As the “Bank of Startups”, Silicon Valley Bank collapsed from its exposure to interest-rate risk, a lack of diversity among depositors, and VC herd mentality

Programming note: Money Stuff was supposed to be off today, but: bank run! — SVB

Bloomberg 2023-03-11 Matt Levine

Context & Ripple Effects

SVB’s failure turned a concentrated startup-bank relationship into an immediate operating problem: related coverage says founders were worried about frozen funds, expenses, and full salaries, while the FDIC planned an advance dividend for uninsured depositors.

The immediate bank run followed financial strain that had already built up: related coverage traces SVB’s unrealized losses from zero in June 2021 to $16B by September 2022, before investor and online alarm amplified fears across banking. The episode matters because a single lender’s depositor base was tightly tied to the VC-backed startup ecosystem.

First-order effects

SVB clients with balances above the insured limit face a near-term cash-management gap while awaiting the FDIC’s advance dividend, putting payroll due March 15 at risk.
Startup founders must manage operating expenses and employee pay around funds that may be inaccessible, rather than treating SVB deposits as immediately available cash.

Second-order effects

VC firms and startup founders have an incentive to reduce reliance on one banking relationship after the same investor network that funded companies also helped accelerate withdrawals.
The FDIC becomes the central near-term counterparty for uninsured SVB depositors, making the timing and size of its distributions consequential for affected startups’ liquidity.

Third-order effects

The failure highlights concentration risk where a bank’s customers share funding sources, communications channels, and withdrawal incentives; if that pattern persists, startup banking will place more value on diversified depositor bases and funding access.
A rapid buildup of unrealized losses paired with coordinated depositor behavior shows how interest-rate exposure and networked runs can reinforce each other in specialized financial institutions.

The trend: SVB is a data point in the broader shift toward treating concentrated startup-finance networks as both a growth engine and a correlated liquidity risk.

