Discussion

• @stevenkelly49 Steven Kelly on x

  A lot of talk over whether SVB “should” get a “bailout,” but it's worth outlining that it might not be able to without legislation. Crisis-fighters' authorities were curtailed following 2008. The Fed and Treasury almost certainly can't rescue SVB now. Maybeeee the FDIC... [1/x]

• @jayparsons Jay Parsons on x

  As Signature Bank board member Barney Frank told the Wall Street Journal: “It was an SVB-generated panic. We were fine until the last couple of hours on Friday.” (Interestingly, Frank is also the former congressman who co-authored the landmark Dodd-Frank legislation on...

• @mikiebarb Michael Barbaro on x

  The revolving door rarely leaves lawmakers on the right side of history. $$$$$$$$$$ https://twitter.com/...

• @rebeccaballhaus Rebecca Ballhaus on x

  “All seven of Silicon Valley Bank's registered lobbyists last year previously held government positions, according to public records.” https://twitter.com/...

• @joenbc Joe Scarborough on x

  “Banks now facing crises of confidence are the same ones that in recent years were telling lawmakers and others that they were sufficiently safe and that they should not be the focus of zealous federal supervision.” https://www.nytimes.com/...

• @deitaone @deitaone on x

  WARREN CALLS ON POWELL TO RECUSE HIMSELF FROM FED REVIEW OF SVB

• @joebiden Joe Biden on x

  During the Obama-Biden administration, we put tough requirements on banks like Silicon Valley Bank and Signature Bank—including the Dodd-Frank Law to make sure the crisis we saw in 2008 would not happen again. The last administration rolled back some of these requirements.

• @tristansnell Tristan Snell on x

  1776-1933 - major bank crisis every 10 years 1930s - FDR bank rules enacted 1930s-1980s - no major crisis 1980s - rules rolled back 1980s-2010 - major crisis every 10 years 2010 - Dodd-Frank rules enacted 2010-2018 - no major crisis 2018 - rules rolled back 2023 - crisis?

• @keitholbermann Keith Olbermann on x

  SVB collapsed because not from too much “Wokeness” but from too much of @SpeakerMcCarthy's minions @kenklippenstein explains: https://theintercept.com/... https://twitter.com/...

• @andrewrestuccia Andrew Restuccia on x

  “The 2010 Dodd-Frank legislation set tougher regulatory safeguards on banks with more than $50 billion in assets. After leaving office and joining Signature's board, Mr. Frank publicly advocated for easing those new standards for smaller banks.” @bykowicz https://www.wsj.com/...

• @eliotwb Eliot Brown on x

  Barney Frank in Congress: Tighten bank rules Barney Frank while on board of Signature Bank: Loosen some bank rules @bykowicz https://www.wsj.com/...

• @markfollman Mark Follman on x

  “Barely a week after taking office, Trump called Dodd-Frank “a disaster” and told reporters “we're going to be doing a big number on” the law. His top officials, many of whom had worked in or adjacent to the banking industry, began loosening the reins.” https://www.nytimes.com/..…

• @davidsirota David Sirota on x

  Barney Frank supported the rollback of his own law while on the board of a bank that just collapsed https://twitter.com/...

• @liz_franczak Liz Franczak on x

  barney frank on the board of a failed bank, couldn't script it better

• @unusual_whales @unusual_whales on x

  Woah. Asked why Signature Bank, $SBNY, was closed, board member and former congressman Barney Frank said, per CNBC: I think part of what happened was that regulators wanted to send a very strong anti-crypto message.

• @thestalwart Joe Weisenthal on x

  Had no idea — and I think it's quite a twist — that Barney Frank ended up on the board of a crypto bank. https://twitter.com/...

• @tphillips Todd Phillips on x

  Was just reminded that Barney Frank is on Signature's board, and supported S. 2155 (the 2018 Dodd-Frank partial rollback law)

• @jstein_wapo Jeff Stein on x

  Here's a story I wrote 5yes ago about Barney Frank — earning +$1 million on Signature Bank's board — using his name as author of Dodd-Frank to push a bipartisan bill to deregulate Signature Signature failed yesterday & the FDIC will cover its depositors https://www.washingtonpost…

• @sullycnbc Brian Sullivan on x

  WOW: Former Congressman Barney Frank - for whom the “Frank” in Dodd-Frank bank regulation bill was named - has been working to *ease* bank regs since joining board of Signature Bank. More on @LastCallCNBC 7p ET tonight https://www.wsj.com/...

• @frognews @frognews on x

  SVB would have passed the Dodd Frank Stress Test 2 days before it failed.. https://twitter.com/...

• @stevenkelly49 Steven Kelly on x

  But, couldn't it set up the Silicon Valley Emergency Liquidity Facility - making assistance broadly available? Dodd-Frank also forbade the Fed from assisting insolvent entities. The Fed has flexibility in defining “insolvent,” but the SVB's state regulator declared it insolvent: …

• @markmobility Mark Elliott on x

  Two former staffers for Kevin McCarthy were among top lobbyists SVB used to press Congress to roll back Dodd-Frank protections in legislation Trump signed into law in 2018. Very underreported. https://theintercept.com/...

