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Bank run on Silicon Valley Bank

techcrunch.com

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Re: Bank run on Silicon Valley Bank

#142

Post by jeron »

helsontaveras18 wrote: post #77
ericpauley wrote: post #58

I'm really curious why banks like this are popular in the first place. I get why startups would want to lend from them, but what is the advantage of parking cash in a "startup-focused" bank? The rest of the business is exciting/risky enough, wouldn't you want your banking to be as boring as possible?

Banks don't understand startups. Startups have no history and just appear out of thin air with millions of dollars in their bank account. And then they proceed to burn tens if not hundreds of thousands of dollars month on month until they die, or get flooded with more millions. That's some weird stuff!! A bank that understands this, knows it's not fraudulent, and makes it easy to withdraw, deposit, get credit cards,…

SVB has been a great bank for startups, they're no rookie at this stuff considering they've been around for 4 decades. However it seems like their investor communications and PR has been lacking

Re: Bank run on Silicon Valley Bank

#143

Post by oa335 »

chollida1 wrote: post #82
antibasilisk wrote: post #55

[flagged]

I assume you are trolling, but in case you are not. How would you provide loans to help get businesses started? How would you provide loans to people to buy their first homes? How would you provide loans so people can afford to go to school? How would you provide loans to buy a vehicle so people can get to/from their job before they get a paycheck? How would farmers afford to buy land, equipment and plant crops befor…

Sell equity stakes or form a joint partnership. This is exactly how most startups get funding.

Also, it’s not clear to me that credit has lifted people out of poverty; I’d argue that interest based lending has kept people in poverty, transferring wealth to those who already have it.

Re: Bank run on Silicon Valley Bank

#144

Post by monocasa »

dwater wrote: post #102
darkerside wrote: post #68

Earlier quoted context omitted.

[flagged]

Well, a lot of religions created before the modern era of banking say that lending with interest is a sin, and there are some people that still believe it.

Also, most of the Muslim world works off of banking without usury.

Re: Bank run on Silicon Valley Bank

#145

Post by sophacles »

Bank CEO: "That’s my ask. We’ve been there for 40 years, supporting you, supporting the portfolio companies, supporting venture capitalists."

I wonder how many people's lives and livelihoods have been upended by this trash saying "it's just business"? Now he wants people to be nice to him? Better idea - go live on the street - it's just business.

Re: Bank run on Silicon Valley Bank

#149

Post by WeylandYutani »

anon291 wrote: post #19
rippercushions wrote: post #15

From https://techcrunch.com/2023/03/09/silicon-valley-banks-share... : Becker said the bank has “ample liquidity” to support its clients “with one exception: If everybody is telling each other that SVB is in trouble, that will be a challenge.” Pro tip: if you're CEO of a bank that's facing a bank run, don't tell the press that you'll be in trouble if everybody takes their money out.

Perhaps I'm overly skeptical, but everyone should know that all banks have the risk of 'if everyone takes their money out, the bank won't be able to make it work', right?

Yes and at that point the boss of the ECB shows up, calmly does a press conference at which he says "whatever it takes" and everyone goes back to sleep knowing the Germans are on the job.
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