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March 12, 2023, 6:10 PM
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| Washington Post: |
Sources: US officials are considering the extraordinary step of protecting all uninsured SVB deposits if the FDIC is unable to find a buyer for the failed bank — Extraordinary step eyed if plan fails to sell the failed bank to another institution — Federal authorities … More:
CNBC: Fed and FDIC discussing backstop to make SVB depositors whole and stem contagion fears: Source
Lauren Sforza / The Hill: Silicon Valley Bank paid bonuses hours before takeover: report
Douglas Fruehling / San Francisco Business Journal: Feds mull plan to insure all Silicon Valley Bank deposits
Insider: A fintech CEO is trying to raise more than $1 billion to fund bridge loans for startups impacted by the Silicon Valley Bank collapse
Sam Sutton / Politico: FDIC holds auction for SVB amid growing uncertainty
Noah Smith / Noahpinion: Preventing panic in the banking sector
William Chittenden / Fortune: Why the banking system is safe despite the second-biggest bank failure in U.S. history, according to a finance professor
Tweets:
Bill Ackman / @billackman: I would expect this announcement before Asia market opens tonight. Then we can enjoy the Academy Awards. https://www.washingtonpost.com/ ...
Hank Green / @hankgreen: Never name your bank something that will make it easy for politicians to attack other politicians over you. You gotta name that bank “Small Business Bank of Farmers and Fire Fighters” or something.
Dmitri Alperovitch / @dalperovitch: Fed and FDIC discussing 2 options: 1. Backstop of unisured deposits at SVB under FDIC Act 2. “General Banking Facility” from Fed to support banks coming under panic-induced pressure Will only be necessary if no buyer(s) is found for SVB assets https://www.cnbc.com/...
Jeff Stein / @jstein_wapo: Scoop: Federal authorities weigh safeguarding *all* SVB deposits, per 3 sources Would require finding broad risk to financial sector Then need regulatory approval NOT final/decided Fdic, Fed, Treasury discussing https://www.washingtonpost.com/ ...
Balaji / @balajis: This is a question of bank solvency. Are your deposits safe? It wasn't really common knowledge before this crisis that either you bank at a big four OR you are at risk of losing your principal at any time. Literally the entire economy would have been positioned differently. https://twitter.com/...
Matt Binder / @mattbinder: perhaps the VCs screaming about how the government should step in and save them after SVB's collapse should just try getting a second job? https://twitter.com/...
Chris Messina / @chrismessina: Not to put a too-fine point on this, but if the US government swoops in to protect its engine of innovation (i.e. the Silicon Valley startup ecosystem), it will demonstrate its leadership position in the world at a time when such is needed. [Cont] https://twitter.com/...
Balaji / @balajis: The message the market has received is: deposits are unsafe unless they are in a too-big-to-fail bank. Small banks get piddly FDIC insurance. Big banks get the full backstop of the US government, because they're systemically important. Bail out the big, submerge the small. https://twitter.com/...
Anthony DeRosa / @anthony: Financial regulators are discussing two different facilities to manage the fallout from the closure of Silicon Valley Bank if no buyer materializes, according to a source close to the situation - @CNBC https://www.cnbc.com/...
Scott Galloway / @profgalloway: One of two things happen tomorrow: —Fed/acquirer backs SVB depositors, and all is fine; or —They don't and,,,all is fine.
@nycsouthpaw: Part of the purpose of the FDIC cap, as I gather, is to encourage people and enterprises not to concentrate large sums of their cash in a single bank. Even if it's more operationally efficient, it exposes the despositor, their employees, the taxpayers, etc to undue risk.
Stanley Pignal / @spignal: Nobody is saying SVB shouldn't be bailed out. They are merely saying those who benefit indirectly, like VCs and tech bros, should maybe say “thank you” and think twice before spouting some bullshit rehash of Atlas Shrugged. https://twitter.com/...
Steven Ehrlich / @steven_ehrlich: Not sure what to think if our financial system is that fragile. Thousands of banks and officials worry that one #crypto bank and one #vc bank collapsing could bring the whole thing down. I guess that all of the talk about learning from 2008 was just hopium https://www.washingtonpost.com/ ...
Brian Fagioli / @brianfagioli: @Techmeme Even giving a bank a sweetheart deal for pennies on the dollar would be cheaper than just covering all the uninsured deposits. There will be a buyer. Tne buyer will come out of it very well too.
Ian FItzpatrick / @ianxfitzpatrick: Wow! If they do this they should just raise the limit on insured deposits. Also if this was any other mid sized regional bank would they be thinking about this? “U.S. officials weigh protecting all deposits at Silicon Valley Bank” https://www.washingtonpost.com/ ...
Joe Scarborough / @joenbc: Let that horse out of the barn and chances are good you don't get it back in. Failing to guarantee deposits at First Republic and other regional banks could lead to their collapse and have catastrophic consequences for millions of Americans. https://www.washingtonpost.com/ ...
Ken Klippenstein / @kenklippenstein: it's so cool that the free market has a do-over rule available exclusively to the rich
Brendan Pedersen / @brendanpedersen: It's significant that officials are weighing the FDIC's systemic risk exception to back uninsured deposits, but that doesn't change the fact that regulators STRONGLY prefer a buyer for SVB. The alternative scares markets and risks more social contagion https://www.washingtonpost.com/ ...
| Matthew Monks / Bloomberg: |
Sources: the FDIC kicked off an auction process late on March 11 for SVB, with final bids due by 2pm EST on March 12; it's possible that no deal will be reached — The Federal Deposit Insurance Corp. kicked off an auction process late Saturday night for Silicon Valley Bank …
Tweets:
@jason, @davidsacks, @ddayen, @mattyglesias, @aduehren, @dalperovitch, @jamesgrickards, @danprimack, @senatorhagerty, @anandwrites, @joshtpm, @convertbond, @iamjakestream, @jamessurowiecki, @cloud_opinion, @mattocko, @monikabauerlein, @felixsalmon, @samirkaji, @oneunderscore__, @danprimack, @business, @autismcapital, @mayazi, @professorstam, @pt, @migueldeicaza, @hankgreen, @mamoonha, @danprimack, @vinnylingham, @kenklippenstein, @rlove, @hugh_son, @carnage4life, and @davidsirota
More:
Andrew Ackerman / Wall Street Journal: Regulators to Hold Auction for Silicon Valley Bank
Stephen Neukam / The Hill: Regulators auctioning Silicon Valley Bank in effort to contain fallout: reports
Bethany Biron / Insider: Control of Silicon Valley Bank up for auction as federal officials weigh protecting uninsured deposits after collapse
Jason Abbruzzese / NBC News: Panic and partying reign at SXSW amid Silicon Valley Bank's collapse
Ana Paula Pereira / Cointelegraph: FDIC bidding for Silicon Valley Bank is in progress: Report
Tanaya Macheel / CNBC: Stock futures open higher as regulators work to thwart any contagion from SVB's demise: Live updates
Darrell Etherington / TechCrunch: FDIC auction for SVB assets said to be underway
Catarina Moura / The Block: Yellen says no government bailout while FDIC auctions SVB assets. Final bids due end of Sunday.
Jamie Redman / Bitcoin News: Report: Silicon Valley Bank Under FDIC Auction as Calls for Bailout Grow
Dan Primack / Axios: The three options for preventing a national banking crisis
Tweets:
@jason: YOU SHOULD BE ABSOLUTELY TERRIFIED RIGHT NOW — THAT IS THE PROPER REACTION TO A BANK RUN & CONTAGION @POTUS & @SecYellen MUST GET ON TV TOMORROW AND GUARANTEE ALL DEPOSITS UP TO $10M OR THIS WILL SPIRAL INTO CHAOS
David Sacks / @davidsacks: I'm not asking for a bailout. I'm asking for banking regulators to ensure the integrity of the system. Either deposits in the US are safe or they're not. If not, look out below. We have a very big problem on our hands. https://twitter.com/...
David Dayen / @ddayen: What @DavidSacks and these other hype men for special treatment don't get is that the country solved the problem of uninsured deposits for small business, unless you happened to be a Silicon Valley Bank customer. They disrupted banking as well as they disrupted everything else.
Matthew Yglesias / @mattyglesias: Expanding deposit insurance is a totally reasonable idea (large regional banks like SVB have historically been opposed because it would mean higher fees) but *retroactively* insuring uninsured deposits is definitely a bailout. https://twitter.com/...
Andy Duehren / @aduehren: Yellen said today that there would be no “bailout” for SVB—but also that regulators want to ensure “depositors don't have to worry about about losing access to their money.” Seems like we could be in for a fun semantic debate over the meaning of “bailout” https://twitter.com/...
Dmitri Alperovitch / @dalperovitch: FDIC auction for SVB is reportedly underway I believe high likelihood deal gets announced tonight https://www.bloomberg.com/...
Jim Rickards / @jamesgrickards: SVB has underwater bonds, zero goodwill, zero brand value, and dodgy loans. The investment bank has no value. You might get a few bucks for asset management, real estate, some loans. Sounds like 50 cents-on-the-dollar for depositors, tops. We'll see. https://www.wsj.com/...
Dan Primack / @danprimack: The three options for preventing a national banking crisis https://www.axios.com/...
Senator Bill Hagerty / @senatorhagerty: This is promising news. As Chairman Gruenberg well knows, his responsibilities are to execute this process at the least cost to taxpayers. https://www.bloomberg.com/...
Josh Marshall / @joshtpm: there it is. the anti-regulators now say it was the regulators fault for not regulating enough. got it. https://twitter.com/...
Lawrence McDonald / @convertbond: Time to cut the bs - Rewarding horrendous risk mgmt practices at regional banks with a sweeping system wide backstop to ensure the safety of deposits IS ASKING for a bailout. It's the depositors job to make sound and wise deposits, NOT carelessly park cash and then cry Uncle Sam. https://twitter.com/...
Jake / @iamjakestream: There is a long and illustrious history of people losing their money by following Jason's advice. The guys is and has always demonstrably been a moron. https://twitter.com/...
James Surowiecki / @jamessurowiecki: The spectacle of VCs spreading fear and hysteria about the US banking system (all-caps? really?) has been very depressing to watch. https://twitter.com/...
@cloud_opinion: If only FTX were still around, we wouldn't be having this discussion, since SVB would be acquired by FTX.
Matt Ocko / @mattocko: They have 8 hours - hope they are on top of it. 1M jobs across Red & Blue states alike, $1 trillion of economic activity, US competitiveness vs PRC, critical defense and energy and medical innovation for all Americans — all on the line https://twitter.com/...
