fairity

13 ms·

91.
by fairity 4y ago
Sure, you can view this as a bailout of rich people. However, the bail out is also effectively being funded by rich people, so I don't really get what your complaint is. Put another way, the depositors are being made whole by the FDIC
92.
by fairity 4y ago
Brex isn't a bank. They partner with a dozen or so banks including JPMorgan ( https://www.brex.com/legal/brex-cash-partner-banks ). And, it's clear keeping out of the news was not their strategy this weekend b
93.
by fairity 4y ago
If I'm understanding this correctly, they're only devaluing points when you redeem them for cash or transfer them to another points system. In so doing, they're effectively creating lock-in for their own points redemption pr
94.
by fairity 4y ago
As a public service, I would recommend you down vote into oblivion any comment/article spreading FUD like this one. Although the fears are valid, talking about it and spreading it is exactly what causes the vicious cycle that will lea
95.
by fairity 4y ago
> If Oaktree and others are offering folks 70%+ face value for their uninsured deposits Does anyone know if the 70% offer from Oaktree applies to the remaining amount after FDIC pays out what they can on Monday/Tuesday? For example,
96.
by fairity 4y ago
It seems like people are so focused on class warfare and politics that they completely shut off the problem solving side of their brain. Assuming there’s no buyer found by Monday, the fed should just step in and guarantee deposits via a br
97.
by fairity 4y ago
> Why are you all so mean to each other? The "No, " at the beginning of my response probably triggered them. I was simply trying to make it clear to others that their information was misleading.
98.
by fairity 4y ago
I’m saying that bailing out SVB depositors will prevent First Republic Bank (for example) from experiencing a similar bank run and going out of business. So, a bail out of SVB depositors is also, in effect, a bail out of FRB. And, that dy
99.
by fairity 4y ago
But bailing out depositors here is essentially also a bail out of the next risk-taking bank that will go under sans a bailout. So, to some extent it does encourage long term risk taking by bank execs.
100.
by fairity 4y ago
I wonder why he thinks it’s unlikely a buyer steps up by Monday. He says that 98% of deposits will be covered in liquidation. The FDIC can backstop any remaining amount. And, all that’s left is a rich client base and the infra of a previ
101.
by fairity 4y ago
> I don't understand why people are blowing this out of proportion The media is blowing this out of proportion bc it generates clicks. The investors are blowing this out of proportion bc in the slim chance that the FDIC doesn’t get
102.
by fairity 4y ago
No, 30% is the percent of yc companies who reported having money trapped in SVB that can’t make payroll. The question you’re responding to is asking what percent used svb. That is unknown.
103.
by fairity 4y ago
Source?
104.
by fairity 4y ago
All true, but they have a $60b debt facility to draw down on before they'd consider liquidating their HTM bond portfolio. Given that they have $120b in uninsured deposits diversified across a disparate client portfolio, it seems like
105.
by fairity 4y ago
I wonder if Brex ACTUALLY has 3rd party capital lined up to fund these loans yet. It seems just as likely to me that they're getting out early with this message to drive account sign ups, while betting that they can piece together a l
106.
by fairity 4y ago
Once again, my point is that your following statement is untrue: The cold, hard fact is that the bank doesn't have sufficient assets to pay back depositors. It is not a cold, hard fact that they don't have sufficient assets. It&#
107.
by fairity 4y ago
> The cold, hard fact is that the bank doesn't have sufficient assets to pay back depositors. That's not true. As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 bill
108.
by fairity 4y ago
The FDIC's statement shared that: As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits The question is what haircut the FDIC will take on the $209b whe
109.
by fairity 4y ago
Once its becomes more clear how much SVB assets can be sold for and along what time frame, there will be plenty of firms willing to either: 1) purchase receivership certificates at a discount to expected value 2) issue bridge loans to cover
110.
by fairity 4y ago
The facts are: - All funds in SVB are frozen - FDIC has implied that insured funds (up to $250K per account) will be released within 7 days. - It's entirely unclear how long it will take to recoup uninsured funds (above $250K per accou
111.
by fairity 4y ago
The bigger story here will probably be the follow-on effects, assuming it takes a long time for uninsured deposits to be recouped. I wonder how many businesses will be forced into a fire sale due to inability to raise cash to cover short-te
112.
by fairity 4y ago
> I suspect all depositors will be made whole. Agreed. The FDIC report shows $209b in assets and $175b in deposits. Even if they took the full $15b estimated loss to liquidate their HTM bond portfolio, they'd have $20b to spare bef
113.
by fairity 4y ago
I wonder if a bank run (triggered by this news) could force them to liquidate that portfolio.
114.
by fairity 4y ago
If I'm not mistaken, SVB has a huge venture debt portfolio that presumably includes warrants for companies whose valuations have plummeted. Does anyone know what portion of SVB's market cap is accounted for by these warrants? My
115.
by fairity 4y ago
The idea being debunked is that there's no correlation between income and happiness past ~$75k/yr. Whether or not this idea is wrong is actually besides my point. My point is that one of the main reasons this idea spread so quickl
116.
by fairity 4y ago
> It’s just that people are terrible at understanding curves that look vaguely logarithmic, combined with small sample sizes of people with very high incomes willing to take psychology surveys. It’s also bc people gravitate towards belie
117.
by fairity 4y ago
For those curious in learning more about how SPAC's work and the associated costs & returns for various stakeholders, I found this paper to be pretty comprehensive: https://site.warrington.ufl.edu/ritter/files&
118.
by fairity 4y ago
Sadly, the objective here isn’t to prevent this from happening in the future.
119.
by fairity 4y ago
I'd suggest you take a look at their latest financials. They clearly have a viable, large, and soon-to-be profitable business (if so desired).
120.
by fairity 4y ago
You're taking OP's claim too literally. Obviously babies don't pop out of the womb ready to competently manage a team of 30 engineers. The claim is that people are born with different aptitudes for management that allow them

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