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What is going on with Silicon Valley Bank???

somerset
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What is going on with Silicon Valley Bank???

#26

Post by somerset »

Slarti the White wrote: Sun Mar 12, 2023 5:54 pm
Phoenix520 wrote: Sun Mar 12, 2023 3:25 pm
Can you say clawbacks?
I also read somewhere that the CEO sold $millions of shares 2 weeks before the collapse.
He cashed in options (that were for less than half the current price at the time) and then immediately sold the resulting shares. While it might have been legal, it sure looks bad.
It may have also been pre-scheduled. To prevent the appearance of insider trading, it's not uncommon for C-level executives to schedule option execution/sales many months in advance.
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What is going on with Silicon Valley Bank???

#27

Post by humblescribe »

Too, also, most stock option plans have a "exercise by" date baked into the agreement before they expire, worthless or not.

It is entirely possible that these options were granted a number of years ago and they were close to expiration.
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What is going on with Silicon Valley Bank???

#28

Post by raison de arizona »

Slarti the White wrote: Sun Mar 12, 2023 5:54 pm
Phoenix520 wrote: Sun Mar 12, 2023 3:25 pm
Can you say clawbacks?
I also read somewhere that the CEO sold $millions of shares 2 weeks before the collapse.
He cashed in options (that were for less than half the current price at the time) and then immediately sold the resulting shares. While it might have been legal, it sure looks bad.
I did hear someone on NPR whose name I forget who was pretty plugged into this stuff. He said that sometimes it isn’t unusual for these trades to be set up ahead of time, so it wasn’t necessarily nefarious. But definitely at the wrong time and he said it would probably be clawed back. FWIW.
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What is going on with Silicon Valley Bank???

#29

Post by Kendra »


Whoa! Here it is. The moment in 2018 when Donald Trump removed the Dodd-Frank regulations that would have prevented the Silicon Valley Bank collapse. Don’t let anyone forget this.

Breaking - Treasury announces •ALL* depositors protected by FDIC. Says no costs will be borne by taxpayers
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What is going on with Silicon Valley Bank???

#30

Post by Dave from down under »

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busterbunker
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What is going on with Silicon Valley Bank???

#31

Post by busterbunker »

"No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."

I assume that means the opposite. I got the bruises to prove it. The damage has been done. These SVB cats spent big bucks lobbying to loosen Dodd-Frank. Blame them, not Trump. They knew exactly what they were doing, he was a useful dunce.

These are the American oligarchs. Of course they will bail each other out. The rest of us humans who live here, that's the game, we're fucked.
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What is going on with Silicon Valley Bank???

#32

Post by bill_g »

Capitalist Socialism explained:

Kaivan Shroff
@KaivanShroff

After 2008, a special fund was set up that U.S. banks regularly pay into. That pool of money currently stands at $100Bn.

This is where the depositor protection funds for SVB and Signature bank will come from—not taxpayer money.

(Almost like good government can do smart things!)

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What is going on with Silicon Valley Bank???

#33

Post by RVInit »

Biden gave a kick ass speech this morning about this. He said management will be fired, and investors who made risky choices will not be bailed out because that is how capitalism works. Sounds like he does not intend for the socialism Republicans insist upon to happen this time.
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What is going on with Silicon Valley Bank???

#34

Post by RTH10260 »

Let's hear how many Republicans did their investment thru SVB - lets hear the howling ...

Or do we get to collect tears in a bottle like we did for Birthers :biggrin:
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What is going on with Silicon Valley Bank???

#35

Post by busterbunker »

So we bail out the creeps who design buttons for calorie-counting apps while the people who grow our food are literally underwater.

The Incredible Tantrum Venture Capitalists Threw Over Silicon Valley Bank
https://slate.com/technology/2023/03/si ... ntrum.html

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What is going on with Silicon Valley Bank???

#36

Post by Phoenix520 »

Interesting that Thiel was part of the bank run. He’s another un-elected asshat with fingers in all kinds of pies, one of those freedom loving, don’t-fucking-tell-me-what-to-do guys and I bet he doesn’t wash his hands as much as he should (“would you SHUT UP about the hand washing already?!?”), so those pies are gonna be gross and infected with libertarianism, at the very least.

He doesn’t like Democracy much. He believes that only a handful of wealthy, high IQ dudes should make all political decisions; the rest of us especially the wimmins, should go back to work - in thé mines, for less than minimum wage. That’s why he worked so hard to make everyone believe tfg was robbed. He’s wealthy. One out of two will do.

I’d be quite pleased if SVB exposed his assets to the world and made his life a living hell.
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What is going on with Silicon Valley Bank???

#37

Post by John Thomas8 »

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busterbunker
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What is going on with Silicon Valley Bank???

#38

Post by busterbunker »

And another goes down, and it's The Return of Barney Freaking Frank.

https://www.politico.com/news/2023/03/1 ... p-00086765

Barney Frank blames crypto panic for his bank’s collapse. Elizabeth Warren blames Trump.
Frank, who chaired the House Financial Services Committee in the wake of the global financial crisis and wrote sweeping new rules enacted in 2010, most recently served on the board of New York’s Signature Bank, which regulators shut down Sunday.

From his front-row seat, he blames Signature’s failure on a panic that began with last year’s cryptocurrency collapse — his bank was one of few that served the industry — compounded by a run triggered by the failure of tech-focused Silicon Valley Bank late last week. Frank disputes that a bipartisan regulatory rollback signed into law by former President Donald Trump in 2018 had anything to do with it, even if it was driven by a desire to ease regulation of mid-size and regional banks like his own.
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What is going on with Silicon Valley Bank???

