Wow Roku is extremely rich. Who would have guessed!
Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
201–210 of 222 posts
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#202This 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)
You are making the assumption that that $1 in a company's checking account corresponds to $1 of their market cap, which is not even remotely the case. A much more believable hypothesis is that investors saw the headline, went "Roku is affected by SVB!!" and panic sold.
I was under the impression that, at least to a first order, $1 in cash in a company's checking account (money that could be immediately released to shareholders) does correspond to $1 of their market cap (MC=EV-Debt+Cash [1]). Why do you think this is not the case here?
[1] https://corporatefinanceinstitute.com/resources/valuation/en...
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#203Earlier quoted context omitted.
That's a bold statement and not in line with FDIC actions for previous bank failures.
> in 55 failures since IndyMac of banks with total deposits over $1 billion, uninsured deposits were fully protected against any loss. The largest failure, Colonial Bank, had $20 billion of deposits, including an estimated $4.4 billion of uninsured deposits. https://www.cato.org/commentary/fdic-invents-costly-solution...
Meanwhile, svb had north of 160bik deposits with an estimated 93% uninsured.
Scope is a bit different.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#204Earlier quoted context omitted.
No, no, quite the contrary. I mean, money itself is an illusion, but within that illusion, understanding accounting and credit money creation is absolutely fundamental. Read this paper. https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...
Thanks for the link. I read "The Mystery of Banking"[0] recently and understand more or less how it works. I realize that it's not the most neutral source but I haven't found any of the other side's arguments very convincing either (including this Bank of England paper though I just read the first few pages, planning on reading it fully later). [0] https://www.amazon.com/Mystery-Banking-Murray-N-Rothbard/dp/...
Good link- with respect, to my personal mental model the von mises stuff is a near total misunderstanding both of the mechanics and of the dynamics. Credit in particular seems to be a mystery to them, yet in anthropological terms humans- and other creatures- have credit/reputation accounting in their heads, long predating even organized math. But I have not engaged their arguments directly in depth.
I do all my reading on kindle, that one is only print but I will aim to track down a digital version of their arguments.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#205Earlier quoted context omitted.
Monday will tell. FDIC will have done enough rough accounting to roughly get an idea of how much money large depositors will actually get. It's also entirely possible a deal gets worked out over the weekend that results in all cash depositors being whole at a new bank. Monday will tell.
Oh, did they? I hadn't seen that yet.
Ok it was late and I misread GP as saying they had already done it.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#206Earlier quoted context omitted.
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.
> Not big enough to bail out, the regular people didn't get it either in the great recession. Why the bail out comment though? FDIC doesn't run on govt money. So even if FDIC helps them out with amounts greater than 250k it won't come out of govt. money.
Nah then it would simply be fraud, as they'd be misrepresenting the service offered for the premiums.
Of course if the government required FDIC to charter most retail banks, and you had to have a bank account to say not have all your cash stolen by crooked cops by the side of the road in civil forfeiture, then It'd look a lot more like a public good supported by an indirect tax on the return on your deposit. Which isn't far from the truth.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#207Earlier 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.
Wow, you are such a tough guy! "Fuck them", you sure don't care about anything. Very, very macho.
What an incredibly sexist comment.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#208I 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
Is there a way to tell which banks are the weaker banks? I know the fed does stress tests but I've read that Silicon Valley Bank didn't take part, so I don't know how to get the data.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#209It was $487M ...
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#210I 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…
Can you run away from all banks, though? Where do you put the money?
I don’t know details but maybe local credit union