Monika Bauerlein / @monikabauerlein: Amen. Possibly the worst part of the SVB collapse is not what happened to the bank itself—many/most customers are likely to get much/most of their money back—but the freakout and panic-mongering in its wake. https://twitter.com/...
Felix Salmon / @felixsalmon: I would be happy to take the other side of this bet. Any number of banks, including JPM, would love to take over SVB, whose deep roots in Silicon Valley are worth billions. https://twitter.com/...
Samir Kaji / @samirkaji: 4/ Another option is a sale of SVB (this likely needs to happen today/tomorrow to really be viable). There are obvious challenges. Time, size, constraints of certain big banks (10% deposit max), and write-down of MTM LT securities. IMO, these can be overcome.
Ben Collins / @oneunderscore__: I'm telling you, they're actually running with the “woke banks” thing. They're already using scary placeholder acronyms ESG and DEI, which to them mean “diversity.” It serves to obfuscate the reality: there was a panicky bank run, frontrun by some of the GOP's biggest donors. https://twitter.com/...
Dan Primack / @danprimack: If JPM stays on the sidelines because of the political blowback after it bought Bear Stearns... I don't even know. Just very frustrating.
@business: LATEST: The FDIC has started an auction for SVB, with final bids due later this afternoon. The result may not come until tonight. https://www.bloomberg.com/...
@autismcapital: Janet Yellen says there will be no bailout for SVB. The FDIC is currently taking bids in an auction for SVB and we will know more by tonight. This can't help but feel like part of a “Great Reset.” https://apnews.com/...
Maya Parody / @mayazi: I really hope there's a consortia of VCs & big tech in the race for SVB. Would be a shame if the only offers really are from global banks & sovereign funds https://www.bloomberg.com/...
@professorstam: tldr: - Tech advancement has made finreg very dated - SVB wasn't on the greatest footing, but was largely taken down by virality and panic - Social media risk needs to be defined and taken seriously - Banks need to be more transparent about their business on socials.
Parker / @pt: The less innovators have to think about finance the more that can focus on making useful stuff. Like how Matt Stoller can spend all his time seething about Big Tech because the FDIC insures his deposits. We should want being unsophisticated WRT finance to be totally fine. https://twitter.com/...
Miguel de Icaza / @migueldeicaza: He is going to tweet his way into articulating Dodd-Frank from first principles: https://twitter.com/...
Hank Green / @hankgreen: There is a certain kind of person in tech who thinks that all regulation is unnecessary while /being the exact reason/ regulations are necessary and I don't think that's a coincidence.
Mamoon Hamid / @mamoonha: Congressman @RoKhanna is spot on. Providing depositors full access to all their funds Monday morning is going to be the only stabilizing force. https://twitter.com/...
Dan Primack / @danprimack: 4 main possibilities right now: 1/ Buyer for whole bank, or at least commercial unit. 2/ Fed backstops, to secure buyer. 3/ Fed backstops, still no buyer. 4/ Nothing happens. National banking crisis.
Vinny Lingham / @vinnylingham: Returning depositors money is not a bailout. SVB was a regulatory failure, not a failure of depositors. Equity holders should be wiped out.
Ken Klippenstein / @kenklippenstein: Have you considered budgeting for an emergency https://twitter.com/...
Robert Love / @rlove: I take this to be good news on several fronts: multiple potential acquirers and the bank is solvent. Eight hours till Tokyo opens. https://www.bloomberg.com/...
Hugh Son / @hugh_son: my understanding is that it's highly unlikely top 6 bank buys SVB assets ... look at the bigger regionals , according to bank advising potential acquirer👇 https://www.bloomberg.com/...
Dare Obasanjo / @carnage4life: There have been 562 bank failures in the US since 2001. The FDIC has a browsable database of them. In practically every case, depositors were made whole by the acquiring bank in deals brokered by the FDIC. This is just another Tuesday for the FDIC. https://www.fdic.gov/... https://twitter.com/...
| CBS News: |
Q&A with US Treasury Secretary Janet Yellen on SVB: we are trying to meet depositors' needs and are not looking to bail out large banks' investors and owners — The following is a transcript of an interview with Treasury Secretary Janet Yellen that aired on “Face the Nation” on Sunday, March 12, 2023.
Tweets:
@cornelialake, @ashleymayer, @sama, @thestalwart, @davidsacks, @felixsalmon, @danprimack, @whstancil, @whstancil, @spencerjcox, @cloud_opinion, @pt, @w7voa, @taylorlorenz, @cz_binance, @bio_clouseau, @modestproposal1, @pt, @digitalassetbuy, @elerianm, @seyitaylor, @scottmelker, @ericnewcomer, @flitteronfraud, @rustybrick, @cloud_opinion, @davidgura, @sarthakgh, @gregosuri, @xrpcryptowolf, @jason, @bobeunlimited, @om, @samirkaji, @allnick, @amasad, @mgsiegler, @benedictevans, @jennablan, @profgalloway, @kylieatwood, @danprimack, and @danielagabor
More:
Om Malik / On my Om: Yellen offers (some) clarity on SVB
Dan Primack / Axios: Silicon Valley Bank paid out bonuses hours before seizure
Stephen Neukam / The Hill: Khanna: Money from Silicon Valley Bank stock sale should be ‘given to the depositors’
Elizabeth Napolitano / CoinDesk: Yellen Says No to SVB Bailout, but Says Government Is Working to Help Depositors
Ana Paula Pereira / Cointelegraph: U.S. Treasury Janet Yellen working on SVB collapse, not a bailout: Report
The Daily Hodl: New Bank Run Already Underway at Second Regional Bank After SVB Collapse, Says Investor David Sacks
Jadrian Wooten / Monday Morning Economist: A Run for Your Money — Over the past few decades, Silicon Valley has become a hub for innovation …
Dhara Ranasinghe / Reuters: World markets set for aftershocks as SVB collapse ripples out
Sam Sutton / Politico: Lawmakers press regulators to resolve bank blow-up
Kevin Helms / Bitcoin News: US Treasury Secretary Rules Out Government Bailout of Silicon Valley Bank
Bruce Golding / New York Post: Government won't bail out Silicon Valley Bank — which paid workers bonuses hours before collapse
Dalmas Ngetich / crypto.news: The US government will only help Silicon Valley Bank depositors
Tweets:
@cornelialake: Michael Cembalest, the brilliant market strategist at $JPM ...highlighting how much of an outlier $SIVB was in two charts: 1. Highest risk, least sticky deposit base 2. Worst capital position $42 billion of $170+ billion of deposits was yanked in 1 day. Doubt any other bank... https://twitter.com/... https://twitter.com/...
Ashley Mayer / @ashleymayer: The rhetoric around who is most impacted by SVB's shutdown has been pretty misleading. Heartened to see Janet Yellen's language in this transcript. https://www.cbsnews.com/... https://twitter.com/...
Sam Altman / @sama: ugh fine here is my SVB thread: TL;DR: at this point, to be certain of avoiding catastrophe, the FDIC needs to temporarily guarantee all deposits. other solutions might work, but this is the best one.
Joe Weisenthal / @thestalwart: A dimension to this story that we can't forget. Many of the leading folks in the industry that now wants Powell to step up and protect them spent the last 5 years telling lies and breeding cynicism about the Fed as pretext to sell cryptocurrencies to retail bagholders.
David Sacks / @davidsacks: The basic formula here is actually correct... 1. No bailout for SVB stockholders/bond holders. 2. But we will meet the needs of depositors. 3. And prevent contagion... But it all sounds hopeless vague. Half-measures won't stop a banking crisis. https://twitter.com/...
Felix Salmon / @felixsalmon: Yellen was at pains to make a distinction between a bailout *of the bank* vs a bailout *of depositors* (which is what people want). This headline at the margin makes people more worried, but also helps frame a depositor bailout as, somehow, not-a-bailout https://www.huffpost.com/...
Dan Primack / @danprimack: SVB's collapse is the Super Bowl for class action attorneys... https://twitter.com/...
Will Stancil / @whstancil: “We have to stop contagion!!” WHAT contagion? Do you feel widespread panic from anyone who doesn't have a direct financial interest in SVB?
Will Stancil / @whstancil: One thing about social media is that it lets VCs who lost money in a bank run go around screaming about how everyone is going to lose faith in all banks, everywhere, unless there's a bailout. Another thing about social media is that you can see that this is not really happening
Spencer Cox / @spencerjcox: Feels like many misunderstand the difference between bond holders/stockholders/executives and depositors. No one is arguing to bail out the bank. Equity holders should lose everything. But depositors (who did nothing speculative) can't access their $ to make payroll this week. 1/ https://twitter.com/...
Parker / @pt: Here we have the very mature Senator from Hawaii rooting for thousands of American companies, whose mistake was to put payroll in a bank, to collapse to own the lib(ertarian)s. https://twitter.com/...
Steve Herman / @w7voa: “Prominent Silicon Valley personalities and executives have been hitting the giant red ‘panic’ button, saying that if Washington does not come to the rescue of Silicon Valley bank's depositors, more bank runs are likely this week.” https://apnews.com/...
Taylor Lorenz / @taylorlorenz: Very wild to watch all these Silicon Valley “libertarians” do a complete 180 the past few days https://twitter.com/...
@cz_binance: Once you do one bailout, you end up in a dilemma. If you don't bailout this time, why not? You were suppose to. To “protect consumers”, by diluting all your citizens. If you do bailouts, then banks have 0 incentive to manage risk. It would be stupid not to take max risk for max... https://twitter.com/...
@bio_clouseau: Seems like a clearly partisan divide for(D) and against(R) doing everything to guarantee depositis https://www.bloomberg.com/... https://www.washingtonpost.com/ ...
@modestproposal1: This interview is like we understand the scope of the problem and are considering every possible solution in lieu of the obvious but unpalatable one https://www.cbsnews.com/...
Parker / @pt: Not saying this as a criticism because measured words makes sense here, but this was the only line of substance in this interview, and it was heartening. https://twitter.com/...
Mohamed A. El-Erian / @elerianm: Some of the calculations on Twitter exaggerate the risks facing the banking system. While there are fragilities inherent to the US banking setup, they are containable via timely policy measures The risk is that such calculations fuel undue anxiety, amplifying systemic instability
@seyitaylor: Worth reading Yellen's statements directly and not relying on Twitter summary — a lot is being said, and a lot isn't https://www.cbsnews.com/...
@scottmelker: So... a bailout? We just going to rename it something else and pretend? https://twitter.com/...