• @rokhanna Ro Khanna on x

  A thread on some of my takeaways from the SVB collapse. SVB is in my district, but I did not hesitate to tell them no when they lobbied hard for Donald Trump's bill to weaken Dodd-Frank. I voted against the bill. Too many Dems voted yes.

• @bykowicz Julie Bykowicz on x

  Sen. Elizabeth Warren sees a direct path from the 2018 Dodd-Frank rollback that Barney Frank and others pushed for and the collapse of Silicon Valley Bank and Signature Bank: https://www.nytimes.com/... https://twitter.com/...

• @bykowicz Julie Bykowicz on x

  Barney Frank's journey from Dodd-Frank to the board of now-failed Signature Bank is another example of Washington's well-worn revolving door https://www.wsj.com/...

• @bobbybigwheel Aaron on x

  [SVB lobbies to be exempt from Dodd-Frank and Peter Thiel tells everyone to make a run on it] This is because of Elizabeth Warren, to me https://twitter.com/...

• @stevenzzhou @stevenzzhou on x

  “One recent source of growth was cryptocurrencies; starting in 2018, the bank had been among the few lenders to accept deposits in the form of crypto assets. By Friday, concerns about the bank's exposure to cryptocurrencies had set off a deadly https://www.nytimes.com/...... http…

• @davidenrich David Enrich on x

  Officials at big banks pushed for weaker regulations. Lawmakers complied. Then the banks failed. This is a familiar pattern. https://www.nytimes.com/...

• @kenklippenstein Ken Klippenstein on x

  After successfully lobbying for repeal of key Dodd-Frank banking regulations, Silicon Valley Bank immediately began lobbying FDIC. Two of the lobbyists previously served as senior staffers for House Speaker Kevin McCarthy, who himself pushed for the repeal https://theintercept.co…

• @davidjadler1991 David Adler on x

  $SIVB. This is crazy. My understanding is that a lot of these assets have real value. https://www.wsj.com/...

• @osamabishounen Frank Furtschool on x

  you can argue its just harder to sell banks this size, but the SVB auction apparently closed yesterday with no bidders once potential buyers saw their books. theyre gonna try again and hope the unlimited deposit guarantee convinces someone to take it over https://www.wsj.com/...

• @osamabishounen Frank Furtschool on x

  im officially taking the L here, at this point its very weird that the FDIC hasnt announced a buyer for either SVB or signature. its the first (and second, respectively) time since 2012 theyve failed to line up a buyer by monday, and since 2008 for a bank anywhere near this size …

• @sarthakgh Sar Haribhakti on x

  “While none of the largest U.S. banks bid on SVB during a failed auction on Sunday, at least one offer was made by another institution, but it was declined by the FDIC, officials told lawmakers on Monday. The timetable for the second https://www.wsj.com/...... https://twitter.com…

• @ivanlevingston Ivan Levingston on x

  VCs including General Catalyst, Andreessen Horowitz and Khosla Ventures are discussing ways to salvage parts of SVB. One possible partner is Apollo. Scoop from ⁦@GeorgeNHammond⁩ ⁦@ArashMassoudi⁩ ⁦@Tabby_Kinder⁩ ⁦@sindap⁩ https://enterprise-sharing.ft.com/ ...

• @arashmassoudi Arash Massoudi on x

  New VC firms are working on a long-shot plan to preserve parts of Silicon Valley Bank so it can keep serving clients in the tech sector One of the proposals being discussed is forming a consortium w/ Apollo Scoop w @GeorgeNHammond @Tabby_Kinder @sindap https://www.ft.com/...

• @janewells @janewells on x

  I'm having acid flashbacks of $JPM buying Bear and WaMu, and $BAC buying Merrill and Countrywide. No wonder there are no bidders. “FDIC planning another Silicon Valley Bank auction” https://www.wsj.com/...

• @hosseeb Haseeb on x

  Seems more likely it will get sold now. After the Monday mayhem, FDIC has authority to add more aggressive sweeteners. https://www.wsj.com/...

• @georgenhammond George Hammond on x

  Scoop: Having been accused of precipitating a run on SVB last week, venture capital firms are contemplating whether they can salvage the bank this week. With ⁦@ArashMassoudi⁩ ⁦@Tabby_Kinder⁩ and ⁦@sindap⁩ https://www.ft.com/...

• @smtuffy Sean Tuffy on x

  I mean, they just spent the last two days demonstrating they have literally no idea how banking works. https://twitter.com/...

• @priyanshi50 Priyanshi Sharma on x

  ‘Business as usual’ - Silicon Valley Bank's new CEO Tim Mayopoulos writes a letter to clients. Letter adds, ‘Cross-border transactions are expected to continue in the coming few days. Depositors now have full access to their money’ #SVB https://twitter.com/...

• @nmasc_ Natasha Mascarenhas on x

  The surreal weekend continues: SVB's new CEO is welcoming new deposits in letter to clients saying ‘We are conducting business as usual.’ https://techcrunch.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/...

