Saturday, March 11th 2023
[Silicon Valley Bank Collapses, Causes Concern Within Tech Industry, Roku Divulges its SVB Investments](/305778/silicon-valley-bank-collapses-causes-concern-within-tech-industry-roku-divulges-its-svb-investments)
Technology Companies, Venture Capitalists and Startups are in panic after the collapse of Silicon Valley Bank on Friday, March 11, 2023.In the short term it will be a mess – customers of SVB have no access to FDIC insured deposits until Monday (March 13).Customers with investments below a $250,000 cap have been advised to make claims before a strict Monday deadline.The FDIC is forming plans to pay depositors, with investments greater than the aforementioned cap, a special dividend next week.Sources:
Entertainment Streaming company Roku has revealed, via an SEC filing on Friday, that it has $487 million deposited with the crumbling Silicon Valley Bank.That sum represents roughly 26% of Roku’s total cash reserves and equivalents.The company also mentioned that its investments with Silicon Valley Bank are mostly of an uninsured status.Roku said.
“At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB.” A spokesperson for Roku told
Entertainment Streaming company Roku has revealed, via an SEC filing on Friday, that it has $487 million deposited with the crumbling Silicon Valley Bank.
That sum represents roughly 26% of Roku’s total cash reserves and equivalents.The company also mentioned that its investments with Silicon Valley Bank are mostly of an uninsured status.Roku said.”At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB.” A spokesperson for Roku told
Business Insiderby email, “As stated in our 8-K, we expect that Roku’s ability to operate and meet its contractual obligations will not be impacted and we continue to have access to $1.4 billion in cash and cash equivalents which are distributed across multiple, large financial institutions.” BBC News, Business Insider [Add your own comment](/forums/threads/305778/reply)
57 Comments on
[Silicon Valley Bank Collapses, Causes Concern Within Tech Industry, Roku Divulges its SVB Investments](/forums/threads/305778/) [#1](/forums/posts/4969632) [TumbleGeorge](/forums/members/tumblegeorge.201446/)
Please say that this is not due to crypto “currency” operations and that there is no evidence of criminal siphoning through Ponzi schemes.
[#2](/forums/posts/4969633) [ThrashZone](/forums/members/thrashzone.194857/)
Hi,
Doubt it will be surprising why they really fell
Doubt it will be surprising why they really fell
[#3](/forums/posts/4969637) [dragontamer5788](/forums/members/dragontamer5788.196796/)
TumbleGeorgePlease say that this is not due to crypto “currency” operations and that there is no evidence of criminal siphoning through Ponzi schemes.It’s because SIVB was a venture capital / tech startup focused bank.
Tech startups got billions of dollars in 2021 as the pandemic hit and work from home accelerated the consumption of computer services and equipment.
Startups then used Silicon Valley bank to hold their deposits.It’s looking like $100+ Billion in deposits flooded into Silicon Valley bank at this time.
For reasons unknown, SIVB put a huge chunk of that money into 10Y or 30Y treasuries, as well as mortgages around Silicon Valley.
Two years later, in 2023, on Thursday, the tech startup ecosystem undergoes a collective panic attack and withdraws $46 Billion from SIVB.This has likely forced SIVB to sell those 10Y or 30Y treasuries and mortgages on the open market.
Note: long dated bonds are worth 20%+ less today than they were worth in 2021.
That is, SIVB needs to sell $1200 worth of mortgages and bonds to make $1000 of customer withdrawals.
Come Friday, yesterday, FDIC was forced to take over the bank.They are suffering from a classic bank run and have collapsed.
[#4](/forums/posts/4969639) [dont whant to set it”‘](/forums/members/dont-whant-to-set-it.160414/)
Why does this remind me of this sketch, honestly idk.
[#5](/forums/posts/4969642) [trparky](/forums/members/trparky.170376/)
And there’s rumors that ten other banks are showing signs of taking on water (like the Titanic).
