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I believe SVB is done. It won’t be sold. They wound it up. It’s over.
by ttul 4y ago
I believe SVB is done. It won’t be sold. They wound it up. It’s over.
- vineyardmike 4y agoAlmost certainly not. SVB the company is basically killed. It's true, if you're an investor/owner in the bank, your equity is probably worth ~$0. The bank is owned by the FDIC and is being managed as a new bank. Even if company SVB is worth ~$0 in equity if the parts are sold on the market, they're still a business... so they have some intrinsic value to the future income. That means there is value in buying the company, at the right price. The hole in there books would have to be bigger than the value of their future cash flow for there to be no reason to buy it. Beyond that, there's some value for a bank to buy it because the FDIC approached them. Because there is tremendous value for everyone in the stability of the system.
- ttul 4y agoI rest my case.