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washparkhorn

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Posts posted by washparkhorn

  1. FDIC Insured cash sweeps were available prior to the SVP bank run. Well run operations paid for this service/insurance because it limited exposure to bank runs (and paid interest).

    Faux libertarians billionaires sought to nullify the adage—Fools and their money are soon parted. The older idiom—He who has the money makes the rules—always wins. 
     

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  2. Thiel deserves scrutiny of his trades after prompting the run.

    Again, uninsured depositors will be made whole or close to whole. SVB had assets (poorly structured for duration risk). FDIC will make funds available for insured account holders early next week. Uninsured accounts will gain access incrementally as assets are secured. That could be early next week as well. The FDIC is not expected any tax dollars on this bank failure. 

    The sticky wicket for startups will access to ongoing credit. SVB understood the game and a JPMorgan-type will not. 

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  3. The FDIC will ensure an orderly sale of assets and pay non-FDIC insured depositors. Once the FDIC establishes the value of SVB’s assets (this weekend) depositors will have access to funds for business needs. The FDIC knows what it is doing.

    Thiel triggered this bank run. SVB officers and directors ham-handily rolled out a rescue plan that caused Thiel to panic.  The bank made some shitty bets in a rising interest rate environment.

    Tech prospered in the free money regime; that regime is dead. Time to break the old mindset and catch-up with the new boss. And ffs, diversify and hedge. SVB was living in a fantasy world that crashes with the New Fed. 

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