Posted on 03/12/2023 7:25:20 AM PDT by DoodleBob
Maybe one of his Russian oligarch friends can help him out.
Sure enough, they can buy it, catch their breath and start the scam all over again.
Someone in these pages said one of the lines was for SVB to loan money when interest rates were low.
The tech companies would then use that loaned money to somehow prop up profits or just finance the burn.
Stock shares would go up at a rate exceeding the loan rates and the loans would be repaid.
Wash rinse repeat.
Now that rates have gone up and the market is down that doesn’t work so well. In addition, the squeeze started on SVB when the rate for intrabank funds began to rise.
Bits, bytes, 0s and 1s don’t make good collateral. A lot of Tech produces little more than games, advertising platforms and blue sky in great multiples. When the game is good and everybody plays it is great.
Chips? Good investment right now.
hmmm finding a bank to take over. let’s ask how that worked out for Jamie Dimon who absorbed WMutual - then got sued over its bad practices pre takeover.
Many of the depositors were in collusion with this bank’s dealings. They are not so innocent.
Many of the depositors were in collusion with this bank’s dealings. They are not so innocent.
The best outcome for the failed Silicon Valley Bank would be for U.S. officials to find a buyer for it before it failed. This didn’t happen at a specific time and way without notice. They went into the red long ago before the decisions killed it.
wy69
Re: 46 - Some info regarding this:
“Michael Cembalest, Chairman of Market and Investment Strategy for J.P. Morgan Asset Management, in a note, said, SIVB’s $209 bn in assets are roughly 2/3 of Washington Mutual (not adjusted for inflation), which failed in 2008. The mid-day closure of the bank was unusual and is something we are still evaluating.”
and:
“SIVB was in a league of its own: a high level of loans plus securities as a percentage of deposits and very low reliance on stickier retail deposits as a share of total deposits.”
and:
“The bottom line as per Cembalest is that SIVB carved out a distinct and riskier niche than other banks, setting itself up for large potential capital shortfalls in case of rising interest rates, deposit outflows, and forced asset sales.”
and:
“”It’s fair to ask about the underwriting discipline of VC firms that put most of their liquidity in a single bank with this kind of risk profile. At the end of 2022, SIVB only offered 0.60% more on deposits than its peers as compensation for the risks illustrated below; in 2021 this premium was 0.04%,” his note added.”
One thing that’s consistent all this chit is happening on Biden’s watch!!
Elon Musk mentioned it.
I wonder if Pelosi and Feinstein had money there. Elizabeth Warren too.
Isn’t Mark Warner the biggest recipient of SVB donations?
China is looking forward to renaming it Siricon Varrey Bank...
They already have a new name for it according to an article yesterday.
This bank handles the money of hundreds of small startup companies.
How will they pay their employyees Friday? One ‘expert’ claims Friday is going to be a $—t storm.
This isn't due to the boogie man, Soros, China, locusts, or other Gateway Pundit nonsense.
Jim Cramer Tells People To Buy Silicon Valley Bank’s Stock Just Before It Collapsed! Of Course!
Rumor mill is Oprah had like $500 million there.
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