Discussion

Vox Emily Stewart on x
9 questions about Silicon Valley Bank's collapse, answered
@garrytan Garry Tan on x
30% of YC companies exposed through SVB can't make payroll in the next 30 days. If you or your company are affected, I recommend that you reach out to your local congressman to get this on their radar TODAY. Now. https://www.house.gov/...
@htaneja Hemant Taneja on x
Several VC leaders met today to discuss the aftermath of SVB's downfall. This is a joint statement from all of us. @Accel @altcap @BCapitalGroup @generalcatalyst @eladgil @GreylockVC @khoslaventures @kleinerperkins @lightspeedvp @MayfieldFund @Redpoint @RibbitCapital @upfrontvc h…
@carlquintanilla Carl Quintanilla on x
“.. nearly half of all US venture capital-backed startups were involved” with $SIVB. “Its customers all know each other .. great for referrals when business is booming,” but “a feedback loop when conditions reverse.” ⁦@opinion⁩ https://www.bloomberg.com/...
@autismcapital @autismcapital on x
https://twitter.com/...
@mckonomy Michael McKee on x
You can't understand what happened to $SIVB unless you read ⁦@matt_levine⁩. Well, no, actually of course you can. But why would you want to when it's all explained like this? https://www.bloomberg.com/...
@menlobear Adam Taggart on x
This article does a good job chronicling the swift downfall of Silicon Vally Bank When I say SVB is an early victim of the ‘lag effect’ of Fed policy, note how the article states “The roots of SVB's collapse stem from dislocations spurred by higher rates” https://www.cnbc.com/...
@annmlipton @annmlipton on x
This is great - esp the observation that SVB was exposed to interest rate risk both on the asset and liability sides of the business. https://twitter.com/...
@stilichoreads @stilichoreads on x
“This was an industry with a radical vision for the future of humanity, not a bet on interest rates. Turns out it was a bet on interest rates though.” https://twitter.com/... https://twitter.com/...
@thestalwart Joe Weisenthal on x
This is great from @matt_levine on what made SVB special. How they implicitly doubled or tripled down on low interest rates being a thing forever. https://www.bloomberg.com/...
@trengriffin Tren Griffin on x
Matt Levine: “As of the end of 2022, Silicon Valley Bank, the actual Bank of Startups, had about $74 billion of loans and about $120 billion of investment securities.” https://www.bloomberg.com/...
@amtvmedia Christopher Greene on x
Expect massive contagion https://www.cnbc.com/...
@silviakillings Silvia Killingsworth on x
“The weird problem with focusing exclusively on crypto or startups in 2021 is that they had too much money.” @matt_levine here to save u https://www.bloomberg.com/...
@mckonomy Michael McKee on x
There are a lot of bad takes on $SIVB out there. Read this. You'll know everything you need to know. Then you can sleep soundly and enjoy your weekend. You're welcome. https://www.bloomberg.com/...
@walthickey Walter Hickey on x
really excited to finally read this, I have been wondering what my eventual opinion of SVB was going to be for hours now! https://twitter.com/...
@alistairmbarr Alistair Barr on x
The FDIC cleanup is going to be messier with SVB. As an uninsured customer of SVB, would you want all your cash back, or a “receivership certificate,” especially if you had to make payroll next week? https://www.businessinsider.com/ ... via @businessinsider
@rakeshlobster Rakesh Agrawal on x
Money Stuff from @matt_levine is always good, but today has the best explainer on SVB. “There is another reason that it is maybe not great to be the Bank of Startups, which is that nobody on Earth is more of a herd animal than Silicon Valley venture capitalists.”
@amazzara1 @amazzara1 on x
“Both crypto and venture capital booms were children of the ultra-low rates of the past decade and a half. Now, rising rates and the shrinking of the Federal Reserve's balance sheet have burst those industry bubbles and increased the competition among banks for funding. ” https:/…
@moorehn Heidi N. Moore on x
Good @matt_levine following the thread of the argument that the Fed/Jerome Powell approach to aggressively raising interest rates was what set the stage for SVB's failure. https://www.bloomberg.com/...
@momblogger Noemi L. Dado on x
Here's how the second-biggest bank collapse in U.S. history happened in just 48 hours . Hysteria induced bank run https://www.cnbc.com/...
@drdenagrayson @drdenagrayson on x
After the 2nd largest bank collapse in US history, it's far past time that the US Government **bailed out the depositors** rather than the bankers who oversaw this disaster. #SVB #svb_financial #SVBBank https://www.cnbc.com/...
@taylorlorenz Taylor Lorenz on x
.@matt_levine can never get a day off in this economy https://www.bloomberg.com/... https://twitter.com/...
@dancow Dan Nguyen on x
Actually, maybe diversity in Silicon Valley is important https://twitter.com/... https://twitter.com/...
@gergelyorosz Gergely Orosz on x
Ouch. And @matt_levine is not wrong with this observation. As per his analysis, it's likely that deposits will be laid in full - more like unlikely that the FDIC would settle for anything else than depositors paid in full. Full article: https://www.bloomberg.com/... https://twitt…
@mattrosoff Matt Rosoff on x
“This was a hysteria-induced bank run caused by VCs,” Ryan Falvey, a fintech investor of Restive Ventures, told CNBC. https://www.cnbc.com/...
@pkafka Peter Kafka on x
Also: You very rarely get any reporting done by reading your own company's slack. But you never know! https://twitter.com/...
@Popehat@mastodon.social Ken White on mastodon
I know I am extremely culturally biased but “Silicon Valley Bank” kind of screams “Juicero Pets.com Savings and CryptoLoan” to me.
@ummjackson@mastodon.social Jackson Palmer on mastodon
The startup world's bank failing in a matter of days was not on my 2023 bingo card. Wow.
@parkerconrad Parker Conrad on x
We (Rippling) discovered yesterday that Silicon Valley Bank had unexpected solvency challenges. Just now, we learned that the FDIC had stepped in and effectively shut down SVB.
@repswalwell Rep. Eric Swalwell on x
I'm working with my CA colleagues to address the Silicon Valley Bank crisis. We must make sure all deposits exceeding the FDIC $250k limit are honored. Banking is about confidence. If depositors lose confidence on the safety of their deposits over 250k then we are in trouble.
@grdecter @grdecter on x
1. Only 2.7% of SVB deposits are less than $250,000. Meaning, 97.3% aren't FDIC insured. https://twitter.com/...
@bhargreaves Brad Hargreaves on x
$SIVB closure & receivership is going to have a massive impact on the tech ecosystem. SVB was not just a dominant player in tech but were highly integrated in some nontraditional ways. A few things we'll see in the coming days / weeks...
@bhargreaves Brad Hargreaves on x
One more thing: SVB also offered *wealth management services* to many of its founders. So your corporate lender, corporate bank, personal mortgage lender, and family's wealth manager is... all one bank, which is now in FDIC receivership. Fun.
@roshanpatei Roshan Patel on x
My lead investor just texted me this about SVB. https://twitter.com/...
@lulumeservey Lulu Cheng Meservey on x
It's tragic that Silicon Valley Bank could lose 80%+ of its value in a single day. But what's crazy is that the financial collapse was largely driven by a communication collapse. Their storyline unraveled and their messaging went off the rails, in 4 big ways. (continued below) ht…