Eric Newcomer / @ericnewcomer: some comments here can feel like the argument is, if you do not bail us out, we will fear monger about other banks as well
Emily Flitter / @flitteronfraud: Yellen on Face the Nation this morning describes SVB's customers as “small businesses that employ people across the country” & says Treasury officials have been working all weekend with financial regulators to figure out how to dispel any contagion https://www.cbsnews.com/...
Barry Schwartz / @rustybrick: Here is a transcript of what Yellen said about no bail out for SVB but how they will help depositors https://twitter.com/...
@cloud_opinion: SVB depositors should get 2x of their deposits for pain and suffering of the last few days answering screaming calls and listening to BS from their VCs.
David Gura / @davidgura: Asked by @margbrennan if she expects “a deal or something to happen that can reassure the markets before Asia opens tonight, and US markets open tomorrow,” @SecYellen says, “We certainly are working to address the situation in a timely way.” https://www.cbsnews.com/...
Sar Haribhakti / @sarthakgh: Maybe all the gov leaders should copy paste this thread from the Governor of Utah https://twitter.com/...
Greg Osuri / @gregosuri: Treasury is making SVB depositors whole. They're not using the term “bailout” for political reasons. Depositors win. SVB shareholders lose. There is also a potential buyer. Great outcome. https://twitter.com/...
@xrpcryptowolf: Treasury Secretary Janet Yellen says government will help make SVB depositors whole but rules out bailout https://www.ft.com/...
@jason: From @SecYellen on @FaceTheNation — not clear enough, but signaling depositors will be the focus/made whole 🤞 MARGARET BRENNAN: For those depositors, about 85% of SVBs accounts were uninsured. And, as you were saying, a lot of different tech firms relied on them. Do you... https://twitter.com/...
Bob Elliott / @bobeunlimited: First sense of priorities from the administration. Notable shift in tone here from @SecYellen to a more regulatory / technocratic stance. That's a good sign its being taken seriously and with urgency. Faster than political timeline I wrote about yest. https://www.ft.com/...
@om: What Yellen Said: From Silicon Valley pov — there won't be a bailout of the bank. Instead, the focus is going to be entirely on the depositors. She and other federal reserve regulators understand the gravity of the situation and need of the hour. https://om.co/... https://twitter.com/...
Samir Kaji / @samirkaji: 1/This will be a very critical day for the banking industry. Yellen was quoted on making sure depositors are taken care of. There are several options. Some general thoughts before I have to go offline for most of today
@allnick: The banks that are at risk here used the EXACT SAME MODEL that SBF used at FTX They marked their balance sheet value of assets that were illiquid at unrealistic prices When the tide went out, they couldn't liquidate. Only difference was the FED let them do this! 🤦♂️
@amasad: Fascinating how little political power SV holds. Politicians are taking turn on the punching bag, even ostensibly ideologically aligned ones: https://twitter.com/...
M.G. Siegler / @mgsiegler: “Yellen says no bank bailouts”, while technically accurate, is clearly meant to rev up one side because they won't either read or care or realize that this was likely a) never in the cards b) is not the same thing as “everyone is fucked” — at all.
Benedict Evans / @benedictevans: Tell me you don't know what SVB was, who its customers were, or why we don't let bank failures let wipe out their depositors, in just 9 words. I hope for Judd's sake that Substack doesn't bank with SVB. https://twitter.com/...
Jennifer Ablan / @jennablan: World markets set for aftershocks as SVB collapse ripples out https://www.reuters.com/...
Scott Galloway / @profgalloway: Sharp Relief: Thoughts on #SVB Disclosure: I'm directly or indirectly involved with several firms who had/have funds at SVB. None are impaired, or facing liquidity issues due to failure. What happens (conjecture): /1
Kylie Atwood / @kylieatwood: “We want to make sure that the troubles that exist at one bank don't create contagion to others that are sound. And goal always is supervision and regulation is to make sure that contagion can't, can't occur,” Sec Yellen says on face the nation. https://www.cbsnews.com/...
| Financial Times: |
Sources: the UK is seeking a buyer for SVB's British arm, which had nearly £7B in deposits on March 10, with an UAE-based company as the “lead white knight” — ‘Lead white knight’ eyeing British arm of tech lender that had billions in depositsMore:
Anonymous Founder / Sifted: UK government should not bailout SVB UK
Simon Hunt / London Evening Standard: Government to line up Barclays for Silicon Valley Bank UK unit rescue deal
Mike Butcher / TechCrunch: As the SVB auction continues, the sale of its UK arm bounces between potential suitors
Andrew Macaskill / Reuters: UK races to minimise damage from Silicon Valley Bank collapse
David Connett / The i Paper: Silicon Valley Bank collapse: Tech firm job and pay fears as Bank of England moves to shut down US lender
Robert Scammell / UKTN: Inside UK startups' scramble to survive Silicon Valley Bank ‘disaster’
Sarah Butcher / eFinancialCareers Editorial Feed: Silicon Valley Bank spent the last two years hiring investment bankers. Now what?
Mutuma Maxwell / Cryptopolitan: Silicon Valley Bank UK Limited faces insolvency following parent company's collapse
Annabelle Dickson / Politico: Silicon Valley Bank collapse sets off scramble in London to shield UK tech sector
Robert Scammell / UKTN: Government in Silicon Valley Bank crisis talks to save UK startups
Owotunse Adebayo / Cryptopolitan: Bank of England releases update on SVB UK
Robert Scammell / UKTN: VCs urge ‘level heads’ to startups banking with SVB UK
Associated Press: Startups from wine country to the UK pray Silicon Valley Bank ‘gets sold during the weekend’ with billions of uninsured deposits frozen
Tweets:
@hmtreasury: Prime Minister @RishiSunak & Chancellor @Jeremy_Hunt have held discussions with the Governor of the @bankofengland this weekend to discuss Silicon Valley Bank UK & solutions to avoid or minimise damage to some of our most promising companies in the UK. https://www.gov.uk/...
Jeremy Warner / @jeremywarneruk: Sorry, but the Government should not be in the business of high risk capital to the tech sector. If they believe in these companies, the VCs that originally backed them should be making tide-over funds available https://www.ft.com/...
@kadhim: Silicon Valley Bank's UK arm has just 3,300 customers. A useful figure to remember when you hear people say it banked the basically entirety of the British tech industry https://www.ft.com/... https://twitter.com/...
Robert Smith / @bondhack: NEW: the UK govt is trying to push through a takeover of the British arm of Silicon Valley Bank, with a deep-pocketed Middle Eastern buyer having expressed interest. SVB UK had nearly £7bn in deposits when it collapsed latest from FT team here 👇 https://www.ft.com/...
Lomax Ward / @lomax_ward: The SVB collapse impacts the entire British tech industry - start ups working on the future of food, space, compute and biology inter alia are disproportionately affected. The BofE doesn't take this into account with this statement https://www.bankofengland.co.uk/ ...
George Parker / @georgewparker: Breaking - @Jeremy_Hunt preparing to offer cash lifeline to tech firms with cash locked up in stricken bank SVB UK as soon as Monday. Talks today with Sunak and BoE governor Andrew Bailey to finalise plan https://www.ft.com/...
Harry Briggs / @h4ryb: Encouraging noises from UK Chancellor: “working at pace on a solution to avoid or minimise damage to some of our most promising companies in the UK” https://www.gov.uk/...
Michelle Donelan MP / @michelledonelan: We are speaking regularly with the tech sector. As outlined by @Jeremy_Hunt and @hmtreasury the government is working at pace on a solution to avoid or minimise damage to some of our most promising companies in the UK. https://twitter.com/...
Ryan Browne / @ryan_browne_: The UK arm of Silicon Valley Bank has been placed into insolvency by the Bank of England. Tricky situation for lots of UK tech startups who have their funds locked up in SVB UK. If you've been impacted, please reach out: ryan.browne@nbcuni.com https://www.bankofengland.co.uk/ ...
Robert Smith / @bondhack: okay, so backing up our earlier reporting on a UAE-based bidder being one of the main potential buyers for SVB UK: @BenBartenstein reports that Sheikh Tahnoon's Royal Group is mulling a takeover https://www.bloomberg.com/...
@thesiriusreport: Contagion of fear spreads rapidly: Sunak and Chancellor Jeremy Hunt are due to hold talks with the Governor of the BoE in response to the collapse of Silicon Valley Bank UK. In a statement issued on Sunday morning, the Treasury said it is treating the issue as a high priority.
Anjli Raval / @anjliraval: The UK government is trying to push through a takeover of the British arm of Silicon Valley Bank to prevent damage spreading across the technology sector, with a deep-pocketed Middle Eastern buyer having already expressed interest. https://www.ft.com/...
@moving_charlie: The most notable thing about this is that the Bank of England feels it's worth making a public statement on this at all. I don't know how systemic or not the problem is, but you can sense the nerves. https://www.bankofengland.co.uk/ ...
| Bloomberg: |
Sources: the FDIC is racing to sell SVB's assets and make 30% to 50% or more of clients' uninsured deposits available via an initial payment as soon as March 13 — US regulators overseeing the emergency breakup of SVB Financial Group are racing to sell assets and make a portion …
Mastodon:
@lcamtuf@infosec.exchange. Tweets:
@mittromney, @carnage4life, @heydavidlee, @matthewstoller, @nkulw, @frances_coppola, @bijans, @yoda, @ellebeyoud, @davemcclure, @noahpinion, and @alistairmbarr
More:
Matthew Monks / Los Angeles Times: FDIC auction for Silicon Valley Bank underway, final bids due Sunday
Darrell Duffie / CNN: What SVB's shocking collapse means for the tech industry - and the US
John H. Cochrane / The Grumpy Economist: Silicon Valley Bank Blinders
Jesse O'Neill / New York Post: Hedge fund manager Bill Ackman warns of ‘economic meltdown’ following Silicon Valley Bank collapse
Justinas Baltrusaitis / Finbold: FDIC creates a bank to protect insured SVB depositors
Pooja Sitaram Jaiswar / Livemint: This bank will protect insured and uninsured depositors trapped in Silicon Valley Bank failure
Joseph Politano / Apricitas Economics: The Death of Silicon Valley Bank
Mastodon:
Tweets:
Mitt Romney / @mittromney: Silicon Valley Bank's shareholders and executives lose it all, as they should. Depositors in good faith, however, should recover and have access to their deposits in order to meet their payrolls, pay their suppliers, and to prevent contagion.
