The US Treasury, Federal Reserve, and the FDIC say all Silicon Valley Bank depositors will be “fully” protected, and their money will be available on March 13

WASHINGTON, DC — The following statement was released by Secretary of the Treasury Janet L. Yellen …

U.S. Department of the Treasury 2023-03-13

Discussion

@cz_binance @cz_binance on x
Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency.
@potus President Biden on x
At my direction, @SecYellen and my National Economic Council Director worked with banking regulators to address problems at Silicon Valley Bank and Signature Bank. I'm pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system. ht…
@jerallaire Jeremy Allaire on x
Update thread on USDC We were heartened to see the US government and financial regulators take crucial steps to mitigate risks extending from the fractional banking system. 100% of deposits from SVB are secure and will be available at banking open tomorrow.
@potus President Biden on x
I'm firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again. I'll have more to say on this tomorrow morning.
@bgarlinghouse Brad Garlinghouse on x
Setting the record straight on SVB Qs: Ripple had some exposure to SVB - it was a banking partner, and held some of our cash balance. Fortunately, we expect NO disruption to our day-to-day business, and already held a majority of our USD w/ a broader network of bank partners.
@nicktimiraos Nick Timiraos on x
NEW: *Signature Bank has been closed *All depositors of Silicon Valley Bank and Signature Bank will be fully protected *Shareholders and certain unsecured debtholders will not be protected *New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits https…
@vcbrags @vcbrags on x
big week ahead for venture capitalists finding ways to take credit for things they had nothing to do with
@federalreserve @federalreserve on x
@federalreserve ... issue statement on actions to protect the U.S. economy by strengthening public confidence in our banking system, ensuring depositors' savings remain safe: https://www.federalreserve.gov/ ...
@neil_irwin Neil Irwin on x
Notable that the new Bank Term Funding Facility allows banks to pledge collateral at par. Meaning holdings of long-dated Treasuries or MBS with mark-to-market losses can unlock liquidity based on original value. https://www.federalreserve.gov/ ...
@litcapital @litcapital on x
SVB depositors on Friday vs. SVB depositors today https://twitter.com/...
@danielagabor Daniela Gabor on x
forget about SBV liabilities for a second, the real bailout story is the regime-change in the Fed's treatment of collateral: par value goes against every risk management commandment of the past 30 years. it turbocharges the monetary power of collateral https://twitter.com/...
@bobeunlimited Bob Elliott on x
The US banking system is built on the expectation that equity and bond holders accept the bank economic risk and depositors, particularly the small folks, do not. While that is not legally the structure, its important to keep in mind that's functionally how it works. Thread.
@jimcramer Jim Cramer on x
These are not bailouts. They are a way without taxpayer money to remove the risk for those banks that invested poorly.
@federalreserve @federalreserve on x
@federalreserve announces Bank Term Funding Program (BTFP) to support American businesses and households, assure banks have ability to meet needs of all their depositors: https://www.federalreserve.gov/ ...
@jasonfurman Jason Furman on x
Regulators probably needed to do what they did to prevent potentially chaotic damage across the economy. But make not mistake—it does have an expected cost to taxpayers. And changing the rules ex post like this means the rules were wrong ex ante. Going forward need to:
@zck Zak Kukoff on x
Live shot from Hayes Valley https://twitter.com/...
@chrisjbakke Chris Bakke on x
Jason Calacanis is the kind of guy who updates his LinkedIn tonight with: “Successfully assisted with the M&A process of Silicon Valley Bank, the 16th largest US bank, with over $150B in deposits.”
@jason @jason on x
@LiebermanAustin @DavidSacks 1. I would say collectively, the people who rang the fire alarm when they witnessed the fire had an impact. 2. Interestingly, All In has a very big listenership in DC and it is a top 10 podcast in the world... it's possible that our discussion had a v…
@fedguy12 Joseph Wang on x
In 2008 the banks got rich, went bust, and got bailed out. It was unfair, so we created a regulatory system to prevent it from happening. SVB is a minor bank. We could have let the process play out and show how the system has been improved. But it seems nothing has changed https:…
@danprimack Dan Primack on x
What to know: 1/ Fed is backstopping all SVB depositors. Everyone gets access to everything tomorrow. Crisis averted. 2/ There does not yet appear to be a deal to sell any part of SVB.
@elaifresh Elai on x
This TikTok is actually an incredible summary https://twitter.com/...
@macroalf Alf on x
Massive announcement by the Fed and US policymakers. The gist: all depositors of SVB and Signature Bank made whole, and a new facility to provide liquidity to banks under stress. A short thread. 1/
@benedictevans Benedict Evans on x
It is very strange how many people think that a five or 10 person company should do a stress test on their bank's balance sheet every three months just to hold a deposit account.
@thestalwart Joe Weisenthal on x
The narrative about some kind of anti-tech mistreatment of SBV. Just 100% made up by Silicon Valley influencers.
@jasonlk @jasonlk on x
The hand that fed SVB also bit it The social contract between VCs and SVB in the end was quite weak
@esaagar Saagar Enjeti on x
Dealbook this AM: “Let's admit it: Once the government guarantees all deposits, the “business” of banking isn't much of a business — and maybe shouldn't be. This is likely to become the biggest debate of the coming weeks and months.”
@chiweethegod @chiweethegod on x
The US government can't forgive student loans but they can protect the funds of money laundering pedophiles lmao https://twitter.com/...
@freezingfintake @freezingfintake on x
https://twitter.com/...
@ivanthek @ivanthek on x
I held the Fed press release up to the light. https://twitter.com/...
