Lmst

Build Public Banks as Response to SVB & Signature Bank Failures, by @nathansnewman
#PublicBank #PublicBanking #SVB #SVBcrash #SVBcollapse #SVBBank #SVBfail
https://open.substack.com/pub/nathannewman/p/build-public-banks-as-response-to?utm_campaign=post&utm_medium=web

@alaric

#SVB #SVBFail

Ah, SPACs, we barely knew thee.

The link, from 2021, covers how SVB looked at SPACs.
"The IPO process has seen little innovation, and for some companies thinking about going public, SPACs can provide useful tools to raise capital quicker and with fewer hurdles based on current market conditions.
From our perspective, it is advantageous to have capital flow options and innovation in fundraising with new or revised approaches, especially in a time of huge demand for new solutions to address global challenges."

Good times 🙄

https://www.svb.com/blogs/silicon-valley-bank/why-spacs-now

The CNBC Post SPAC Index # , which tracks the performance of SPAC stocks after debut, is down over 70% since inception and by about two-thirds in the past year. Many SPACs never found a target and gave the money back to investors. Chamath Palihapitiya, once dubbed the SPAC king, shut down two deals last month after failing to find suitable merger targets and returned $1.6 billion to investors.

The proprietary CNBC SPAC Post Deal
Index, which is comprised of SPACs that have completed their mergers and taken their target companies public, has fallen nearly 50% this year. The losses more than doubled the S&P 500's 2022 decline as the equity benchmark fell into a bear market.

Hey, umm everyone. I really really hate to ask.
I'd fix it myself but svb problems.
My friend Colette is in a pinch. Has Bill's due.
She's working but things came up.
She's a good girl escaped from an abusive home.
cProGamer99@gmail.com
Is her PayPal
Could I ask mastodon for a blessing.
She needs like $400 bucks.
I have it but it's stuck because of the #svbfail
Please
Boost, donate, send love, every bit helps.
Ty so much everyone.

@alaric

#SVB #SVBFail #CreditSuisse #FirstRepublic

First Republic, which continues to say that it has enough liquidity, is being advised by JP Morgan on "strategic alternatives" 👇🏾

Some analysts believe that First Republic Bank must raise funds or sell itself because it would have suffered, according to them, similar losses to Silicon Valley Bank.

https://www.msn.com/en-us/money/companies/jpmorgan-advising-first-republic-on-strategic-alternatives-including-a-capital-raise-sources-say/ar-AA18RgR3

• The alternatives may include a capital raise, the sources said, which could dilute current shareholders.
• A sale of the bank is also a possibility.
• JPMorgan and 10 other banks announced last week that they were depositing a combined $30 billion in First Republic.

@alaric

#SVB #SVBFail #CreditSuisse

It must be nice to have a business model that emphasizes "growth at all costs" and "disrupting" verticals with easy access to VC and investor 💵s but never having to become profitable.

The VC model is broken.

@hessiej

https://www.msn.com/en-us/money/markets/credit-suisses-32-billion-cut-price-sale-signals-an-ongoing-crisis-that-could-expose-unicorn-fintechs/ar-AA18R5VQ

• The firesale of Credit Suisse to UBS is putting the banking world on high alert.
• Shiny fintechs that disrupted banking will need to reassure investors about their business models.
It's been easy cash and growth up until now - and now they need to become profitable.
The swallowing of Credit Suisse after a historic week for the banking sector should raise the question for a batch of highly valued startups that want to disrupt finance: Am I next?

@alaric

#SVB #SVBFail

This, by, @molly0xfff is brilliant 👇🏾

She calls out the massive dip 💩s
S&cks & C&l&c&nis for their blatant hypocrisy

https://newsletter.mollywhite.net/p/the-venture-capitalists-dilemma

We have found ourselves in a scenario where the investor class has, yet again, managed to privatize profits and socialize losses. While many of these powerful, wealthy, and connected individuals have pushed for policies that would scale back government and regulators, promoted cryptocurrencies they believe to be outside control of the state, and pushed back against any action to break up tech monopolies, they quickly found themselves begging government officials for a rescue. "No atheists in a foxhole. No libertarians in a bank run." tweeted Eric Newcomer, after right- and libertarian-leaning David Sacks tweeted at government officials demanding they "Stop this crisis NOW".

@alaric

#SVB #SVBFail #CreditSuisse

UBS Agrees to Buy Credit Suisse for More Than $3 Billion👇🏾

https://apple.news/A7n9DxCw7TiKporrpvccaBQ

UBS Group AG agreed to take over its longtime rival Credit Suisse Group AG for more than $3 billion, pushed into the biggest banking deal in years by regulators eager to halt a dangerous decline in confidence in the global banking system.
The deal between the twin pillars of Swiss finance is the first megamerger of systemically important global banks since the 2008 financial crisis when institutions across the banking landscape were carved up and matched with rivals, often at the behest of regulators.