Dare Obasanjo / @carnage4life: The SVB discourse has already turned into a background hum of nonsense. The FDIC will work to make depositors whole because the alternative will both devastate the tech sector and lead to more bank runs. Victim blaming depositors is schadenfreude pretending to be business savvy
David Lee / @heydavidlee: In this Silicon Valley Bank situation, it might be worth giving a little credit to the #FDIC. Most people are talking about #SVB as a once-in-a-lifetime event. But, FDIC has gone through this 562 times in the last 22 years. Bank failures are not that rare. https://twitter.com/...
Matt Stoller / @matthewstoller: Good faith? Sorry but Roku put $500M in an uninsured account. That's just bad risk management. And Silicon Valley Bank had an affiliate that ran VC funds investing in firms banking w/SVB. https://twitter.com/...
Noah Kulwin / @nkulw: Back in my day... the fdic takes over a bank on Friday and then you didn't hear peep until Monday... https://twitter.com/...
Frances ‘Cassandra’ Coppola / @frances_coppola: Yes, the FDIC will do its best to make depositors whole. But it only guarantees to do so for insured deposits - up to $250k per depositor. I do not see any evidence of the US govt being willing to bail out the tech sector. https://twitter.com/...
Bijan Salehizadeh / @bijans: Not good - also 30-50% of uninsured only to be paid “The FDIC has been laying groundwork for a potentially drawn-out sale process...despite efforts to reach a resolution quickly, a piecemeal sale spanning weeks or months looked more probable” https://www.bloomberg.com/...
Drew Olanoff / @yoda: Race faster. https://twitter.com/...
Lydia Beyoud / @ellebeyoud: Just posted on @theterminal FDIC is looking to make 30-50% of uninsured deposits available to Silicon Valley Bank SVB customers on Monday. Final figure still being hashed out. With @SalehaMohsin & @sridinats https://twitter.com/...
| Lauren Tara LaCapra / The Information: |
Sources: regional banks are the likeliest bidders to prevail in Silicon Valley Bank's sale process, not “too big to fail” banks like JPMorgan or Bank of America — Regional banks are the likeliest bidders to prevail in the sale process for Silicon Valley Bank … Tweets:
Ali Partovi / @apartovi: It sounds like the government is *blocking* any big bank from absorbing the problem. https://www.theinformation.com/ ... https://twitter.com/...
Jessica Lessin / @jessicalessin: https://www.theinformation.com/ ... https://twitter.com/...
Dan Primack / @danprimack: There's lots of talk that WH can't stomach Goldman or Morgan Stanley buying SVB, for political perception reasons. But going with a smaller balance sheet bank seems very dicey. Would be legitimately stunned if it plays out like this. https://twitter.com/...
Balaji / @balajis: This is how FDIC is blocking the acquisition. By not allowing a “too big to fail” bank to acquire SVB. In the name of preventing centralization they cause it. As deposits are already flowing to the big banks. https://twitter.com/...
Kate Clark / @kateclarktweets: Regional banks like PNC Financial, US Bank, Truist or Capital One are the likeliest bidders to prevail in the sale process for SVB, sources tell @LaurenLaCapra. Still it would be extremely difficult for a new owner to be in place by Monday: https://www.theinformation.com/ ...
| Om Malik / On my Om: |
More than a bailout, SVB needs a white knight to come in and take over the bank that has been at the heart of the US innovation economy — After three decades of being part of the Silicon Valley ecosystem — as a reporter, writer, entrepreneur, and investor — I thought I had seen it all.
Tweets:
@rachelensignwsj, @jeff, @shripriya, @arpitrage, @markmobility, @washingtonpost, @tphillips, @kfile, @gzuckerman, @samidhas, @kevinokeefe, @salimismail, and @metacurity
More:
Nadia Asparouhova / Monomythical: A Bank of One's Own
Damilola Lawrence / Cryptopolitan: Is the US banking system on the verge of collapse? $620B in unrealized losses unveiled
PTI / The Economic Times: Collapse of Silicon Valley Bank to impact Indian startup ecosystem, feel experts
Brian Merchant / Los Angeles Times: Silicon Valley Bank broke. Silicon Valley is broken
Tweets:
Rachel Louise Ensign / @rachelensignwsj: It was the first bank run ever organized over Slack. Our play-by-play of how VCs and start-ups yanked an extraordinary $42 billion from SVB in one day. https://www.wsj.com/... via @WSJ
Jeff Clavier / @jeff: Hello, old friend ;-). I agree with you that there is a lot of negativity (assholes who want us to fail) and some VC twitter self serving (as always) but what I mostly see is a bunch of GPs who are working their asses off to help their portfolio companies - and each other. https://twitter.com/...
Shripriya Mahesh / @shripriya: Great points including “What's worse is we currently have no leadership in the proverbial valley. We have a few loud voices that are extraordinarily self-serving and devoid of empathy.” After the dust settles, I hope leaders of ambition & grace stand up to be counted https://twitter.com/...
Arpit Gupta / @arpitrage: The use of the internet for financial coordination seems to be more important. Organizing on reddit to buy meme stocks; using Discord channel to pump altcoins; and Slack to coordinate bank runs. More herding behavior in finance than before. https://www.wsj.com/...
Mark Elliott / @markmobility: And now, everyone who had money at SVB (because they paid higher interest rates) wants a taxpayer bailout? GTFOH. https://www.washingtonpost.com/ ...
@washingtonpost: Government help for large depositors could ignite a political firestorm — but failing to act could crush some tech start-ups https://www.washingtonpost.com/ ...
Todd Phillips / @tphillips: I spoke with @JStein_WaPo about Silicon Valley Bank, explaining how the FDIC's Deposit Insurance Fund works and the politics around raising the $250,000 insurance ceiling. https://www.washingtonpost.com/ ...
Andrew Kaczynski / @kfile: Terrific look from @WSJ at the SVB bank run - probably the first in history spread over Slack and WhatsApp. https://www.wsj.com/... https://twitter.com/...
Gregory Zuckerman / @gzuckerman: A new-age bank run: “Fellow passengers were frantically tapping on their phones, rushing to move their money.” @BenFoldy @RachelEnsignWSJ @Justinbaer explain how SVB's collapse happened slowly, yet quickly https://www.wsj.com/...
@samidhas: It took four decades to build Silicon Valley Bank and its parent company, SVB Financial Group, into the startup world's pre-eminent financier. It took 36 hours to dismantle it. https://www.wsj.com/...
Kevin O'Keefe / @kevinokeefe: “Imagine being a founder today and knowing you might have access to $250,000 sometime next week — or not? What do you do then? What are your choices? Do you keep going, or are you out of business? Again, the dreaded ” https://twitter.com/...
| Bloomberg: |
SVB draws support from 500+ VCs, including General Catalyst and Sequoia, while 5,000+ founders and CEOs sign a Y Combinator petition asking US Congress to act — More than 100 venture capital and investing firms have signed a statement supporting Silicon Valley Bank, part of mounting industry calls …
Tweets:
@htaneja, @paulg, @micsolana, @reprokhanna, @davidsacks, @grdecter, @photomatt, @jeiting, @erikvoorhees, @ryangrim, @marxgasol, @joshsteinvc, @ryangrim, @pt, @tomcoates, @quinneyeq, @cloud_opinion, @tfadell, @_jeremyflores, @jeffnolan, @ksimm, @antoinegara, @bigblackjacobin, @tolstoybb, @peterkolchinsky, @twobitidiot, @crv, @jefielding, @amuse, @bradsilverberg, @charlesarthur, @deitaone, @mattocko, @teroterotero, @m2jr, @davidgerard, @mansourtarek_, @quinneyeq, @katie_roof, @kevinrose, @can, @paulg, @ranjanxroy, and @ronconway
More:
Financial Times: Silicon Valley Bank's China venture in doubt as start-ups struggle to access US funds
George Hammond / Financial Times: SVB collapse leaves founders liable for unpaid wages
Natasha Mascarenhas / TechCrunch: Y Combinator calls on Congress to act on SVB collapse
Steve Mollman / Fortune: The first social media bank run? A newsletter popular with VCs may have been the domino that started the Silicon Valley Bank implosion
Ruholamin Haqshanas / Cryptonews: Lawmakers Seek Answers from Fed, FDIC on Silicon Valley Bank Collapse
The Economic Times: SVB crisis puts more than one lakh jobs in red: Y Combinator petitions US Treasury
Arthur Bloom / Arthuriana: Thoughts on the Silicon Valley Bank Collapse
Tweets:
Hemant Taneja / @htaneja: Several VC leaders met today to discuss the aftermath of SVB's downfall. This is a joint statement from all of us. @Accel @altcap @BCapitalGroup @generalcatalyst @eladgil @GreylockVC @khoslaventures @kleinerperkins @lightspeedvp @MayfieldFund @Redpoint @RibbitCapital @upfrontvc https://twitter.com/...
Paul Graham / @paulg: The Y Combinator companies that bank with SVB have 267,000 employees, of which at least 81,000 are based outside California.
Mike Solana / @micsolana: left, entrepreneur (job) employing 15 people (jobs) trying to keep her business alive. right, writer for esquire who thinks the chance they lose their jobs is funny, because it means they have to... get jobs. the point is not to make sense. the point is to delight in human misery. https://twitter.com/...
Rep. Ro Khanna / @reprokhanna: This morning I reached out to both the White House & the Treasury Department to discuss the situation with Silicon Valley Bank. I emphasized the importance of doing whatever is legally permissible & appropriate to support the Bank which is central to the startup & tech economy.
David Sacks / @davidsacks: We've reached a point of political division where it's fine to root for members of another tribe losing their bank deposits—even though you would protect members of your own tribe in the same situation. Be careful what you wish for because the shoe may soon be on the other foot.
@grdecter: CEO of Y Combinator Garry Tan: “This is an *extinction level event* for startups and will set startups and innovation back by 10 years or more.”
Matt Mullenweg / @photomatt: In the SVB situation I'm surprised there hasn't been more discussion of the fortress balance sheets of Alphabet, Apple, Meta, and Microsoft. They have more cash than most countries. If the coffers are passed, would be nice to see tech protect its own industry.
Jacob Eiting / @jeiting: @senrobportman @JDVance1 Senators, I am a 36 year Ohio citizen, and CEO of a 60 person company who is scrambling in the wake of the SVB collapse. We are struggling to find liquidity to make it through next week.
Erik Voorhees / @erikvoorhees: “We ask for regulation to prevent this catastrophe” This catastrophe happened because of state intervention in markets. Can we please stop begging for more of it? Open, immutable, objective, decentralized finance would be an actual alternative to doubling down on status quo. https://twitter.com/...
Ryan Grim / @ryangrim: Yes, make the depositors whole, nationalize the bank, bankrupt the executives, and wipe out shareholders. Do the same for every bank that fails and you won't have many fail. https://twitter.com/...
