Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Bank run on Silicon Valley Bank

techcrunch.com

Post reply on HN
Print view View original

601–610 of 889 posts

Re: Bank run on Silicon Valley Bank

#601

Post by vgatherps »

zht wrote: post #545
nico wrote: post #155

SVB CEO to VCs: please don’t tell anyone to withdraw their money or we could be in trouble VCs: [immediately texting after hearing the above from the CEO] attention all portfolio companies, SVB seems to be in trouble, don’t keep your money with them

It would be surprising if VCs exhibited any original thought, after watching them fomoing into one thing after another

You very much want to be first out if there’s a bank run, the behavior here is very rational.

It’s also what makes having any sign of balance sheet weakness a death spiral, as anyone who knows runs for the exits, making things even worse.

Re: Bank run on Silicon Valley Bank

#602

Post by di4na »

MengerSponge wrote: post #576
cm2187 wrote: post #188

Earlier quoted context omitted.

A variant of Thatcher's "Being powerful is like being a lady, if you have to tell people you are, you aren't".

It's really amazing that both Thatcher and Reagan came to power at around the same time, delivered such fabulous witticisms, and caused very similar societal harm.

Not really. They delivered exactly what the biggest demographic group at the time wanted. Which is... Exactly what you expect in a democracy with a particularly large voter bloc...

Re: Bank run on Silicon Valley Bank

#603

Post by jedberg »

I've received emails from a couple of startups that I've invested in with screenshots showing all their money moved out of SVB into another account.

I'd say now is a good time to short SVB if you're into that sort of thing.

Re: Bank run on Silicon Valley Bank

#604

Post by anon84873628 »

borski wrote: post #533
malermeister wrote: post #523

Earlier quoted context omitted.

https://en.wikipedia.org/wiki/Great_Depression https://en.wikipedia.org/wiki/Great_Recession Here's some citation for ya. As for viable replacements that allow for forward progress: https://en.wikipedia.org/wiki/Workers%27_self-management (Also, for that matter, it's not like capitalism doesn't tend to devolve into autocracy and corruption)

That there have been downturns is not an indicator that capitalism does not inherently work in the long term. There are always downturns, no matter the system.

Henry George would argue that it's the landlords, not the capitalists, who are causing the downturns :)

Re: Bank run on Silicon Valley Bank

#605

Post by [deleted] »

ulfw wrote: post #568
nonethewiser wrote: post #562

Earlier quoted context omitted.

> “Every banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone.” Is that terribly worded or is it just me? I figure it’s supposed to be poetic but I find it tedious. I think it could be simplified like this: “A banker who argues his creditworthiness has none.” I realize it’s a quote but holy shit.

Do you realize people spoke differently 150 years ago than they speak today?

[deleted]

Re: Bank run on Silicon Valley Bank

#606

Post by kesor »

tootie wrote: post #497
cj wrote: post #400

I just received an email from one of our investors, sent to all portfolio companies, advising everyone to transfer all of their money out of SVB at 8:30am tomorrow morning. Investment/VC funds are doing the same (we’re talking many, many billions of deposits lost in a span of a few days). There is a chance SVB will freeze assets while they deal w liquidity crunch which may impact startup ability to pay bills, pay sal…

But why? Because everyone else is doing it? Is this a power play by another bank? Is there an actual structural problem at SVB?

Yes, there is a structural problem. https://twitter.com/FedGuy12/status/1634031134505066496

Re: Bank run on Silicon Valley Bank

#607

Post by refurb »

MengerSponge wrote: post #576
cm2187 wrote: post #188

Earlier quoted context omitted.

A variant of Thatcher's "Being powerful is like being a lady, if you have to tell people you are, you aren't".

It's really amazing that both Thatcher and Reagan came to power at around the same time, delivered such fabulous witticisms, and caused very similar societal harm.

Not that shocking. Both the UK and US had suffered under economic policies that didnt deliver.

Not shocking the voters wanted something different.

Re: Bank run on Silicon Valley Bank

#609

Post by leoh »

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.

To be fair, he is dealing with a slightly more sophisticated clientele than the masses that typically make a run on a bank who would (hopefully) realize that their shared success is contingent upon rational, pareto-optimal behavior; which is to say — if folks make a run on SV Bank, it’s pretty much going to be a shit show as to who comes out on top/who doesn’t.

Re: Bank run on Silicon Valley Bank

#610

Post by kesor »

Animats wrote: post #319

Small depositors (under US$250K) can get paid off quickly if the FDIC takes over, but larger ones may have to wait until SVB's loans are sold off to other banks for cash. The collapse of a solvent but illiquid bank is well worked out in the US. Here's a 60 Minutes episode where they got to cover the process.[1] It's not too bad for the customers, but it is really bad for bank management. The 60 minutes video shows th…

They are insolvent. There is no money there, only margin on debt. https://twitter.com/FedGuy12/status/1634031134505066496
Post reply on HN