@alaric

#SVB #SVBFail #CreditSuisse

$2 Billion is *much closer to the $9.5 billion friday close of business valuation than $1 Billion. This place should have been sold for parts years ago.

https://www.msn.com/en-us/money/companies/ubs-reaches-agreement-to-buy-credit-suisse-after-upping-offer-report/ar-AA18OPNO

Bloomberg reported that Credit Suisse balked at UBS' initial offer of $1 billion and argued that it fell well short of the firm's valuation, which stood at about $9.5 billion as of Friday, and that it would harm the bank's employees and shareholders. The size of UBS' offer was first reported by the Financial Times.

@alaric

#SVB #SVBFail #CreditSuisse

UBS makes $1 billion all-share offer for embattled Credit Suisse 👇🏾

Credit Suisse is a penny stock

https://www.msn.com/en-us/money/markets/ubs-makes-1-billion-all-share-offer-for-embattled-credit-suisse-reports/ar-AA18OIU2

That's according to a Sunday report in the Financial Times, which laid out the offer price as
0.25 Swiss francs a share, well below Credit Suisse's Friday closing price of 1.86 Swiss francs. Such a deal would end days of speculation about what would happen to the embattled bank.

@alaric

#SVB #SVBFail #CreditSuisse

15 years ago, in a deal coordinated by ministers, the Swiss National Bank and federal banking commission, the Swiss government effectively pumped $60bn into UBS, taking virtually the last $50bn of its toxic assets into a special purpose vehicle off its books and owned by the SNB. Today, they are urging UBS to explore an acquisition of all or parts of Credit Suisse Group AG after Credit Suisse pummeled by a "crisis of confidence" aka multiple scandals including mismanagement of funds, the bank closed the 2022 fiscal year with a loss of nearly $8 billion, its biggest loss since the 2008 global financial crisis, preventing money laundering among others.

15 years is apparently how long it takes for history to be forgotten.

Lobbying by the financial industry plays a huge part in why regulation and supervision of the largest financial institutions in the United States and around the world is extremely insufficient.

https://finance.yahoo.com/news/ubs-explore-credit-suisse-deal-231127876.html

UBS to Explore Credit Suisse Deal in Crisis Combination

https://www.theverge.com/23643837/founders-fund-peter-thiel-svb-silicon-valley-bank-esg #SVBfail

@alaric

#SVB #SVBFail

About herd mentality, bank runs started via Slack/Whatsapp (social), and the ghoul behind 🤡s Vance, Masters and now, Ramaswamy.

“nobody on Earth is more of a herd animal than Silicon Valley venture capitalists”

- Matt Levine

(see screen shot) 👇🏾

"Peter Thiel started the bank run. All of his companies got their money out. Most of their competitors did not get their money out. Many of those competitors might not have survived the week of the FDIC hadn’t stepped in.

I’m not saying he nefariously intended to bring the bank down in order to gain an advantage over his competitors. I wouldn’t put it past him, but I also don’t think there’s much reason to grant him supervillain-level foresight here. (He seems more like a run-of-the-mill villain to me.)"

https://davekarpf.substack.com/p/three-thoughts-on-silicon-valley

@alaric

#SVB #SVBFail #FirstRepublic

Bank lends out more money than it has in deposits from customers, investors keep investing money because, "why not?" and then are "spooked" when the facts come out.

A *fascinating industry!

https://www.cnn.com/2023/03/16/investing/first-republic-bank

That led many customers to exit the bank and put their money elsewhere, creating a problem for First Republic: It has to borrow money or sell assets to pay customers their deposits in cash.
To make money, banks use a portion of customers' deposits to give out loans to other customers. But First Republic has an unusually large 111% liability-to-deposit ratio, S&P Global says. That means the bank has lent out more money than it has in deposits from customers, making it a particularly risky bet for investors.

@alaric

#SVB #SVBFail #CreditSuisse

Credit Suisse got $54 Billion from the ECB after it failed to disclose "material weaknesses in internal controls and the significant outflows."

"Although Hwang’s history of risky behavior and illegal trading conviction was no secret, the prospect of squeezing an extra buck seems to have been too enticing for the world’s largest banks to miss. It’s almost as if the Financial Crisis of 2007-2008 and the subsequent bank bailouts never happened as a lesson-learning opportunity."

Article is from 2021👇🏾

Credit Suisse in a $4.7 Billion Bind Thanks to Hwang’s Leveraged Bets

https://tokenist.com/credit-suisse-4-billion-bind-thanks-hwang/

Narrator: Nothing was learned 🙄

Fallout for Credit Suisse
Recovering from the losses incurred by its relationship with Hwang, as of today, Credit Suisse summed up the fallout with the following statement:
• Q1 2021 is estimated to end with a $960.4
million loss.
• $4.69 billion total loss as a result of Archegos Capital's failure to meet its
margin call.
• Both Investment Bank CEO Brian Chin and Chief Risk and Compliance Officer
Lara Warner have left.
• Thomas Grotzer and Joachim Oechslin will take Chin and Warner's roles, respectively.

