2 ms·
That took me a minute. Silicon Valley Bank, I presume? I don't recall the details, but yes, there are historic examples of this being done well.
by AnimalMuppet 3y ago
That took me a minute. Silicon Valley Bank, I presume? I don't recall the details, but yes, there are historic examples of this being done well.
- JumpCrisscross 3y ago> took me a minute. Silicon Valley Bank, I presume First Republic, SVB, Signature—our nation’s second, third and fourth largest bank failures in its history [1]. (WaMu.) Resolved so smoothly we don’t even talk about it less than a year later. [1] https://en.m.wikipedia.org/wiki/List_of_largest_bank_failures_in_the_United_States https://en.m.wikipedia.org/wiki/List_of_largest_bank_failure...
- FireBeyond 3y ago> Resolved so smoothly we don’t even talk about it less than a year later. Except now with the banks understanding that FDIC will make depositors whole, above and beyond the $250K limits. The only thing this does is increase banks comfort with risk.
- AnimalMuppet 3y agoNot if the managers got fired. Not if the stockholders got wiped out. The stockholders care more about the stockholders than they do about the depositors. This is also true for most of the managers, maybe all of them.
- FireBeyond 3y agoMost of SVB's executive team are now working at other banks as executives there. That to me signals that those banks are willing to roll the dice that "maybe we don't take as much risk as they did at SVB, but more than we're doing now".