LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.
Didn't the public get paid back, plus extra, after bailing out the banks?
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121–130 of 864 posts
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#122Its not like SVB has tons of toxic assets on their balance sheet. They have $13B in balance sheet equity (not marking to market HTM assets). There's $40B in cash and AFS bonds which are marked to market. This can be saved by another entity or a coalition of entities like Sandhill Road. I don't think this is something the government should get involved in any further than they already are. Brex (as far as I know) is offering short term loans to SVB depositors so that should lighten the overall impact; those that get the loans will make payroll. Meanwhile I'm sure there's a few camps frantically running due diligence right now and a white knight could arise by Monday morning to shore up the balance sheet and let the bank reopen. The problem is who/what ever does that needs to ooze with trustability and confidence to keep the remaining depositors from bailing.
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#123Earlier quoted context omitted.
Are you saying if I deposit more than $250k (which is NOT a lot for a business) into a reputable and regulated US bank at negligible rates of interest I should just accept the impact of the bank shutting down due to events unrelated to my actions and choices? And that my deposit should vanish into thin air?
> Are you saying if I deposit more than $250k (which is NOT a lot for a business) into a reputable and regulated US bank at negligible rates of interest I should just accept the impact of the bank shutting down due to events unrelated to my actions and choices? Yes, because that is how risk works. > And that my deposit should vanish into thin air? No, you should insulate yourself from that risk, either by spreading o…
>No, you should insulate yourself from that risk, either by spreading out your cash between multiple institutions, or obtaining deposit insurance beyond the government's, or (most likely) both.
Why would I do that when I can bank with a too-big-to-fail bank like JP Morgan Chase, Citibank, Wells Fargo, or Bank of America?
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#124This is YC trying to protect itself and the VC community from massive losses on their investment.
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#125This will suck for a lot of people but YC - and no VC - is not big enough to fail.
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#126Earlier quoted context omitted.
Government interference in the economy is bad* *Unless it's to bail me out.
FWIW I've never had that perspective, so I'm not sure why you are saying that.
Most commenters have a very low-dimensional understanding of politics, and assume if you’re a businessman or capitalist, all failings of Republicans can be attributed to you personally.
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#127LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.
These are depositors of a bank. Most startups only have one bank. Startups should live or die because they create good products and solve real problems in real markets, not because they made an arbitrary choice like which bank they started using. There's also a real risk of bank contagion if it is only safe to deposit in the largest banks.
There was nothing arbitrary about that choice. This bank promised better deals BECAUSE they were not careful enough about the risk it entailed. That was their competitive advantage, and they made bank for it. Well, tough luck, now it's not anymore: it has nothing to do with being a large bank or a small bank, it has to do with healthy business practices.
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#128I would recommend people familiarize themselves with what happens historically when bank failures happen unchecked. It’s catastrophic. Good luck to you if any of these companies employs you or owes you money.
A good book with a first person blow by blow is “The Great Depression: a diary”
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#129LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.
These are depositors of a bank. Most startups only have one bank. Startups should live or die because they create good products and solve real problems in real markets, not because they made an arbitrary choice like which bank they started using. There's also a real risk of bank contagion if it is only safe to deposit in the largest banks.
Why do startups only have 1 bank? I own a bootstrapped startup with literally just 1 employee and am easily able to get an account in Chase or Citi. Why do startups with much more revenue not able to get the same account in major banks?
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#130LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.
These are depositors of a bank. Most startups only have one bank. Startups should live or die because they create good products and solve real problems in real markets, not because they made an arbitrary choice like which bank they started using. There's also a real risk of bank contagion if it is only safe to deposit in the largest banks.
> not because they made an arbitrary choice like which bank they started using
Most companies live and die by what most people would call arbitrary choices in things they wouldn't think of. I use more than one bank account for my personal finances and I don't even have 250k cash. Begging for tax payer money after the 10 year tech bull run we've seen, shame.