@donmoyn Don Moynihan on x
The proximate cause for the failure of SVB is pretty straightforward, and could have been avoided with regulations the Bank pushed against. The bank run was triggered by withdrawals from some very non-woke sources. None of this is about DEI. But if you have a hammer... https://tw…
@newtgingrich Newt Gingrich on x
No republican should support bailing out the svb bank. The speculators and manipulators who took absurd risks should bear the cost nog the taxpayer
@mattyglesias Matthew Yglesias on x
“Well if SVB is too big to easily sell shouldn't it have been held to a much tougher regulatory standard?” Yes! But they lobbied, extensively and aggressively and successfully, to be treated like a small bank rather than a big one.
@bgarlinghouse Brad Garlinghouse on x
Obviously a lot is still unknown about what happens with SVB, and as is the case with many others, we hope to have more details soon - but rest assured, Ripple remains in a strong financial position.
@davidsacks David Sacks on x
The truth of the matter is that if Signature Bank had gone under a day before SVB instead of a day after, everyone would have understood clearly the risk to the banking system. And all of the phony demagogues on both the extreme right and extreme left wouldn't have had a word to.…
@petercontibrown Peter Conti-Brown on x
“Bailout” is a pejorative term with no clear conceptual meaning (never mind that it has no legal meaning at all). But if bailout means government elimination of downside after private capture of upside then, yes, uninsured SVB depositors were bailed out. https://twitter.com/...
@thestalwart Joe Weisenthal on x
@Noahpinion I disagree. It's a bailout. “Taxpayer funded” is a canard. And also Treasury is putting up $25 billion to backstop the creation of the new Bank Term Funding Program. So if fiscal authority is the determinant, then that still applies here.
@scottjshapiro Scott Shapiro on x
Bank runs are significant because banks are where people keep their money.
@sarthakgh Sar Haribhakti on x
“I think we all were reminded that a finance story is innately a human story; and that a failure of this magnitude impacts well beyond “tech elite” and whatever your definition of Silicon Valley is.” Terrific reporting from Natasha and crew over the weekend https://twitter.com/..…
@joelpollak Joel Pollak on x
I'm floored by how little sympathy conservatives generally have for employees in Silicon Valley, most of whom have nothing to do with SVB and some of whom are not “woke”. This is a soft form of “civil war,” or maybe a prelude to it: we no longer care about each other's suffering
@dylanleclair_ @dylanleclair_ on x
The Fed's newest credit facilities allows banks to borrow against their long duration bonds at par, despite the historic drawdown. SVB went all in on bonds at the generational top, and yet would have never failed if these facilities were in place just last week.
@davidsirota David Sirota on x
The rescue of SVB depositors is a reminder that the government can do big things very quickly when it wants to. So when it doesn't do big things that are necessary or does them slowly, that's not some accident. It's a conscious choice.
@litcapital @litcapital on x
SVB depositors after receiving the news their money is protected https://twitter.com/...
@neoavatara Pradheep J. Shanker on x
SVB deposits being secured is a good thing. But we all know if this was a bank serving mainly oil companies, coal fire companies, gun manufacturers, etc, the Biden team would let them all default. Political connections matter a great deal... Don't try and lie about it.
@fedguy12 Joseph Wang on x
The Administration has decided to socialize the banking sector. Tomorrow the well connected SVB folk will get their money, and the Fed will hold the bag. This is a bad precedent.
@larryvc Larry Cheng on x
One lesson learned from helping companies navigate their holdings in/through SVB: there can be a substantial difference between owning an asset and owning a right to an asset. The delta can show itself particularly in challenging times.
@ramahluwalia @ramahluwalia on x
1/ An extraordinary couple of days. The first digital bank runs of the internet era: Signature, Silvergate, and SVB are gone. FDIC makes unsecured depositors 100% whole. Let's dig in: - The regulator joint statement - Need more Fiat Ramps - JP Morgan & First Republic
@jasonfurman Jason Furman on x
P.S. I'm not particularly worried about moral hazard. The CEO, management & Board all losing their jobs. Equity going to zero. Bondholders won't be paid in full. These are all the entities that can effectively monitor, is unrealistic to expect depositors to do much monitoring.
@modestproposal1 @modestproposal1 on x
No matter how SVB was resolved, large deposits were going move from banks that need them to banks that don't. From small and regionals to money centers. So credit will tighten, and many banks need new funding sources. BTFP meant to buy time but markets are pressing the issue. htt…
@david_dayen David Dayen on x
Since SVB depositors are getting free insurance protection paid for by banks that weren't thunderingly stupid, maybe every American should get a 1-year trial of whatever bullshit these startups were cooking up
@jstein_wapo Jeff Stein on x
Is it fair to say that Yellen and Powell clearly disagreed with this? What exactly were they seeing over the weekend? https://twitter.com/...
@mattyglesias Matthew Yglesias on x
What's a little confusing to me about this is banks are getting rescued to avoid financial instability that could slow the economy and they *need* rescue because the fed has raised rates so much but the point of the rate increases was to slow the economy so...
@trungtphan Trung Phan on x
Major financial institutions need to get better social comms. The tweet from The Fed should just say: — All SVB deposits are protected — Deposits are available on Monday — Zero losses borne on taxpayers https://twitter.com/...
@noahpinion Noah Smith on x
This is not a bailout at all. It's not taxpayer-funded, it doesn't mean SVB will continue to exist, and SVB's management will be looking for a new job. https://twitter.com/...
@levie Aaron Levie on x
Boom. Government FTW https://www.federalreserve.gov/ ...
@dsquareddigest Dan Davies on x
This is a great big hidden subsidy, come on, and the people who benefit from it will be shareholders https://twitter.com/...
