Silicon Valley Bank / Rippling
- Thread starter somecyguy
- Start date
Great movie! The Big Short was good, but Margin Call was better. Just didn’t have as big of names involved.
This is how this becomes problematic.
"And many start-ups in Silicon Valley don’t generate revenue at all, instead relying on fundraising rounds from venture-capital firms. “Let’s say you’re a high flying startup who banked with SVB, raised $100 million, burns a million dollars a month, and has no revenue,” the founder says. “You’re actually f—ed.”
Source: https://time.com/6262009/silicon-valley-bank-deposit-insurance/
"And many start-ups in Silicon Valley don’t generate revenue at all, instead relying on fundraising rounds from venture-capital firms. “Let’s say you’re a high flying startup who banked with SVB, raised $100 million, burns a million dollars a month, and has no revenue,” the founder says. “You’re actually f—ed.”
Source: https://time.com/6262009/silicon-valley-bank-deposit-insurance/
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Resurrecting this thread since the other has gone off the rails into a **** waging contest about who knows more about banking.
Another informative piece about the events and what now. Keep in mind, he is a VC, so he does have some bias, but I've followed him for some time and he is generally reasonable with his opinions.
https://continuations.com/post/711778254532575232/the-banking-crisis-more-kicking-the-can
Another informative piece about the events and what now. Keep in mind, he is a VC, so he does have some bias, but I've followed him for some time and he is generally reasonable with his opinions.
https://continuations.com/post/711778254532575232/the-banking-crisis-more-kicking-the-can
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First Republic shares rise more than 20% in volatile trading as regional bank stocks try to rebound
Regional bank stocks rebounded on Tuesday as investors digested the fall-out from the collapse of Silicon Valley Bank and stabilization efforts from regulators.
www.cnbc.com
Lot of tech start ups have money invested using that bank. Not all of it is protected.
“Don’t generate revenue” = hard to blame others. Relied on others (debt) and it backfired. Sorry. Your Going to have to find someone else to carry the load while you tinker.
Both are good. The boardroom scene with Jeremy Irons was just a fantastic little bit of acting. Plus Paul Bettany wheeling & dealing to make all those sales? Another great little bit of work.
Not quite right. It was cash money deposits that were going to evaporate.
I bought some PacWest yesterday, FWIW.
By backstopping SVB, the Fed has essentially said that there is no limit to deposit guarantees. That should calm nerves short term, but at the same time, if the Fed does raise the interest rate next week, I can see the same VCs going batshit again and causing problems.
Why? The Fed is definitely raising next week. Unless the Treasury forces mark-to-market on HTM funds (that would cause a problem!), it doesn't matter. Right?
Will be interesting to see if the big players start filing these for emergency liquidity or if they are planning to pick up some smaller banks at a discount.
I stumbled across an entire thread written in cryptic ciphers. Turning back around
Oh would that cause a problem. There is an irrational sense with some regional banks. It's not like we didn't already know about the MBS that many of them carry, but I've seen a bunch of VCs and hedge funds guys throwing fits online about it. Look at the beating Schwab took today. Part of me really wonders if it's not all show just to keep the Fed from raising rates further.