@marxgasol: Literally 90% of the major startups funded by Y Combinator have made our world fundamentally worse https://twitter.com/... https://twitter.com/...
Josh Stein / @joshsteinvc: A core belief at @ThresholdVC is that technology is the fundamental driver of our future. In the near term, it will be all hands on deck managing the @SVB_Financial crisis but our tech ecosystem is resilient and the community is already pulling together. https://www.bloomberg.com/...
Ryan Grim / @ryangrim: Peter Thiel urged companies to run to Silicon Valley Bank and withdraw their money — they did, and the predictable happened. https://www.bloomberg.com/...
Parker / @pt: A good question to ask yourself on this app is whether you're dunking on people because their ideas are bad, or because they represent a class of people you think are bad and can't see as actual humans. https://twitter.com/...
Tom Coates / @tomcoates: Lovely company of a friend of mine @keyboardio has been hit by the Silicon Valley Bank problems and as a result are doing a giant sale on their extremely distinctive, interesting and on occasion beautiful keyboards. If you're interested, now is a good time to help them out. https://twitter.com/...
@quinneyeq: I esp want to shout out @vkhosla for being such a class act and going the extra mile by taking out a personal loan to make sure his portcos are able to make payroll 😍
@cloud_opinion: At a minimum, FDIC should require all restaurants in San Francisco to offer Avocado Toast for free on Monday. Its a basic humane thing the Feds should do for startups facing uncertainty of SVB shutdown.
Tony Fadell / @tfadell: SVB was instrumental in building Silicon Valley & our digital world. They absolutely deserve our support as they have supported us for 40 yrs. There is NO other bank even close to their ability to understand & support these highly technical businesses! https://www.bloomberg.com/...
Jeremy Flores / @_jeremyflores: What an embarrassingly meaningless statement: “Once there are no problems, then we will take obvious actions one would take when no problems exist. Also, we will not be taking any actions or innovate ideas to help solve the current problem. Signed: ‘Leaders’ of ‘Innovation’” https://twitter.com/...
Jeff Nolan / @jeffnolan: it is a little early to be coming out with the “I know SVB and they are a good person, couldn't have done it!” letter. What is there was misconduct, breach of fiduciary duty, management failure that could have been avoided, or actual criminal activity? This needs to be discovered https://twitter.com/...
Kristina Simmons / @ksimm: We've also signed this @OverwaterVC. https://twitter.com/...
Antoine Gara / @antoinegara: Sequoia's Michael Moritz does a good job explaining how it was that a small community bank — not JPMorgan or Goldman Sachs — came to dominate one of the wealthiest corners on earth. https://www.ft.com/...
Edward Ongweso Jr / @bigblackjacobin: “ugh fine” like the same network of VCs and founders haven't been repeating the same talking points and ringing the same alarms and trying to spread the same hysteria https://twitter.com/...
Rachel / @tolstoybb: bro the VCs are literally trying to get FRB to fail so taxpayers bail out their burrito delivery companies, I'm a Maoist now
Peter Kolchinsky / @peterkolchinsky: We fund R&D... our letter to our government regarding SVB... even it takes a while to get everything back to depositors, clarity is needed urgently... on scale of hours. @WSJ @business @nytimes @BioCentury @statnews @washingtonpost https://rapport.bio/...
Ryan Selkis / @twobitidiot: This isn't about a bank bailout, it's about hundreds of thousands of jobs. Sign: https://twitter.com/...
@crv: During this surreal point in our industry's history we stand by our colleagues in the tech industry, remain supportive of #SVB and look forward to a swift resolution. https://twitter.com/...
Jenny Fielding / @jefielding: I have 250 portfolio companies. The investor updates from founders have been flooding in for the past 24 hours. I can barely keep up with my inbox. But the rough math is that 30% had accounts with #SVB. The stress on these founders right now is hard to imagine.
@amuse: This is a shocking number. Pro Tip: never have an entire asset class bank at a single bank. Especially a close knit clubby group like VCs and startup founders. https://twitter.com/...
Brad Silverberg / @bradsilverberg: Anyone who tweeted “learn to code” or “have fun being poor” in the past should receive an NFT of their bank statement (rather than their funds).
Charles Arthur / @charlesarthur: The CEO of @RevenueCat here: facing the problem of how you meet payroll etc when your bank has locked its doors. The fine detail of why SVB went under and why all those bonds aren't worth what it paid for them seem arcane. Worth remembering nobody wins from a bank failure. https://twitter.com/...
@deitaone: $SIVB - U.S. SENATOR MENENDEZ: NOT READY TO OFFER SVB A BAILOUT ‘BY ANY STRETCH OF THE IMAGINATION’
Matt Ocko / @mattocko: And multiply those jobs by 10x - closer to 1M on the line - from the business partners, supply chain providers, local businesses that will be harmed https://twitter.com/...
Tero Kuittinen / @teroterotero: This remains the WSJ editorial we deserve but will never see https://twitter.com/...
Mike Maples, Jr / @m2jr: @floodgatefund is proud to support this statement in support of SVB. They and their people have played a hugely positive role for decades. https://twitter.com/...
@davidgerard: but sir, *you personally* were encouraging *your own* Y Combinator portfolio companies to join the bank run on SVB https://www.bloomberg.com/... https://twitter.com/...
Tarek Mansour / @mansourtarek_: SVB has been a strong partner to all of tech. I hope the FDIC/Fed can figure out a successor and make sure the bank is in stable hands. The entire ecosystem would support this. https://twitter.com/...
@quinneyeq: After seeing all the flaming batshit nonsense and bad behavior on this site, I am EXTRA happy to have the investors that I do. Some are mega funds, some are individuals whom I'm met on this site. Thank you so much for not being evil and for always supporting me no matter what ❤️
Katie Roof / @katie_roof: Venture firms are rallying, trying to get the government's attention to help save customer deposits from SVB. Our story on their efforts https://www.bloomberg.com/...
@kevinrose: These are some of the well-respected venture firms in the world locking arms to solve this problem. I'm optimistic. https://twitter.com/...
Paul Graham / @paulg: Silicon Valley Bank has been a critical component of America's startup ecosystem. I look forward to working with SVB's successor, and hope the FDIC will act quickly to establish one. https://twitter.com/...
| Rob Wile / NBC News: |
More:
Igor Bonifacic / Engadget: Etsy warns of merchant payment processing delay due to Silicon Valley Bank collapse
| TechCrunch: |
Tweets:
@billackman, @garrytan, @davidsacks, @ddisparte, @sumukhsridhara, @garrytan, @garrytan, @om, @fordm, @eric_seufert, @aoc, @rokhanna, @ericnewcomer, @nikitabier, @jenn_elias, @jenn_elias, @dflieb, @brianbrackeen, @fluentinfinance, @scobleizer, @kylebrussell, @vkhosla, @karaswisher, @om, @valaafshar, @buccocapital, @epsilontheory, @silvermanjacob, @clarajeffery, @modestproposal1, @livefromvr, @semaforben, @danprimack, @kateclarktweets, @pt, @howardlindzon, @__aston__, @wolfejosh, @rolfewinkler, @rolfewinkler, @jasonfurman, @s_mikhailovich, @eliotwb, @karaswisher, @film_girl, @karaswisher, @heidibraun, @nils_gilman, @1markmoss, @lorenasgonzalez, @kateclarktweets, @stanleyroberts, @amir, @garrytan, and @hblodget
More:
Timothy Bella / Washington Post: Even after Silicon Valley Bank's collapse, WaMu's is still the biggest
Marco Marcelline / PCMag: Etsy Is Struggling To Pay Sellers After Silicon Valley Bank Collapse
The Economic Times: From Shanghai to Mumbai, tech chiefs race to contain Silicon Valley Bank fallout
Livemint: Silicon Valley Bank: YCombinator issues petition to compensate small business depositors in full
Tweets:
Bill Ackman / @billackman: From a source I trust: @SVB_Financial depositors will get ~50% on Mon/Tues and the balance based on realized value over the next 3-6 months. If this proves true, I expect there will be bank runs beginning Monday am at a large number of non-SIB banks. No company will take even a... https://twitter.com/...
@garrytan: Regulators need to step in to do a *backstop* of depositors (not a bailout of a bank) 40,000 SVB depositor small businesses 30% will fail to make payroll in the next 30 days Estimate 10 employees each 120,000 jobs on the line Years of US innovation on the line
David Sacks / @davidsacks: Where is Powell? Where is Yellen? Stop this crisis NOW. Announce that all depositors will be safe. Place SVB with a Top 4 bank. Do this before Monday open or there will be contagion and the crisis will spread.
Dante Disparte / @ddisparte: @circle is currently protecting #USDC from a black swan failure in the U.S. banking system. @SVB_Financial is a critical bank in the U.S. economy and its failure - without a Federal rescue plan - will have broader implications for business, banking and entrepreneurs. https://twitter.com/...
@sumukhsridhara: We just built a product @AngelList to help startups impacted by SVB that need emergency capital: - Standardized Loan Agreement Docs (temporary loan from investors) with online signing & funding. - Built in banking access (if your company needs it) DM me if you need access https://twitter.com/...
Garry Tan / @garrytan: 650 founders who employ over 20,000 people have already signed this petition Thousands of startups and small businesses are at risk due to the SVB failure. We ask for depositors to be made whole, and for regulation to prevent this catastrophe. 650 https://www.ycombinator.com/ ...... https://twitter.com/...
Garry Tan / @garrytan: Thousands of startups and small businesses are at risk due to the SVB failure. We ask for depositors to be made whole, and for regulation to prevent this catastrophe. 650 founders who employ more than 22,000 people, have already signed. https://www.ycombinator.com/ ...... https://twitter.com/...
Matt Ford / @fordm: This doesn't exactly spark enthusiasm for a SVB bailout. https://www.nytimes.com/... https://twitter.com/...
Eric Seufert / @eric_seufert: I have no idea what the large ad platforms do on Monday regarding payment terms. They may expand credit lines and/or payment timeline terms to companies with SVB bank accounts if it seems likely that a large proportion of deposits will be recovered. They also might not do that.
Alexandria Ocasio-Cortez / @aoc: How many of the Silicon Valley folks who lobbied Congress + Trump to cause this crisis are willing to admit they were wrong? I haven't seen a single one of these guys crying for a bailout take a single ounce of accountability for their actions. It's honestly shameless.
Ro Khanna / @rokhanna: The Treasury Department and FDIC must communicate loudly and clearly that depositors will be protected. The investors and executives of SBV should bear risk and lose. But this should not mean that workers go without paychecks on Monday or small businesses collapse.
