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Let's be real clear. The crypto bros and VCs killed not one but two banks that started getting into trouble after being very accommodating by pulling out money
by wbl 2y ago
Let's be real clear.
The crypto bros and VCs killed not one but two banks that started getting into trouble after being very accommodating by pulling out money. Now they want the rest of the financial system to keep doing business with them.
- PaywallBuster 2y agomaybe that means the space should be more competitive with more banks freely offering services to crypto businesses without being pressured by the government maybe that's why most crypto companies end up being too concentrated on a handful of banks only
- wbl 2y agoNo bank is going to take flighty deposits from money launderers who habitually suborn financial institutions.
- hbfdhfdhadfhnfa 2y ago[flagged]
- tock 2y agoIt's the banks fault for terrible investments not the customers. Any customer would withdraw their money if they knew their bank is on the brink of collapse. Many banks have no problem taking on unnecessary risk because they believe the govt will bail them out anyway.
- deleted 2y ago[deleted]
- contagiousflow 2y agoAnd before the reserve there were no banks making unnecessary risks?
- paulsutter 2y agoCould you expand on this? Sounds like an interesting story
- bananapub 2y agothe proximate cause for SVB collapsing was that YC partners and other VC bros took their money out of it, then told the companies they cared about to do the same.
- paulsutter 2y agoI remember that weekend well. I was actually curious about the other bank and what crypto had to do with it.
- wbl 2y agohttps://en.m.wikipedia.org/wiki/Silvergate_Bank https://en.m.wikipedia.org/wiki/Silvergate_Bank
- eej71 2y agoI think your logic comes up a bit short because you are basically saying that a bank was accomodating a customer who was generally unloved and then the customer just pulled their funds out because...? I think SVB's actual failure was triggered by their lousy balance sheet which got pinched once the fed finally brought interest rates higher. Once customers saw the consequences of this, they left.
- wbl 2y agoJP Morgan put funds in when a bank was in danger. In one case the funds vanished because crypto money goes away when the market declines very quickly.
- suraci 2y ago[flagged]