SVB Financial: Blow Up Risk (2022)

#1

Post by AlchemistCamp » Sat, Mar 11, 2023, 5:13 PM UTC

SVB Financial: Blow Up Risk (2022)
seekingalpha.com

Re: SVB Financial: Blow Up Risk (2022)

#2

Post by xiaolingxiao » Sat, Mar 11, 2023, 6:26 PM UTC

Note this was published dec 2022.

Re: SVB Financial: Blow Up Risk (2022)

#3

Post by kurthr » Sat, Mar 11, 2023, 6:28 PM UTC

xiaolingxiao wrote: post #2

Note this was published dec 2022.

So, classic bank run... except there were 6 people on the same chat channel controlling 10% of the bank's reserves. Once they notice, poof!

Re: SVB Financial: Blow Up Risk (2022)

#4

Post by notlukesky » Sat, Mar 11, 2023, 6:28 PM UTC

They mentioned this report in the All In Podcast this week.

Re: SVB Financial: Blow Up Risk (2022)

#5

Post by toinewx » Sat, Mar 11, 2023, 6:32 PM UTC

The author had a short position. You can find it at the end of the article:

   Disclosure: I/we have a beneficial short position in the shares of SIVB either 
   through stock ownership, options, or other derivatives.

Re: SVB Financial: Blow Up Risk (2022)

#6

Post by tedivm » Sat, Mar 11, 2023, 6:36 PM UTC

toinewx wrote: post #5

The author had a short position. You can find it at the end of the article: Disclosure: I/we have a beneficial short position in the shares of SIVB either through stock ownership, options, or other derivatives.

You say that like it's some gotchya, but someone who felt the bank wasn't in a good financial position would naturally short it. This just means the guy put his money where his mouth is.

Re: SVB Financial: Blow Up Risk (2022)

#7

Post by devmunchies » Sat, Mar 11, 2023, 6:38 PM UTC

toinewx wrote: post #5

The author had a short position. You can find it at the end of the article: Disclosure: I/we have a beneficial short position in the shares of SIVB either through stock ownership, options, or other derivatives.

So... he put his money where his mouth was? Sounds better than putting it in SVB.

Re: SVB Financial: Blow Up Risk (2022)

#8

Post by dtech » Sat, Mar 11, 2023, 6:41 PM UTC

tedivm wrote: post #6

toinewx wrote: post #5

The author had a short position. You can find it at the end of the article: Disclosure: I/we have a beneficial short position in the shares of SIVB either through stock ownership, options, or other derivatives.

You say that like it's some gotchya, but someone who felt the bank wasn't in a good financial position would naturally short it. This just means the guy put his money where his mouth is.

It's beneficial for someone who is shorting a stock to put out negative press about the company. It's basically the modus operandi of some hedge funds.

I also don't get the gotcha though. As long as it's disclosed and the facts are true I don't see the problem.

Re: SVB Financial: Blow Up Risk (2022)

#9

Post by kortilla » Sat, Mar 11, 2023, 6:41 PM UTC

toinewx wrote: post #5

The author had a short position. You can find it at the end of the article: Disclosure: I/we have a beneficial short position in the shares of SIVB either through stock ownership, options, or other derivatives.

You would be stupid not to after stumbling on a gem like this.

Re: SVB Financial: Blow Up Risk (2022)

#10

Post by stcredzero » Sat, Mar 11, 2023, 6:42 PM UTC

notlukesky wrote: post #4

They mentioned this report in the All In Podcast this week.

From the podcast: "The herd mentality caused us to all run for the door..." -- There was an N-way Prisoner's Dilemma that just played out in the Silicon Valley startup networks.

And the startup networks in aggregate -- Failed! There was a reference made to the movie, "It's a Wonderful Life." The Silicon Valley startup scene failed like a mob, where the Building and Loan crowd succeeded as a community.

Maybe that kind of thing only exists in the movies? Well, not quite. But it is rare.