SiP Posted March 11, 2023 Report Share Posted March 11, 2023 BoE said: “SVB UK has a limited presence in the UK and no critical functions supporting the financial system. In the interim, the firm will stop making payments or accepting deposits.” SVB UK confirmed it would be put into insolvency from this Sunday evening (tomorrow). The move could affect as much as 30% of UK tech startups, with potentially 10% in trouble, industry sources estimate. It’s understood the UK Prime Minister’s office, Number 10 Downing Street, is working the weekend to assess the impact on its tech industry. Separately, some 210 (and counting) UK Tech CEOs and founders (employing an estimated 10,000 people), have written to the Chancellor about the issue. And in a breaking development, Sky News reported that The Bank of London (TBOL) (a clearing bank) is allegedly looking at a rescue bid for SVB UK link to article Link to comment Share on other sites More sharing options...
fxfox Posted March 11, 2023 Report Share Posted March 11, 2023 What this SVB thing means is: 0.50 is off the table and even 0.25 is not sure. But well, if they don‘t hike at all markets could interpret this as that there is huge systematic risk. So there will be emergency measures of some kind on Monday and a 0.25 hike on March 22 I guess. Link to comment Share on other sites More sharing options...
Jimi Posted March 11, 2023 Report Share Posted March 11, 2023 3 hours ago, sandy beach said: My sister just called to get advice on how to keep her cash safe. Large depositors are abusing the wire service to get the hell out of regional banks right now. The damage is done. The Fed needs to get a pair and end "the Fed put" and ZIRP. It'll be very painful but that's what needs to happen. Utterly with you on pull-the-Bandaid policy. Allowing the market to sort out SVB is almost conceivable. Sillycon Valley has represented for decades that it was smarter than everyone else; that the returns to capital were justified by everyone's exquisite mastery of risk; and that any smidgeon of government regulation was nanny-state parasitism and only inhibited the region's benevolent bequeathing of a marvelous future... nevermind the mountains of resulting wealth was used mainly to compare against others in some stupid race without a finish line, and was empty of any sense of broader social obligation... meanwhile, in the past 20 years, San Francisco & surrounding areas have become squalid shadows of their former selves "Okay, fellas - you're on your own then... g'luck from all of us," would be a defensible response from the policy-financial complex concentrated on the East Coast. The immediate impact from a stand-aside decision would be overwhelmingly regional. A bunch of startups would shut down, and dumbass places like Roku would probably have to dump some employees, and Santa Clara County would *gasp!* see its unemployment rate go up from its current level of 2.0%. It's not like the Rust Belt or farmers on the Plains are going to shed tears for 20-somethings having to search for work... or for insufferable VCs worrying about how this complicates returns to recently-launched Tech Fund VII... or what it might do to Bay Area real estate gains. Half the country positively hates this place & everyone here. Also, if the whiners are to be believed, SVB was the very heart & soul of local VC beautiful everything. I'm sure all the other incubator rivals - in Boston, Austin, Santa Monica, Research Triangle, etc.... - would simply love to see the hegemonic regional advantage knocked down several dozen notches. Yes... let's permit the market to function here, and let's wring this region of its unearned excess. And let's do so despite the plaintiff wailings for backstop from the likes of Ackman, Sachs, et al. Let's scare the ever loving bejeezus out of the regional banks, and remind HNW & corporate CFO alike that you must never be cavalier with excess cash, lest you lose it. Because, FERCRISSAKES, cash management is the EASIEST form of risk to manage. But none of this will happen. There will be a package, that backstops the uninsured fools and further enriches the already very, very rich. Link to comment Share on other sites More sharing options...
SiP Posted March 11, 2023 Report Share Posted March 11, 2023 The Demise of Silicon Valley Bank https://www.netinterest.co/p/the-demise-of-silicon-valley-bank Link to comment Share on other sites More sharing options...
