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Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

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Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#191

Post by di456 »

chollida1 wrote: post #90
owenbrown wrote: post #73

I've always found it odd that cash-rich companies keep bank accounts, when they could purchase short-duration t-bills. There's now at least one business bank the will purchase t-bills on a companies behalf with minimal transaction costs.

If your Roku, How do you pay salaries interest on debt Bills Lobbyists Foreign companies that manufacture your hardware Hedge currency from foreign sales and bills All without a bank account? Keep in mind they say this is 25% of their cash, clearly they invested the bulk of their short terms assets elsewhere .

Aka operating cash

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#192

Post by paxys »

olalonde wrote: post #72

As a side note, I find it fascinating how fractional reserve banking is not only legal but considered indispensable to the economy. It just sounds like a big scam. Why do private bankers get to create money and decide who gets it? It feels like there has to be a better way.

We need money for economic growth. Creating money causes inflation. So instead we borrow money from tomorrow to build/invest today. There is nothing inherently wrong with this system, and it has worked perfectly fine for hundreds of years (probably longer).

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#193

Post by paxys »

vuln wrote: post #7

Roku stock is down 2.29$ after hours. I wonder if there is any money to be made shorting companies wrapped up in this mess.

> I wonder if there is any money to be made shorting companies wrapped up in this mess.

You are two days too late for that.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#194

Post by zamadatix »

frankchn wrote: post #41
zamadatix wrote: post #29

Earlier quoted context omitted.

The market expects the bank going under to impact Roku by that much expected value. That's very different than saying the market expects a certain percentage of money to be returned in the end and it's not clear why this is supposed to give even a ballpark estimate of the expected recoup. After all the share price has way more to it than what the current assets come to. It's also very likely the market changes its mi…

The drop is in the aftermarket immediately after the 8-K release, so I think we can attribute most of it to the market's gut reaction to this piece of news and not the broader SVB impact (which would have occurred during market hours). Agree that the market might change its mind quickly, especially if estimated recoveries are projected to be high or the depositors completely made whole.

Absolutely it’s the reasonable cause but as explained there is a difference between the news being the expected cause and the drop being what the market thinks the assets recoup will be.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#195

Post by bee_rider »

mynameisvlad wrote: post #176
briffle wrote: post #127

Earlier quoted context omitted.

Can you name the 16th and 17th largest banks? Most of us can think of a few big ones, and a handful of local ones.

You think most people don’t know who American Express (17th) are? Citizens Financial Group (16th) is also quite large but I would be shocked if someone didn’t know of Amex rather than did.

I’m not surprised to see that American Express is a large bank, but if you’d asked me to produce a list of large banks, I wouldn’t have included any credit card companies.

Of course, a credit card company having a bank attached is not very weird at all. I mean a bank sprouted out of GE that one time, which seems much less on-mission.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#196

Post by deelowe »

ausbah wrote: post #140
deelowe wrote: post #118

Earlier quoted context omitted.

Because it gives the fed the power to control the economy. That's why it exists...

things would be much worse off without the Fed. look at hard banks lobby to up end the minimal restrictions they have now

Why the downvotes? Is this not why fractional reserve banking exists? Please correct me if I'm wrong. Without it, the Fed would have very control over inflation/deflation.

By the way, I'm not arguing against the Fed. I'm against fractional banking, or at least feel they should require banks to offset their liabilities more than they do today.

We're literally discussing an example of why the current system isn't good.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#197

Post by cscurmudgeon »

notch898a wrote: post #104
cscurmudgeon wrote: post #89

Earlier quoted context omitted.

You are misinformed. FDIC is not funded by the US govt. It operates on premiums. > The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country. https://www.fdic.gov/about/what-we-do…

I am not mistaken. I said the amount over 250k. I in fact never said the FDIC would even compensate them for that, just that they're on their own.

> Not big enough to bail out, the regular people didn't get it either in the great recession.

Why the bail out comment though? FDIC doesn't run on govt money. So even if FDIC helps them out with amounts greater than 250k it won't come out of govt. money.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#198

Post by alanfranz »

aynyc wrote: post #38

I think this might be the beginning. I think various funds (public or private) which have capitals stored in SVB is gonna be in a lot of trouble. Every investment firms are probably scanning their portfolios and business cash lines to see how much they are impacted by SVB and similar banks. I wouldn't be surprised to see a run on banks in the next few days/weeks if additional rumors (true or not) come out. Edit: didn…

Can you run away from all banks, though? Where do you put the money?

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#199

Post by EVa5I7bHFq9mnYK »

echelon wrote: post #83
saurik wrote: post #68

Earlier quoted context omitted.

How paranoid would you have to get before you'd be willing to convert all your money to crypto? ;P

If crypto had a navy and nukes, then maybe.

Many nations have nukes and navies. None is capable of breaking a secp256k1 key.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#200

Post by [deleted] »

skeeter2020 wrote: post #167
metalspot wrote: post #126

Earlier quoted context omitted.

JP Morgan Chase, Bank of America, Citibank, and anyone else who will be bailed out by the fed. But seriously, the problem with SVB was that their assets are trash and everyone knew it. If their assets were actually worth what they claimed they would have no problems.

This is not the same situation as dogshit assets from the sub-prime crisis; the bonds are not "trash" in the sense people are thinking, but long-term, lower interest instruments. As interest rates have risen they are a relatively poorer invesment, but still have the long-term (illiquid) value of the underlying asset less the curret rate to return differential. It's inaccurate to say they mis-stated the value of their…

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