@fdicgov @fdicgov on x
1/1 The FDIC today created the Deposit Insurance National Bank of Santa Clara to protect insured depositors of Silicon Valley Bank, which was closed this morning by state bank regulators in California. 🧵 https://www.fdic.gov/...
@thestalwart Joe Weisenthal on x
And that's that. Wow. *FDIC: SVB BANK CLOSED BY CALIFORNIA REGULATOR
@unusual_whales @unusual_whales on x
BREAKING: Before the collapse of Silicon Valley Bank, $SIVB, the CEO sold $3.57 million of stock within the last two weeks. https://twitter.com/...
@tier10k @tier10k on x
When TechCrunch reached out to Circle, the issuer of USDC, for comment on the state of the stablecoin's reserves, a spokesperson said, “we're working on this internally, and I'll keep you posted when I have a response to share.” https://techcrunch.com/...
@tier10k @tier10k on x
🫡 Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. https://www.fdic.gov/...
@robblackwellab Rob Blackwell on x
The FDIC has set up a bridge bank to handle the failure of SVB. That is exceedingly rare. The last one I remember was IndyMac in 2008.
@ericnewcomer Eric Newcomer on x
no atheists in a foxhole. no libertarians in a bank run https://twitter.com/...
@cramertracker Inverse Cramer on x
Jim Cramer said Silicon Valley Bank was a buy last month at $320 Today it is being closed by California regulators https://twitter.com/...
@garrytan Garry Tan on x
The most important thing the FDIC and the US Government can do right now is *make the receivership as short as possible* There are thousands of US startups that banked at SVB, often as their *sole bank*. $250K per account is not going to last long. From the FDIC website: https://…
@apatelthompson Avni on x
Sweetest two sentences I've read in a long time. Shaking with relief. Heartsick for my fellow founders. I have faith that all is not lost and that there is salvaging. But I'm also certain won't be fast enough or enough enough to save all. 💔 https://twitter.com/...
@oneunderscore__ Ben Collins on x
On the right-wing internet, SVB collapsed because of DEI and ESG, which is just SBF's version of CRT. This is the kind of sentence you're gonna start hearing from presidential candidates, and they're going to wonder why nobody cares. It's meaningless acronyms all the way down. ht…
@davidsirota David Sirota on x
NEWS: Documents show Silicon Valley Bank's president personally pressured lawmakers to weaken bank regs. Some lawmakers objected. But the bank spent big on lobbying & regs were weakened. Today the bank became the 2nd largest bank collapse in US history. https://www.levernews.com/…
@alistairmbarr Alistair Barr on x
The Silicon Valley Bank collapse is a particularly scary failure. Here's why the cleanup is gonna be messier than usual. https://www.businessinsider.com/ ... via @businessinsider
@alexandrascaggs Alexandra Scaggs on x
.@dsquareddigest has a nice piece for us about how this $SIVB mess happened in an extremely regulated banking industry (the rules generally work. but weren't applied here. lol) https://www.ft.com/... @FTAlphaville
@wallstcynic Diogenes on x
Public companies with uninsured deposits at $SIVB will have to start making some very uncomfortable disclosures soon. https://twitter.com/...
@balajis Balaji on x
In a talk given four days ago, the FDIC chair noted (a) the potential for bank runs due to huge unrealized losses and (b) how “complex & challenging” it was to operate when “interest rates change to the extent they have.” In other words, the Fed did it. https://www.fdic.gov/... …
@justinwolfers Justin Wolfers on x
Early (premature) thoughts on the Silicon Valley Bank collapse. It looks like a classic Diamond-Dybvig bank run, when each customer withdraws their money because they want to get their funds out while there's still money in the vault.
@zerohedge @zerohedge on x
SIVB make history: first ever bank to be liquidated with just one Sell rating. https://twitter.com/...
@nikitabier Nikita Bier on x
The number of growth stage companies that had their cash at SVB is huge. Making payroll next week is going to be a shitshow.
@thetranscript_ @thetranscript_ on x
The Silicon Valley Bank was closed today by the California Department of Financial Protection and Innovation. The FDIC was appointed as receiver. “All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023” $SIVB https://tw…
@shaig Shai Goldman on x
If you have a $1B fund, you probably have a $100M-$200M capital call line w/ SVB. Deposits at SVB. Both are frozen. GP doesn't want to call capital from LPs this second. So that deal isn't happening. Startups are impacted even if they don't do biz with SVB. collateral damage
@ellebeyoud Lydia Beyoud on x
NEW on @TheTerminal: FDIC & Fed Reserve officials arrived on site at SVB Silicon Valley Bank yesterday to get a better understanding of the bank's financial predicament. Reporting by @kjspeakstruth & me: https://twitter.com/...
@cz_binance @cz_binance on x
#Binance does not have exposure to SVB. Funds are #SAFU.
@alexrkonrad Alex Konrad on x
Brex, Mercury and others are benefitting from SVB's loss, too. If Trace Finance has really flowed in $100M in deposits from SVB for a checking account service that's only existed for 24 hours, imagine the scale at Brex (+ JPM, First Republic, etc.)! https://www.forbes.com/... htt…
@watcherguru @watcherguru on x
JUST IN: Circle $USDC held an undisclosed amount of cash in Silicon Valley Bank $SIVB. https://twitter.com/...
@brendanpedersen Brendan Pedersen on x
BREAKING: FDIC APPOINTED RECEIVER OF SILICON VALLEY BANK. We knew there were problems at SVB, but this is *exceptional* for a few reasons: FDIC rarely, rarely fails banks during business hours. We usually see this at COB on Fridays, so this must have been extremely dire. https://…
@xenollamas XenoLlama on x
This you? https://twitter.com/... https://twitter.com/...
@davidsirota David Sirota on x
🚨BREAKING: Silicon Valley Bank's president successfully pressured lawmakers to weaken bank risk regs before his bank's collapse, according to records reviewed by @LeverNews. He touted the “low risk profile of our activities & business model.” https://www.levernews.com/...
@sama Sam Altman on x
investors who ask “how can i be helpful”: today is a good day to offer emergency cash to your startups that need it for payroll or whatever. no docs, no terms, just send money. it's hard for me to imagine depositors actually losing money here, but so stressful in the meantime...
@ericnewcomer Eric Newcomer on x
I spoke to a major investor who said that about ten of his portfolio companies had pulled out about $1.5 billion collectively from Silicon Valley Bank. https://www.newcomer.co/...
@kevinyun Kevin Yun on x
Contagion is real. Our payroll provider was using SVB. https://twitter.com/...
@lulumeservey Lulu Cheng Meservey on x
SVB made the responsible decision to strengthen its financial position with a cap raise. It made sense. Where things went terribly wrong was the communication, specifically: (1) WHAT they said, (2) WHO the audience was, (3) WHEN they did it, and (4) HOW they framed it.
@bhargreaves Brad Hargreaves on x
Two, any “uninsured” balances at SVB - those above $250K - are in jeopardy. FDIC plans to pay them out “as it sells the assets of SVB”. Lots of startups exclusively banked with SVB as *this was a covenant of their debt*!
@alistairmbarr Alistair Barr on x
SVB was a special beast. It had 88% of its bank deposits NOT insured by the FDIC. That's a lot. RIP $SIVB https://twitter.com/...
