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Silicon Valley Bank Failure [pdf]
11–20 of 152 posts
Re: Silicon Valley Bank Failure [pdf]
#12I am surprised they show JPM in all their comparison charts (typically research doesn't cover their own employer). By showing JPM as an outlier on the opposite of the spectrum to SVB, it feels a little bit like a marketing document.
Of course it’s a marketing document, otherwise it wouldn’t be public
Re: Silicon Valley Bank Failure [pdf]
#13I am surprised they show JPM in all their comparison charts (typically research doesn't cover their own employer). By showing JPM as an outlier on the opposite of the spectrum to SVB, it feels a little bit like a marketing document.
JPM is a massive bank, they don’t need to market.
ABC: Always Be Closing
Re: Silicon Valley Bank Failure [pdf]
#14Earlier quoted context omitted.
JPM is a massive bank, they don’t need to market.
Coca Cola & Red Bull are massive, they surely have tiny marketing spend… Right?
You’re missing the point. This isn’t a marketing piece. JPM doesn’t need to compare themselves to SVB for any reason, that’s like comparing David and Goliath. What’s purpose would that accomplish?
Re: Silicon Valley Bank Failure [pdf]
#15Does any one knows if VCs have contracts with startups where they have to deposit X amount weekly or monthly? Now if they can't because of the SVB debacle, can the startups sue them? This would put these VCs in even worse situation - not only they could be out of their money deposited at the bank but now they owe even more money to the startups.
Re: Silicon Valley Bank Failure [pdf]
#16I think we’re too accustomed to startups here to recognize that SVB was actually assuming quite a bit of risk. We acknowledge most banks don’t want to touch startups and that startups will have a harder time banking in the future. Yet I don’t see much consideration for the fact that there is a good reason most banks see startups as risky. It’s just explained away as “they don’t understand .” Also consider the past 10…
Wasn't the risk 'betting hard that interest rates wouldn't rise for a decade' in 2021?
Re: Silicon Valley Bank Failure [pdf]
#17Maybe a stupid question: if banks can collapse from a bank run, shouldn’t the entire model be questioned? A bank run is simply when a threshold number of customers decide to withdraw their cash, with every right to do so. With social media + frictionless mobile banking, the entire notion of teetering your model on mitigating the risk of a “bank run” seems anti-customer, regressive, and unsustainable.
Re: Silicon Valley Bank Failure [pdf]
#18ELI5?
SVB had an unusually risky customer profile while taking (debatably) risky bets with deposits from said customers.
Re: Silicon Valley Bank Failure [pdf]
#19I am surprised they show JPM in all their comparison charts (typically research doesn't cover their own employer). By showing JPM as an outlier on the opposite of the spectrum to SVB, it feels a little bit like a marketing document.
If the document is free and isn’t legally mandated, it’s marketing.
Re: Silicon Valley Bank Failure [pdf]
#20I think we’re too accustomed to startups here to recognize that SVB was actually assuming quite a bit of risk. We acknowledge most banks don’t want to touch startups and that startups will have a harder time banking in the future. Yet I don’t see much consideration for the fact that there is a good reason most banks see startups as risky. It’s just explained away as “they don’t understand .” Also consider the past 10…
I don’t think startups will have a harder time banking in the future.
This isn’t even the fault of startups. It’s a complete risk management mistake on the side of the bank. Buying 10 year low yield securities and not hedging them against rising rates.
Plenty of banks would love to have the deposits of startups and VCs.
I bet a bank like Mercury or some other ones will grow to take SVB’s place.