351–360 of 1001 posts
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Its so funny until you realize your seed-round investment in a friends company used SVB. Gonna be quite a show, this.
That makes it even funnier, though. At least to the rest of us.
2008 bear sterns vibes. The fed's move in interests rates was bound to break something. This is the first big name and, while banks are taken over by the FDIC often and it never makes the news, this one will be especially interesting bc it is Silicon Valley Bank. Naturally, people and the media will associate with the rest of silicon valley, bringing extra scrutiny to every brand name tech company, especially the one…
It’s not interesting because of its name, it’s the 18th largest bank in the US. A domino that big usually doesn’t fall alone. Also, FDIC hasn’t taken over a bank since 2020. This isn’t exactly a common occurrence.
Here is a chart that shows the number of bank failures over the past decade [0]. As you can see, having a year with 0 failures is actually the outlier. The average annual bank failure over the past 20 years is roughly 20 per year and the median number is 8 per year.
Stripe? Is Stripe adversely impacted by this given they recommended to merchants to use SVB and probably accounted for a large portion of deposits into SVB (from payment transactions)
Stripe's money is not there
It’d be a Jedi move for Stripe to straight up acquire SVB. Imagine how strong of an offering they could create then.
Earlier quoted context omitted.
Disrupt disrupt disrupt! Those old stodgy banks just slow us down with their old-fashioned risk-averse ways! The cool kids can do it better! If I had a nickel for every time I heard this from actual friends in the past couple decades, or for when I said it myself a few times... :)
HN really is like a ChatGPT version of itself. SVB is a 40 year old bank, bro. They are the old stodgy bank. The Meows and Mercurys are all still around. Their problem was that their risk management didn't keep up with the changing times (rapid interest rate changes). Please go on and tell us more HN tropey things like "oh they shouldn't have sold customer data!" or more things that could be an autogenerated robot co…
How humiliating. At least this isn't an epidemic.
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Fixes what? An insolvent bank got was taken over by a national authority, all of the deposits were insured, account holders don’t even notice anything happened unless they’re following the news, the banking system doesn’t even skip a beat. This sounds like everything went according to the highly regulated plan.
97% of the 175 billion on deposit was not covered by FDIC insurance.
Those companies are going to be wiped out unless the government steps in and exceeds the requirements of the insurance.
Silicon Valley Bank UK confirms it’s a standalone independent UK regulated bank. London, 10 March, 2023: Silicon Valley Bank UK, the financial partner of the innovation economy, today moved to confirm to its UK clients, partners and external stakeholders its financial position as a standalone independent banking institution that is regulated and governed by the PRA in the UK. Silicon Valley Bank UK has been an indepe…
2008 bear sterns vibes. The fed's move in interests rates was bound to break something. This is the first big name and, while banks are taken over by the FDIC often and it never makes the news, this one will be especially interesting bc it is Silicon Valley Bank. Naturally, people and the media will associate with the rest of silicon valley, bringing extra scrutiny to every brand name tech company, especially the one…
This chart of historic bank failures paints a different picture:
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Yeah famously the feds step in and cover your deposits when a crypto exchange collapses
You are not supposed to use centralized exchanges to custody your assets.
"Not your keys, not your crypto."
It's the entire point of crypto to not keep it on a centralized exchange!
I know SVB was an early partner for Stripe Atlas[1], I hope they've got other options now, and not too many companies get really hurt here. [1] https://www.svb.com/news/company-news/silicon-valley-bank-pa...