#39

Post by neonzx »

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Suranis
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What is going on with Silicon Valley Bank???

#40

Post by Suranis »

This guys delivery is pretty dry, but he explains what is going on very clearly.

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neeneko
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What is going on with Silicon Valley Bank???

#41

Post by neeneko »

So something I am trying to understand about the Silicon Valley Bank's collapse... do they still have some of their bonds? As I understand it, the run caught them with not enough cash on hand but the bulk of their assets were tied up in long term bonds which were then sold at a loss, but I have not seen if they sold all of them or if they still have a pile of non-liquid assets that could be slowly drawn on to pay back depositors?
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What is going on with Silicon Valley Bank???

#42

Post by bill_g »

Suranis wrote: Tue Mar 14, 2023 5:21 am This guys delivery is pretty dry, but he explains what is going on very clearly.

https:
//www.youtube.com/watch?v=GdfYnqyu7v8
Oh yeah he does. With some knife twisting too. Excellent explanation. Thank you.
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much ado
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What is going on with Silicon Valley Bank???

#43

Post by much ado »

neeneko wrote: Tue Mar 14, 2023 6:21 am So something I am trying to understand about the Silicon Valley Bank's collapse... do they still have some of their bonds? As I understand it, the run caught them with not enough cash on hand but the bulk of their assets were tied up in long term bonds which were then sold at a loss, but I have not seen if they sold all of them or if they still have a pile of non-liquid assets that could be slowly drawn on to pay back depositors?
Now that the FDIC has created a new bank (Silicon Valley Bridge Bank) to receive all of the old defunct bank's business, and this bank is fully backed by the FDIC, guaranteeing all depositors' accounts, no matter how large, there is no need to sell off assets to maintain liquidity.

Here is a message issued today by the new CEO of SVBB...

Update from Silicon Valley Bridge Bank CEO
We are open for business and are hard at work bringing all systems and solutions back online to support you. We are making new loans and fully honoring existing credit facilities.

The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days.

As stated in yesterday’s announcement, depositors have full access to their money and both new and existing deposits are fully protected by the FDIC. This action by FDIC effectively means that deposits held with SVB are among the safest of any bank or institution in the country.

If you, your portfolio companies, or your firm moved funds within the past week, please consider moving some of them back as part of a secure deposit diversification strategy. We are also open for business for any new customers. We are actively opening new accounts of all sizes and making new loans.
SVBB is open for business and for new business...
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What is going on with Silicon Valley Bank???

#44

Post by RTH10260 »

much ado wrote: Tue Mar 14, 2023 4:19 pm
Extract
Now that the FDIC has created a new bank (Silicon Valley Bridge Bank) to receive all of the old defunct bank's business, and this bank is fully backed by the FDIC, guaranteeing all depositors' accounts, no matter how large, there is no need to sell off assets to maintain liquidity.
Sure that is correct? I believe the guarantee maxes out at $250'000 like for any guaranteed bank account.
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What is going on with Silicon Valley Bank???

#45

Post by neonzx »

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Goldco: Three banks just failed & others are buying gold in record numbers. Protect YOUR retirement savings! Learn how. Call 855-720-3486 Reply STOP to end
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What is going on with Silicon Valley Bank???

#46

Post by raison de arizona »

RTH10260 wrote: Tue Mar 14, 2023 5:53 pm
much ado wrote: Tue Mar 14, 2023 4:19 pm
Extract
Now that the FDIC has created a new bank (Silicon Valley Bridge Bank) to receive all of the old defunct bank's business, and this bank is fully backed by the FDIC, guaranteeing all depositors' accounts, no matter how large, there is no need to sell off assets to maintain liquidity.
Sure that is correct? I believe the guarantee maxes out at $250'000 like for any guaranteed bank account.
Yes they are guaranteeing everything out of the FDIC fund. Which will then be substantially depleted, one would assume.
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What is going on with Silicon Valley Bank???

#47

Post by bob »

RTH10260 wrote: Tue Mar 14, 2023 5:53 pmSure that is correct? I believe the guarantee maxes out at $250'000 like for any guaranteed bank account.
I read that as a reference to the feds' backstop guarantee.
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What is going on with Silicon Valley Bank???

#48

Post by neeneko »

raison de arizona wrote: Tue Mar 14, 2023 6:01 pm Yes they are guaranteeing everything out of the FDIC fund. Which will then be substantially depleted, one would assume.
This is why I was curious about how much of the bonds were still in play. The FDIC having to bail it out completely is one thing, but getting them over a hump until their illiquid assets can be utilized is another.
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What is going on with Silicon Valley Bank???

#49

Post by AndyinPA »

I believe I heard there is a fund that all banks pay into, beyond the FDIC. I think Biden said because of that, all depositors would be covered fully. The investors? Not so much. Actually, not at all.
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#50

Post by neonzx »

AndyinPA wrote: Tue Mar 14, 2023 6:37 pm I believe I heard there is a fund that all banks pay into, beyond the FDIC. I think Biden said because of that, all depositors would be covered fully. The investors? Not so much. Actually, not at all.
I believe you are correct. I recall reading something in the past couple days about that fund, which sits at $108bln or so. Created after the 2008 greed and market crash. Banks pay into it.
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