Who is next as banks start having issues.
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It's a shame this happened to them. I just applied there about two weeks ago. So that's going nowhere now. I liked how the company is focused on climate change and DEI. Much more aggressive than WF.
Just gonna leave this here.
https://www.cnbc.com/2018/05/24/trump-signs-bank-bill-rolling-back-some-dodd-frank-regulations.html?&qsearchterm=rollback
Two, maybe three, things brought SVB down.
Panic was #1. If the VCs hadn’t urged their startups to pull their deposits, it would have been rough but wouldn’t have ended the bank.
#2 was bank management chasing yield for revenue and not minding the spread between deposits and long term assets. They were heavily invested in long term treasuries specifically to make more money than what short term treasuries offered but when interest rates went up, the yields on long term went down. Squeeze city.
#3 was greed. Greed of the VCs to get their money out while a solution was in motion - GS had found buyers for the stock raise until deposits dropped out and valuation cratered. Greed of the SVB management to chase the higher yield for revenue at a time when interest rates had nowhere to go but up which also, predictably, would put pressure on their customer base.
Good luck to all who were negatively impacted. Chances are still very good another bank buys their assets so there’s hope not everyone will be out of their jobs.
Opendoor, offerpad the proptech companies are stupid business model. A guy sitting in a computer can sell a real estate assuming everything is pretty and clean. It might have worked for few during covid when everybody feared to leave home. It is time to shutdown these ones. They were bothering me with letter offers . I wanted sue them for sending those offers ki-ling the local real estate. I am happy if they are gone for good. Lazy folks thinking everything can be done with technology. Hope nobody start a tech company ( SVB is gone so who will fund them now) that will plow and seed wheat from home replacing all farmers. Wake up citizens.
Their loss is our gain. Customers will run right into our arms for safety.
The SVB CEO made a boatload of money…. while he was… what? leading? managing risk?
Apparently, he and other other execs sold a lot of stock these past few days. Tired of guys with big egos getting together to agree they all need to get paid more just so they can milk the system and not adding any actual value.
Would not be surprised to see WF in the headlines (again) while some inept CEO sat around thinking about how important he is and sells off his stock before the bad news his public.
I thought that was illegal…. but I guess not for those who are already super-rich. And all the people harmed in their wake because these guys didn’t do their actual jobs will get jack skittles.
Some billionaires are saying SVB needs a bailout.
I will have a problem with that and I hope every American does as well.
I'd be fine with some support for the employees who do the actual work, helping them with bills and getting another gig.
But no more bailouts for exec's or investors.
Exec's that fail should not be rewarded, and investors should know that they may lose some of all of their investment.
Otherwise it's socialism for the rich.
A lot of WF people have gone to SVB. Good luck to them as they figure out next career steps.
Apparently they weren't "Too Big To Fail" ... like we are at WFC.
Oh well, sucks to be them!!
All fringe stuff here that doesn't fit the narrative with the rest of the financial sector.
Just saw them advertising on indeed.
It's a shame that fu---dcompany.com isn't around anymore. This story would have been fun.
They were not a typical deposit taking bank though. They were neck deep into VC activity.