• Credit Suisse executive board waived their bonuses for 2020, with Chairman Urs Rohner giving up $1.6 million for his
fee.
To make things worse for the 165-year-old bank's reputation, it had suffered another scandal last month. UK and Australia-based company Greensill Capital filed for insolvency on March 8th, Dealing with supply chain financing, the defunct company relied heavily on loans provided by Credit Suisse.
While CS managed to collect $50 million out of $140 million loaned, the much larger fallout lies in CS' clients - investors, pension funds. and treasurers - stakino $10 billion in the busted company. CS CEO Thomas Gottstein promised that lessons will be learned:

@alaric

#SVB #SVBFail

Credit Suisse secures $54 billion lifeline as authorities rush to prevent global bank crisis 👇🏾

https://www.reuters.com/business/finance/credit-suisse-borrow-up-54-bln-it-seeks-calm-investor-fears-2023-03-16/

SVP's demise last week, followed by that of Signature Bank two days later, sent global bank stocks on a roller coaster ride this
week, with investors discounting assurances from U.S. President Joe Biden and emergency steps giving banks access to more funding.
FINMA and the Swiss central bank said there were no indications of a direct risk of contagion for Swiss institutions from U.S. banking market turmoil.
On Wednesday, Credit Suisse shares led a 7% fall in the European banking index, while five-year credit default swaps (CADS) for the flagship Swiss bank hit a new record high.
The investor exit for the doors prompted fears of a broader threat to the financial sys-tem, and two supervisory sources told Reuters that the European Central Bank had contacted banks on its watch to quiz them about their exposures to Credit Suisse.

Learned from Seth that it was #peterthiel pulling all of his billions and his other companies billions causing #svbfail https://youtu.be/cJ26yZSJNyQ

@alaric

#SVB #SVBFail

Another, as always, fantastic and incredibly detailed piece, from Matt Levine at Bloomberg about the risks that SVB took leading to its failure 👇🏾

“nobody on Earth is more of a herd animal than Silicon Valley venture capitalists”

- Matt Levine

He said this 👆🏾a few days ago and regarding the "herd mentality" of VCS, its not talked about very much but this newsletter is read by a lot of VC bros and their ilk, potentially leading to the run on SVB.

Also, um, Crédit Suisse 🙄
"Credit Suisse Group AG said it found “material weaknesses” in its reporting and control procedures for the past two years, after questions from US regulators last week.

The Zurich-based bank said Tuesday it will take steps to fix ineffective checks on the process it follows to pull together its financial reports. But the firm said its statements for 2022 and 2021 “fairly present” its financial condition."

https://www.bloomberg.com/opinion/articles/2023-03-14/svb-took-the-wrong-risks

@alaric

#SVB #SVBFail

EVERY other bank failure: explicitly due to white dudes.

WSJ opinion guy who is an idiot, racist, homophobe, apparently anti-vet, and a misogynist, asks, while looking at this bank failure directly caused by white dude bros who pushed for deregulation and caused a bank run by hyperventilating on the 🐦, was it because of wokeness? 🤡🤡🤡🤡

Was there regulatory failure? Perhaps. SVB was regulated like a bank but looked more like a money-market fund. Then there's this: In its proxy statement, SVB notes that besides 91% of their board being independent and 45% women, they also have "1 Black," "I LGBTQ+" and "2 Veterans." I'm not saying 12 white men would have avoided this mess, but the company may have been distracted by diversity demands.

@alaric

#SVB #SVBFail

The Onion coming through, as always, capturing perfectly the voices of those that would have been "hurt most", the VC bros and their ilk, who led, with their overly dramatic tweets, the bank run on SVB....

Perfect...Lollllll

AMERICAN VOICES
Silicon Valley Bank Collapses In Biggest Bank Failure Since
2008 Financial Crisis

"Let's hurry up and bail it out so we can do this all over again."
ETHAN DODDS, CAPSICUM SPECIALIST

"Just tell me if I have to jump out of my penthouse or not."
NORA KHOURY, MERKIN DESIGNER
"We deregulated our way into this mess, and we can deregulate our way out of it."
GARY DUGAN, SLEEP OBSERVER

"People have been quick to point out how quickly the cadre of small-government, libertarian tech bros has come calling for government intervention in the form of a bailout when it’s their money on the line."

https://www.wired.com/story/silicon-valley-bank-collapse-fallout/

#SVBFail #TechBros

#SVBfail

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