@tracyalloway Tracy Alloway on x
SILICON VALLEY BANK Some takeaways and thoughts regarding the SVB situation on a Friday afternoon before logging off for the weekend. First, what happened? 1/
@erikvoorhees Erik Voorhees on x
Fiat is fragile https://twitter.com/...
@jessicalessin Jessica Lessin on x
Man, our SF landlord just gave us a few days to get a new letter of credit. Kinda crazy. Luckily we can do right away. But further sign that no one is waiting/everyone is panicking.
@goldman Jason Goldman on x
Really great thread. The rare example during this event of someone who actually knows what they're talking about. https://twitter.com/...
@dancow Dan Nguyen on x
The SVB blowup truly sucks for employees who had little say about their companies keeping payroll at SVB. But it's crazy how much this shitshow might be fueled by the kind of groupthink & old boys cronyism that Silicon Valley meritocracy is supposed to disdain https://twitter.com…
@zachweinberg @zachweinberg on x
Only comment because ppl will confuse the 2: 1. Equity holders of SVB do not deserve a bailout. That's the risk of buying their stock. You get wiped. 2. A massive structural risk is if *depositors* face losses. US gov cannot let that happen. Puts every small bank at risk.
@anthony Anthony DeRosa on x
Fintech startup Brex got billions of dollars in Silicon Valley Bank deposits Thursday, source says https://www.cnbc.com/...
@nytimesbusiness @nytimesbusiness on x
The FDIC said it had worked with financial advisers until Friday morning to find a buyer for Silicon Valley Bank, which had almost $209 billion in assets at the end of 2022. https://www.nytimes.com/...
@cate_long Cate Long on x
US banks have ~$19.2 trillion of deposits vs ~$124 billion in the FDIC insurance fund. Let's hope the system is stable. https://twitter.com/...
@jeffjohnroberts Jeff Roberts on x
Looks like the FDIC turns to the acquiring bank, or another bank, and hooks you up by direct deposit in two days. Not bad! h/t @heoj https://www.fdic.gov/...
@kendrawrites @kendrawrites on x
I'm confused. Like that limit exists for a reason and most people don't have 250k chilling in a bank account. Is this essentially asking lower income people to bail out rich people when we can't even get student debt forgiveness https://twitter.com/...
@jsrailton John Scott-Railton on x
Libertarian curious till there's a bank run.
@bendwalsh Ben Walsh on x
imagine how insufferable the crypto guys would have been if FTX hadn't collapsed before SVB
@jasonzweigwsj Jason Zweig on x
If you want to create a perverse incentive for banks to become really reckless, you're on the right track. https://twitter.com/...
@unusual_whales @unusual_whales on x
@elonmusk @minliangtan Hey Elon, you might find this interesting. The CEO of $SIVB sold $3.57 million over the last two weeks, JUST BEFORE the collapse. https://twitter.com/...
@eve6 @eve6 on x
I haven't read the news today because the news is always bleak and I've noticed a marked improvement in my mental health since I stopped paying so close attention to it. I'd rather focus on all I have to be grateful for like the nice little nest egg i have at silicon valley bank
@bondhack Robert Smith on x
🚨 BANK OF ENGLAND MOVESTO RESOLVE SILICON VALLEY BANK UK details only on FT w/ @LauraNoonanFT https://www.ft.com/... https://twitter.com/...
@max_fisher Max Fisher on x
Pretty wild email blast I just got from an online toy store. Promo code BANKRUN (!!) https://twitter.com/...
@teroterotero Tero Kuittinen on x
Founders running amok on Park Avenue... thank god the cops got it under control https://nypost.com/...
@antoniogm Antonio García Martínez on x
Theory: The SVB bank run is (partly) happening because their depository base is all of a few thousand startup CEOs who spend too much time on Twitter and meme'ed all this into existence. (In addition to bad risk management around their bond portfolio.)
@maxkennerly Max Kennerly on x
If this thread is correct—there will be large knock-on effects from a single bank mismanaging a foreseeable rise in interest rates—then we have no choice but to regulate the bejesus out of the whole banking industry. Clearly the industry can't be trusted to avoid setting fires. h…
@autismcapital @autismcapital on x
Everyone subscribe to Twitter Blue and give Elon a compliment so he bails out SVB and saves Crypto. https://twitter.com/...
@espiers Elizabeth Spiers on x
A thing I think a lot of people don't understand is that if you're a founder trying to raise money from top tier VCs, there's a lot of pressure to use certain vendors — banks, lawyers, etc — and it's a minor but not insignificant screening mechanism. https://twitter.com/...
@davidfrum David Frum on x
My late father served on many boards in the 2010s. He joked that his job was to ask CEOs 40 years his junior: “what if interest rates rise three points?” The CEOs would react as if he'd asked about mortality: they accepted it had to happen, just not now - and not to them. https:/…
@charlesarthur Charles Arthur on x
Never want to hear a single word of complaint about regulation from this guy ever again. https://twitter.com/...
@twobitidiot @twobitidiot on x
If DC was brazen enough to allow SVB and all of its depositors to fail without resolution, the tech industry could just blacklist all .gov accounts to their products. SVB will get acquired and bailed out...probably by someone like JPMorgan. If you're a startup employee, relax!
@brendanpedersen Brendan Pedersen on x
“At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.” https://www.fdic.gov/...
@mollyjongfast Molly Jong-Fast on x
What if regulation actually serves a purpose? https://twitter.com/...
@mikeisaac @mikeisaac on x
every thought leader in the valley is a libertarian until they need a government bailout of their startup bank
@katienotopoulos Katie Notopoulos on x
*googles “how do banks work"*
@pkedrosky Paul Kedrosky on x
Larry Summers on Bloomberg TV just now: Depositors must be paid back in full, and I don't see any reason they won't be. #xp
@lexnfx Alexei Oreskovic on x
What if Sydney did this?
@jeffbercovici Jeff Bercovici on x
Thinking about all the VCs reading this @matt_levine line and chuckling softly to themselves thinking it's about how it's so true of all the other VCs https://twitter.com/...
@amir Amir Efrati on x
payroll payroll payroll payroll payroll that's the word echoing throughout silicon valley how will startups with cash stuck at SVB make payroll: https://www.theinformation.com/ ...
@josephpolitano @josephpolitano on x
“Use promo code BANKRUN at checkout” is a better work of parody than I could ever write, incredible https://twitter.com/...
@taylorlorenz Taylor Lorenz on x
Quite a heel turn here on the government's role https://twitter.com/...
@cryptadamist @cryptadamist on x
same old song. every time it's the same. banks implode -> tougher regulations are passed -> bankers whine that regulations mean they make less money -> politicians loosen regs -> banks implode rinse and repeat https://twitter.com/...
@decloet Derek DeCloet on x
What it looks like when it's over. Toronto branch of Silicon Valley Bank, 3:30 pm. https://twitter.com/...
@modestproposal1 @modestproposal1 on x
I think contagion risk to banks is less than the risk of a meaningful portion of the economy having an immediate and significant economic shock
@buccocapital BuccoCapital Guy on x
This whole entire app is making fun of David Sacks Happy Friday
@anthony Anthony DeRosa on x
Too Big to Fail, Silicon Valley edition https://twitter.com/...
