pugson pfp
pugson
@pugson
what's the deal with svb? genuine question, i am very out of the loop.
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Dan Romero pfp
Dan Romero
@dwr.eth
Significant portion of SV capital stack is at SVB β€” startups, VCs, etc. They had a bank run. Today they were shut down by the government. TBD on what happens next. A lot of startups don’t have access to money for payroll.
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Ashinthewild pfp
Ashinthewild
@ashinthewild
Got caught swimming naked while getting a handy from an octopus, but where there could have been a well organized and timed pull back of the water.... Moral of the story, dont go to wave pools.
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Noah Bragg 🐟πŸ₯” pfp
Noah Bragg 🐟πŸ₯”
@nbragg
Best thread I've found on it. https://twitter.com/jamiequint/status/1633956163565002752
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emma pfp
emma
@emmabwaldron
here’s a good summary: https://twitter.com/marcruby/status/1634255862075105292?s=48&t=a_kauyCRGp_oUYHQ0s6SYg
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Adrian pfp
Adrian
@maurerbot
AFAIK some analyst put a large portion of the balance sheet into 10 year treasury bonds with at a lower interest rate than could be paid on deposits. To cover losses SVB started selling stock but it was already too late. Lack of confidence triggered a bank run and the FDIC had to step in and shut them down.
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Joe Blau 🎩 pfp
Joe Blau 🎩
@joeblau
- They got more money then they ever had - they locked up 80bn in Mortgage Backed Securities for 10 years at the top of the market - Jerome Powell raised rates - Their investments went negative - borrowing money costs more than their interest - They don’t have any liquid money left and nobody gave them a loan
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dylan pfp
dylan
@dylsteck.eth
By 2021 deposits had grown from $60B to $180B in 3 years. They were growing so fast they couldn’t loan out $ fast enough, so they bought $80B of mortgage backed securities. As interest rates rose and tech was struggling a bit more, SVB thought they’d need to sell their MBS’ to cover withdraws and potentially…
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Daniel LombraΓ±a pfp
Daniel LombraΓ±a
@teleyinex.eth
On top of what everyone has said, I discovered that crypto like USDC is not covered by the warranty so lots of people could lose tons of money. https://forum.makerdao.com/t/emergency-proposal-risk-and-governance-parameter-changes-11-march-2023/20125
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