@mcuban Mark Cuban on x
Now that the FDIC has protected depositors at Signature and SVB, the big question ? Will their website and online systems be able to handle the crush of traffic tomorrow ?
@octal Ryan Lackey on x
Hey @brian_armstrong and @coinbase — after the SVB hell over the weekend, why don't you set up Coinbase as some kind of HNW + business neobank, with the “pass through assets to community banks and treasuries” as a first-class option in parallel with crypto.
@faineg Faine Greenwood on x
It's true SVB didn't get a bailout and no taxpayer cash was used (good). It's also true our society desperately needs to allow irresponsible, arrogant VCs and techbros to experience genuinely painful consequences for their failures. THAT'S what many people were hoping for.
@mgsiegler M.G. Siegler on x
Looking forward to everyone going back to being an AI expert here.
@levie Aaron Levie on x
The government crushed it: “Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
@paulmitchell_ab Paul Mitchell on x
To the surprise of nobody.... The US government is going to make an unlimited amount of magic money appear out of thin air to make sure there isn't a bank run. The previous limit of $250K worth of insurance for depositors has effectively been replaced with a blank cheque. https:/…
@martinsfp @martinsfp on x
Meanwhile in the UK, things remain tense. https://twitter.com/...
@mbensass Marcus Bensasson on x
While all this has been going on with SVB, it's only just now occurred to me that we're right in the middle of the 10-year anniversary of the Cypriot banking crisis - when uninsured deposits at Bank of Cyprus and Laiki Bank were bailed in.
@jacobtamme Jacob Tamme on x
If we didn't already, we definitely all bank at the same place now: The Fed https://twitter.com/...
@devahaz Deva Hazarika on x
It's absolutely stupid that if you have $2.5M the government insures $250k of your money if you keep it at one bank, but insures all of it if you keep it at ten banks
@m_c_klein Matthew C. Klein on x
“We aren't using taxpayer money to do a bailout, we are just using the ESF and also having the Fed pretend that banks haven't lost money on their bond portfolios and we are going to charge depositors at banks that didn't fail to make depositors whole at banks that did”
@ian_fraser Ian Fraser on x
The collapses of vc/startup/crypto-friendly banks SVB, Silvergate and Signature has already triggered a debate in Washington DC over the Dodd-Frank regulatory overhaul enacted after the 2008 crisis — and its partial rollback under President Donald Trump. https://www.bloomberg.com…
@lizrhoffman Liz Hoffman on x
This is true but so is the reverse. *Startups* convinced *SVB* that it was one of them, that the gravitational laws of banking didn't apply, that things like “innovation” and “burn rate” mattered more than things like, you know, capital and mark-to-market accounting https://twitt…
@ericnewcomer Eric Newcomer on x
“approved actions to enable the FDIC to complete its resolution of Silicon Valley Bank in a manner that fully protects all depositors, both insured and uninsured” https://www.federalreserve.gov/ ...
@brendanpedersen Brendan Pedersen on x
JOINT STATEMENT FROM POWELL, YELLEN AND GRUENBERG: *SVB has been resolved and “fully protects all depositors. Depositors will have access to all of their money” tomorrow *New York's Signature Bank has been closed full statement here: https://www.federalreserve.gov/ ... https://tw…
@vermontgmg Garrett M. Graff on x
It's wild how much of the SVB collapse is a parable for modern tech. Basically, everyone relied on the same one bank, because vibes, but it was wildly recklessly managed and its depositors were wildly reckless, ... https://twitter.com/...
@eugenewei Eugene Wei on x
Fed statement: “We are backstopping everything everywhere all at once.”
@chrisalbon Chris Albon on x
Kubernetes but it's 200 banks accounts with $249,999 in each one.
@callumj @callumj on x
On one condition: VCs need to stop with the think pieces for 10 years. https://twitter.com/...
@tculpan Tim Culpan on x
Here's an irony to stew on: A handful of famous VCs publicly & privately urged their startups to pull deposits from SVB, the bank which looked after them for decades. As a result the government stepped in, and now that same sector will face MORE regulation and scrutiny #OwnGoal
@amlivemon @amlivemon on x
I thought you guys didn't need governments and dollars? Lol 🤡🤡🤡 https://twitter.com/...
@karaswisher Kara Swisher on x
Elegant, stop the fire sale of solid assets solution and JUST what we said on the emergency ⁦@PivotPod⁩ yesterday was likely outcome, rather than what the too many screaming meemie VCs said: Joint Statement by Treasury, Federal Reserve, and FDIC https://www.federalreserve.gov/ ..…
@m_c_klein Matthew C. Klein on x
It's only a taxpayer bailout if it's from the AIG region of Manhattan
@repsarajacobs Congresswoman Sara Jacobs on x
Grateful for President Biden's and Secretary Yellen's steady leadership and for their swift actions to protect workers, small businesses, and innovation, and to ensure market stability. And thankful that they kept Congress briefed each step of the way. https://twitter.com/...
@deanobeidallah @deanobeidallah on x
Breaking: Biden admin ensures all account holders at Silicon Valley bank will have access to their funds on Monday. What a contrast to trump who is today literally cheering for more bank collapses. https://www.cnn.com/...
@axios @axios on x
MORE: Biden said he's “firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again” https://www.axios.com/...
@garrytan Garry Tan on x
This is the right move to preserve the banking system: Depositors will be made whole https://www.federalreserve.gov/ ...
@billackman Bill Ackman on x
A thoughtful analysis of the @SVB_Financial situation. https://twitter.com/...
