How the last-ditch effort to save Silicon Valley Bank failed • Hacker News Board

Re: How the last-ditch effort to save Silicon Valley Bank failed

#91

Post by nullc » Thu, Mar 23, 2023, 11:35 PM UTC

notch898a wrote: post #19

adaml_623 wrote: post #18

Earlier quoted context omitted.

Why are you still banking with them?

Honestly I just thought that was the way banking was done. I don't send a lot of wires (and everybody else I have dealt with were even worse).

None of the several banks I regularly do business with have ever done anything like that, I probably average a dozen substantial wires per year.

I have had some call backs from their anti-fraud department after putting in a wire request to make sure I wasn't falling for some scam.

Re: How the last-ditch effort to save Silicon Valley Bank failed

#92

Post by anonymouskimmer » Fri, Mar 24, 2023, 12:24 AM UTC

tripletao wrote: post #90

anonymouskimmer wrote: post #88

Earlier quoted context omitted.

> But why would they buy the SVB's assets at 1.5%, when they can buy similar assets on the open market yielding 4%? Hypothetically because they are martyrs who also want whatever goodwill SVB created in its clients (which now become the clients of the other bank). But yeah, it's a stretch.

I do think that's a fair point in general, and one that I'd neglected above--lots of marginally insolvent banks have been rescued in exactly that way, with an acquirer paying a premium for the value of the business, not just the financial assets. The mark-to-market hole at the SVB was pretty deep though, and their depositor base had just made itself look particularly unattractive. So maybe the FDIC will eventually ma…

> their depositor base had just made itself look particularly unattractive

Quite true.

Re: How the last-ditch effort to save Silicon Valley Bank failed

#93

Post by trhr » Fri, Mar 24, 2023, 2:34 AM UTC

anonymouskimmer wrote: post #51

trhr wrote: post #39

Earlier quoted context omitted.

You're confusing real money with fake money. In America, we can only withdraw so much real money every day, too. The banks will tell you things like "We only keep $2000 in real money in the safe." But the fake money never gets printed. It just lives in bits and bytes. You can move it around as much as you want. Fortunately, it's as good as real money. It's just not as good as real wealth. Real wealth is in ammunition…

> People downvoting this are politically opposed to guns Are you sure they're not downvoting you for being completely off topic while ranting about a hobbyhorse?

They could be. It's highly possible a bunch of engineers watched their backyard bank collapse and thought, "this is fine, I'm not worried, I'm a millionaire" when they don't even own a fuckin' home.