4 ms·
I highly doubt that JP Morgan will buy SVB's assets at above-market prices.
by runeks 4y ago
I highly doubt that JP Morgan will buy SVB's assets at above-market prices.
- baq 4y agoThey might if they’re buying more than the assets (i.e. credibility of the whole sector), but the hole is probably too big for even JPM to take it alone. Maybe the top 4 split it between themselves?
- hn_throwaway_99 4y agoIt's definitely possible. assets = liabilities + equity. Well, SVB equity has already been wiped out to zero, so that's money JP Morgan doesn't need to come up with to make the value of the assets (i.e their securities) equal their liabilities (their deposits). It could theoretically be worth it to JPM to buy SVB to (a) in one fell swoop take over the biggest startup-focused financial institution, and (b) calm systemic risk fears.