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Thing is, the 3 banks that failed last week are nothing like a random bank. All 3 are very highly connected with crypto / SPACs / VCs / any financial scam you
by TheAlchemist 4y ago
Thing is, the 3 banks that failed last week are nothing like a random bank.
All 3 are very highly connected with crypto / SPACs / VCs / any financial scam you can imagine during post-Covid bubble.
There are close to 0 'mom and pop' depositors in these banks.
- astrange 4y agoSVB was a relatively normal regional business bank that also had giant VC accounts. So they also had some things people would think of as "regular" businesses, like local wineries, nonprofits, affordable housing developers etc. who were all in trouble. (I think of all of those as rich people hobbies, but most people think farmers are salt of the earth working class types for some reason, so they have better images.)
- jjtheblunt 4y agoRegional? Isn't it in California and Massachusetts?
- TheAlchemist 4y agoWhat % of deposits are from those local nonprofits, affordable housing developers etc ?
- grogenaut 4y agoA friend from college has 3 startups for 3 different drug formulations winding themselves through the FDA / research / etc. The money for those from grants, payroll, etc were at SVB. Is that mom & pop? I'd say so. They're still on a postgrad salary so they can fold money back into moving those drugs forward.