If you use your bank account brokerage to buy stocks, what happen to the stocks if the bank goes bankrupt like this?
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
#72As 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.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#73I'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.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#74As 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.
Because it's good for growth, as far as I know.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#75Earlier 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.
Assuming the markets are rational ;) we take it as an axiom, but that is different than saying expectations are always priced in
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#76Just link directly to the sec form
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#77Earlier quoted context omitted.
If you were ultra paranoid, what other institution types would be advisable to exit? Could this impact investments in the market?
How paranoid would you have to get before you'd be willing to convert all your money to crypto? ;P
My paranoia goes the other way.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#78Earlier quoted context omitted.
If you were ultra paranoid, what other institution types would be advisable to exit? Could this impact investments in the market?
How paranoid would you have to get before you'd be willing to convert all your money to crypto? ;P
if by crypto you mean bitcoin, i'd feel more comfortable xD
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#79Earlier quoted context omitted.
If you were ultra paranoid, what other institution types would be advisable to exit? Could this impact investments in the market?
How paranoid would you have to get before you'd be willing to convert all your money to crypto? ;P
Crypto was the first to fall
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#80Roku having 75% of their money elsewhere instead of going 100% into a single bank seems to be a significant thing here. Given the much-discussed recently limits of depending on the FDIC, not putting all your eggs in one bank basket seems incredibly wise, guess now we just see how broadly exposed other businesses and other banks are.
all companies with this size of cash have an internal treasury function
Obviously Roku is a lot larger than your typical startup, but it's a curious blind spot risk that all the VC's who panic-messaged founders to take out their cash yesterday didn't bother to try to mitigate it in advance across their portfolios of companies.
The more money you have, the less competence you need - hardly a surprise, but... there are no shortage of articles that make it to HN with VCs talking up their own book about how great they are, so I think calling them out is fair.
EDIT: and it's also worth everyone reflecting on where their own money is, and how many things would have to fail before they can get it. If you are fortunate enough to have any significant-to-you amount of assets your rely on vs just living paycheck-to-paycheck or on credit cards... think about spreading that shit out.