MrMan

yes its the inverted power law thing - the same dynamics that make 1/n approach work in a VC equity portfolio seems like poison in a debt portfolio - only one company out of n survives? fine if that company pops on the equity side, that pays for all the other losers. but on the debt side, it seems like a bad idea lol.

by tech savvy do you mean javascript?

do you know what you are talking about or are you just being dramatic

its impossible to guarantee all deposits

that money will be stolen from all the other banks customers. this is not a case of "hypocrisy" its theft.

If there is any bank that should be dismantled it’s CSFB but it’s survived this long by getting big enough that regulators are afraid to break it up

SVB was insolvent your statement is false

from the comments on HN it seems well-nigh universal.

it will directly cost all of us, except those who have no bank account. its unsustainable and wrong.

this is a lie - they were insolvent and their assets were worth less than their liabilities.

the assets certainly do not exceed their liabilities. stop spreading this lie!

this is a lie, you are trying to deflect blame on to the Fed to cover for the incompetence of the VCs their companies and the SVB bank. and the upvotes show how all your stupid peers in the tech world would rather tell themselves these lies than face up to their collective ignorance and hubris.

This paid astroturfing should not be the top comment.

False

This is False. They had the assets, but they declined in value until they were worth less than liabilities. Insolvency.

SVB was insolvent

tech / venture capital and other models that rely on ZIRP need to naturally die back and then re-emerge when the environment is more favorable for them.

that is a lie - the value of their assets is far below their liabilities. mods here need to somehow crack down on outright falsehoods

these VCs and tech billionaires increasingly show themselves to be the enemies of the rest of us. they will control the AI, and will become increasingly brazen in their efforts to enslave those who are not in YC or open AI or which ever cliques the cartels maintain. this is real survival stuff, but the people who need to regulate SV and tech are asleep at the switch and dont understand how dangerous the SV people are. if you work for them, good for you, but this is the beginning of a very bad chapter for the US.

those clauses are a sign that SVB and the VCs are in bed together and if you take their money and agree to these terms you are complicit too. the VCs used SVB loans to their portfolio companies to magnify the effective size of their funds without themselves taking on that leverage. SVB got massive interest income.

this is corrupt, the whole thing is corrupt.

there is no contagion except that spread by these fucking criminal VCs on twitter.

SVB was insolvent

this is so fucked I hate these evil SV libertarian crooks. this is wrong

the bank was closed by the FDIC due to insolvency

I am very interested in how that toxic loan portfolio is valued.

yes startups are a rickety vessel and they usually fail, we shouldn't pay for that

that's a lie. and if there is contagion it won't be stemmed by bailing you as a depositor out, we will need that money elsewhere to shore up the system. good luck to you

the depositors shouldn't get paid beyond what remains of the assets of the bank!!!

I mostly agree with this. these players should not be rewarded for using the deposits of the bank as a multiplier of their funds AUM, and the portfolio companies were pawns who willingly played along, or were ignorant and either way deserve to lose.

you are doing a pretty good job trying to explain away the officers of this bank running it into the ground. you havent even started to try to excuse their lending practices. what are you trying to accomplish? their CRO committed career-ending blunders and even with only short term securities on their books this bank could run into serious trouble simply by dint of their customer base all running into trouble at the same time, as is happening. why do you need to posture here man-splaining this shit incorrectly to people who dont know any better