@business @business on x
Bloomberg's Priya Anand is outside SVB's San Francisco office, where some customers have turned up only to be redirected to its Palo Alto office https://www.bloomberg.com/... https://twitter.com/...
@danprimack Dan Primack on x
This is a very important moment for VCs to prove their worth. That fabled “value-add.” If a VC fund has access to capital (ie not tied up in Svb), it can offer now to front the 3/15 payroll, if it proves necessary. Lowercarbon just did this, per letter to founders. Who's next?
@karlbode Karl Bode on x
government is always bad, until it's time to save us from our own speculative grift and incompetence https://twitter.com/...
@twobitidiot @twobitidiot on x
1/ The difference between Lehman and SVB is Lehman and the big banks were making a killing creating new toxic instruments and shuffling them around trading against customers. SVB was investing in the mismanaged Treasury market that the Fed and Biden Administration have bungled.
@immad @immad on x
Although we compete with SVB, I have always had a lot of respect for them. They gave my previous company a loan that helped us survive and took me to my first and last Gaga concert. It's sad to see them go through this difficult time and hope they make it to the other side.
@sifill_ Sherrilyn Ifill on x
Alarming. It's always sad & serious when people lose their money, so I'm assuming SNL won't do an “It's a Wonderful Life” run-on-the-bank scene parody featuring the tech start-up guys lined up to get their money..... https://twitter.com/... https://twitter.com/...
@nycjim Jim Roberts on x
The US gov't insures deposits up to $250,000, but Silicon Valley Bank customers with bigger balances will receive certificates for their uninsured funds, meaning they will have to wait to get their money and possibly not get all of it. https://www.nytimes.com/... https://twitter.…
@asanwal Anand Sanwal on x
yday tech investor: “I'm a fan of free markets.” today tech investor: “A bail out of SVB makes sense.”
@jamestitcomb James Titcomb on x
A few people have said today that Silicon Valley Bank UK has majority of customers on 30-day notice to withdraw funds, and has refused to waive that. SVB UK is separately capitalised to US but several VCs still encouraging startups to withdraw.
@ellenhuet Ellen Huet on x
I keep seeing heartfelt stories like this about SVB. It seems like mortgages for founders went a long way in building goodwill (and business) What else made SVB such an emotional pillar of SV? Parties/conferences seem helpful but not as resonant https://twitter.com/...
@sruhle Stephanie Ruhle on x
THIS MATTERS. The 19th largest bank blew up in 36 hours.
@regulatorynerd Matt on x
1/ If you're a VC or a tech founder with exposure to SVB, it's good to start talking through contingencies. But it's also not worth panicking until Monday.
@cloud_opinion @cloud_opinion on x
Why hasn't SVB try to pivot to brand themselves as a generative AI based fintech company to raise capital?
@ericnewcomer Eric Newcomer on x
Lots of discussion right now about whether to blame the VCs who warned that this was a problem or celebrate them... I'm in the celebrate them camp* https://twitter.com/...
@fvogelstein Fred Vogelstein on x
Doesn't the impact of SVB failure turn on $$ value of deposits over the $250k limit? Those under that limit are covered and reimbursed almost instantaneously. Does any one have estimate of that number?
@jp_koning John Paul Koning on x
Silicon Valley Bank is a very American mess. The Basel rules that protect against these sorts of banking flameouts were not applied in the the US, or at least, they were only applied to very large banks. Silicon Valley Bank was exempt: https://www.ft.com/... https://twitter.com/.…
@taylorlorenz Taylor Lorenz on x
Absolutely wild https://twitter.com/...
@mikeisaac @mikeisaac on x
“Every man for himself” mindset out here till the end https://twitter.com/...
@bhargreaves Brad Hargreaves on x
One, SVB was incredibly integrated into the lives of many founders. Not just their startup's bank & lender, but also provided personal mortgages and other financial services. A whole mess for FDIC (or the eventual buyer) to unwind.
@jamesgrickards Jim Rickards on x
If you had more than $250,000 in Silicon Valley Bank, you can't get your money. But you can call 1.866.799.0959. A trained FDIC help center therapist will be glad to speak with you. Good Luck. https://www.fdic.gov/...
@johnpaczkowski John Paczkowski on x
“SVB completely fucked this up.” via @alexrkonrad https://www.forbes.com/...
@mikebutcher Mike Butcher on x
These guys called it in Jan. https://twitter.com/...
@jgreco Jim Greco on x
The Fed must feel pretty confident about their post-GFC framework for managing systemic bank risk. 18th largest bank and not a word about providing emergency liquidity to support it.
@cfarivar @cfarivar on x
Silicon Valley Bank's Abrupt Closure Leaves Venture Capitalists And Founders Scrambling (by @alexrkonrad) https://www.forbes.com/...
@nickatfp Nick on x
Before SVB, could ape holders use multiple slurp juices on a single ape? I think not 🙏
@justinwolfers Justin Wolfers on x
So far there's little evidence of contagion. @WSJ reporting that credit default swaps on the big banks “have barely budged.” There's plenty of headline-worthy charts of certain stocks dipping (eg regional banks), but not much going on where the money is. https://www.wsj.com/... h…
@onebandwagonfan @onebandwagonfan on x
Welp, our @Rippling payroll wasn't run today, and it's apparently due to what's going on with SVB...
@justinwolfers Justin Wolfers on x
SVB might have been especially vulnerable because its customers were a tight-knit community. Often if you have worries, I might not hear about them. But if you have worries, and you share them with your VC, they then tell me to withdraw, and it cascades. https://twitter.com/...
@andrewyang Andrew Yang on x
Silicon Valley Bank repercussions will span far and wide. https://twitter.com/...
@scobleizer Robert Scoble on x
ChatGPT has advice for startups with money in Silicon Valley Bank. https://twitter.com/...
@sarthakgh Sar Haribhakti on x
“As at the end of 2022, it had 37,466 deposit customers, each holding in excess of $250,000 per account...In aggregate those customers with balances greater than this account for $157 billion of Silicon Valley Bank's deposit base, holding an average of $4.2 million on account... …
@applehelix @applehelix on x
Good luck to FDIC trying to figure out what to do with its biotech venture debt portfolio. These typically have 2 year duration which means 50% of loan portfolio matures each year. https://twitter.com/...
@jordanschachtel Jordan Schachtel on x
Today is a good reminder that FDIC insurance doesn't really matter. It acts as a stopgap for the government and a psychological mechanism to prevent a bank run. Of course, if the whole system were to melt down, nobody is getting their $250k back!
@brendanpedersen Brendan Pedersen on x
Bloomberg's @ElleBeyoud and @kjspeakstruth reported an hour ago that FDIC and Fed officials visited the bank yesterday. That was a good, good indicator that shit was about to break bad. https://twitter.com/...
@jamespmcleod James McLeod on x
This is the crazy thing with the SVB situation. 93% of the deposits are over the $250k FDIC insurance threshold. Makes sense since it was a bank for tech companies that would potentially have millions of dollars to fund their growth. But it makes the situation ... very messy. htt…
