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New_Stats t1_jclorou wrote

I went into my small, regional bank today to see if the bank was in any danger. They are not, they didn't invest in crypto or anything as risky as SVB invested in, because they aren't fucking mooks. They also have a thing called risk management, because they aren't insane.

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sdaciuk t1_jcltevr wrote

But did you check to make sure none of their staff worked remotely on those decisions?

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New_Stats t1_jcltlgq wrote

oh shit good point, I didn't even think to ask because it had fuck all to do with it

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sdaciuk t1_jcm1wxd wrote

Your mistake, hope your money is OK but it's probably a write-off.

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New_Stats t1_jcm2hh5 wrote

no no no , they didn't work from hoooooooooome! They worked in the office even when covid shut everything down :(

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sdaciuk t1_jcm8muh wrote

Copium. Should have bought bitcoin. Fuck wait, which sarcasm thread am I in again?

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New_Stats t1_jcmjhkw wrote

When it doubt just comment "this is good for Bitcoin" because it's a good meme

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CC-5576-03 t1_jcly856 wrote

SVB didn't invest in crypto, they kept their customer deposits in bonds. The problem was that as interest rates increased their old bonds became worth less. If it hadn't been for the bank run they could have held the bonds to maturity and then they wouldn't have lost any money.

Also a bank will never tell you if they're in danger because they don't want to incite a bank run.

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TheManInTheShack t1_jcm1n3l wrote

What most don’t seem to understand is that SVB had plenty of assets. They just didn’t have enough cash on hand and foolishly pre-announced a cash raise which caused the investor to pull out and then a run on the bank.

The reason the US Government is willing to guarantee all depositors is because they know they can find a buyer.

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dastardly740 t1_jcmrwm1 wrote

They also appeared to have a significant proportion of their deposits effectively controlled by one person where that individual telling all his portfolio companies to withdraw there deposits was enough to eat up the banks liquidity.

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TheManInTheShack t1_jcm1c15 wrote

During the 2008 crisis no credit unions ran into any problems either because they tend to be pretty conservative.

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Moccus t1_jcmai5t wrote

SVB wasn't invested in crypto. None of the banks that failed were invested in crypto. They were mostly heavily invested in US Treasury bonds, which in normal circumstances are one of the safest investments in the world.

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hamhead t1_jcm2g1l wrote

SVB didn't invest in crypto or in anything particularly risky...

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SilasX t1_jcukocj wrote

SVB collapsed because of their long-term Treasury bonds, not their conventionally-risk investments like startups or crypto.

When is this misconception going to die?

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