@karaswisher Kara Swisher on x
Taking an undeserved lap for irresponsibly panic screaming and all-caps pants pissing is a novel approach, but I would doubt anyone in real power in DC paid mind to one bit of the Ozymandias, King of Kings — Look on my Works, ye Mighty, and despair — nonsense of some tech bros. h…
@adamscochran Adam Cochran on x
USDC bag holders Friday vs USDC chads today. https://twitter.com/...
@ericnewcomer Eric Newcomer on x
everyone needs to get back on the AI hype train by March 30. we can talk about this little banking disaster for a week or two
@anthony Anthony DeRosa on x
VCs disrupted rate hikes. You're welcome.
@jeffreyatucker Jeffrey A Tucker on x
The Fed inflated like crazy & then said now we are tightening but then higher rates devalued bank portfolios so the Fed has to ease again. Maybe both at the same time: higher rates while promising untold trillions to “backstop” deposits of failing banks. https://www.wsj.com/...
@rajakorman Karthik Sankaran on x
At this time, I would like to remind you of the consensus among Social Scientists that in the aftermath of the GFC, the US experienced a populist backlash because it did TARP and the Eurozone experienced a populist backlash because it did not do TARP.
@georgegammon George Gammon on x
Basically this creates same moral hazard as a bailout. Our entire banking system has just been given the green light to adopt YOLO as their risk management strategy. https://twitter.com/...
@jeannasmialek Jeanna Smialek on x
Upshot of Fed/Treasury/FDIC release: - Depositors at SVB paid back in full - Signature Bank closed today by its state chartering authority, depositors there also backed up - Fed is setting up emergency lending program to keep funds flowing to banks https://www.federalreserve.gov/…
@reprokhanna Rep. Ro Khanna on x
I'm glad that no taxpayer money will be used and that workers and depositors will be protected. We've known since 2008 that stronger regulations are needed. https://twitter.com/...
@jeremy_hunt Jeremy Hunt on x
This morning, the Government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC Deposits will be protected, with no taxpayer support I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise
@cetier1 @cetier1 on x
Semantics if you ask me: taxpayers won't pay, but customers of healthy banks will. It's probably the same folks. https://twitter.com/...
@hmtreasury @hmtreasury on x
Silicon Valley Bank UK has today been sold to @HSBC. This transaction has been facilitated by the @bankofengland in consultation with HM Treasury. No taxpayer money is involved and customer deposits have been protected. Find out more ⬇️ https://www.gov.uk/...
@jamestitcomb James Titcomb on x
For a taste of the market chaos there would have been without a rescue, everyone is putting out an RNS this morning about their SVB exposure https://twitter.com/...
@wublockchain Wu Blockchain on x
HSBC Holdings plc announces that its UK ring-fenced subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Limited (SVB UK) for £1. As at 10 March 2023, SVB UK had loans of around £5.5bn and deposits of around £6.7bn. https://www.londonstockexchange.com/ ...
@arashmassoudi Arash Massoudi on x
One for the record books Merger Monday AND Meltdown Monday 1) Pfizer to buy SeaGen for $43bn including debt 2) Silver Lake and CPPIB to buy Qualtrics for $12.5bn 3) HSBC to rescue SVB UK for £1 4) Sanofi to buy Provention Bio for $2.9bn Meanwhile all eyes on US regional banks
@lisaabramowicz1 Lisa Abramowicz on x
The response in HSBC shares says something about the risk tolerance of investors this morning & skepticism. https://twitter.com/... https://twitter.com/...
@danielkorski Daniel Korski on x
Fantastic news that @HSBC_UK will buy SVB UK. A good outcome which will help the UK technology sector continue its growth. A great relief for many. Thank you @RishiSunak @Jeremy_Hunt @michelledonelan for action and @Dom_Hallas and @Coadec for https://www.bankofengland.co.uk/ ....…
@justin_cash_1 Justin Cash on x
Very very nice, £1 bank. Very very cheap, £1 bank. https://www.fnlondon.com/...
@samgyimah Sam Gyimah on x
Congrats to the Treasury, Bank of England and all involved. Solid tech companies can make payroll, access banking facilities and invest in growing and supporting the economy due to the acquisition of SVB's UK entity by HSBC. https://twitter.com/...
@loomdart @loomdart on x
wow, silicon valley is getting into money laundering https://twitter.com/...
@daniburgz Dani Burger on x
“I don't think HSBC is doing this out of the generosity of their heart. They are looking at this to say, they can make some good money. However they need guarantees in place that the BOE will need to give to them,” Octavio Marenzi of Opimas tells me. https://twitter.com/...
@bondhack Robert Smith on x
To relief of everyone who would have struggled to keep track of another entity added to Sheikh Tahnoon's opaque web of companies, HSBC for there in the end! https://twitter.com/...
@benedictcooney Benedict Cooney on x
No taxpayer money involved. HSBC gets SVB for £1. All depositors can access services as normal. This looks like a great resolution for everyone. 👏 https://twitter.com/...
@richardgrahamuk Richard Graham on x
Governments face constant challenges. It's how they tackle them that matters. UK tech businesses wd have suffered badly from US bank SVB's sudden collapse. After @Jeremy_Hunt @bankofengland @HSBC action all is resolved https://twitter.com/...
@georgewparker George Parker on x
HSBC deal done - Britain's tech sector waking up to some good news https://www.ft.com/...
@checkwarner Check Warner on x
This is brilliant news for the UK tech sector and a great outcome for @HSBC_UK, the taxpayer and the Government. Kudos to all, as well as all the people working through the weekend in the tech sector to make this happen. Particularly @Dom_Hallas and @Coadec. https://twitter.com/.…
@michelledonelan Michelle Donelan MP on x
The continued success of the world leading UK tech sector is a Government priority - we've worked through the night to get this done. Safeguarding thousands of jobs without the need to spend taxpayer money. https://twitter.com/...
