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Treasury Secretary Yellen was quite clear in an interview a few hours ago: "The problems of the tech sector aren't at the heart of the problems of this bank." h
by compumike 4y ago
Treasury Secretary Yellen was quite clear in an interview a few hours ago: "The problems of the tech sector aren't at the heart of the problems of this bank." https://youtu.be/vSZcPvp7NVU?t=292 https://youtu.be/vSZcPvp7NVU?t=292
Appears that leadership at the highest levels seems to be clearly aware that the problem at SVB had to do with bond prices/rates (rather than anything startup/tech/Silicon Valley specific), and that other banks may have the situation and be vulnerable to "contagion".
- cma 4y ago>other banks may have the situation and be vulnerable to "contagion". Are other banks that are in danger are now halting bonuses in anticipation to make sure to keep their books as sound as possible. And are they issuing new equity, diluting shareholders and employee option holders, to make sure they make it through responsibly?
- bushbaba 4y agoIf SVB depositors aren’t made whole. We will see a bank run come Monday. And there will be contagion as most banks likely also bought bonds/treasuries with reduced face value from the fast rate hikes.
- postalrat 4y agoThat type of thinking didn't save svb and won't save other banks.