fxfox Posted March 11, 2023 Report Share Posted March 11, 2023 30 minutes ago, Jimi said: Utterly with you on pull-the-Bandaid policy. Allowing the market to sort out SVB is almost conceivable. Sillycon Valley has represented for decades that it was smarter than everyone else; that the returns to capital were justified by everyone's exquisite mastery of risk; and that any smidgeon of government regulation was nanny-state parasitism and only inhibited the region's benevolent bequeathing of a marvelous future... nevermind the mountains of resulting wealth was used mainly to compare against others in some stupid race without a finish line, and was empty of any sense of broader social obligation... meanwhile, in the past 20 years, the place has become a squalid shadow of its former self. "Okay, fellas - you're on your own then... g'luck from all of us," would be a defensible response from the policy-financial complex concentrated on the East Coast. The immediate impact from a stand-aside decision would be overwhelmingly regional. A bunch of startups would shut down, and dumbass places like Roku would probably have to dump some employees, and Santa Clara County would *gasp!* see its unemployment rate go up from its current level of 2.0%. It's not like the Rust Belt or farmers on the Plains are going to shed tears for 20-somethings having to search for work... or for insufferable VCs worrying about how this complicates returns to recently-launched Tech Fund VII... or what it might do to Bay Area real estate gains. Half the country positively hates this place & everyone here. Also, if the whiners are to be believed, SVB was the very heart & soul of local VC beautiful everything. I'm sure all the other incubator rivals - in Boston, Austin, Santa Monica, Research Triangle, etc.... - would simply love to see the hegemonic regional advantage knocked down several dozen notches. Yes... let's permit the market to function here, and let's wring this region of its unearned excess. And let's do so despite the plaintiff wailings for backstop from the likes of Ackman, Sachs, et al. Let's scare the ever loving bejeezus out of the regional banks, and remind HNW & corporate CFO alike that you must never be cavalier with excess cash, lest you lose it. Because, FERCRISSAKES, cash management is the EASIEST form of risk to manage. But none of this will happen. There will be a package, that backstops the uninsured fools and further enriches the already very, very rich. Link to comment Share on other sites More sharing options...
fxfox Posted March 11, 2023 Report Share Posted March 11, 2023 The term „Silicon Valley“ as such is a part of US economic warfare abroad. Even minor educated people all over Europe and Asia know it and know what it stands for. They never heard of incubators in Austin, TX, they even don’t know what VC stands for… but they „know“ Silicon Valley. And that‘s why Silicon Valley will be saved. There is more at stake than just a bank. Link to comment Share on other sites More sharing options...
Jorma Posted March 11, 2023 Report Share Posted March 11, 2023 3 hours ago, SiP said: BoE said: “SVB UK has a limited presence in the UK and no critical functions supporting the financial system. In the interim, the firm will stop making payments or accepting deposits.” SVB UK confirmed it would be put into insolvency from this Sunday evening (tomorrow). The move could affect as much as 30% of UK tech startups, with potentially 10% in trouble, industry sources estimate. It’s understood the UK Prime Minister’s office, Number 10 Downing Street, is working the weekend to assess the impact on its tech industry. Separately, some 210 (and counting) UK Tech CEOs and founders (employing an estimated 10,000 people), have written to the Chancellor about the issue. And in a breaking development, Sky News reported that The Bank of London (TBOL) (a clearing bank) is allegedly looking at a rescue bid for SVB link to article Well Downing Street is a GS guy so no problem. Link to comment Share on other sites More sharing options...
Jimi Posted March 11, 2023 Report Share Posted March 11, 2023 Ackman doing a Spaces on Twitter right now. In related news, I am screaming profanities alone with my laptop. Link to comment Share on other sites More sharing options...
fxfox Posted March 11, 2023 Report Share Posted March 11, 2023 36 minutes ago, Jimi said: Ackman doing a Spaces on Twitter right now. Ackman did that too in March 2020… Link to comment Share on other sites More sharing options...
Jorma Posted March 11, 2023 Report Share Posted March 11, 2023 It will probably be Maiden Lane IV, or whatever the number is now. Link to comment Share on other sites More sharing options...
fxfox Posted March 12, 2023 Report Share Posted March 12, 2023 Doc, SPRING ahead, FALL back 😉 But Europe adjusts on March 26. So we have a mismatch for the next 2 weeks: Market opens at 14:30 CET and closes at 21:00. Link to comment Share on other sites More sharing options...
SiP Posted March 12, 2023 Report Share Posted March 12, 2023 British finance minister Jeremy Hunt said on Sunday he was working with Prime Minister Rishi Sunak and Bank of England Governor Andrew Bailey to “avoid or minimise damage” resulting from the chaos engulfing the UK arm of Silicon Valley Bank. https://www.cnbc.com/2023/03/12/uk-races-to-minimise-damage-from-silicon-valley-bank-collapse.html Link to comment Share on other sites More sharing options...
fxfox Posted March 12, 2023 Report Share Posted March 12, 2023 This is almost unbelievable! SVB did not Hedge at all??? No IR swaps at all? That is the absolute risk management 101: You manage your IR risk via IR swaps. Every bank does that. Link to comment Share on other sites More sharing options...
fxfox Posted March 12, 2023 Report Share Posted March 12, 2023 https://www.goingconcern.com/friday-footnotes-kpmg-clients-spectacular-failure-pwc-gets-defensive-kids-doing-taxes-3-10-23/ … and who is the head of Internal audit and where did he work before? —> https://www.svb.com/de/profile/john-peters 😉 Link to comment Share on other sites More sharing options...
SiP Posted March 12, 2023 Report Share Posted March 12, 2023 SVB had a Moody’s credit rating of A just 3 days ago. Link to comment Share on other sites More sharing options...
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