@mjrobbins Martin F. Robbins on x
Also the VCs and founders/CFOs who left piles of cash sitting in unprotected accounts. Even the tiny charity I advise has better controls than these people. https://twitter.com/...
@ibrahimsaninet Ibrahim Sani on x
Purchase price is £1.00 Can't wait to read its M&A report. https://twitter.com/...
@bandrew Andy McLoughlin on x
US VCs have been totally wrapped up in the SVB mothership debacle but alongside was a potential disaster unfolding for UK and European startups as SVB UK was shuttered. This is a great outcome for the sector and a huge relief for every entrepreneur there. https://twitter.com/...
@georgewparker George Parker on x
Exclusive - HSBC lined up as “white knight” to save Silicon Valley Bank after frantic all night talks, involving Sunak, Hunt, Andrew Bailey. Sunak “very hands on” from California. Announcement expected before markets open. https://www.ft.com/...
@suzanneashman Suzanne on x
Congrats HMT and teams who worked through last 72 hours to have ecosystem operating again by 9am - incredible to see everyone across government and ecosystem pull together to be in this place by Morning start of business 👏 https://twitter.com/...
@thetranscript_ @thetranscript_ on x
UK Chancellor of the Exchequer @jeremyhunt: “This morning, the government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC. Deposits will be protected, with no taxpayer support” $SIVB https://twitter.com/...
@jespow Jesse Powell on x
Looks like SVB UK is going to HSBC. Does the administration see this as a W? On the up side, you stuck it to “tech”. On the downside, if these allegations are to be believed, you sold your nationally strategic asset to China for $1. https://dailycaller.com/...
@mayazi Maya Parody on x
One pound = one failed bank But HSBC? https://www.londonstockexchange.com/ ...
@jamestitcomb James Titcomb on x
HSBC gets loans of £5.5bn and deposits of £6.7bn for less than the price of a Creme Egg https://twitter.com/...
@edconwaysky Ed Conway on x
Statement from @bankofengland: https://twitter.com/...
@drsdeg Stephanie deGiorgio on x
If only they put this much effort into saving their vulnerable populations from harm and making sure kids had food to eat. https://twitter.com/...
@paulbranditv Paul Brand on x
HSBC sale of SVB done. Huge relief for tech sector and a win for a govt desperate to re-establish the Conservatives' economic credibility after last autumn's events. https://twitter.com/...
@justin_cash_1 Justin Cash on x
“The HSBC takeover looks like a quick and clean solution,” Sir Keith Skeoch tells me. “However, SVB's issues also provide a timely reminder that at times of stress threats to critical economic services can come from outside the ring-fenced banks.” https://twitter.com/...
@nickmacpherson2 Nick Macpherson on x
A very good outcome confirming that the recovery and resolution regime works, and that SVB UK was sufficiently well regulated to have value despite the travails of its parent. Congratulations to the Bank of England and HMT. https://twitter.com/...
@bondhack Robert Smith on x
Bank of England announces that Silicon Valley Bank UK had £6.7bn of deposits when it collapsed, confirming FT reporting over weekend that it had “nearly £7bn” Understand it lost billions of pounds in deposits ahead of this! https://twitter.com/...
@degenspartan @degenspartan on x
kinda fucked up no one offered me i wouldve easily paid at least $2 https://twitter.com/...
@edwinhayward @edwinhayward on x
Even though HSBC is stepping in to buy SVB UK (wiping out shareholders) we shouldn't lose sight of the fact that the Institute for Economic Affairs were advocating that the business should have been allowed to fail, ie that thousands of tech firms should have been put at risk. ht…
@jason @jason on x
YOU SHOULD BE ABSOLUTELY TERRIFIED RIGHT NOW — THAT IS THE PROPER REACTION TO A BANK RUN & CONTAGION @POTUS & @SecYellen MUST GET ON TV TOMORROW AND GUARANTEE ALL DEPOSITS UP TO $10M OR THIS WILL SPIRAL INTO CHAOS
@jason @jason on x
ON MONDAY 100,000 AMERICANS WILL BE LINED UP AT THEIR REGIONAL BANK DEMANDING THEIR MONEY — MOST WILL NOT GET IT THIS WENT FROM SILICON VALLEY INSIDERS ON THURSDAY TO THE MIDDLE CLASS ON SATURDAY — MAIN STREET FINDS OUT MONDAY https://twitter.com/...
@billackman Bill Ackman on x
This was not a bailout. During the GFC, the gov't injected taxpayer money in the form of preferred stock into banks. Bondholders were protected and shareholders were diluted to varying degrees. Taxpayer money was put at great risk. Many people who screwed up suffered minimal to..…
@carlquintanilla Carl Quintanilla on x
“.. Startups that didn't have business accounts at other banks sent their funds anywhere they could. ‘They were wiring to their law firms’ bank accounts and, get this, into the CEO's bank account,' ..” ⁦@WSJ⁩ $SIVB https://www.wsj.com/...
@evanhill Evan Hill on x
The learn to code VC genius types wiped out their own troubled but probably ultimately solid bank because they were all in a group chat together and panicked. https://twitter.com/...
@rachelensignwsj Rachel Louise Ensign on x
It was the first bank run ever organized over Slack. Our play-by-play of how VCs and start-ups yanked an extraordinary $42 billion from SVB in one day. https://www.wsj.com/... via @WSJ
@nic__carter @nic__carter on x
Far right and far left both delighting in the prospect of 60k businesses not making payroll next week: progressives because they hate tech and VC sector. Alt right because they consider SVB woke capital. both factions hate the status quo and want to “burn it all down”
@davidsacks David Sacks on x
We've reached a point of political division where it's fine to root for members of another tribe losing their bank deposits—even though you would protect members of your own tribe in the same situation. Be careful what you wish for because the shoe may soon be on the other foot.