@acityinohio @acityinohio on x
does this FDIC have a coin I can buy or
@stevenkelly49 Steven Kelly on x
Probably notable that the FDIC couldn't wait until the close of business today to shut it down
@bamabonds Will Slaughter on x
Last Friday, nobody expected the 16th largest depository institution in the US to be seized by the FDIC this Friday. 2nd largest bank failure in U.S. history, essentially out of the clear blue sky. Of course this is a big deal.
@parkerconrad Parker Conrad on x
Our top priority is to get our customers' employees paid as soon as we possibly can, and we're working diligently toward that on all available channels, and trying to learn what the FDIC takeover means for today's payments.
@danprimack Dan Primack on x
As a side note... SVB has been a massive sponsor of tech events, tech and finance media, etc... Looks like that might be gone.
@lifescivc Bruce Booth on x
Sadly, this tweet didn't age well... Looks like a fear-driven “run on the bank” has destroyed a once great financial institution.... FDIC Receivership wasn't fathomable only a few days ago.... Took 40 years to build a great brand, 48 hrs to wipe it out. https://twitter.com/...
@thebondfreak Randy Woodward on x
I'd love to be a fly on the wall for the FDIC's call to Jamie Dimon.
@gunjanjs Gunjan Banerji on x
As of the end of 2022, Silicon Valley Bank estimated that **uninsured** deposits exceeded those insured by FDIC by around $151 billion, according to its annual report h/t @telisdemos https://www.wsj.com/...
@52kskew @52kskew on x
This seems fitting to the state of some banks currently $SI $SVB https://twitter.com/...
@donmiami3 Don Johnson on x
The last bank the FDIC had to takeover with a bridge bank was IndyMac in 08 - with about $35bil in assets, SVB has over 200 BILLION and 150bn is uninsured by taxpayers. People aren't paying attention.
@byclairew Claire Williams on x
“That's amazing,” said John Popeo, a bank resolution lawyer for the FDIC during the financial crisis. “Banks are not supposed to fail until their scheduled closing time. So this speaks to the urgency of the situation.” https://www.americanbanker.com/ ...
@wideofthepost @wideofthepost on x
with an fdic insured bank: orderly process, people will have access to their accounts in this case by the next business day, the first $250k is protected with crypto: you would've lost everything to bankruptcy if your money hadn't already been siphoned out by some ponzi fraud htt…
@hhorsley Hunter Horsley on x
As everyone remembers from the GFC, the financial world is very intertwined. Every development has knock-on effects, sometimes hard to anticipate. Here's an example https://twitter.com/...
@thresh @thresh on x
@spacanpanman It's super sad. SVB has been a key supporter of the tech ecosystem forever. To see people turn their backs on them in a time of need is disappointing. Fiduciary responsibility is one thing but a vocal show of support from influential firms would have made a huge imp…
@smtuffy Sean Tuffy on x
Given its profile and client base, it would not shock me if further shenanigans were unearthed at the bank formerly known as SVB.
@bucknsf Buck on x
The majority of SVB deposits are uninsured and are VC and startup funds. The chilling effect on the SV ecosystem is going to be insane unless there is a clear path to being made whole from asset sales. Thinking through the ripple effects here.
@litcapital @litcapital on x
VCs yesterday: “move all your money out of SVB and into First Republic!!!” First Republic today: https://twitter.com/...
@brianroemmele Brian Roemmele on x
It is done [1]. The amazing era of Silicon Valley Bank has ended. They were a pioneer bank of the early Silicon Valley. They were independent, innovative and some of the best in banking at one time. My heart goes out to the many friends I have had https://www.fdic.gov/...... http…
@jcoviedo6 JC Oviedo on x
$SIVB from $285/share to bankrupt in a week.
@parikpatelcfa @parikpatelcfa on x
Forbes strikes again https://twitter.com/...
@jasondebolt @jasondebolt on x
I suspect that Silicon Valley Bank is not the only bank that went balls deep on long term treasury bills. If I'm right, the fed is going to tip over a lot of regional banks if they continue to raise rates. Scary situation unfolding here. $SIVB
@seawolfcap Porter Collins on x
The $SIVB failure is just another epic failure of the FED. They had 15 post Lehman to fix the banking system. I also find it ironic they they failed due to US government debt not dogshit VC loans.
@thetranscript_ @thetranscript_ on x
Fun fact: $SIVB was started in 1983 over a game of poker https://twitter.com/...
@pinboard @pinboard on x
In seriousness though, hats off to Silicon Valley Bank for doing this on hard mode and destroying regulated dollar deposits when everyone else has been taking the easy route of blowing up crypto. Such an old school work ethic can't fail but impress their future employer (Wendy's)
@edzitron Ed Zitron on x
To be fair for years I've always found SVB to be slow doing wires lol https://twitter.com/...
@shaig Shai Goldman on x
the scale of this fallout is massive, people don't realize it
@eperlste Ethan Perlstein on x
Congratulations VCs: your bank run worked https://twitter.com/...
@jason @jason on x
🚨 Lots of startups are missing payroll in 2-4 weeks if: 🚨 a) Silicon Valley Bank doesn't have the deposits b) SVB doesn't get sold or c) SVB isn't rescued ☢️ This is DEFCON 1 ☢️
@davetroy Dave Troy on x
Lotta libertarian whack jobs praying for the rapture today on the SVB uncertainty. Maybe, they think, the world works the way Uncle Mises and Auntie Ayn promised it should. And maybe, if it doesn't behave, cousin Peter can set it on fire. 🤞 🙄 https://twitter.com/...
@adamscochran Adam Cochran on x
Worth noting, that this was nothing but a concentrated bank run, spurred in a specific sector by influential actors (who stood to benefit) But, banks are all in the same boat in terms of HTM structure, only difference is breadth of client base.
@adamscochran Adam Cochran on x
Holy crap. Bloomberg reporting SVB closed by regulator - deposits will be moved to protected accounts by regulators.
@jonwu_ @jonwu_ on x
Unfortunately, more than 93% of SVB's $161 billion in deposits are uninsured. Meaning a huge swath of America's startup ecosystem has their money locked in a giant paper IOU with the Federal government. https://twitter.com/...
@bhargreaves Brad Hargreaves on x
And given the weak fundraising environment, a number of startups have been reliant on venture lenders - e.g., SVB - not aggressively pursuing amortization of debt or triggering default for covenant foot faults (e.g., cash balances). How will the FDIC handle this? Mass defaults?
@grdecter @grdecter on x
2. 55.4% of their assets are securities. The highest of their entire peer group. https://twitter.com/...
@luke_metro @luke_metro on x
did we just meme a bank run into existence
@iwriteok Robert Evans on x
so here's what's happened: there's a bank in Silicon Valley that funds all the gambling tech weirdos did in the low interest rate years that bank made some bad bets that the good times would continue now about $160 billion in the richest people's deposits are unsecured https://tw…
@flying_mom @flying_mom on x
The whole Silicon Valley depended upon one institution, SVB, and now it is dead
@functi0nzer0 Laurence on x
Dear God, I don't ask you for much, but I would really appreciate it if you revealed that the seed money raised for the 3AC/Coinflex exchange was being held by SVB https://twitter.com/...
