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Re:SVB Securities Management Exploring Buying Firm Back by fsckboy on Sunday March 12, 2023 @03:55AM (#35117826)
insiders using inside information to cut themselves a sweet deal so we can all watch them get rich on the full faith and credit of the govt, and then I have to hear the majority of HN scream bloody-wealth-gap-murder and advocate trying to undo it with completely inefficient progressive tax policy on the rest of the economy? no thanks. Just shut it down and leave a relatively small number of rich people* not whole (*if you lost substantial assets beyond the FDIC limit in this bank, that means you had substantial assets ie rich, not my problem, I'm diversified. Who even keeps money in the bank anyway, it should always be invested.)
Re:SVB Securities Management Exploring Buying Firm Back by 0xB31B1B on Sunday March 12, 2023 @04:39AM (#35118050)
The large majority of accounts at SVB were held by businesses. The businesses need to make payroll. The problem is businesses not making payroll for their staff.
Re:SVB Securities Management Exploring Buying Firm Back by luckylion on Sunday March 12, 2023 @04:57AM (#35118131)
They'll certainly get bridge loans to handle that if they're fiscally sound. And there's no indication that "there's nothing left, and everyone has lost everything above $250k", it'll just take a while, and they might lose a few %.
Re:SVB Securities Management Exploring Buying Firm Back by startupsfail on Sunday March 12, 2023 @05:08AM (#35118166)
There are these $40b dollars that were transferred from the bank during bank run? Can maybe the the VCs responsible for the bunk run step in and pitch in 5% from that to fund the payroll?
Re:SVB Securities Management Exploring Buying Firm Back by JumpCrisscross on Sunday March 12, 2023 @06:49AM (#35118612)
SVB claims are trading around 60¢ on the dollar. Nobody should be more than a few days delayed on near-term payroll.
Re:SVB Securities Management Exploring Buying Firm Back by johnbellone on Sunday March 12, 2023 @08:46AM (#35119438)
Are uninsured deposits going to only receive 60¢ on the dollar?
Re:SVB Securities Management Exploring Buying Firm Back by dmurray on Sunday March 12, 2023 @09:26AM (#35119795)
The smart money (the people buying at 60c) presumably expects them to receive quite a bit more. Those selling at 60c are generally doing so because they are desperate for the cashflow. Likely the number will go up as more cautious/less nimble entities are able to evaluate the trade and decide they can buy the claims at a higher price.

I'd bet on 80%+ probability of uninsured depositors getting back 100c on the dollar, 99% they get back at least 60c on the dollar.

Re:SVB Securities Management Exploring Buying Firm Back by kasey_junk on Sunday March 12, 2023 @11:16AM (#35121030)
During IndyMac, widely considered the worst bank failure in the fdic regime, uninsured depositors eventually got back over 85% of their deposits.

They had 50% in hand the week after the receivership.

Re:SVB Securities Management Exploring Buying Firm Back by HWR_14 on Sunday March 12, 2023 @09:21AM (#35119749)
How can I buy those claims? While I certainly don't think it's 100%, I also thinks the redemption will be higher than 60%
Re:SVB Securities Management Exploring Buying Firm Back by ignoramous on Sunday March 12, 2023 @06:39AM (#35118564)
SVB also lent to VCs/PEs on behalf of LPs? Not sure how big that portion of their business was.
Re:SVB Securities Management Exploring Buying Firm Back by fsckboy on Sunday March 12, 2023 @08:47PM (#35128968)
actually, not making payroll is one of the conditions that can pierce the corporate veil, shareholders would need to pony up more money. But in the bankruptcy situation before that, payroll would be at the front of the line for the trustee to pay out to first, assuming some assets which of course there are.