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Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

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Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#61

Post by bee_rider »

carstenhag wrote: post #50
iammiles wrote: post #15

To save people a quick search, here is part of the Wikipedia definition of Form 8-K: "...a very broad form used to notify investors in United States public companies of specified events that may be important to shareholders or the United States Securities and Exchange Commission."

And SVB means Silicon Valley Bank, which was shut down by a regulatory body some days ago: https://www.cnbc.com/2023/03/10/silicon-valley-investors-and... (seriously HN, we non-US people have never heard of your terms)

I think it is not a US-specific thing, I live in the US and had never heard of SVB until the recent volley of articles here.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#62

Post by majormajor »

Roku having 75% of their money elsewhere instead of going 100% into a single bank seems to be a significant thing here.

Given the much-discussed recently limits of depending on the FDIC, not putting all your eggs in one bank basket seems incredibly wise, guess now we just see how broadly exposed other businesses and other banks are.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#63

Post by DanHulton »

AdamJacobMuller wrote: post #46
ycstohley wrote: post #33

Earlier quoted context omitted.

[flagged]

rude. suggesting he must have been hiding under a rock for the past 2 days to miss the news is funny because it pokes fun at just how prolific the news on this has been in the past 48h, but, the shoelaces comment is implying that he's stupid for not seeing the news.

I think its more about how this information is all very easily researchable, especially now. And most news articles about this situation will have explainers about the finer details in the articles, at least enough to get you up to speed that you don't have to ask commenter on an HN thread for super basic information.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#64

Post by pcdoodle »

FormerBandmate wrote: post #53
aynyc wrote: post #38

I think this might be the beginning. I think various funds (public or private) which have capitals stored in SVB is gonna be in a lot of trouble. Every investment firms are probably scanning their portfolios and business cash lines to see how much they are impacted by SVB and similar banks. I wouldn't be surprised to see a run on banks in the next few days/weeks if additional rumors (true or not) come out. Edit: didn…

This is how financial crises start. IndyMac ($40 billion) went under in July 2008 which caused tension, and then Lehman fell apart two months later which led to 15 institutions failing in a matter of weeks. There are other financial institutions that are suffering. We could definitely see cascades among some of the weaker banks

If you were ultra paranoid, what other institution types would be advisable to exit? Could this impact investments in the market?

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#65

Post by toomuchtodo »

koolba wrote: post #56
FormerBandmate wrote: post #53

Earlier quoted context omitted.

This is how financial crises start. IndyMac ($40 billion) went under in July 2008 which caused tension, and then Lehman fell apart two months later which led to 15 institutions failing in a matter of weeks. There are other financial institutions that are suffering. We could definitely see cascades among some of the weaker banks

Bear Stearns was even earlier that same year. It’s like that old quote about going bankrupt, first it happened slowly, then suddenly.

https://www.youtube.com/watch?v=gUkbdjetlY8

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#67

Post by Spivak »

chasd00 wrote: post #58
aynyc wrote: post #38

I think this might be the beginning. I think various funds (public or private) which have capitals stored in SVB is gonna be in a lot of trouble. Every investment firms are probably scanning their portfolios and business cash lines to see how much they are impacted by SVB and similar banks. I wouldn't be surprised to see a run on banks in the next few days/weeks if additional rumors (true or not) come out. Edit: didn…

I just got an email from Mercury saying they’re well capitalized and all is well. “ I want to assure you that Mercury is in a strong financial position (profitable and well-capitalized), and we have a number of ways that we keep deposits on Mercury safe:” Uhoh.

Is there any bank out there that can survive a panic bank run?

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#68

Post by saurik »

pcdoodle wrote: post #64
FormerBandmate wrote: post #53

Earlier quoted context omitted.

This is how financial crises start. IndyMac ($40 billion) went under in July 2008 which caused tension, and then Lehman fell apart two months later which led to 15 institutions failing in a matter of weeks. There are other financial institutions that are suffering. We could definitely see cascades among some of the weaker banks

If you were ultra paranoid, what other institution types would be advisable to exit? Could this impact investments in the market?

How paranoid would you have to get before you'd be willing to convert all your money to crypto? ;P

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#69

Post by jiveturkey »

majormajor wrote: post #62

Roku having 75% of their money elsewhere instead of going 100% into a single bank seems to be a significant thing here. Given the much-discussed recently limits of depending on the FDIC, not putting all your eggs in one bank basket seems incredibly wise, guess now we just see how broadly exposed other businesses and other banks are.

all companies with this size of cash have an internal treasury function

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#70

Post by notch898a »

boeingUH60 wrote: post #60
carstenhag wrote: post #54

Earlier quoted context omitted.

Sorry, that doesn't explain why companies use that specific bank or what/why they file a "8-K".

Silicon Valley Bank was a go-to bank for many big technology companies because it forged deep connections in the industry. The bank experienced a bank run and had to be taken over by the FDIC (U.S. government). Roku is letting investors know that they have a lot of cash stuck there and may not be able to access it for a while (as the FDIC tries to sort out the mess).

The US Government is the people of the US. They went over the 250k limit. If they don't have private insurance for that, fuck them they're on their own. Not big enough to bail out, the regular people didn't get it either in the great recession.
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