@molly0xfff @molly0xfff on x
listen, it's just a little difficult to take seriously some of these VCs and execs who are panicking about SVB under the guise of being worried about the employees and the little guys https://twitter.com/...
@buccocapital BuccoCapital Guy on x
Mission accomplished https://twitter.com/...
@thestalwart Joe Weisenthal on x
A dimension to this story that we can't forget. Many of the leading folks in the industry that now wants Powell to step up and protect them spent the last 5 years telling lies and breeding cynicism about the Fed as pretext to sell cryptocurrencies to retail bagholders.
@jason @jason on x
Thank the Lord that our government was able to navigate this situation with only two banks going under — this was about to spiral out of control.
@andrewrsorkin Andrew Ross Sorkin on x
It is a bailout. Not like 2008. But it is a bailout of the venture capital community + their portfolio companies (their investments). That's the depositor base of SVB. It is the right thing to do in the moment, but there will be ramifications + new regs. VC's should say thank you
@chimeracoder @chimeracoder on x
This is wild. Particularly the part where he says “my friends and I coordinated a bank run” followed by “so then I bought shares of the bank thinking I could profit off the run”. https://twitter.com/...
@repthomasmassie Thomas Massie on x
Let's review the Federal Reserve Bank's many roles, & how each of them enabled the SVB failure/malfeasance: (1) Santa Claus. By keeping interest rates artificially low, FED stimulated the economy, & nudged those with capital into the VC space creating demand for a bank like SVB.
@paul_bowers @paul_bowers on x
Don't know about y'all, but my family has never had $250K in savings, so I think we're ok actually https://twitter.com/...
@lalehkhalili Laleh Khalili on x
My god. This guy is not only a venal, panicky dude dependent on a bailout from the government his libertarianism supposedly abhors, he also doesn't give a shit or know about the people he is yelling about. Otherwise he would have spent his own money covering payrolls. https://twi…
@bigblackjacobin Edward Ongweso Jr on x
it wasn't. you guys cried and screamed for four days because you didn't understand you were almost certainly going to be made whole, invoking hysteria about bank runs and feigning concern about workers https://twitter.com/...
@pt Parker on x
LOL, no. VCs aren't blaming each other for acting rationally. Is there a German word for being so anti-capitalist that you blame regulatory failures on markets, ironically making it less likely you get effective regulatory reforms of them evil markets. https://www.ft.com/... http…
@jason @jason on x
1. 2 banks collapsed in 48 hours 2. FED waited until before markets opened in Asia to announce a blanket backstop for all depositors 3. Downstream effects were instantly felt: payrolls systems, Etsy, etc It would have been 20 banks in a week & chaos if they did nothing
@vivekgramaswamy Vivek Ramaswamy on x
Puppet master now applauding the puppet. You spent all weekend stoking bank run fears in America to justify a bailout. SVB argued for lower risk limits because it supposedly wasn't “systemically important.” Now you argue the opposite. Pathetic hypocrisy. But congrats. It worked. …
@davidsacks David Sacks on x
Kudos to @RoKhanna. Every word of this is true. Decisive action is needed to protect the regional banking system. The run on other banks has already started. https://twitter.com/...
@antoniogm Antonio García Martínez on x
Well, now we all know who in the tech world we'd want to have in the post-shipwreck lifeboat and who we'd throw over the side.
@noahpinion Noah Smith on x
My next SVB post is going to be about this whole episode is a loss for the VC/startup industry. They think they've been saved and everything is back to normal; in fact, a minor financial disturbance (which they helped cause by tweeting panicky stuff) will cause them to be viewed.…
@maxkennerly Max Kennerly on x
.@nytimes, if you're quoting a VC saying Silicon Valley Bank was a “systemically important financial institution,” you should note that SVB lobbied to make sure it was not considered one, and nobody in the VC world said otherwise. https://www.nytimes.com/... https://theintercept.…
@divestech Dan Ives on x
Hearing from many startups and VCs we know well over the weekend around this SVB disaster. The damage done here is almost hard to comprehend for many of these tech startups that battled in this market and got funding and now locked out of their bank accounts with uncertain future
@devahaz Deva Hazarika on x
Plenty of dumb takes to go around on all sides, but the VCs yelling loudest about this SVB situation come off as hysterical people used to always getting what they want
@dannypage Danny Page on x
Glad that all these VCs & CEOs keep showing concern for the employees who might not get paid because of the SVB collapse. I eagerly await their efforts to also make the social safety net better and embrace Universal Healthcare.
@nickcho Nick Cho on x
Some say the SVB collapse is about greedy VCs who brought this upon themselves, while others say it's about middle-class ppl & small biz owners who deserve sympathy. There are other takes as well. Why is it that we can't seem to acknowledge that it's all of those at once?
@epicureandeal Ted on x
Kudos, by the way, to the VCs who are advancing short term 0%, no-terms loans to their portfolio companies (and not their portfolio cos?: Sam Altman) to make payroll until SVB depositors' money is released. That's the right way to handle this kind of crisis.
@epicureandeal Ted on x
I do feel sorry for my partners in the tech banking group. They're undoubtedly having a lot of very emotional, irrational, and unproductive conversations with their clients this weekend about what they can (can't) do to save them. 🧐 https://twitter.com/...
@jspujji Jesse Pujji on x
I hope this isn't true but I've heard from a few places that several cross over funds shorted SVB then started the panic/told their portcos and other VCs to pull $ from the bank.
