A closer look at the collapse of Silicon Valley Bank, the 16th largest US bank whose unrealized losses snowballed from $0 in June 2021 to $16B by September 2022
Markets/Econ — General Sherman's memoirs about the Page & Bacon 1855 bank run in San Francisco. Mike / Nongaap Investing : SIVB: Held-to-Mortem Governance Tweets: Mike / @nongaap : 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.com/ ... https://twitter.com/... Trung Phan / @trungtphan : 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.com/ ... @sandabluedeux : Remember all the bank liquidity rules put into place after the crash of 2008? SVB was exempt https://www.ft.com/... Sanjay Dutt / @thesanjaydutt : 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/...... https://twitter.com/... Jacob Tamme / @jacobtamme : 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/... Max Burns / @themaxburns : 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/... Tim Carmody / @tcarmody : “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/... Nan Duan / @nanduan : 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/... Christina Warren / @film_girl : @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://www.netinterest.co/...... https://twitter.com/... @mikeisaac : this made me laff https://twitter.com/... @mikeisaac : 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 : Ignore the take merchants who became experts on banking in the last five minutes, read this by @MarcRuby instead. https://twitter.com/... Christina Warren / @film_girl : The best explainer of the #SVB collapse I've seen so far is from @MarcRuby https://www.netinterest.co/... Drew Armstrong / @armstrongdrew : From a very helpful breakdown here by https://www.netinterest.co/... Hussein Kanji / @hkanji : 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/... Jake / @econompic : Really good summary of the backdrop of SVB and how it failed https://twitter.com/... Sar Haribhakti / @sarthakgh : 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... https://twitter.com/...
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…
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…
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…
“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/...
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/...
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/......…
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/...
@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://…
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/...
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/...
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…