DOJ actions self defeating?
03-15-2023 | 05:17 AM
#21
Gets Weekends Off
Joined: Feb 2023
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SVB wasn’t insolvent it was just suffering a liquidity crunch. They have plenty of money tied up in treasuries that they were being forced to put up for fire sale to cover all the tech bros’ massive withdrawals. The bank investors are losing their investment. The big depositors are getting their money back early, vs having to wait. They just wanted to stop this moronic bank panic from spreading
a
: unable to pay debts as they fall due in the usual course of business
b
: having liabilities in excess of a reasonable market value of assets held
2
: insufficient to pay all debts
an insolvent estate
Potato potato
The bank that isn’t really a bank was more of a venture capital firm. Only 6-8% were account holders covered under FDIC. But our government will bail out their donors…. I mean Silicon Valley. This administration just nationalized the banking system.
03-15-2023 | 08:54 AM
#22
On Reserve
Joined: Feb 2019
Posts: 108
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Once upon a time, in another universe, a smaller low-cost competitor was sold to a newer, upstart company which was growing and challenging larger and more established companies in an industry which provides an "essential" service to the country's citizens for a mere $1.35 billion. The government did not care. The end.
Mint Mobile to be acquired by T-Mobile.
Mint Mobile to be acquired by T-Mobile.
03-15-2023 | 09:02 AM
#23
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Joined: Aug 2008
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SVB wasn’t insolvent it was just suffering a liquidity crunch. They have plenty of money tied up in treasuries that they were being forced to put up for fire sale to cover all the tech bros’ massive withdrawals. The bank investors are losing their investment. The big depositors are getting their money back early, vs having to wait. They just wanted to stop this moronic bank panic from spreading
The real issue is how this administration reacted to the problem, specifically their aversion to mergers and how willing they are to direct the alphabet agencies to put their thumbs on the scales.
03-15-2023 | 09:27 AM
#24
Gets Weekends Off
Joined: Feb 2023
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You must have watched a Vox or Politico breakdown. You realize that those treasuries were their reserve capital in lieu of cash, and it doesn’t take a banking expert to realize the risk of your liquidity tied up in government paper issued during near zero interest rates when the fed had been smoke signaling quantitative tightening. As the onion layers are peeled back it has been shown that VC’s pretty much strong armed new startups to keep the cash that was borrowed to fund them in SVB to mask liquidity problems. No two ways about it, they screwed up royally, but that’s neither here nor there…
The real issue is how this administration reacted to the problem, specifically their aversion to mergers and how willing they are to direct the alphabet agencies to put their thumbs on the scales.
The real issue is how this administration reacted to the problem, specifically their aversion to mergers and how willing they are to direct the alphabet agencies to put their thumbs on the scales.
I was thinking the same. An Ali Velshi, “mostly peaceful” explanation of SVB.
03-15-2023 | 10:00 AM
#25
Thread Starter
Perennial Reserve
Joined: Jan 2018
Posts: 14,261
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Just teeing up the conservative SCOTUS to eliminate Chevron Deference. Past time for Congress to stop shirking their responsibilities off on alphabet agencies.
03-16-2023 | 03:42 AM
#26
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Joined: Jul 2022
Posts: 19
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SVB wasn’t insolvent it was just suffering a liquidity crunch. They have plenty of money tied up in treasuries that they were being forced to put up for fire sale to cover all the tech bros’ massive withdrawals. The bank investors are losing their investment. The big depositors are getting their money back early, vs having to wait. They just wanted to stop this moronic bank panic from spreading
Last edited by Sludgefund; 03-16-2023 at 04:01 AM.
03-17-2023 | 09:37 AM
#29
Line Holder
Joined: Sep 2020
Posts: 1,593
Likes: 376
Not likely being blocked from the Big 4. This merger wipes out a ULCC competitor for no cost and potentially opens up more slots and gates for other airlines, since there would likely be divestitures if the merger is approved. Scott Kirby said on an investor call the JB/NK merger is “Great for United” and we’d get JFK slots because of it.
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