Silicon Valley Bank is largest failure since 2008 crisis, billions stranded

Polymathic

Polymathic

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Startup-focused lender SVB Financial Group became the largest bank failure since the 2008 financial crisis on Friday, in a sudden collapse that roiled global markets and left billions of dollars belonging to companies and investors stranded.

California banking regulators closed the bank, which did business as Silicon Valley Bank, on Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets.
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Companies such as video game maker Roblox Corp RBLX.N and streaming device maker Roku Inc ROKU.O said they had hundreds of millions of dollars in deposits at the bank. Roku said its deposits with SVB were largely uninsured, sending its shares down 10% in extended trading.
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www.moneyweb.co.za

Silicon Valley Bank is largest failure since 2008 crisis, billions stranded

SVB focused on lending to start-ups; branches to reopen Monday. Crisis exposes banking 'vulnerabilities' amid rising rates.
www.moneyweb.co.za www.moneyweb.co.za
 
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They were one of the banks that offered startups internationally to open and operate US bank accounts from abroad without the need of being in or travelling to the US in order to open business banking accounts. I know many businesses across the globe made use of them. This will be a huge setback for them too.
 
Lol. A business that put its eggs all in one basket (tech)...and what were the risk management officers doing not highlighting interest rate risk?!
 
Was a put options trade done just couple of days before the blowout .. $4,000 into approx $1,200,000 ... someone always knows something...
 
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Emjay said:
I don't. Until the Americans start fixing their terrible banking practices, they will keep experiencing this.
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they simply need to never bailout a failed business, the rest will take care of itself

but no, "too big to fail" somehow became an accepted excuse ... /spits

also kill fractional reserve banking forever, but then many countries need to live within their means ... can't have that!
 
About one-fourth of Roku’s cash and equivalents — nearly half a billion dollars — has been held in Silicon Valley Bank (SVB), which was shut down by financial regulators Friday after it collapsed. And the streaming platform company said it’s unsure how much of that cash it will recover.

variety.com

Roku Says $487 Million of Its Cash, or 26%, Was Held in Failed Silicon Valley Bank

About one-fourth of Roku’s cash and equivalents — nearly half a billion dollars — has been held in Silicon Valley Bank (SVB), which was shut down by financial regulators Friday af…
variety.com variety.com
 
So the start ups and others will all start falling like dominos now
 
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Funny how so-called libertarians in the Valley now want a government bailout.

Screw that. Capitalism is also about punishing failures in business. VCs must bail out their companies...
 
Pak Fa Fui said:
So the start ups and others will all start falling like dominos now
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The real effects will be felt in coming weeks. Things are about to get extremely bad across the globe...

Firstly, any startup that had an account with them are down the drain if they had money there. It is all gone and they will only get back the insured value, which is a few thousands of dollars. Startups like Robux had hundreds of millions of Dollars and its all gone.

Secondly, this was one of the bigger banks in the US. More people will be rushing to try and get their money out of smaller banks now. This is going to have a huge roll-over effect, especially on the smaller banks. It was already in the news on Friday that other banks are hit hard with withdrawals now.
 
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The_Right_Honourable_Brit said:
Funny how so-called libertarians in the Valley now want a government bailout.

Screw that. Capitalism is also about punishing failures in business. VCs must bail out their companies...
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Watching libertarian-tech-bro-venture capitalists crying for Powell and Yellen to come save 'em with taxpayer money has been the highlight of my weekend.
 
Clearly they didn't esg enough, had they put all their focus on it and hired moar diversity and inclusivity officers, painted moar flags on the building, this would never have happened

nypost.com

While Silicon Valley Bank collapsed, top executive pushed ‘woke’ programs

“These banks are badly run because everybody is focused on diversity and all of the woke issues and not concentrating on the one thing they should, which is, shareholder returns,” Marcu…
nypost.com nypost.com
:laugh:
 
Temujin said:
Clearly they didn't esg enough, had they put all their focus on it and hired moar diversity and inclusivity officers, painted moar flags on the building, this would never have happened

nypost.com

While Silicon Valley Bank collapsed, top executive pushed ‘woke’ programs

“These banks are badly run because everybody is focused on diversity and all of the woke issues and not concentrating on the one thing they should, which is, shareholder returns,” Marcu…
nypost.com nypost.com
:laugh:
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https://twitter.com/x/status/1634520800693821443
 
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