dlq04

If so, you get different news than what I heard.

fltsfshr

Years ago I started collecting $100 bills. When I got a pile of them I started buying gold & silver. I have never sold any. I feel like a pirate. arrggghhhh!

Honda 367

Apparently, assets of SVB was just under 1% of total domestic assets held at U.S. banks at the end of 2022, based on Federal Reserve data. U.S. regulators said they will backstop all SVB and Signature Bank deposits, so none of their customers will lose money on their deposits, regardless of whether their deposits are insured. So then, who will end up footing the bill? I am sure pain will be shared by all banks in U.S. which will eventually trickle down to all of us. I have mixed feelings about this.

SVB made unwise decisions in how they operate and Fed will help them so there won't be panic in the market. If I were to invest money in companies and they go bankrupt, I will not get my money back. But if you are a major investor playing with millions, your poor decision has no consequence as Fed will step in on your behalf. FDIC only covers up to $250K for individuals but same rule does not apply to major players with their deposits exceeding $250K. Where is accountability and personal responsibility? I never complained when I lost money with my poor decisions but when you are big tech, I guess Fed has your back.

dlq04

Investors in the bank are $hit out of luck. It is the depositors who are being assisted.

fltsfshr

Be interesting to see who the major investors were. I'll bet I can guess some of them.

boltonblue

It's called moral hazard Dave. as it should be.

zeroptzero

SVB got a lot of their money from the Federal Reserve to lend out to their customers. I was listening to some reports about the people running SVB , including Board of Directors, most of them had little investment banking expertise. They seemed to lend out money and gave out donations and made investments willy-nilly. It will all come out in the wash.

fltsfshr

I wonder if the board members and/or any investors in the bank have a civil liability issue.

boltonblue

I will observe to being a little peeved that they sold off stock in the days coming up to the default so they could pay out bonuses on March 10th.
I do hope that they can law back those payouts.
Personally I would call that stock fraud and throw the leadership team ( CEO, CFO) in jail to think about their actions for a while.
Not to mention ban them from all future executive roles.

Morris

Did the company or individuals sell the stock? Probably individuals which does not give the company any money to pay bonuses. But paying bonuses on March 10 was bad, nevertheless.