More on Silicon Valley Bank.

[usonian]

Failed Bank Information for Silicon Valley Bank, Santa Clara, CA (FDIC)
https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/silicon-valley.html

On Friday, March 10, 2023, Silicon Valley Bank was closed by the California Department of Financial Protection & Innovation and the FDIC was named Receiver. No advance notice is given to the public when a financial institution is closed. The FDIC has created the Deposit Insurance National Bank of Santa Clara (DINB) to facilitate the resolution of Silicon Valley Bank.

All depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.

The FDIC as receiver will retain all the assets from Silicon Valley Bank for later disposition. Loan customers should continue to make their payments as usual.

More at the link.

This Twitter thread: (long)

Link to tweet

A laundry list of accounting tricks that SVB used to fly under regulatory radar.

Recap:

• A gigantic bond portfolio booked in ridicoulous proportion in HTM, exploiting accounting benefits.

• Voluntary unwinding (!) of existing rate hedges.

• Management lobbying to be as exempt from tight regulatory scrutiny as possible.

HTM - securities purchased to be owned until maturity
There's a summary on pastebin
https://pastebin.com/raw/r5wRyJXZ


And SURPRISE!
Thiel’s Founders Fund Withdrew Millions From Silicon Valley Bank
https://www.bloomberg.com/news/articles/2023-03-11/thiel-s-founders-fund-withdrew-millions-from-silicon-valley-bank

By Lizette Chapman
March 10, 2023 at 4:52 PM PST

Peter Thiel’s Founders Fund had no money with Silicon Valley Bank as of Thursday morning as the bank descended into chaos, according to a person familiar with the matter.

Founders Fund withdrew millions from SVB, said the person, who asked not to be identified discussing private information. It joined other venture funds that took dramatic steps to limit exposure to the now-failed financial institution. Founders Fund also advised its portfolio companies that there was no downside to moving their money away from SVB, even if the risk was low. 

Founders Fund acted in other ways to move its business away from SVB. On Thursday, as the bank was beginning to unravel, the firm started what’s known as a capital call. That’s a run-of-the-mill activity in the venture capital world, in which a VC firm asks its investors, or limited partners, to send it money in order to make investments in startups — the core function of most VC firms. It began by asking those backers to transfer the funds to accounts at SVB, as it has done for years, the person said

Quickly, Founders Fund asked its investors to transfer the money to other banks instead.

[rubbersole]

2. Inside information is a billionaire's stock and trade.

[Scrivener7]

3. Thank you. This is a very succinct picture of a very filthy situation.

[yardwork]

4. I read that Trump-era deregulation allowed this.

Katie Porter is talking about it. She said she knew this would happen when the Republicans pushed through a deregulation bill that allowed this high risk behavior.

This happens over and over. Republicans push through deregulation, the inevitable disaster occurs, and then we all pay. Meanwhile the billionaires sneak away with their money.

[Achilleaze]

5. Yes. The Republicans killed the safeguards and caused this

with their stupid "roll back the regs" horseshit -- horseshit funded, as always, by G.O.P. Billionaire Plutocrats and their unceasing efforts to grab more more more more more money for themselves.

[superpatriotman]

6. The casino of America is responsible for this

I predict the taxpayers will be on the hook to bail out the rich once again.

Remember Occupy Wall Street?

This is Occupy 2.0

[Shanti Shanti Shanti]

7. Yellen just reported there will be no federal bailout for SVB, watch the stock market on Monday!

[liberal_mama]

8. That's wonderful news! I can't stand the thought of rich people and corporations being bailed out

while people are paying huge rents, bogged down with student loans, losing their healthcare, and having their food stamps cut. If there is no money for Covid mitigations and social programs that would help humanity, there is no money to bail out rich people. I'm so sick of this.