Emergency bridge loan for SVB customers
1–10 of 173 posts
Re: Emergency bridge loan for SVB customers
#2Props for moving fast.
Re: Emergency bridge loan for SVB customers
#3Honestly this makes a ton of sense. The FDIC will be returning most (or all) of the deposits in SVB, so the debt is reasonably safe (at least as far as debt that startups take on ever is). Whoever is funding this is probably not taking on all too much liability, and if they're heavily invested in the startup ecosystem could easily be making enough back from this indirectly to make it worthwhile.
For brex this has to be the best marketing ever. Sign up a bunch of customers with real businesses at someone else's expense.
Re: Emergency bridge loan for SVB customers
#4SVB is basically solvent and had a panic bank run. It should be pretty low risk to offer startups credit collateralized against their SVB deposits.
Re: Emergency bridge loan for SVB customers
#5I wonder how many people got burned by the previous Brex customer firing event would consider using them again, even with the bridge credits?
Re: Emergency bridge loan for SVB customers
#6Honestly this makes a ton of sense. The FDIC will be returning most (or all) of the deposits in SVB, so the debt is reasonably safe (at least as far as debt that startups take on ever is). Whoever is funding this is probably not taking on all too much liability, and if they're heavily invested in the startup ecosystem could easily be making enough back from this indirectly to make it worthwhile. For brex this has to…
97% of deposits in SVB exceeded the FDIC threshold. The question is, by how much on average?
The amount of risk here is significant. I think this is a desperate play by a company in a struggling industry.
Re: Emergency bridge loan for SVB customers
#7I'm surprised that Stripe Capital hasn't extended a similar offer for customers of SVB.
Re: Emergency bridge loan for SVB customers
#8Honestly this makes a ton of sense. The FDIC will be returning most (or all) of the deposits in SVB, so the debt is reasonably safe (at least as far as debt that startups take on ever is). Whoever is funding this is probably not taking on all too much liability, and if they're heavily invested in the startup ecosystem could easily be making enough back from this indirectly to make it worthwhile. For brex this has to…
97% of deposits in SVB exceeded the FDIC threshold. The question is, by how much on average? The amount of risk here is significant. I think this is a desperate play by a company in a struggling industry.
I believe the only ones SOL are SIVB shareholders. It's my understanding that SVB has enough to mostly cover their liabilities.
Re: Emergency bridge loan for SVB customers
#9Honestly this makes a ton of sense. The FDIC will be returning most (or all) of the deposits in SVB, so the debt is reasonably safe (at least as far as debt that startups take on ever is). Whoever is funding this is probably not taking on all too much liability, and if they're heavily invested in the startup ecosystem could easily be making enough back from this indirectly to make it worthwhile. For brex this has to…
97% of deposits in SVB exceeded the FDIC threshold. The question is, by how much on average? The amount of risk here is significant. I think this is a desperate play by a company in a struggling industry.
The FDIC threshold is a minimum guarantee. If they are able to negotiate assets into liquidity, they will be able to pay more than the minimum guarantee.
Re: Emergency bridge loan for SVB customers
#10SVB is basically solvent and had a panic bank run. It should be pretty low risk to offer startups credit collateralized against their SVB deposits.
Solvent how? Their 80 billion of 10 year MBS's are sitting on a tremendous loss.