That's what the gigging spear is for... duh! The fact that they glow just makes it easier to see them...
I'm fine with bailouts as long as they come with prison sentences. (Yes I realize that unfortunately, you can't throw people in prison for accepting bailout money. So therefore, no bailouts.)
Somebody needs to make a movie out of the SVB failure. Would be like Margin Call on steroids. Friday morning industry analysts were plugging SVB as still a good investment while SVB execs were desperately seeking funding and then the FDIC seized the bank just before noon and proved them all wrong. You never see a midday seizure like that. It's always close of business or the business never opens that morning. People were still depositing potentially when the FDIC rolled in. You could make a movie about the week before the fall right up until the FDIC rolled in and it would be the ultimate financial horror story. There are stories all over the place of Silicon Valley depositors who had 8 figures plus in the bank and only 250k is secured. Total horror story.
I was listening to a show earlier and one guy said his friend got 300 million out last night. 100% clawbacks coming. Circle which creates USDC and is backed by USD apparently had about 8 Billion stored on SVB. A few smaller bank failures isn't alarming when it comes to the big picture but if this is a sign of things to come overall then things probably are going to get ugly. Powell does want to crush employment so I guess the banks might be the first victims.
I don't think claw backs are a legitimate possibility here. In order to get claw backs you have to have a situation in which the person receiving funds either knew for sure that fraud was involved (and no fraud has been alleged at this point) or knew for sure the institution was going to fail based on inside information. Since SVB opened for business on Friday and there were calls made by execs there to raise funds it is clear that nobody knew for sure or could have imparted inside information that a failure was a surety. I think the person that got $300M out last night is safe from having any of that money seized, this unless they were a partner in the bank. Partners may well see seizures if they withdrew funds last night.
No worries. One of them just vacationed in Tahoe probably spending $250,000 celebrating women in the company two three weeks ago.
SiLiCoN vAlLeY bAnK. Has there ever been a bank every common man has rooted to fail without bailout more than this one?
Doomsdayers out in full force over this now. I dont know if this triggers a bank run but I dont think the system can handle one right now. Liquidity is already an issue and a stress test might just push it over. The FED and FDIC are trying to put together a plan allegedly to combat this.
Wouldn't it be fraud if someone knew the bank was going under and got tipped off? I guess its hard to prove, but you probably are right in general, this has been building all week so I cant blame people if they withdrew just to be safe without knowledge. I know Signature Bank is in trouble too, so I assume people are withdrawing from them too right now.
One other category of people to keep an eye on is the big VC's who may have shorted SVB and then instructed their startups to pull funding. This type of manipulation is quasi-legal at best and if Peter Thiel, for instance, profited from shorting the stock at the same time he was demanding his companies pull their cash he might be over the line.
