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The exemption should still be allowed, as it led to great banking innovations for startups. The exemptees just need to be fucking careful with this advanced mo

by xwdv 4y ago

The exemption should still be allowed, as it led to great banking innovations for startups. The exemptees just need to be fucking careful with this advanced mode of operation.

rco8786 4y ago
> The exemptees just need to be fucking careful with this advanced mode of operation. How many times will we get burned until we learned that banks will not be careful if they are given an opportunity to not be.
- illiarian 4y ago
  Or that any business will not be careful given the opportunity.
  - deleted 4y ago
    [deleted]
talideon 4y ago
So, you're essentially proposing a weaker, informal version of Basel III. In which case, why have such an exemption in the first place? What innovations does it lead to? Restrictions on banking typically exist for a _really_ good reason. After all, we saw what happened when retail and investment banking were allowed to mingle because it 'lead to [...] innovations'. If you're going to advocate for something beyond saying 'but look, innovation!', you need to be more explicit about what those innovations are, because European banking is plenty innovative within the constraints of Basel III.
- worik 4y ago
  Yes. And the pace of innovation in US banking was very slow, essentially stalled, for a generation from the consumer's POV Here in Aotearoa we have ATMs on every street corner since the 1980s. All but the tiniest traders have had pos electronic transactions for nearly thirty years Other countries are even more advanced (our banks are all like yous now, consumers now viewed as pests) I want innovation in customer services, but what we get is innovations in financial engineering. May they all rot...
layer8 4y ago
> The exemptees just need to be fucking careful You mean “need to have sheer luck in their gambling”.
- bequanna 4y ago
  Head, we get bonuses Tails, taxpayers bail us out
  - nordsieck 4y ago
    > Head, we get bonuses > Tails, taxpayers bail us out You're doing to have to define "bail us out". SVB's shareholders got wiped out.
  - astrange 4y ago
    Most bailouts are done to protect employees and union contracts, not management.
bequanna 4y ago
Please name one “banking innovation” the banking industry has implemented in the last decade which has benefitted consumers.
- morelisp 4y ago
  VCs and founders must believe SVB offers at least one, or why not go with a normal bank?
  - gesticulator 4y ago
    This has to do with a web of relationships and risk tolerance, not some product set…
    - morelisp 4y ago
      Whatever you mean by "relationships" is in fact an "innovation" in the banking sense.
  - saurik 4y ago
    And how did that work out for them? Are many of the people who were using SVB yesterday happy about their decision today? If they could go back in time and give up whatever that innovation was, and not be praying that they still have their money next week, are you saying most of them would be happy where they are? The problem here is that the system just isn't transparent enough: you put your money in a bank and I guess you just have to assume that they are really really smart or you lose your money... people make fun of crypto here constantly, but at least there everything is an open book. At the end of the day, the situation with SVB is actually worse than some scary DeFi protocol.
    - nradov 4y ago
      The system is sufficient transparent. SVB was a publicly traded company. Customers who cared about risk could just read the reports. In the end any bank can fail. https://ir.svb.com/financials/sec-filings/default.aspx https://ir.svb.com/financials/sec-filings/default.aspx The depositors will get their money back, with perhaps a small delay. Which is more than you can say for scams like cryptocurrency.
MrMan 4y ago
nonsense - what banking innovations do startups need? is there really any such thing as a startup? or are we just talking about small businesses some of which grow into larger still unprofitable businesses? hopefully this mythologizing stops
- chasd00 4y ago
  I was wondering the same. You put money in a bank so no one robs you and steals it. Money goes in and money comes out when you need it. What innovation is there?
Forgeties79 4y ago
“The exemption for dumping hazardous materials should still be allowed, as it led to great manufacturing innovations for startups. The exemptees just need to be f**ing careful with this advanced mode of operation.” This sounds tongue in cheek I know, but SVB’s situation has created real world consequences even for me, someone who has no money tied up with them. My go-to for bonded cellular networks (so i can run a livestream for my employer, a small tech start up) had to tell all of us who use them to pause payments immediately today as this unfolded and are not taking new rentals in the meantime. They’re literally not getting paid right now. This is not a holding pattern that can last long and is highly disruptive for them and, consequentially, me. A video content guy at a small start up on nearly the other side of the country.

