Roku stock is down 2.29$ after hours. I wonder if there is any money to be made shorting companies wrapped up in this mess.
If anything, a swing trade on a dead creditor bounce seems like the easier play at this point.
Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
101–110 of 222 posts
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#102Earlier quoted context omitted.
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
Silvergate bank which is THE bank for crypto companies failed a few days ago on the same day that SVB was trying to raise capital to plug losses. The after effects of that are still unknown.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#103If you use your bank account brokerage to buy stocks, what happen to the stocks if the bank goes bankrupt like this?
Insured up to $1m CAD in Canada through the CIPF.
One thing I came across to watch out for though is that if you hold fixed income securities (e.g. GICs) that are issued by the same bank as the brokerage account, then if it goes bust, the securities are NOT covered by insurance.
"CIPF does not cover: the insolvency or default of the company or organization that issued your security"
For example, if you hold a $500k GIC issued by TD Bank in a self directed TD brokerage account, and TD goes bust, then you're gonna have a bad day.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#104Earlier quoted context omitted.
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.
You are misinformed. FDIC is not funded by the US govt. It operates on premiums. > The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country. https://www.fdic.gov/about/what-we-do…
I am not mistaken. I said the amount over 250k. I in fact never said the FDIC would even compensate them for that, just that they're on their own.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#105Money is just a number on the ledger for the government. They can just give back everyone's deposits or maybe wait for a few months until it becomes a major crisis and then bail out everyone. The investors and shareholders of SVB are going to lose everything, but the depositors will be fine.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#106If you use your bank account brokerage to buy stocks, what happen to the stocks if the bank goes bankrupt like this?
"SIPC protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash." https://www.sipc.org/for-investors/what-sipc-protects
> $500,000
That's way too low.
The other thing this exposed is that FDIC protection for businesses is also too low.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#107Earlier quoted context omitted.
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?
Yes, if you count central banks and don’t mind hyperinflation. But that’s probably not what you’re asking. I don’t think any ordinary commercial or retail bank could survive a run without outside help.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#108I've always found it odd that cash-rich companies keep bank accounts, when they could purchase short-duration t-bills. There's now at least one business bank the will purchase t-bills on a companies behalf with minimal transaction costs.
You need some of that for working capital, and if you want to play the t-bill game, you're better off with a money market fund and letting someone else do the work for you.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#109This is not a perfect analysis, but: - Roku has 487M in SVB - After the 8-K released, Roku lost 323M in market cap Basically, the market is expecting around 30c of value recouped for every dollar inside of SVB. (note: I know this analysis isn't perfect, but it gives a rough idea)
This is absolutely not how the stock market works. Market cap is not based on book value.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#110Money is just a number on the ledger for the government. They can just give back everyone's deposits or maybe wait for a few months until it becomes a major crisis and then bail out everyone. The investors and shareholders of SVB are going to lose everything, but the depositors will be fine.
Except that's what the Fed is trying to correct. Inflation is caused when the money supply in an economy grows at faster rate than the economy's ability to produce goods and services.