Eric Newcomer / @ericnewcomer: no atheists in a foxhole. no libertarians in a bank run https://twitter.com/...
Nikita Bier / @nikitabier: Coming up next week 1. Depositors at small banks move to JP Morgan 2. Everyone moves from cash to treasuries & money markets 3. Bank assets are no longer backed by deposits 4. More runs on banks 5. Socialists cheer on demise of small banks 6. Execs at big banks get mega rich https://twitter.com/...
Jennifer Elias / @jenn_elias: “I'm trying to get a check!” one man yelled, knocking on the locked glass doors of SVB's Menlo office. “After this, we're putting our money in multiple banks,” one founder said to another he just met. “Us too—if we're still around.” More sights & sounds: https://www.cnbc.com/... https://twitter.com/...
Jennifer Elias / @jenn_elias: “The same Bank funding VCs and doing all kinds of magic acts to keep their portco's alive (some of the very VCs that sent us and then left us hanging), their mgmt teams, leveraged lines - all gone,” wrote an SVB Sr. Market Manager on LinkedIn this morning: https://www.linkedin.com/... https://twitter.com/...
David Lieb / @dflieb: Founder who lives in Texas and employs 60 hard working people in auto repair shops. This is about them. https://twitter.com/...
Brian Brackeen / @brianbrackeen: People are waking up to the fact that companies do exist outside of the Bay. I suggest you follow more @roybahat and less @Jason . Consume rational and serious concern about the issue, vs ALL CAPS panic. This issue is eminently serious, and also eminently solvable. https://twitter.com/...
Andrew Lokenauth / @fluentinfinance: In 2022 Forbes named Silicon Valley Bank one of America's Best Banks, and Moody's gave them an A rating. SVB has been around for 40 years and was home to half of all venture-backed startups. Now it's the biggest bank failure since 2008 and the second-largest in US history.
Robert Scoble / @scobleizer: Silicon Valley feels like this today: https://twitter.com/...
Kyle Russell / @kylebrussell: Remember that we can let equity go to zero to not reward management while still making depositors whole https://twitter.com/...
Vinod Khosla / @vkhosla: Agree Fed needs to step up. But so do VC's. We are talking to 100+ portfolio companies assessing their needs and plan to bridge where we are a lead or major investor at our cost of borrowing only or under special circumstances where a company's investors are not able to respond https://twitter.com/...
Kara Swisher / @karaswisher: Look at who is missing here and that will tell you a whole lot. https://twitter.com/...
@om: Let me cut to the chase: as someone who has been part of the Silicon Valley ecosystem for three decades, this is the worst weekend I have experienced as part of the technology community. https://om.co/... https://twitter.com/...
Vala Afshar / @valaafshar: SVB is not just a bank, it was at the heart of the American innovation economy. — @om https://om.co/... https://twitter.com/...
BuccoCapital Guy / @buccocapital: Take a moment to thank your local Twitter generals for pausing their focus on the land war in Ukraine to share their insights on the banking system. We are grateful
Ben Hunt / @epsilontheory: Let's all hope that Ackman is wrong in his information, because he's 100% right in his conclusion. https://twitter.com/...
Jacob Silverman / @silvermanjacob: SVB operated differently than many American banks, apparently made poor decisions, and is now under a well-established FDIC process designed for these circumstances. Is the contagion fear real, or do billionaire techies and financiers just want to be made whole immediately? https://twitter.com/...
Clara Jeffery / @clarajeffery: “Trump...lessened scrutiny for many regional banks. SVB's chief executive, Greg Becker, was a strong supporter of the move....it changed requirements for the amount of cash that these banks had to keep on their balance sheets to protect against shocks.” https://www.nytimes.com/...
@modestproposal1: Oh my god. “Ideally”. How the ever living fuck did they not realize that announcing in the morning without concurrent pricing would cause a death spiral. https://twitter.com/...
@livefromvr: Sillicon Valley doesn't quite grasp how indifferent Washington is to let thousands of startups fail through no fault of their own. The Fed doesn't quite grasp how enmeshed startups are in the modern economy and how much nonlinear blowback this will lead to.
Ben Smith / @semaforben: Hedge funds offer to buy deposits stuck at Silicon Valley Bank | @lizrhoffman @ReedAlbergotti https://www.semafor.com/...
Dan Primack / @danprimack: This is on top of the significant deposit inflows on Thursday & Friday. https://twitter.com/...
Kate Clark / @kateclarktweets: Inbox: Brex says it's received $1B in payroll loan requests since it announced its emergency bridge credit line yesterday.
Parker / @pt: Adding blogging to Twitter was a mistake that is gonna collapse the banking system. https://twitter.com/...
Howard Lindzon / @howardlindzon: Yo founders...@angellist has a possible solution for those affected by SVB needing emergency capital - wonderful work https://twitter.com/...
Aston Motes / @__aston__: A bailout for shareholders here is unjustified, but having the government backstop deposits until a safe home for SVB assets is found just makes sense. Otherwise businesses are going to pull their money out of every regional bank ASAP.
Josh Wolfe / @wolfejosh: SVB was great partner to Lux + many of our cos that wouldn't exist w/o them— REMEMBER: VCs despite our 📣puffery + promotion 🙄are just pass-thrus. The cash💰 AINT ours—VCs earn fees & profit share (if any) BUT the 💰 belongs to retirement plans, pensions, charities across US🇺🇸 https://twitter.com/...
Rolfe Winkler / @rolfewinkler: If VC/PE/founders are concerned, they can make sure they perform on the ~$50b of capital call and private loans they've taken out. Not exactly subprime credits on the asset side of the balance sheet. https://twitter.com/...
Rolfe Winkler / @rolfewinkler: Hard to see how American despositors lose anything here. At 12/31: $16b of equity, $19b of ST/LT debt, $14b of foreign deposits. Losses on treasurys wipe the equity, but still lots of cushion for uninsured American despositors.
Jason Furman / @jasonfurman: BTW, the @nytimes requires inflation adjustment for movie records. But not for bank failure records. https://www.nytimes.com/... https://twitter.com/...
Simon Mikhailovich / @s_mikhailovich: Bill Ackman's disingenuous excuse of SVB failure: “SVB's senior management made a basic mistake. They invested short-term deposits in longer-term, fixed-rate assets.” Borrowing short to lend long is how a fractionally reserved banking system operates. There was no mistake.
Eliot Brown / @eliotwb: V prescient story from @JonathanWeil in Nov on bank risks Silicon Valley Bank bonds worth $15.9 B less than balance sheet value SVB: “There are no implications for SVB because, as we said in our Q3 earnings call, we do not intend to sell our [held to maturity] securities.” https://twitter.com/...
Kara Swisher / @karaswisher: The #1 is a real nonsense scare trope coming from SV folks, who suddenly found religion (government) — there won't be a run on all the banks, even though the government has to act loudly and quickly by the end of the weekend since that one of its its critical jobs. https://twitter.com/...
Christina Warren / @film_girl: 100% with all of this. You don't have to like the bank or the people who held their money there, but unless Citi, BoA or JPMC can step in by Monday, I don't want to think about what happens next. https://twitter.com/...
Kara Swisher / @karaswisher: Wait, I forgot who I was for a sec and spilling tea is my job. MIA: Founders Fund, Andreessen Horowitz, Sequoia.
@heidibraun: This sums up the last four years perfectly. Sadly, but perfectly. Much love to everyone battling it out today, this week, month, year, decade. Kindness always wins. https://twitter.com/...
Nils Gilman / @nils_gilman: This is bullshit. If these startups have viable businesses, they will get recapitalized. The only people who will lose money are the VCs who gave the startups money, and now need to give them more money. NO BAILOUTS OF VENTURE CAPITALISTS. https://www.npr.org/...
Mark Moss / @1markmoss: USDC stablecoin, which is or was fast on the path to becoming a US-CBDC, doesn't have your dollars anymore... they lent them to a bank that lent them to the government, and they went up in 🔥 https://twitter.com/...
Lorena Gonzalez Fletcher / @lorenasgonzalez: Wow! Incredible....VCs & start-ups realize it's actually illegal to have people do work without paying them. I thought that's just what they called a “business model.” https://www.bloomberg.com/...
Kate Clark / @kateclarktweets: New: SVB wasn't just a bank—it was a central artery in the VC circulatory system. While other banks that handled huge clients might barely give a startup founder the time of day, SVB showered them with attention. Now it's gone. https://www.theinformation.com/ ...
Stanley Roberts / @stanleyroberts: The ripple effect from this bank failure could be devastating. No matter how many millions you have in this bank members can only access $250.000 @FDICgov https://www.npr.org/...
Amir Efrati / @amir: seems @RagingVentures is the @michaeljburry of the SVB saga https://www.theinformation.com/ ... $sivb https://twitter.com/...
| Bloomberg: |
Tweets:
@lcmichaelides, @torrenegra, @kprescott, @samirkaji, @silvermanjacob, @secretcfo, @taylorlorenz, @smtuffy, @flateartherkitt, @mikebutcher, @pauljudge, @aaronklein, @alexwickham, @ericjackson, @joshmedia, @gramblings, @benparr, @moving_charlie, @matthfield, @lynnmdoan, @mikegatto, @israelipm, @anothercohen, @tw_seal, @cornelialake, and @tw_seal
More:
Matthew Bartus / Cooley: Common Questions Regarding Access to Funds After Failure of an FDIC-Insured Bank
Ana Paula Pereira / Cointelegraph: UK regulators moving “at pace” to deliver plan for tech firms hurt by SVB collapse
Rami Sayar / Rami's Readings: Rami's Readings #11 — Welcome to Rami's Readings #11 - a weekly digest of interesting articles …
Pooja Sitaram Jaiswar / Livemint: Silicon Valley Bank: How does the largest bank failure since the 2008 crisis impact startups
Tweets:
Lindsey Michaelides / @lcmichaelides: Hi, I'm Lindsey. A bit about me: - Ohio mother of 4 - I employ a team of 15 as a start-up founder & CEO of Strongsuit - drive a used Honda Odessey - husband works in manufacturing - The financial future of my company, team and family are at risk w/ the collapse of SVB (1/23)
Alexander Torrenegra / @torrenegra: Silicon Valley Bank was the main bank for two of our companies, my personal savings, and my mortgage. This is how things unfolded for us: Between 2013 and 2023, all good. Thursday, 9 AM: in one chat with 200+ tech founders (most in the Bay Area), questions about SVB start to... https://twitter.com/...