by xwdv 4y ago

The exemption should still be allowed, as it led to great banking innovations for startups. The exemptees just need to be fucking careful with this advanced mode of operation.

rco8786 4y ago

> The exemptees just need to be fucking careful with this advanced mode of operation. How many times will we get burned until we learned that banks will not be careful if they are given an opportunity to not be.

illiarian 4y ago
Or that any business will not be careful given the opportunity.
- deleted 4y ago
  [deleted]

talideon 4y ago

So, you're essentially proposing a weaker, informal version of Basel III. In which case, why have such an exemption in the first place? What innovations does it lead to? Restrictions on banking typically exist for a _really_ good reason. After all, we saw what happened when retail and investment banking were allowed to mingle because it 'lead to [...] innovations'. If you're going to advocate for something beyond saying 'but look, innovation!', you need to be more explicit about what those innovations are, because European banking is plenty innovative within the constraints of Basel III.

worik 4y ago
Yes. And the pace of innovation in US banking was very slow, essentially stalled, for a generation from the consumer's POV Here in Aotearoa we have ATMs on every street corner since the 1980s. All but the tiniest traders have had pos electronic transactions for nearly thirty years Other countries are even more advanced (our banks are all like yous now, consumers now viewed as pests) I want innovation in customer services, but what we get is innovations in financial engineering. May they all rot...

layer8 4y ago

> The exemptees just need to be fucking careful You mean “need to have sheer luck in their gambling”.

bequanna 4y ago
Head, we get bonuses Tails, taxpayers bail us out
- nordsieck 4y ago
  > Head, we get bonuses > Tails, taxpayers bail us out You're doing to have to define "bail us out". SVB's shareholders got wiped out.
- astrange 4y ago
  Most bailouts are done to protect employees and union contracts, not management.

bequanna 4y ago

Please name one “banking innovation” the banking industry has implemented in the last decade which has benefitted consumers.

morelisp 4y ago
VCs and founders must believe SVB offers at least one, or why not go with a normal bank?
- gesticulator 4y ago
  This has to do with a web of relationships and risk tolerance, not some product set…
  - morelisp 4y ago
    Whatever you mean by "relationships" is in fact an "innovation" in the banking sense.
- saurik 4y ago
  And how did that work out for them? Are many of the people who were using SVB yesterday happy about their decision today? If they could go back in time and give up whatever that innovation was, and not be praying that they still have their money next week, are you saying most of them would be happy where they are? The problem here is that the system just isn't transparent enough: you put your money in a bank and I guess you just have to assume that they are really really smart or you lose your money... people make fun of crypto here constantly, but at least there everything is an open book. At the end of the day, the situation with SVB is actually worse than some scary DeFi protocol.
  - nradov 4y ago
    The system is sufficient transparent. SVB was a publicly traded company. Customers who cared about risk could just read the reports. In the end any bank can fail. https://ir.svb.com/financials/sec-filings/default.aspx https://ir.svb.com/financials/sec-filings/default.aspx The depositors will get their money back, with perhaps a small delay. Which is more than you can say for scams like cryptocurrency.

MrMan 4y ago

nonsense - what banking innovations do startups need? is there really any such thing as a startup? or are we just talking about small businesses some of which grow into larger still unprofitable businesses? hopefully this mythologizing stops

chasd00 4y ago
I was wondering the same. You put money in a bank so no one robs you and steals it. Money goes in and money comes out when you need it. What innovation is there?

Forgeties79 4y ago

“The exemption for dumping hazardous materials should still be allowed, as it led to great manufacturing innovations for startups. The exemptees just need to be f**ing careful with this advanced mode of operation.” This sounds tongue in cheek I know, but SVB’s situation has created real world consequences even for me, someone who has no money tied up with them. My go-to for bonded cellular networks (so i can run a livestream for my employer, a small tech start up) had to tell all of us who use them to pause payments immediately today as this unfolded and are not taking new rentals in the meantime. They’re literally not getting paid right now. This is not a holding pattern that can last long and is highly disruptive for them and, consequentially, me. A video content guy at a small start up on nearly the other side of the country.