SVB in talks to sell itself after attempts to raise capital fail • Hacker News Board

Re: SVB in talks to sell itself after attempts to raise capital fail

#11

Post by jpmattia » Fri, Mar 10, 2023, 2:40 PM UTC

I don't understand the incentive for a bank to buy them at this point, because any potential buyer might as well wait until the FDIC steps in to resolve the bank. Any banking wizards at HN who can explain the dynamics?

edit: At the very least, FDIC should issue a statement guaranteeing beyond the $250K/depositor limit sooner rather than later in order to stem some of the outflow.

Re: SVB in talks to sell itself after attempts to raise capital fail

#12

Post by [deleted] » Fri, Mar 10, 2023, 2:41 PM UTC

[deleted]

Re: SVB in talks to sell itself after attempts to raise capital fail

#13

Post by rickreynoldssf » Fri, Mar 10, 2023, 2:42 PM UTC

I'm feeling like this is early days of a disaster in Silicon Valley. We're at the first or second domino teetering right now. I hope a Sequoia or KPB will step up and save the bank, otherwise a lot of their portfolio investments are about to start missing payrolls.

Re: SVB in talks to sell itself after attempts to raise capital fail

#14

Post by [deleted] » Fri, Mar 10, 2023, 2:42 PM UTC

[deleted]

Re: SVB in talks to sell itself after attempts to raise capital fail

#15

Post by moondistance » Fri, Mar 10, 2023, 2:42 PM UTC

jpmattia wrote: post #11

I don't understand the incentive for a bank to buy them at this point, because any potential buyer might as well wait until the FDIC steps in to resolve the bank. Any banking wizards at HN who can explain the dynamics? edit: At the very least, FDIC should issue a statement guaranteeing beyond the $250K/depositor limit sooner rather than later in order to stem some of the outflow.

There has been interest in acquiring SVB for a long time. There will be multiple bidders and a deep discount. Suspect a sale will happen this weekend.

Re: SVB in talks to sell itself after attempts to raise capital fail

#16

Post by tikkun » Fri, Mar 10, 2023, 2:42 PM UTC

rickreynoldssf wrote: post #13

I'm feeling like this is early days of a disaster in Silicon Valley. We're at the first or second domino teetering right now. I hope a Sequoia or KPB will step up and save the bank, otherwise a lot of their portfolio investments are about to start missing payrolls.

How so?

Re: SVB in talks to sell itself after attempts to raise capital fail

#17

Post by dmix » Fri, Mar 10, 2023, 2:43 PM UTC

rickreynoldssf wrote: post #13

I'm feeling like this is early days of a disaster in Silicon Valley. We're at the first or second domino teetering right now. I hope a Sequoia or KPB will step up and save the bank, otherwise a lot of their portfolio investments are about to start missing payrolls.

I can't count how many times I've read similar comments on HN in the last 10yrs

Re: SVB in talks to sell itself after attempts to raise capital fail

#18

Post by rr808 » Fri, Mar 10, 2023, 2:44 PM UTC

jpmattia wrote: post #11

I don't understand the incentive for a bank to buy them at this point, because any potential buyer might as well wait until the FDIC steps in to resolve the bank. Any banking wizards at HN who can explain the dynamics? edit: At the very least, FDIC should issue a statement guaranteeing beyond the $250K/depositor limit sooner rather than later in order to stem some of the outflow.

Its obviously risky. A year ago it had a market cap of $35B, if you can buy for next to nothing it could be worth it. Depends a lot if there is a big hole in the accounts and if the old customers come back.

Re: SVB in talks to sell itself after attempts to raise capital fail

#19

Post by tootie » Fri, Mar 10, 2023, 2:47 PM UTC

rickreynoldssf wrote: post #13

I'm feeling like this is early days of a disaster in Silicon Valley. We're at the first or second domino teetering right now. I hope a Sequoia or KPB will step up and save the bank, otherwise a lot of their portfolio investments are about to start missing payrolls.

The same Sequoia who bet the farm on FTX? I'll sit tight and wait for the FDIC. They have ample authority to do an orderly liquidation in a worst case scenario.

Re: SVB in talks to sell itself after attempts to raise capital fail

#20

Post by [deleted] » Fri, Mar 10, 2023, 2:47 PM UTC

rickreynoldssf wrote: post #13

I'm feeling like this is early days of a disaster in Silicon Valley. We're at the first or second domino teetering right now. I hope a Sequoia or KPB will step up and save the bank, otherwise a lot of their portfolio investments are about to start missing payrolls.

[deleted]