Katie Prescott / @kprescott: 140 UK tech companies have written to the Chancellor today to ask for support following the collapse of SVB UK ⬇️ https://twitter.com/...
Samir Kaji / @samirkaji: I'm now seeing emails from various firms imploring their companies to move all cash to a top 4 bank (including from FRB, Signature, etc). This type of panic will break the system, is frankly, very dangerous. However, a few things to think about: 🧵
Jacob Silverman / @silvermanjacob: Easy SEC subpoena https://twitter.com/...
@secretcfo: If you are the CEO or CFO at a business who banks with SVB; here are some things you CAN do over the weekend 1. Build a 4 week rolling daily receipts and payments style cashflow forecast. 2. Gear up finance team to actualize & reforecast every AM by 10am
Taylor Lorenz / @taylorlorenz: The “I buy shares of SVB at what I consider significantly low prices” halfway through this thread... 💀 https://twitter.com/...
@flateartherkitt: losing it at this mckinsey lady's company's “product,” which is a bespoke to-do list app that costs $600/month https://twitter.com/...
Mike Butcher / @mikebutcher: BREAKING: Key UK law firm @osborneclarke expects Silicon Valley Bank UK Limited (SVBUK) “will enter an insolvency procedure this evening, Sunday 12 March 2023. This follows Silicon Valley Bank in the US being placed into FDIC receivership... The position https://www.osborneclarke.com/ ...... https://twitter.com/...
Paul Judge / @pauljudge: This is a tough tradeoff b/w what's best for the system & what's best for each company's protection of its cash. What are solutions to establish trust and avoid more runs? Increase FDIC insur for biz accts? Educate on staying w/ existing bank but better treasury mgmt? What else? https://twitter.com/...
Aaron Klein / @aaronklein: Seeing a lot of economic illiteracy around the Silicon Valley Bank debate. Absolutely no one thinks SVB shareholders should be bailed out. The firms who deposited money into a federally-regulated institution did not “take a risk.” They deposited cash into a bank account. https://twitter.com/...
Alex Wickham / @alexwickham: From Santa Clara to Shoreditch, SVB Fallout Spreads Around World Top read from @TW_Seal and team on the Silicon Valley Bank story that's blowing up (Sort of thing you'd think might lead the BBC News, but nah) https://www.bloomberg.com/...
Eric Jackson / @ericjackson: “Toronto-based advertising-tech firm AcuityAds Holdings Inc. revealed on Saturday it had $55min deposits at SVB, amounting to more than 90% of its cash. The firm had halted trading of its stock Friday after a 14% slump, citing the “unfolding situation” with Silicon Valley Bank.” https://twitter.com/...
Josh Felser / @joshmedia: accounting/capital rules allow banks to ignore mark-to-market losses on some securities if they intend to hold them to maturity. Problems 1) cash crunch may force a bank to sell 2) Treatment of securities means banks are discouraged from selling
Gautam Gupta / @gramblings: This would be a disaster for the US banking system. Really hope this does not occur. https://twitter.com/...
Ben Parr / @benparr: @sivb The next 36 hours will be crucial. Regulators must find a buyer or guarantee deposits, or the risk of economic contagion spreading skyrockets. I am still hopeful that the worst case scenario won't happen, but I also didn't think @SIVB would collapse either.
@moving_charlie: 180 UK tech CEO's have written to @Jeremy_Hunt asking him to intervene. “Many [UK] businesses will be sent into involuntary liquidation overnight.” SVB Fallout News: Spreading Problems Around the World - Bloomberg https://www.bloomberg.com/...
Matt Field / @matthfield: EXC: In further unwelcome news for Britain's start-ups, the British Business Bank had started writing to Future Fund companies warning it plans to soon call in their bailout loans on punishing terms - with @jamestitcomb https://www.telegraph.co.uk/ ...
Lynn Doan / @lynnmdoan: The fallout from the collapse of Silicon Valley Bank is starting to spread to startups around the world. Founders in UK are warning that “businesses will be sent into involuntary liquidation overnight” if government doesn't step in. By @TW_Seal https://www.bloomberg.com/...
Mike Gatto / @mikegatto: The amount of tech-bro Libertarians who suddenly have become advocates for “Big Government” is astounding. https://www.bloomberg.com/...
@israelipm: From Rome I have held talks with senior high-tech figures in Israel. Upon my return to Israel I will discuss the scope of the crisis with the Finance and Economy ministers and the Governor of the Bank of Israel.
Alex Cohen / @anothercohen: Last 24 hours has been pretty eye opening to see how many people are rooting against the tech industry and innovation
Thomas Seal / @tw_seal: New: Silicon Valley Bank fallout spreads to UK * Dozens of startups write to Jeremy Hunt, who spoke with the Bank of England governor this morning * Treasury canvassing startups and holding a roundtable with industry reps this afternoon https://www.bloomberg.com/...
| Semafor: |
More:
Tweets:
Gabriel Chodorow-Reich / @gchodorowreich: This FT article quotes secondary market sales of deposits for between 55 and 90 cents on the dollar. That wide range suggests substantial scope to improve transparency in the secondary market. This seems like a no-brainer for policy makers. https://www.ft.com/...
Maria Heeter / @heetermaria: Scoop: Jefferies traders contacting founders w/ offers for SVB claims. Bids said to have started at 70 cents on the dollar but unclear who's actually biting https://www.theinformation.com/ ...
Laura Mandaro / @lauramandaro: This adds to the unusual and distressed options —including secondary shares and revenue-based loans — offered to startup CEOs worried about payroll on 3/15. Among those VCs doing emergency loans: Andreessen Horowitz, reports @erinkwoo https://twitter.com/...
@amuse: SVB🧵The sharks are circling Silicon Valley Bank. Need some of your money now? Hedge funds are offering 60 cents on the dollar in exchange for inaccessible deposits. https://www.semafor.com/...
Max Kennerly / @maxkennerly: The newest innovation from Silicon Valley venture capitalists: The Glass-Steagall Act of 1933. Go ask your friends on Wall Street about it, they're the reason it's not the law anymore. https://twitter.com/...
Anthony DeRosa / @anthony: This seems unnecessarily hyperbolic. https://twitter.com/...
Josh Billinson / @jbillinson: “About 96% of SVB's deposits as of Dec. 31 were uninsured, according to the bank's filings, far higher than a typical lender.” https://www.semafor.com/...
Veronica / @veronicasaron: Those who root for Silicon Valley's downfall are missing that optimism AND missing the extreme global ripple effects of these companies going extinct, BEYOND financial collapse There is no benefit to killing dreams & wiping out the most daring,innovative companies on the planet.
Ashlee Vance / @ashleevance: We should have turned all our money over to that Clinkle guy when we had the chance. Lesson learned.
Steven / @dogetoshi: Bankers saw the USDC trade and said we want some of that https://twitter.com/...
Alistair Barr / @alistairmbarr: Moody's estimates 80 to 90 cents on the dollar for uninsured deposits of SVB bank. https://www.businessinsider.com/ ... https://twitter.com/...
François Chollet / @fchollet: Reading up on the SVB situation and how FDIC operates — the TL;DR is that the bank will reopen on Monday and folks will be able to withdraw up to $250k + some fraction of the remaining balance. Over the next few weeks they will recover 100% (or very close) of their full balance.
Rakesh Agrawal / @rakeshlobster: Unless you're likely to go out of business tomorrow, please don't do this. https://twitter.com/...
@rhinovian: @Techmeme That's pretty stupid. Most people will get 90-100 from the FDIC just based on the balance sheet numbers.
Kate Clark / @kateclarktweets: Jefferies is contacting startup founders with money stuck at SVB, offering to buy their deposit claims at a discount. And VC firms including Andreessen Horowitz have offered loans to portfolio companies to help them cover payroll. New from @heetermaria https://www.theinformation.com/ ...
Armand Domalewski / @armanddoma: 4) The tl;dr is: The FDIC is not likely to “bail out” the deposit holders of SVB, it's likely going to make the people who invested in SVB or loaned it money eat the losses, and if does need to put in money, it'll pay for it by charging other banks higher premiums
| Financial Times: |
Sources: Tim Cook has pressed ahead with an MR headset debut in 2023, overruling Apple designers who wanted to wait until the tech catches up with their vision — New launch will be first steered entirely by CEO and under direction of operations team — When Tim Cook unveils Apple's new …
Tweets:
@jetscott, @markgurman, @leakerapple, @binocularity, and @scobleizer
More:
Asma Hussain / iThinkDifferent: Inside Apple's decision to launch a pricey mixed-reality headset despite internal divisions
Tweets:
Scott Stein / @jetscott: Between this and Aaron Rodgers it's a lot of waiting around lately https://twitter.com/...
Mark Gurman / @markgurman: This happened ~2018. Jony Ive pushed for AR glasses believing VR was too enclosed and bad for future. Apple pressed ahead with mixed reality headset (coming at WWDC) but compromised with Ive on making it an all-in-one and dropped a wireless processor hub https://www.bloomberg.com/... https://twitter.com/...
@leakerapple: Cook really wants to release something big before he retires as CEO. https://twitter.com/...
Nick Holliman / @binocularity: I have worked in this area since 1994, and it is very, very hard to deliver something practicable that is not expensive. Can Apple do it? Possibly, but probably not at consumer volume. Tim Cook bets on Apple's mixed-reality headset to secure his legacy https://www.ft.com/...
| Mark Gurman / Bloomberg: |
A look at the unprecedented level of executive turnover at Apple, which lost 11 key people, most just below Senior Vice President, since the second half of 2022 — Apple is facing an unprecedented wave of executive departures. Also: The company will shake up its sales operations with a focus on India … More:
Hartley Charlton / MacRumors: Gurman: AirPods to Gain Hearing Health Features Over the Next Two Years
| John Sakellariadis / Politico: |
Worried that cloud giants offer concentrated hacking targets, the US plans to regulate the security practices of Amazon, Microsoft, Google, Oracle, and others — Governments and businesses have spent two decades rushing to the cloud — trusting some of their most sensitive data to tech giants … Tweets:
John Sakellariadis / @johnnysaks130: New: I spoke with Acting NCD @KembaWalden, @robknake and other @ONCD staff about the White House's plan to more tightly regulate the cloud industry. https://www.politico.com/...
Kelly Shortridge / @swagitda_: uhhh.. is everything ok over there? genuinely baffled https://twitter.com/...
Zulu / @vxzulu: Gonna be nasty business if any of these providers gets hacked all it takes is 1 it will cause complete chaos. https://twitter.com/...
Dan Goldin / @dangoldin: I imagine they already have incredibly formidable security and not sure government regulation will help. They have a massive incentive to not screw this up and know it https://twitter.com/...
