued in 2021 lost a booking (market value). No one wants to own a debt with 1.8% when you can own a debt (treasuries) which pays 4%.Unless treasuries from 2021 are sold with discount.
Bank has liquidity problems,cause of bank run. Treasuries fall in value already last year.
It is so funny to me, how all those tech gurus don’t understand basic risk of interest rates. Own millions of cash and have good start up business, bur failed at basics of finance. For this particular reason I like Canadian Fairfax. Their duration of fixed income is very short - can capture raising up interest.
Austria was able to issue 100 year bond with 1.2 % yield in 2021. Think of this, a country with old demographic, a country which doesn’t even control own currency (cause EU does) could get 100 year debt for 1.2%, Ofc with inflation this 100 year old bond lost 70 % of market value. Another great investment from banks
.
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