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Famed short seller Marc Cohodes sets sights on David Sacks
- Zigurd 4y agoI don't know if this would be in a short's remit but an interesting place to look re Sacks and others who got out of SVB in the bank run is whether they had an exclusivity agreement with SVB. SVB would have protected itself, on the one hand, by requiring a contract in order to get the best deal on combinations of services. This would apply mainly to fund managers. On the other hand, SVB might be, for example, writing an especially favorable mortgage for individuals who obligate their fund and portfolio to bank at SVB. This is why it is significant that SVB's management got canned: There isn't an incentive now to cover up who broke those agreements. The liability for breaking a contract while participating in a bank run could be significant. Let's see if the regulators are savvy enough to understand this. This also bears on whether some people are making a virtue of compliance. For example, when Thiel says he had $50M of personal funds he didn't move out of SVB, one should ask if he was contractually obligated not to move those funds.