@espiers Elizabeth Spiers on x
Yes, it does. Retail investors are not worried that the FDIC won't insure deposits up to 250k. SVB's risk was concentrated almost exclusively in the tech sector—and partly because top tier VCs insisted their portfolio companies use them for banking. https://twitter.com/...
@gritgrowthcap @gritgrowthcap on x
The sad reality is that this SVB debacle happened primarily because VCs specialize in passing the bag - and thus are deeply fearful of being caught holding it
@jbarro Josh Barro on x
VCs believing they caused the SVB bailout by whining on Twitter and Elon being willing to pay $44 billion for Twitter are related phenomena
@bigmeaninternet Malcolm Harris on x
Interesting that no one in Silicon Valley had the juice to get everyone together and solve this thing without the government. Capital is not sending its best.
@verashokina Vera Shokina on x
This is a great initiative by VC3 DAO, a community of VCs many of who I have known personally for many many years. They started fundraisign campaign. You can buy NFT or become an accredited investor. The funds will be used to support SVB or affected startups. https://twitter.com/…
@gumby4christ @gumby4christ on x
The “systemic risk” of SVB as I see it is this: VCs were requiring startups to bank with SVB, so if companies were to lose their deposits (over $250k), they'd have pretty legit causes of action against those VCs. Bailing out SVB means protecting VCs from death by 1,000 lawsuits.
@ddayen David Dayen on x
VCs *required* that all money from its startups be placed at SVB. I don't know the reason—that needs more reporting. But ICS doesn't appear to have been an option, though it seems SVB had the functionality (it either wasn't advertised much, or actively discouraged by VCs)
@vivekgramaswamy Vivek Ramaswamy on x
There's something very ugly happening right now: VCs & startup execs who stand to lose their deposits at SVB are going *out of their way* to push a narrative that there'll be a bank run on Monday if SVB depositors aren't bailed out by the government. They're yelling fire in the..…
@pwnallthethings @pwnallthethings on x
VCs suddenly having great concern over employees potentially losing out in SVB would have a bit more credibility if they hadn't been collectively going out of their way to organise mass layoffs since Jan
@katienotopoulos Katie Notopoulos on x
There should be no mercy for fatcat VCs and techbros! *taps earpiece* whats that? BuzzFeed banked at SVB? I call on Biden and Congress to bailout the bank immediately and uh make sure I get my paycheck on the 15th
@nicoleperlroth @nicoleperlroth on x
Silicon Valley law firms are now making lists of individuals who resigned from boards last week, because they didn't want to get stuck with the liability, and VCs who catalyzed SVB's bank run, so they can advise clients to never do business with those people/firms again. Good. ht…
@smtuffy Sean Tuffy on x
A handy rule of thumb for dealing with the SVB discourse is to assume all the VCs are engaging in bad faith and are being deliberately misleading, if not outright lying
@chrismohney Chris Mohney on x
people thinking Peter Thiel should be ashamed by insitgating a bank run and consequent financial carnage need to understand he's the kind of guy who would somehow find a way to make the trolley problem train kill everyone on both tracks
@leehepner Lee Hepner on x
Potential theory of liability if SVB and VCs compelled startups into exclusive banking at SVB in exchange for VCs receiving favorable mortgage and other lending rates. https://twitter.com/...
@davidsacks David Sacks on x
The problems in our banking system aren't over. They're just getting started. But at least now we have some amount of time to deal with them. (H/t @balajis) https://twitter.com/...
@danteatkins @danteatkins on x
These VC genius types are a grotesque combination of full of themselves and amazingly stupid that I want them to suffer. The moron Evan is quote tweeting literally bought shares of SVB DURING THE MIDDLE OF THE BANK RUN because he thought he was getting a great deal. Idiot. https:…
@galois_capital @galois_capital on x
Jason, I will make you a deal. FDIC guarantees up to $5m per account at all banks going forward, but not including SVB depositors. Contagion stops, but SVB depositors take full haircut. Also, FTX victims get 50% bailout. Deal? https://twitter.com/...
@mattbinder Matt Binder on x
perhaps the VCs screaming about how the government should step in and save them after SVB's collapse should just try getting a second job? https://twitter.com/...
@adamjohnsonnyc Adam H. Johnson on x
this punitive asshole spends years hyping every petty crime in California demanding prison time for shoplifting, dumping millions into recalling reform prosecutors then gets ratio'd on Twitter for 48hrs and has the gall to play the “why is everyone such a meanie” card. https://tw…
@hoofnagle Chris Hoofnagle on x
“...consider that VC has pumped and dumped nearly every industry it could get its hands on over the past decade. Now, with crypto exiting the market stage left, there is only one industry remaining to “disrupt”: venture capital itself. Even if https://www.ft.com/...... https://tw…
@carnage4life Dare Obasanjo on x
The hard part in finding a buyer for Silicon Valley Bank won't be one that will make depositors whole after sale of SVB's assets. It's having to take on the entitled VC and founder class as customers who then expect the finance version of backrubs in the office & catered lunches.…
@mclendaniel Morgan Clendaniel on x
One thing I'm confused about from some VC rhetoric When high interest rates lead to SVB collapse and that's going to cause tens of thousands of layoffs, that's bad. But when high interest rates led big tech to lay off tens of thousands, that was good because they were bloated?
@mattdpearce Matt Pearce on x
I was curious how it came to pass that the leaders in Silicon Valley, after four decades of partnership with SVB, organized themselves to eradicate their own longtime bank practically overnight, but this gives me a taste. Thank you. https://twitter.com/...
