181–190 of 200 posts
they are trying to raise money? that’s cute, maybe they can create a pitch deck and be ridiculed a million times just like all of us
“you need a team” “come back when you have revenue” “we need to see more revenue” “that market is too small” etc
but you know what? they got buddies and you don’t as a founder
I work at a bank most people are trying to park their funds at. It is a fucking PANIC mode disaster for them. Large companies in the Valley are trying to dump 100's of millions into our accounts
they never returned my calls as a self funded startup so fuck them they are trying to raise money? that’s cute, maybe they can create a pitch deck and be ridiculed a million times just like all of us “you need a team” “come back when you have revenue” “we need to see more revenue” “that market is too small” etc but you know what? they got buddies and you don’t as a founder
Why hasn't SVB offered to split people's accounts into multiple accounts capped at $250K each? This would be a win for everyone, correct? The cash is guaranteed, companies don't need to waste their time migrating a new bank, and SVB doesn't have to worry about their fractional reserve.
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From the reference to the mistress I guess this is probably a joke. But it's in really bad taste, and callous to those who might be in actual distress.
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Unsecured creditors in Lehman Brothers were entities like other banks and hedge funds who either offered unsecured credit lines or bank loans -- they're inherently risky and have nothing to do with retail or consumer banking. Those entities ate the losses and none of their customers lost money. It's good and appropriate they saw haircuts after the depositors and secured creditors were repaid in full. Indymac is an in…
Unsecured creditors also includes anyone holding their stock, so if you held any shares of SIVB before today, you're sitting on a big fat goose egg.
90% of my feed since yesterday contains the word SVB from hackernews.
Is this some kind of US thing? Can we just move on to other things?
I'm sorry... when did hackernews became SVB news? 90% of my feed since yesterday contains the word SVB from hackernews. Is this some kind of US thing? Can we just move on to other things?
So no we can't move on. The livelihoods of the people who this site was made by and for are at stake. They aren't even getting their paychecks this week. The entire venture capital and tech startup industries are immensely affected.
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It is a solvency issue because they are legally obligated to give people their money back when they ask for it. If none of the customers would withdraw money for the next 10 years they would be fine. But the customers are startups that have expenses like payroll and AWS. And the climate for raising money is bad, which means a lot of money is being withdrawn every month, and not much new money is getting deposited.
That is not what insolvent means though. There is a difference in not being able to pay back depositors bc you gambled it away on magic beans vs it’s tied up in safe bonds. In both situations you can’t satisfy depositors immediately, but they’re otherwise very different. For one thing, people buy companies that are insolvent, eg svb, they don’t buy magic bean farms, eg ftx.
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Why would they buy 10-year bonds when their depositors are startups, many of whom won't exist in 10 years? Seems like shorter-term T-bills would have been more appropriate, but I know next to nothing about finance.
Because the yield curve is usually upward sloping. Banks lend for long periods on the expectations that deposits that are withdrawn by some customers are balanced by new deposits from others. But of course in the current environment there aren't a ton of startups depositing recently-raised funds.