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> When Peter Thiel started a bank run by telling all his investments to pull their funds, that exposed the SCB mismanagement. I think he did more than that. He
by FireBeyond 8mo ago
> When Peter Thiel started a bank run by telling all his investments to pull their funds, that exposed the SCB mismanagement.
I think he did more than that. He either has precognition Nostradamus would be proud of or he absolutely had insider information, and a good amount of it.
1. He knew that when the bank closure would be, because despite how the FDIC has very detailed and historically very successful efforts at keeping such plans highly confidential (for obvious reasons), like agents in hotels under fake names, etc., he told his investments on Wednesday night that "all funds must be out of SVB by COB Thursday". FDIC rolled into SVB 8am Friday morning.
2. He had also had instructed another of his companies to build a website and app that was able to handle applications for business bridge loans, and it "needed to be tested, and ready to go live, by noon on Friday".
Also, not for nothing, causing a bank run is a federal felony.
- scruple 8mo agoIn the end it's a distinction without a difference. The result is the same, and Thiel was building the fire escape before anyone could smell smoke.
- epistasis 8mo agoI don't think you can credit Thiel with smelling smoke, he lit the fire. He heard the same statements from SVB leadership about the problems with T-bills and higher fed rates, realized that there was a huge spread between current market value and long market value of SVBs T-bills, and threw a match on it.