@quinnypig: The cloud companies made their own bed on this one; been beating this drum for years: “On top of that, U.S. officials express significant frustration that cloud providers often up-charge customers to add security protections.” https://twitter.com/...
@xxcurt2905xx: @Techmeme @johnnysaks130 lmao, doesn't the DoD and other govt entities already run their workloads in public clouds?
@politicoeurope: For years companies and governments have rushed to the cloud to store their data. But what if entrusting all this sensitive information to the hands of a few, powerful tech giants wasn't such a good idea, after all? https://www.politico.com/...
@alfonslopeztena: For years companies and governments have rushed to the cloud to store their data. But what if entrusting all this sensitive information to the hands of a few, powerful tech giants wasn't such a good idea, after all? https://www.politico.com/...
Marc Rogers / @marcwrogers: Great chatting with @johnnysaks130 about the risks of blindly moving everything into the cloud. How understanding systemic cloud risks is key to realizing the true benefits and ultimately achieving the dream of Cloud Security pushed by providers today. https://www.politico.com/...
@p1z4t: I mean what did they expect? Cloud in a nutshell is companies and govt not trying to pay to buy/and maintain infrastructure HW/SW. Being dumb enought to think Bezos, Gates, Ellison, Pindichar Corp and more were infallible to hacks it just stupid. https://twitter.com/...
@stollmeyereu: Glad some are waking up: the cloud is a huge security vulnerability. Yet Republicans would rather see national security compromised by China & Russia — and risk losing $15 billion per outage — than to regulate?! #BigTech #CriticalInfrastructure https://www.politico.com/...
Nicole Miller / @josourcing: Among other steps, the Biden administration recently said it will require cloud providers to verify the identity of their users to prevent foreign hackers from renting space on U.S. cloud servers. https://twitter.com/...
Eric Geller / @ericgeller: The White House is scrounging for authorities to regulate cloud service providers, which have been heavily targeted by hackers since they serve so many high-value targets. Officials are confident that cloud companies will play ball. https://www.politico.com/... https://twitter.com/...
@usrealitycheck: Biden admin's cloud security problem: ‘It could take down the internet like a stack of dominos’: The Biden administration is embarking on the nation's first comprehensive plan to regulate the security practices of cloud providers. https://dld.bz/jCmvq
@politico: After two decades of trusting some of their most sensitive data to the cloud, the government, worried it may become a huge security vulnerability, is embarking on the nation's first comprehensive plan to regulate the security practices of cloud providers. https://www.politico.com/...
@incognetllc: For the sake of online privacy, this needs stopped. Things taken away are rarely ever given back. What are your thoughts? “it will require cloud providers to verify the identity of their users to prevent foreign hackers from renting space on U.S. cloud https://www.politico.com/...... https://twitter.com/...
| Frank Chaparro / The Block: |
Circle says $3.3B of its ~$40B USDC reserves remain at Silicon Valley Bank and that the crypto payments firm will follow state and federal regulators' guidance — - After being largely silent on Friday, Circle said it has $3.3 billion in exposure to Silicon Valley Bank … More:
Sander Lutz / Decrypt: Silicon Valley Bank Contagion: Crypto Companies Affected Include BlockFi, Circle, Avalanche
Victor Alexander / Inside Bitcoins: There's no need to panic about the USDC depegging
Olowoporoku Adeniyi / Bitcoinist.com: USDC Hits All-Time Low As Investors Pull Out Funds From The Stablecoin
Siamak Masnavi / CryptoGlobe: Circle: ‘This Is a Time of Heightened Uncertainty for the USDC Economy’
Tweets:
@binance: Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion. This is a normal risk-management procedural step to take while we monitor the situation.
Jeremy Allaire / @jerallaire: Tl;Dr: While USDC can be used 24/7/365 on chain, issuance and redemption is constrained by the working hours of the U.S. banking system. USDC liquidity operations will resume as normal when banks open on Monday morning in the United States. As a practical matter, our teams are... https://twitter.com/...
@circle: 2/ Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. economy and will follow guidance provided by state and Federal regulators.
Jacob Silverman / @silvermanjacob: Decrypt has a running list of crypto companies caught up in SVB. Yuga claiming “super limited financial exposure” is funny. I'm more of a “de minimis” guy. https://decrypt.co/...
Wu Blockchain / @wublockchain: Circle: it is also possible that SVB may not return 100%, in such a case, Circle will stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary. https://www.circle.com/...
@evgenygaevoy: Great update from Jeremy. Some tldr (as I see it) and some thoughts (as I think them) all opinions are mine, Wintermute has exposure to USDC and this is ongoing volatile situation that will continue until banks are open on Monday (and potentially beyond) https://twitter.com/...
@kobeissiletter: Current List of Companies With Silicon Valley Bank, $SIVB, Deposits: 1. Circle: $3.3 billion 2. Roku: $487 million 3. BlockFi: $227 million 4. Roblox: $150 million 5. Ginkgo Bio: $74 million 6. iRhythm: $55 million 7. Rocket Lab: $38 million 8. Sangamo Therapeutics: $34 million... https://twitter.com/...
Adam Cochran / @adamscochran: Tl;DR Circle will honor 1:1 and essentially buy any shortfall debt from their own corporate resources. 100% backed. https://twitter.com/... https://twitter.com/...
Dante Disparte / @ddisparte: Sharing .@circle's update on the Silicon Valley Bank crisis. That a regulated U.S. money transmission company would face risk because of the failure of U.S. regulated banks is not the norm - nonetheless, we stand behind all #USDC in circulation. https://www.circle.com/...
James Bull / @mariuscrypt0: Just in. “Circle, as required by law under stored-value money transmission regulation, will stand behind USDC and cover any shortfall using corporate resources, involving external capital if necessary.” Send it. https://www.circle.com/...
Alexei Oreskovic / @lexnfx: Silicon Valley Bank's collapse is already causing collateral damage that's sinking stablecoin values and delaying paychecks https://fortune.com/...
@allnick: Anybody who understands economics saw that rising interest rates caused SBF to defraud customers of $8B Hence USDC. Hence Moonbirds. Hence no smart economists. #math
Sheel Mohnot / @pitdesi: 2nd order effect: Stablecoin USDC has lost its peg to the dollar (which it held constantly) and has been trading around $0.90 this morning. $3.3B of the $40B USDC reserves were held at SVB. Only a small portion is likely at risk so this feels like an overreaction. https://twitter.com/... https://twitter.com/...
| Bloomberg: |
Tweets:
@coinbase, @viktorbunin, @coinbase, @matthew_d_green, and @petergyang
More:
Jason Nelson / Decrypt: Circle To ‘Stand Behind’ USDC, Cover $3.3 Billion Shortfall Held in Silicon Valley Bank
Edward Helmore / The Guardian: USD Coin value falls after revealing $3.3bn held at Silicon Valley Bank
Ruholamin Haqshanas / Cryptonews: Circle Commits to Covering USDC Shortfalls - Ensures Redemption at 1:1 with USD
Brenda Ngari / ZyCrypto: Circle Pledges To ‘Stand Behind’ USDC And Cover Missing Liquidity In Failed Silicon Valley Bank
George Georgiev / CryptoPotato: USDC Recovers to $0.95, Bitcoin Reclaims the $20K Mark (Weekend Watch)
Unbank Space: Rip USDC 🪦 — As we all know that USDC got belted a few days ago and it went as low as $0.81.
Victor Alexander / Inside Bitcoins: Circle finally assures investors that it will support USDC
Danny Nelson / CoinDesk: Coinbase Pauses Conversions Between USDC and U.S. Dollars as Banking Crisis Roils Crypto
Tweets:
@coinbase: We are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to re-commence conversions.
Viktor Bunin / @viktorbunin: @CoinTherapist ... Sorry but that's not true. Trading is not paused. Conversions are. And it's because of the legacy banking system being closed on the weekend, not something Coinbase has control over. See this tweet: https://twitter.com/...
Matthew Green / @matthew_d_green: I guess stablecoins are only stable on weekdays.
| Ben Cohen / Wall Street Journal: |
A look at Bring a Trailer, a classic car blog from 2007 that became a marketplace, facilitated $1.37B in 2022 sales, and held its 100,000th auction on March 7 — Bring a Trailer is where obsessives buy, sell and geek out over classic cars. The company pops open its hood after 100,000 auctions to explain why.Tweets:
@wsj: Bring a Trailer started as just a car blog. Last year, it sold more than $1 billion in cars. Columnist @bzcohen explains how. https://www.wsj.com/...
| Marie Woolf / Globe and Mail: |
Meta plans to block Canadians' ability to view or share written and broadcast news on Facebook and Instagram if the country passes its proposed Online News Act — Tech giant Meta has decided to block Canadians' ability to view or share news content on Facebook and Instagram … More:
Tweets:
Roman Baber / @roman_baber: Really? No more news sharing on Facebook or Instagram? @JustinTrudeau is burning down our democracy. @theJagmeetSingh is helping him to do it. #cdnpoli https://twitter.com/...
Glenn Gabe / @glenngabe: Joining Google -> Meta says it plans to block Canadians' ability to view or share news content on Facebook and Instagram if the country's proposed Online News Act becomes law https://www.theglobeandmail.com/ ... https://twitter.com/...
@indubitablytho: Hardest hit: Canadian media. They'll instantly lose millions of views per day. Considering that much of legacy media is nothing more than a rewrite/stenographer for this insane govt, this could be an improvement. Canadians would need to source their news outside of Canada. https://twitter.com/...
John Wilson / @johnwilson: I have a hard time understanding why Meta, or any company, should be subsidizing news companies. Most news on social media is likely not being read for free. Sites have paywalls, limited free articles, and other tools at their disposal. https://twitter.com/...
Drew Olanoff / @yoda: why bother? just shut it all down already. this company is *over* https://twitter.com/...
| Darrell Etherington / TechCrunch: |
An interview with Gowalla co-founder and CEO Josh Williams as he re-launches his location-based social networking app at SXSW, 14 years after its debut — One of the original location-based social apps is relaunching at SXSW - 14 years after its debut — Gowalla co-founder and CEO Josh Williams … Sponsor Posts
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Zoho:
5 common accounting mistakes — This is a guest post by Yaali Bizappln Solutions. A lot of businesses manage their customers and finances on separate platforms. This disconnect often leads to missed invoices …
5 common accounting mistakes — This is a guest post by Yaali Bizappln Solutions. A lot of businesses manage their customers and finances on separate platforms. This disconnect often leads to missed invoices …
Hamming:
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