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YC: We ask for depositors to be made whole

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Re: YC: We ask for depositors to be made whole

#31

Post by [deleted] »

neilv wrote: post #20
davidgerard wrote: post #6

Garry also posted this to HN and forced it to the front page, and readers roundly told him to get knotted and flagged the post: https://news.ycombinator.com/item?id=35114009 Garry is calling for a regulation. Many respondents cited the precise regulation that would have stopped this happening, which the CEO of SVB had lobbied to remove in 2018: https://www.theguardian.com/business/2023/mar/11/silicon-val... Garry has…

> and readers roundly told him to get knotted and flagged the post: Was it flagged by people critical of it, or by people who wanted to suppress the critical comments/backlash?

[deleted]

Re: YC: We ask for depositors to be made whole

#33

Post by cinbun8 »

bruce343434 wrote: post #7

Privatize the gains, socialize the losses. Before the government supplies anything, the wallets of those at the top of SVB should be first to be liquidated. Otherwise, it's equivalent to just randomly awarding those top guys with millions of taxpayer money. Easy scheme, honestly. Set up a bank, get some deposits, gamble it away, walk away with gains you periodically skimmed off the top. Let the government deal with t…

That's not what happened though. SVB did not gamble with the money.

Re: YC: We ask for depositors to be made whole

#35

Post by bruce343434 »

cinbun8 wrote: post #33
bruce343434 wrote: post #7

Privatize the gains, socialize the losses. Before the government supplies anything, the wallets of those at the top of SVB should be first to be liquidated. Otherwise, it's equivalent to just randomly awarding those top guys with millions of taxpayer money. Easy scheme, honestly. Set up a bank, get some deposits, gamble it away, walk away with gains you periodically skimmed off the top. Let the government deal with t…

That's not what happened though. SVB did not gamble with the money.

They did put money on a "sure bet", bonds and mortgage backed securities. Due to the fuckery with interest rates, those sure bets were suddenly unfavorable (at least if you have to cash them in early, which they did). The fact that stocks were sold tells me they knew about this going belly up eventually.

Re: YC: We ask for depositors to be made whole

#36

Post by greenyoda »

resters wrote: post #24

Why is this flagged? Garry represents YC and his ridiculousness should not be suppressed from HN.

It could have been flagged because there was a very big discussion of it earlier: https://news.ycombinator.com/item?id=35114009 (369 points, 743 comments)

Re: YC: We ask for depositors to be made whole

#37

Post by brodouevencode »

bruce343434 wrote: post #35
cinbun8 wrote: post #33

Earlier quoted context omitted.

That's not what happened though. SVB did not gamble with the money.

They did put money on a "sure bet", bonds and mortgage backed securities. Due to the fuckery with interest rates, those sure bets were suddenly unfavorable (at least if you have to cash them in early, which they did). The fact that stocks were sold tells me they knew about this going belly up eventually.

What I would like to see come out of this is the banking system offer risk tiered accounts. No-risk tiers are FDIC insured, but the bank is not allowed to move that money anywhere. Higher tiers offer higher levels of risk, deposits are not guaranteed but receive better internet rates, and the banks are able to “gamble” in whatever way they choose. The current structure is fundamentally broken and no amount of regulation layered on top of that structure will provide the stability and security for customers while driving market innovation.

Re: YC: We ask for depositors to be made whole

#38

Post by cassianoleal »

greenyoda wrote: post #36
resters wrote: post #24

Why is this flagged? Garry represents YC and his ridiculousness should not be suppressed from HN.

It could have been flagged because there was a very big discussion of it earlier: https://news.ycombinator.com/item?id=35114009 (369 points, 743 comments)

If that's the case, why is that one flagged then?

Re: YC: We ask for depositors to be made whole

#39

Post by nickthegreek »

neilv wrote: post #20
davidgerard wrote: post #6

Garry also posted this to HN and forced it to the front page, and readers roundly told him to get knotted and flagged the post: https://news.ycombinator.com/item?id=35114009 Garry is calling for a regulation. Many respondents cited the precise regulation that would have stopped this happening, which the CEO of SVB had lobbied to remove in 2018: https://www.theguardian.com/business/2023/mar/11/silicon-val... Garry has…

> and readers roundly told him to get knotted and flagged the post: Was it flagged by people critical of it, or by people who wanted to suppress the critical comments/backlash?

Both.

Re: YC: We ask for depositors to be made whole

#40

Post by nickthegreek »

cassianoleal wrote: post #38
greenyoda wrote: post #36

Earlier quoted context omitted.

It could have been flagged because there was a very big discussion of it earlier: https://news.ycombinator.com/item?id=35114009 (369 points, 743 comments)

If that's the case, why is that one flagged then?

Some people flag because they think that asking for a bailout is ridiculous. Other people flag because they want to hide the shame.
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