Customers Bancorp Inc.
of West Reading, PA
First Republic Bank of San Francisco, CA
Sandy Spring Bancorp Inc.of Olney, MD
New York Community Bancorp Inc.of Hicksville, NY
First Foundation Inc.of Dallas, TX
Ally Financial Inc.of Detroit, MI
Dime Community Bancshares Inc.
of Hauppauge, NY
Pacific Premier Bancorp Inc.of Irvine, CA
Prosperity Bancshares Inc.of Houston, TX
Columbia Financial Inc.of Fair Lawn, NJ
Customers Bancorp Inc.of West Reading, PA
First Republic Bank of San Francisco, CA
Sandy Spring Bancorp Inc.of Olney, MD
New York Community Bancorp Inc.of Hicksville, NY
First Foundation Inc.
of Dallas, TX
Ally Financial Inc.of Detroit, MI
Dime Community Bancshares Inc.of Hauppauge, NY
Pacific Premier Bancorp Inc.of Irvine, CA
Prosperity Bancshares Inc.
of Houston, TX
Columbia Financial Inc.of Fair Lawn, NJ
[#6](/forums/posts/4969644) [dragontamer5788](/forums/members/dragontamer5788.196796/)
trparkyAnd there’s rumors that ten other banks are showing signs of taking on water (like the Titanic).Consumer banks, like Ally will be fine.Because $250,000 FDIC insurance is enough to cover most consumers.
Customers Bancorp Inc.of West Reading, PA
First Republic Bank of San Francisco, CA
Sandy Spring Bancorp Inc.of Olney, MD
New York Community Bancorp Inc.of Hicksville, NY
First Foundation Inc.of Dallas, TX
Ally Financial Inc.of Detroit, MI
Dime Community Bancshares Inc.
of Hauppauge, NY
Pacific Premier Bancorp Inc.of Irvine, CA
Prosperity Bancshares Inc.
of Houston, TX
Columbia Financial Inc.of Fair Lawn, NJ
The issue with SIVB is that $250,000 is worthless to sillicon valley startup types and companies.It is estimated that 97% of SIVBs deposits are uninsured (ie: over the $250,000 FDIC limit)
A round of $50 million raised for a company is considered small in the valley.It’s just a different set of risks with regards to this region and environment.Companies and startups need full access to their funds to make things like payroll (yesterday, or the 15th)
[#7](/forums/posts/4969648) [trparky](/forums/members/trparky.170376/)
dragontamer5788Consumer banks, like Ally will be fine.Because $250,000 FDIC insurance is enough to cover most consumers.True, but it’s still not a good sign.
I don’t want to go all doom and gloom here but this is a sign of some very bad things to come.And to be honest, I’ve been predicting this kind of thing for the last ten years.
Does anyone remember the Great Housing Bubble of 2008? Yeah.
We learned NOTHING!!! And here we are repeating the same damn mistakes.Those who do not learn from history are doomed to repeat it and here we are folks, repeating history.Alright everyone, time to stick your head between your legs and kiss your ass goodbye because man, we’re in for a rough road here.
[#8](/forums/posts/4969651) [ThrashZone](/forums/members/thrashzone.194857/)
Hi,
Sure they learned
They know now to large to fall exists 😎
Sure they learned
They know now to large to fall exists 😎
[#9](/forums/posts/4969652) [TumbleGeorge](/forums/members/tumblegeorge.201446/)
trparkyDoes anyone remember the Great Housing Bubble of 2008? Yeah.We learned NOTHING!!! And here we are repeating the same damn mistakes.Those who do not learn from history aBecause is possible this s not mistake but target which was reached.
[#10](/forums/posts/4969653) [ThrashZone](/forums/members/thrashzone.194857/) [#11](/forums/posts/4969655) [trparky](/forums/members/trparky.170376/)
ThrashZoneHi,Oh yes, too big to fail.
Why bother to make good decisions when good ol’ Uncle Sam will come along and save your ass? :rolleyes:
Sure they learned
They know now to large to fall exists 😎
TumbleGeorgeBecause is possible this s not mistake but target which was reached.Are you referring to how maybe this was planned? I really don’t want to go all conspiracy yet, I’ve only had one cup of coffee this morning.
[#12](/forums/posts/4969661) [TumbleGeorge](/forums/members/tumblegeorge.201446/)
trparkyAre you referring to how maybe this was planned? I really don’t want to go all conspiracy yet, I’ve only had one cup of coffee this morning.Well, in this case( in terms of this thread), I would be interested in whether some of the big technological corporations have not tried to get rid of potential competitors by “killing” them in the bud.
