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A comment on Changes at YC. Parent comment

Re:Changes at YC by matt_s on Tuesday March 14, 2023 @07:58AM (#35150103)
It doesn't need to be that elaborate. Funding a startup and strongly suggesting they bank at SVB and then YC invests in SVB, telling other VC's to invest in SVB is all the kick back you need. Stock goes up you sell off some or leverage that for loans to invest in more startups. Stock goes down, your loan leverage/assets are down and can't invest any more. I don't know if that's the case here, just saying this example isn't very complicated.

Also its not a coincidence that investors in SVB aren't getting money back from FDIC, only depositors, YC was an investor (and prob a depositor), they lost money and now have to lay people off. I would imagine other VC firms might be in the same scenario.

Later on, will this period of time be thought of as dot com bust 2.0?

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Re:Changes at YC by kortilla on Tuesday March 14, 2023 @10:31AM (#35152128)
That’s about the worst possible kickback scheme I can think of. Deposits drive so little of a bank’s profit that you would have to be the dumbest grifter in the world to setup such an expensive referral program with only the hope of stock appreciation.
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Re:Changes at YC by deetsb on Tuesday March 14, 2023 @12:35PM (#35154200)
*citation needed

Per SVB’s recent K, Net Interest Income: 4.065bn (after provisions) Non interest income: 1.728bn

Deposits fund the net interest income

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