@thebondfreak Randy Woodward on x
Powell forces yields to all-time lows and keeps them there for 2yrs. 80% of bank assets reprice at those lows. Powell hikes at the fastest pace ever. Bank assets double in duration, stuck at those low yields. Banks forced to raise funding rates. SVB tip of the iceberg. https://tw…
@kiarichards_ Kia Richards on x
I feel for everyone at SVB, but they have insolvency issues. Liquidity risk is nothing to gamble with, and most companies don't have the privilege of waiting and seeing what happens. Lehman had a liquidity problem, and the board kept everyone in the dark.
@zosegal @zosegal on x
Many startups you know and love bank(ed) with SVB. Many will struggle to make payroll and pay vendors. Fractional reserve banking once again the culprit. https://twitter.com/...
@adamscochran Adam Cochran on x
Ironically for a startup with money stuck in a bank, the easiest place to get a loan (especially with a bluechip VC investor) was SVB, as they took venture debt as collateral for short stuff. Wonder who picks up that up? Probably just high cost private lenders sadly.
@chriscamillo Chris Camillo on x
Starting to get portfolio company emails on SVB impact. “We are banked with SVB and we are fckd”
@packym Packy McCormick on x
Brutal day. Whether you still have money with SVB or not, overcommunicate with your investors. If you bank elsewhere, let them know. If you still have money at SVB, let them know. Hard conversation to have but it's the best chance at figuring out a path forward and you're not... …
@jamesclayton5 James Clayton on x
Turns out “wild” was an understatement. Just spoke to someone literally driving down to Silicon Valley Bank to try and get their funds out. https://twitter.com/...
@jenwieczner Jen Wieczner on x
imagine a PR fail that causes the collapse of your company https://twitter.com/...
@bhargreaves Brad Hargreaves on x
CEOs yesterday faced a hard choice: Pull your deposits and go into default on your venture debt or risk losing everything if the bank failed. Many chose to hold tight as SVB's outright failure seemed outlandish.
@growing_daniel Daniel on x
The arranged collapse SVB is GPT-4s opening salvo in the new phase of the AI war
@lopp Jameson Lopp on x
I'd like to thank @SVB_Financial for closing @CasaHODL's bank account last year because we refused to force AML/KYC upon our clients. 😘
@shaig Shai Goldman on x
unfortunately there is going to be a lot of collateral damage that is going happen given the news. startups, VCs (firms and gps), PEs firms, service providers are all intertwined with SVB
@elidourado Eli Dourado on x
At a normal bank, 40% of deposits are uninsured (over the $250k/customer limit). At SVB, 90% of deposits were uninsured. So SVB was uniquely run-prone on account of its customer base and FDIC limits.
@dkthomp Derek Thompson on x
Silicon Valley Bank thread. This is a dire overview of the implications. Many tech CEOs rely on SVB for payroll—and often for their own individual wealth management. https://twitter.com/...
@sullycnbc Brian Sullivan on x
The run on west coast banks is scary ... but what's probably a lot more scary is how thousands of SVB employees feel right now who are probably going to lose their jobs. 48 hours ago it was just another day at the office. Now, there may be no office. People matter.
@0xc0le @0xc0le on x
The past 8 months at SVB have been amazing. I truly believe our crypto compliance team was building a program that fully supported the crypto industry and rewarded decentralization.
@arlanwashere @arlanwashere on x
If you know anyone who works at SVB, text them your support. It's at times like these for banking institutions that people can be upset and not see hope. You need to let them know there is hope.
@fdicgov @fdicgov on x
1/2 The FDIC has been appointed receiver. Customers will have full access to their insured deposits no later than Monday morning, March 13.
@chopracfpb Rohit Chopra on x
The California Department of Financial Protection & Innovation has closed Silicon Valley Bank and appointed the @FDICgov as receiver. https://twitter.com/...
@oxdeadbeef_ Tamer on x
@balajis That amount is ~$150B. Ouch how many startups and corporations are rekt? https://twitter.com/...
@nickadobos Nick Dobos on x
@wongmjane Real bad, FDIC only covers 7% of their deposits. Could really mess up funding, especially for startups and VCs in the near future, chance of larger financial cascade https://twitter.com/...
@heylizelle Lizelle van Vuuren on x
Jesus, this is tough. SVB was instrumental to so many startups. But today it has put so many founders in a paralyzing position. I hope this gives a pause, a moment to take a breath and get sold this weekend?
@arrington Michael Arrington on x
Not sure how they'll blame this one on crypto https://www.zerohedge.com/...
@adamscochran Adam Cochran on x
Good clarity on the SIVB process. FDIC pays out up to $250k - anything else you get a certificate of the amount, and hope enough gets paid out to cover it in the liquidation/sale process. A lot of books just became paper money. https://twitter.com/...
@pt Parker on x
Isn't the government being able to print infinite amounts of money the exact thing guys with crypto hashtags in their profile think is the problem? https://twitter.com/... https://twitter.com/...
@modestproposal1 @modestproposal1 on x
i assume there will immediately be a market for the uninsured certificates, but let's say those trade at .50-60 (just making it up, but seems reasonable if recovery .85-100 but over years) runways just got cut in half.
@scobleizer Robert Scoble on x
I've been through a bunch of downturns and things but this one is the darkest day for Silicon Valley that I can remember. At least since March 2000 when the dot com world collapsed. The effects will be felt for years. https://twitter.com/...
@msuster Mark Suster on x
1/ What next at SVB? Nobody knows but here's what I suspect: - Reports that they can't raise equity, looking for a buyer of the business - Trading halted on their shares - We suspect they will find a buyer that will emerge today or over the weekend What if not?
@msuster Mark Suster on x
6/ The super annoying thing? - Investors who recommended pulling everything will feel righteous this AM - The loudest voices were yelling fire in a crowded movie theater & congratulate themselves on rushing everybody out
@kashhill @kashhill on x
The only thing I know about Silicon Valley Bank is that back in 2013 when I was writing a lot about Bitcoin, and there was so much regulatory uncertainty around it, SVB was the only bank that would offer accounts to cryptocurrency start-ups.
@cjc Cristina Cordova on x
I feel terrible for all the great folks at @SVB_Financial I've worked with throughout the years. In building companies, many of us have had similar moments (security incidents, outages, etc.) and that's never how you want to see a company go out.
@stshank Stephen Shankland on x
(A reference to FDIC closing Silicon Valley Bank after yesterday's problems led to today's collapse. SVB caters to startups and businesses, many of which will have way more than the $250K that the FDIC pays per account. https://www.fdic.gov/...) https://twitter.com/...
@ciovaccocapital Chris Ciovacco on x
Just as pension issues were on the radars of central banks last October, this topic has Fed's attention: Silicon Valley Bank parent SVB Financial is seeking a buyer after its plan for a share sale fell through https://www.wsj.com/... via @WSJ