[#13](/forums/posts/4969675) [mb194dc](/forums/members/mb194dc.194011/)
Boom and bust.
This will be a mega bust given how mega the boom was…
Tech going to get much cheaper again, yay.
Hopefully still have a job to buy stuff! Yug.
Tech going to get much cheaper again, yay.
Hopefully still have a job to buy stuff! Yug.
[#14](/forums/posts/4969680) [the54thvoid](/forums/members/the54thvoid.79251/)
Haggis Herding Moderator
Well, Elon Musk has allegedly said he’s possibly interested in buying it.Would that not ring alarm bells for conflict of interest?
New customer: Hi, I’ve got an awesome concept that will eradicate wasteful electric batteries.
New SVB: Computer says no.
New customer: Hi, I’ve got an awesome concept that will eradicate wasteful electric batteries.
New SVB: Computer says no.
[#15](/forums/posts/4969685) [dragontamer5788](/forums/members/dragontamer5788.196796/)
trparkyDoes anyone remember the Great Housing Bubble of 2008? Yeah.We learned NOTHING!!! And here we are repeating the same damn mistakes.Those who do not learn from history are doomed to repeat it and here we are folks, repeating history.
Alright everyone, time to stick your head between your legs and kiss your ass goodbye because man, we’re in for a rough road here.We did learn.
www.theguardian.com/business/2023/mar/11/silicon-valley-bank-weaken-risk-regulations-svb
Then Silicon Valley Bank lobbied to remove regulations from 2008 from it, because as a “Startup Focused” bank, they wanted to be treated differently.They were apparently (lol) less risky, and the needs of the silicon valley startup community differed from the rest of banking…or some argument like that.
Then Congress raised the limits of regulation from $50 Billion to $250 Billion or something like that, so that banks like SIVB wouldn’t have to pass stress-tests.
15 years is a long time.
Enough time to learn a lesson, and then unlearn the lesson.Fortunately, the larger banks remain under the “stress-test” scrutiny, and other such regulations.But smaller community banks managed to lobby and reduce their levels of scrutiny over the past decade.
[#16](/forums/posts/4969687) [trparky](/forums/members/trparky.170376/)
dragontamer5788We did learn.I argue that we didn’t, and your link is proof of that.If we had actually learned, that kind of dumbass crap wouldn’t have happened and the regulations wouldn’t have been rescinded.
[#17](/forums/posts/4969696) [dragontamer5788](/forums/members/dragontamer5788.196796/)
trparkyI argue that we didn’t, and your link is proof of that.If we had actually learned, that kind of dumbass crap wouldn’t have happened and the regulations wouldn’t have been rescinded.SIVB, despite all of its deregulation over the past decade, was still subject to Dodd-Frank (the signature law passed in 2010 to prevent 2008-style crashes from happening again).And that’s why it was investing in “safe” Treasury Bonds.
It very well could have been worse without the current regulation scheme.
Honestly, I’m not seeing any similarities between today and 2008, aside from the obvious “an 11+figure bank has collapsed”.Heck, 11-figures ($100,000,000,000) is still smaller than the issues facing 2008 (which was closer to 13-figures, or $10,000,000,000,000) in terms of size and scope.
So hold your horses on the 2008 comparisons.We’re no where close to that yet.We’re just witnessing a major bank collapse of the Dodd-Frank era.Albeit with some bits of Dodd-frank chipped away, but that’s what happens in a Democracy where laws are malleable.Laws will change over the years.The bulk of the protections are still in effect.
[#18](/forums/posts/4969697) [trparky](/forums/members/trparky.170376/)
dragontamer5788So hold your horses on the 2008 comparisons.
We’re no where close to that yet.We’re just witnessing a major bank collapse of the new era.Except that we have ten other banks showing signs of collapse as well.Add that to the mix and things don’t look good.
[#19](/forums/posts/4969699) [dragontamer5788](/forums/members/dragontamer5788.196796/)
trparkyExcept that we have ten other banks showing signs of collapse as well.
Add that to the mix and things don’t look good.As someone who vividly remembers 2008…wake me up when the numbers at risk start hitting $10+ Trillion buckaroos.We ain’t anywhere close to 2008 yet.
This will be a major challenge to the Silicon Valley startup scene.But a country-wide catastrophe, I’m not convinced of.
——.