• @douglas4moray @douglas4moray on x

  Quick action by @Jeremy_Hunt and @RishiSunak has protected the Scottish and UK Tech sector and the hundreds of Scottish jobs and businesses that rely on it. 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/ ...

• @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…

• @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.

• @nic__carter Nic Carter on x

  Dear God. Barney Frank openly admits that Signature was arbitrarily shuttered despite no insolvency because regulators wanted to kill off the last major pro-crypto bank. Colossal scandal https://www.cnbc.com/... https://twitter.com/...

• @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.

• @coinbase @coinbase on x

  As of close of business Friday March 10 Coinbase had an approximately $240m balance in corporate cash at Signature. As stated by the FDIC, we expect to fully recover these funds. https://www.federalreserve.gov/ ...

• @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.

• @jessicalessin Jessica Lessin on x

  For @wsj to say flat out that SVB could have failed because they added non-white men to their board shows how far behind the times (and certifiably stupid) this publication really is. It makes me so angry and very sad. WSJ readers and staff deserve better. https://twitter.com/...

• @samro Sam Ro on x

  lotta banks getting smoked https://finance.yahoo.com/losers https://twitter.com/...

• @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/ ...

• @billackman Bill Ackman on x

  Our economy will not function effectively without our community and regional banking system. Therefore, the @FDICgov needs to explicitly guarantee all deposits now. Hours matter. We also need a modern version of our deposit insurance regime, but that will take some time, and... h…

• @elaifresh Elai on x

  This TikTok is actually an incredible summary https://twitter.com/...

• @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.

• @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…

• @gavinsbaker Gavin Baker on x

  Wild. https://twitter.com/...

• @litcapital @litcapital on x

  SVB depositors on Friday vs. SVB depositors today https://twitter.com/...

• @gbildson Greg Bildson🐀 on x

  TIL https://finance.yahoo.com/losers https://twitter.com/...

• @scottjshapiro Scott Shapiro on x

  Bank runs are significant because banks are where people keep their money.

• @burryarchive @burryarchive on x

  https://twitter.com/...

• @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.

• @jeuasommenulle JohannesBorgen on x

  Why did the Fed ditch its moral hazard rethoric so quickly ? Concern about the silicon valley ecosystem or contagion to other regional banks is a possibility. But this is a possibility too. Maybe they don't want to be forced by the market into a no hike scenario https://twitter.c…

• @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…

• @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/ ...

• @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.

• @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…

• @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:

• @semil @semil on x

  “We can't rely on market discipline now, we're gonna have to rely more on regulatory discipline.” - Larry Summers today: https://www.youtube.com/...

• @tracyalloway Tracy Alloway on x

  Internal Silicon Valley Bank documents show the bank debating whether to cut back on bond risk as early as 2020. The catch: millions of dollars worth of lost income. https://www.bloomberg.com/... with @jennysurane & @kjspeakstruth https://twitter.com/...

• @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.

• @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:…

• @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.

• @danprimack Dan Primack on x

  FDIC should publicly say who made the bid and why it was rejected (or at least the latter, if the exact name is subject to an NDA). https://twitter.com/...

• @cburniske Chris Burniske on x

  “I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” Frank said. “We became the poster boy because there was no insolvency based on the fundamentals.” https://www.cnbc.com/...

• @cburniske Chris Burniske on x

  For his part, Frank, who helped draft the landmark Dodd-Frank Act after the 2008 financial crisis, said there was “no real objective reason” that Signature had to be seized. https://www.cnbc.com/...

• @texasvc Aziz Gilani🫡 on x

  2/ For more context SVB had $342B in client funds. It was brought down by $42B in withdrawals. Some VCs hit the panic button, many didn't.

• @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/

• @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/ ...

• @ingridlunden Ingrid on x

  The VC division has $9.5B in assets under management. The Securities team worked with 500+ businesses on nearly 700 deals. Wonder who will be snapping them up. https://twitter.com/...

• @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/...

• @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.”

• @lloydblankfein Lloyd Blankfein on x

  A few banks may have issues like SVB, but only a few. Govt actions removed reasons for bank runs. Biggest banks have much tougher regulation and stress testing. Anxiety and volatility high, but sharply lower interest rates, fed likely on hold, are strong positives for markets.

• @gavinsbaker Gavin Baker on x

  Impressive. https://twitter.com/...

• @nycsouthpaw @nycsouthpaw on x

  *doing a press conference* We are pleased to announce the cost will not be borne by US taxpayers, but uhh by *flipping through back pages of binder* well, yes, ah hah!, indirectly, by the ... customers of the US banking system. So errrrm that's pretty much the same thing.

• @charliebilello Charlie Bilello on x

  The 2-year US Treasury yield is down over 100 bps in the last 3 trading days (5.05% -> 4.04%), the largest 3-day decline in yields since the October 1987 stock market crash.

• @salehamohsin Saleha Mohsin on x

  Biden says investors in the failed banks will “not be protected” “They knowingly took a risk and when the risk didn't pay off investors lose their money. That's how capitalism works” https://twitter.com/...

• @dogetoshi Steven on x

  You, a banker, holding decades old institutions: -50% Me, an idiot, holding digital magic beans founded by a 15 year old yesterday: +500%