Silicon Valley Bank

The Fed boosting interest rates, which I guarantee everyone invested in that bank was like "yeah we need that to control inflation." As the cheap money spigot gets turned off, that really disrupts the SV/Tech business model.

 

The bank wasn’t bailed out. The depositors were.

 

Seriously, small businesses can have up to 1000 employees and $40 million revenues. The definition is broad. I’m quite sure many small business’s have millions in the bank and would be 100% screwed to have that wiped. If you are setting the limit at 250k, that isn’t just “small businesses”, that’s more like limiting the definition of small business to solo operations like a lawn care business or restaurant.

SVB is unique in that it caters to startups. Not all those guys are “rich”, unless it is their 2nd or 3rd company and had personal wealth from that. For those on their 1st go around, they’d be anything but “rich”. But regardless, when talking about startups those are the type of companies that could least afford to see their accounts wiped, especially if they are early development and don’t yet have revenue.

 

Credit Suisse has been under pressure for months. It’s been slowly hemorrhaging for over a year. I don’t know why this is all of the sudden news. The stock is down 80% in a year.

 

Anyone with any sense had their funds out of CS months ago (like 12 months ago). This is nothing like SVB that basically hit overnight. As you said it just comes on the heels of these other banks and now the spotlight is brighter.

 

I bet Pelosi used a SVB atm machine once. Arrest her immediately if not sooner.

 

Didn't you defend Trump for not putting his assets in a blind trust? Now you are trying to claim that somebody who actually did that acted illegally for not disclosing what his blind trust might be doing?

 

No I did NOT... Quit tossing crap out there and inventing falsehoods. Lobbying for money to save your own financial bank account (Gavin Newsom's own bank account) is all on the California governor, and his actions have nothing to do with Trump. Nice try...

 

I remember it pretty distinctly. Something about how because there was no legal requirement to do so, that he didn't need to do so.

How would he know he has a bank account there? He has a blind trust. You realize that means he legally can't even know where his businesses keep their money, right?

 

Plus I rather doubt having a deposit account is in any way “illegal” anyway, under lobbying rules or trading rules. Seems a bit laughable.

Those laws are designed to prevent insider trading that might occur in investor type conflicts of interest. A deposit account categorizes him as a customer.

 

This is plausible, but this bank and board are supposed to be the best and brightest with elite school education. The fed didn’t exactly surprise anyone with its string of rate hikes. Seems odd that simply raising rates, as has been predictably done, would cause a business model to fail. That seems like something that would catch bubba bob in rural bama by surprise

 

Their investments were not very diversified, so they certainly did little to mitigate that risk. Lots of very smart people pursue high risk strategies, they are practically indoctrinated to do so!

 

Sometimes "the best and brightest,," think they are smarter than the market or simply get greedy.

 

When the Fed decided to play God 15 years ago by not raising rates then, they were playing with fire. You have to understand that prior to the rate increases, we had been going more than 20 years since the last time we raised rates. You can't keep rates at nearly 0% for more than 20 years without setting things into motion. That's 20 years of people buying and selling with little to no impact on decisions. Banks got used to it, Wall Street got used to it and Main Street got used to it. This time last year all of our credit cards had very low interest rates, no more than 5%. I looked at mine yesterday and the cheapest was my Discover card at 19.99%. Go take a look at your accounts. Read the fine print because they don't show that rate anymore like they used to.

And for Thiel starting a run by withdrawing millions???? Seriously? Considering there are constant withdrawals by other entities to the tune of billions, with a B, that never result in a run. That's like me withdrawing $10,000 at Regions starting a bank run there. Nuts.

 

I think the thing with a lot of big shots invested in SVB is that they all talk to each other, you probably arent in a Slack chat with people at Regions because they dont do business with people in the same field who all talk to each other.