3 ms·

It’s intriguing that the buyer is a no name small time bank and not one of the big ones. You’d think the big guys would be falling over each other to claim SVB’

• downrightmike 4y ago
  The big guys probably don't need that many toxic customers that can make your bank fail based on a rumor.
• joe4147 4y ago
  Matt Levine discussed this in one of his posts. During the financial crises the government asked JP Morgan to acquire a failed bank, which it did, and then the government fined JP Morgan for crimes committed by the failed bank it just acquired. EDIT: > Lessons from the financial crisis are still seared into management’s brain at JPMorgan. After the 2008 crisis, it got slapped with the label of a bailed-out bank profiting from taxpayers’ generosity, and it eventually paid billions of dollars of fines and legal expenses after buying Bear Stearns and Washington Mutual, including a then-record $13 billion penalty over mortgage lending. The irony was that it completed the takeovers partly at the request of the government, which had encouraged JPMorgan to acquire the stressed banks to prevent further instability in the financial system. https://www.bloomberg.com/opinion/articles/2023-03-15/silicon-valley-bank-is-for-sale https://www.bloomberg.com/opinion/articles/2023-03-15/silico... (although Levine is quoting from a different source)
• ksherlock 4y ago
  During the last banking crisis, JP Morgan, at the request of the Federal Reserve, bought up Bear Stearns and Washington Mutual. They later paid $19 billion in fines and settlements for prior activity. Additionally, the FTC and CFPB are very much opposed to more bank mergers and acquisitions so any big players would likely face lawsuits blocking it.