@carnage4life Dare Obasanjo on x
Between crypto and SVB, we've learned that the job of a VC is to wire rich people's money to startups but they don't understand how money or banks work. But at least we can trust them to discern which are the right technology ideas to invest in. Right? 🤦🏾‍♂️
@rohunjauhar @rohunjauhar on x
1 man saved the economy this weekend. thank you @Jason https://twitter.com/...
@davidsacks David Sacks on x
When do all the angry recriminations start over the “bailout” of Signature Bank depositors? What's the matter, Twitter mob, cat got your tongue? https://twitter.com/...
@thelincoln Lincoln Michel on x
Last week: “lmao sux 2 b a peasant but our AI start ups are going to replace every job ha ha learn to code worm 🤑” This week: “You have to bail out our Silicon Valley start ups how can you be so ungrateful for all we've done for you??? 😭”
@carnage4life Dare Obasanjo on x
“If the government doesn't bail out SVB, I'll withdraw my money from every bank and store it under my mattress. That'll show them.” - VCs https://twitter.com/...
@f_j_j_ Francis Jervis on x
This tweet is going to age like fine piss https://twitter.com/...
@poordart @poordart on x
Imajin being a crypto startup in 2023, but so uninspired by the idea of crypto that you dont hold at least some funds in ETH and BTC in a multi-sig And imajn being a VC investing in such a project ... just for them to lose your money in FTX/SVB/some stable farm lmwo Gross https:/…
@sineados1 @sineados1 on x
My latest on SVB, in the FT: https://twitter.com/...
@bigblackjacobin Edward Ongweso Jr on x
Are VCs just pretending they don't know how the FDIC works or are they actually this stupid? https://twitter.com/...
@silvermanjacob Jacob Silverman on x
This is ridiculous. The loudest voices of panic are coming from the VC class whose fortune is connected to SVB — and who may have helped start this bank run! https://twitter.com/...
@alexroy144 Alex Roy on x
Lessons of SVB so far: 1) Being a VC ≠ good leadership qualities. Most VCs are followers. 2) Leadership doesn't necessarily translate across verticals/disciplines. 3) Having a large audience ≠ courage. 4) Wisdom = knowing when to STFU Let's grow this list.
@mattyglesias Matthew Yglesias on x
The issue with SVB is that the VC and startup communities and their social peers all clustered into this one bank to the point where it became awkwardly sized and the list of feasible buyers is very short. It's not bias or politics that makes it hard. It's just size.
@sarthakgh Sar Haribhakti on x
This is the new culture war the techies will be fighting now “But the reality is that if S.V.B. was just a small regional bank that did not have ties to loud, politically connected venture capitalists and the tech community, it might have been allowed to die — and its... https://…
@nfergus Niall Ferguson on x
Essential reading from @huwsteenis on the failure of Silicon Valley Bank and the lessons of Paul Volcker and Continental Illinois. The big difference between now and 1984 is that by that time Volcker had won the fight against inflation. https://twitter.com/...
@flying_mom @flying_mom on x
Leave to Mike Moritz to make the MPS example (he has a house in Tuscany so he knows the region well) SVB provided for tech when everyone else ignored us https://www.ft.com/...
@jpm25 Jamie Mcgurk on x
Not fun to think about the future of SV without SVB. https://twitter.com/...
@dsquareddigest Dan Davies on x
This seems .... hmmm. In the first place, are we really meant to believe that JP Morgan refused to open bank accounts for start-up companies? In the second place, if the tech companies loved it so much and had such a great relationship why did they run? https://www.ft.com/...
@johnthornhillft John Thornhill on x
Sequoia's Mike Moritz on the demise of Silicon Valley Bank https://www.ft.com/... https://twitter.com/...
@edsuh Ed Suh on x
Mike Moritz of Sequoia, eloquent as always “SVB provided for tech when everyone else ignored us” https://www.ft.com/...
@aphclarkson Alexander Clarkson on x
Manager of venture capital firm that bankrolled Sam Bankman Fried's FTX and other crypto players now praises Silicon Valley Bank as an institution close to its roots and customers and laments its collapse https://www.ft.com/... https://twitter.com/...
@rachaelrad Rachael Horwitz on x
“Small west coast technology companies were incomprehensible or insignificant to the large east coast banks whose customers included international airlines, heavy industry and nationwide retailers.” https://www.ft.com/...
@antoinegara Antoine Gara on x
Sequoia's Michael Moritz does a good job explaining how it was that a small community bank — not JPMorgan or Goldman Sachs — came to dominate one of the wealthiest corners on earth. https://www.ft.com/...
@jrichlive Jeff Richards on x
Well said https://www.ft.com/...
@traceyryniec Tracey Ryniec on x
Some perspective. It certainly is going to impact the tech community. Access to capital is so important. SVB provided for tech when everyone else ignored us https://www.ft.com/...
@jen_mcfadden Jen McFadden on x
This is the best summary I've seen yet of what I think went wrong and why a subset of VCs need to self-reflect and take some responsibility. They won't. But they should. https://twitter.com/...
@stratechery @stratechery on x
The End of Silicon Valley (Bank) Silicon Valley Bank bears responsibility for its demise, but it symbolizes a Silicon Valley reality that is very different from the myth — and the ultimate cause is tech itself. https://stratechery.com/...
@espiers Elizabeth Spiers on x
I found it. The dumbest SVB take. https://twitter.com/...
@deitaone @deitaone on x
SVB: Special Committee Will Explore All Options for Addressing $3 Billion of Funded Debt Held by Holding Company $SIVB

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The US Treasury, Federal Reserve, and the FDIC say all Silicon Valley Bank depositors will be “fully” protected, and their money will be available on March 13

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