Many VCs made banking at SIVB a condition of funding, hence the wipeout of so many startups.
The Hill
@thehill
McCarthy says he will "slowly roll out" Jan. 6 tapes to other news agencies
https://thehill.com/homenews/sunday-talk-shows/3896273-mccarthy-says-he-will-slowly-roll-out-jan-6-tapes-to-other-news-agencies/
https://twitter.com/thehill/status/1635016827901296646
Not Jerome Powell
@alifarhat79
The Fed trying to control the SVB situation before the market open pic.twitter.com/N4vIAFKVls
https://twitter.com/alifarhat79/status/1635002612104974336
Ackman has ~10% of AUM at SIVB, so he's got some skin in the game, or "at risk", more properly.
Gunjan Banerji
@GunjanJS
Email to First Republic clients Sunday afternoon
https://twitter.com/GunjanJS/status/1635018385372372992
He had 10% of his AUM at SIVB, as an unsecured deposit.
They are being unwound. Nobody bid on their Wealth Mgmt Team, so to the breakers they will go.
George Hamilton.
FSMN - Unusual Whales
@faststocknewss
HSBC Holdings has emerged as a potential ‘white knight’ bidder for the UK arm of Silicon Valley Bank, Sky reported - BBG
https://twitter.com/faststocknewss/status/1635021989441314818
kek. A whole slate of self-lovers!
Up to the judge handling their receivership.
Actually they're a bit bid at the moment.
Oh no, this was entirely self-inflicted.
Swiss regulators are notoriously tight lipped. That the Annual Report was delayed by them from even being published, tells me that there is a world of pain still to come.
Exactly!
Jason Zweig
@jasonzweigwsj
ALL CAPS SVB SOMETHINGSOMETHING PANIC BECAUSE FED FUD YADAYADA BANK RUN SOMETHINGSOMETHING YADAYADA SVB PANIC
TRUST ME I KNOW WHAT I’M TALKING ABOUT
https://twitter.com/jasonzweigwsj/status/1634927206634864640
[That's funny coming from the WSJ!]
Outstanding soundtrack to that.
The_Real_Fly
@The_Real_Fly
BILL ACKMAN ADMITS TO HAVING INDIRECT EXPOSURE TO SVB
https://twitter.com/The_Real_Fly/status/1634715702006300674
G.H. Burns, CFA @GHBurnsCFA
now
“Your money’s all in agency MBS marked way above market. But you gotta understand, I took your deposits when Mr. Potter wouldn’t because he’s gotta deal with those Basel III capital requirements for commercial deposits. That’s why you all came to me in the first place, remember?”
Andrew Kloster @ARKloster
"You're thinking of this place all wrong! as if I had your money back in the safe. Your money is in Suneel’s CIA startup; in Willow’s diverse corporate boardroom; your money is in the remote work environment of the ad tracking polycule…”
https://twitter.com/GHBurnsCFA/status/1635029752238186498
Too funny!
Nope, white horses emerging from the dust cloud::
Reuters U.S. News
@ReutersUS
Exclusive: PNC, RBC interest in SVB cools as regulators seek rescue bids
https://www.reuters.com/business/finance/pnc-rbc-interest-svb-cools-regulators-seek-rescue-bids-sources-2023-03-12/
https://twitter.com/ReutersUS/status/1635030460047802370
These are the right bidders for this.
It's worse than that. It's client money, and he's the fiduciary for it.
Tell your clients you lost it in SIVB….
Now this is contagion::
The Ag Strategy
@TheAgStrategy
Did you know that #Wheat 🌾, #Corn 🌽 & #Soybeans 🌱plummeted by almost 35% during the 2008 financial crisis caused by the US banking system's collapse? History could be repeating itself!?? #oatt #AgTwitter
https://twitter.com/TheAgStrategy/status/1635035691997593600
Collateral more important for bank solvency than clients' trades.
What is "Float" and why does it matter?
That's not what sudden loss of collateral means, but nice try.
kek
No, it's the legal limit banks can use your deposit for their own funding purposes before journaling it to your account. Used to be a 3 business day limit until Durbin had it widened to 10.
Commodities trade on margin, ergo collateral is required, not cash. Closing out client positions frees up collateral for other purposes. Goldman stole all of Lehman's collateral by not honoring ANY Repo and kept the collateral.They also stole AIG's equity portfolio to cover their naked shorts by asking for borrows, and never returning any of the shares. That's why AIG had to be bailed out, as an insurer, lest Geithner expose that GS was the real Thief Of Gotham and was the one that should have failed, instead of their hated rival, Lehman (despite Fuld being an idiot).
Chatter has it as HSBC, not the cleanest shirt in the laundry.
Joint Statement by Treasury, Federal Reserve, and FDIC
Department of the Treasury
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
For release at 6:15 p.m. EDT
Washington, DC – The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg:
"Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.
After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. 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."
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm
Read the whole thing.
"We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.
Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today's actions demonstrate our commitment to take the necessary steps to ensure that depositors' savings remain safe."