@jeffreyatucker Jeffrey A Tucker on x
I've been writing for a year how the reversal of zero-interest rates would profoundly rearrange industrial structures and labor markets. But now it becomes obvious that in a highly leveraged market, this impacts banks too. Yikes. https://www.wsj.com/...
@business @business on x
SVB had about $209 billion in total assets and roughly $175.4 billion in total deposits at the end of last year. The the FDIC's website says “deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category.” https://www.bloomberg.com/...
@nicoleperlroth @nicoleperlroth on x
Q: Who in Silicon Valley would ever put their neck out for Founders Fund after this? https://www.axios.com/...
@luke_broyles Luke Broyles on x
The entire FDIC has $125 billion. This single bank run will require $175 billion. There's another $9,775 billion the FDIC insures. Many unknown unknowns ahead. https://www.bloomberg.com/...
@deepakshenoy Deepak Shenoy on x
Fdic will liquidate svb. No resolution. Meaning they have to sell assets that svb owns before a large depositor gets back money. Depositors get paid upto 250K USD Monday. This is the most confusing of all outcomes. Shares will go to zero.
@hannahdlang Hannah Lang on x
To put this into perspective, Washington Mutual was the largest bank failure *by far* in U.S. history, with $307 billion in assets at the time. SVB had $209 billion in assets, per FDIC. https://twitter.com/...
@caro Caroline Mccarthy on x
Oh man, the SVB stuff going down right as startup and VC types arrive at SXSW... https://twitter.com/...
@schuldensuehner Holger Zschaepitz on x
OOPS! Silicon Valley Bank has been shut by FDIC. All insured depositors will have full access to their insured deposits no later than Monday morning. Shares of SVB crashed 87% over 2 days as fears of a bank run escalated. SVB is a very American mess. https://www.ft.com/... https:…
@dkthomp Derek Thompson on x
Really interesting analysis of the SVB collapse. The business of banks is trust, and trust can be lost with bad communication, and this seems to be a financial crisis compounded by awful comms. https://twitter.com/...
@karenpetrou Karen Petrou on x
1) @FDICgov now puts SVB's bank in receivership. 2) Totally right to do as receivership and defer payment to uninsured depositors! (1/5) https://twitter.com/...
@balajis Balaji on x
Appears that SVB has been closed. The FDIC link says uninsured depositors (with over $250k?) get a receivership certificate for their uninsured funds. If I'm reading this right, that means any entity that still has money on SVB now has to go through a bankruptcy claims-like... ht…
@marietjeschaake @marietjeschaake on x
Silicon Valley Bank, a lender to some of the biggest names in the technology world, did just that on Friday, becoming the largest bank to fail since the 2008 financial crisis ↘️ https://www.nytimes.com/...
@amitranjan Amit Ranjan on x
Whoa! SVB goes bust because panicking startups & VCs triggered a bank run !!! This is like an earthquake measuring 8.6 hitting Silicon Valley completely out of the blue! https://twitter.com/...
@carnage4life Dare Obasanjo on x
If you work at a startup, it's a good idea to find out what bank your next paycheck is supposed to come from since if it's SVB, you might be up a 💩 creek without a paddle. https://twitter.com/...
@chrisjbakke Chris Bakke on x
Running a company: 2020: can you survive a pandemic? 2021: still here? we're going to give all of your competitors $100m series A rounds. 2022: wow, you made it? okay, all engineers cost $600,000/year now. 2023: nice job! okay, we're going to take away your bank account.
@nongaap Mike on x
It kind of blows my mind $SIVB didn't have a Chief Risk Officer for much of 2022, and didn't explicitly disclose that until the 2023 Proxy was filed in March 2023. It makes you wonder why the CRO exited the role, esp since she sold $4M shares beforehand https://nongaap.substack.c…
@trungtphan Trung Phan on x
SVB didn't have a Chief Risk Officer for most of 2022. But still held 18 Risk Committee meetings (vs. 5-7 in a typical year). And the previous CRO sold $4m of shares before leaving in December 2021, a likely signal that balance sheet was a “time bomb”. https://nongaap.substack.co…
@jacobtamme Jacob Tamme on x
As of end of 2022, Silicon Valley Bank had 37,466 deposit customers holding in excess of $250,000 per account (the FDIC limit), totaling $157B They had 106,420 customers holding less than 250k, totaling only $4.8B. — This is a great read on Silicon Valley Bank https://twitter.com…
@tcarmody Tim Carmody on x
“I am sorry to be rude, but there is another reason that it is maybe not great to be the Bank of Startups, which is that nobody on Earth is more of a herd animal than Silicon Valley venture capitalists” https://www.bloomberg.com/...
@sandabluedeux @sandabluedeux on x
Remember all the bank liquidity rules put into place after the crash of 2008? SVB was exempt https://www.ft.com/...
@themaxburns Max Burns on x
If you aren't up to date on the Silicon Valley Bank implosion, this is a great piece that offers answers for all of your questions. The first big bank run of the digital era. https://www.netinterest.co/...
@thesanjaydutt Sanjay Dutt on x
Worth reading on the SVB crisis... “The Demise of Silicon Valley Bank - by Marc Rubinstein” As at the end of 2022, it had 37,466 deposit customers, each holding in excess of $250,000 per account. Great for referrals when business is booming, such https://www.netinterest.co/......…
@nanduan Nan Duan on x
This was a good read. “Silicon Valley Bank was never subjected to the Federal Reserve's LCR requirement - even as the 16th largest bank in America, it was deemed too small.” https://twitter.com/...
@film_girl Christina Warren on x
@brooke @lulumeservey Yeah, I agree that this was a failure in communications but I utterly disagree that SVB was fundamentally stable. They'd made really bad investment decisions over the last 18 months that left them exposed and they didn't anticipate customers pulling https://…
@mikeisaac @mikeisaac on x
this made me laff https://twitter.com/...
@mikeisaac @mikeisaac on x
good and sober piece on how SVB implosion happened (and why it was self-inflicted since the Fed has been telegraphing it's moves for a long time...) https://open.substack.com/...
@macrocephalopod @macrocephalopod on x
Ignore the take merchants who became experts on banking in the last five minutes, read this by @MarcRuby instead. https://twitter.com/...
@film_girl Christina Warren on x
The best explainer of the #SVB collapse I've seen so far is from @MarcRuby https://www.netinterest.co/...
@armstrongdrew Drew Armstrong on x
From a very helpful breakdown here by https://www.netinterest.co/...
@hkanji Hussein Kanji on x
The fact that large domestic banks in the US are apparently allowed to run such sizable funding mismatches (and indeed, to hang around with massive unrealised losses on hold-to-maturity securities portfolios) is likely to be a source of embarrassment https://www.ft.com/...
@econompic Jake on x
Really good summary of the backdrop of SVB and how it failed https://twitter.com/...
@sarthakgh Sar Haribhakti on x
As at the end of 2022, it had 37,466 deposit customers, each holding in excess of $250,000 per account...In aggregate those customers with balances greater than this account for $157 billion of Silicon Valley Bank's deposit base, holding an average of $4.2 million on account... h…

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