Conversation

Notices

Embed this notice
Evan Prodromou (evan@prodromou.pub)'s status on Tuesday, 14-Mar-2023 01:12:35 JST Evan Prodromou

"Please assume all the responsibilities the bank we just destroyed on purpose or we will destroy many many more banks also on purpose" seems like a bad message.

In conversation Tuesday, 14-Mar-2023 01:12:35 JST from prodromou.pub permalink
- Embed this notice
  Evan Prodromou (evan@prodromou.pub)'s status on Tuesday, 14-Mar-2023 01:25:27 JST Evan Prodromou
  in reply to
  - tsadilas
  @tsadilas
  https://en.wikipedia.org/wiki/Collapse_of_Silicon_Valley_Bank?wprov=sfla1
  In conversation Tuesday, 14-Mar-2023 01:25:27 JST permalink
  Attachments
  1. Domain not in remote thumbnail source whitelist: upload.wikimedia.org
    
    Collapse of Silicon Valley Bank
    
    On March 10, 2023, Silicon Valley Bank (SVB) failed after a bank run, causing the largest bank failure since the 2008 financial crisis and the second-largest in U.S. history. The collapse of SVB has had a significant impact on startups from the US and abroad, with many unable to withdraw money from the bank. Other large technology companies, media companies, and wineries were also impacted. During the COVID-19 pandemic, the tech sector experienced a period of growth. Capitalizing on an increase in deposits in 2021, SVB purchased long-term Treasury bonds. The current market value of these bonds decreased as the Federal Reserve raised interest rates to curb the 2021–2023 inflation surge. Higher interest rates also raised borrowing costs throughout the economy and some Silicon Valley Bank clients started pulling money out to meet their liquidity needs. To raise cash to pay withdrawals by its depositors, SVB announced on March 8 that it had sold over US$21 billion worth of securities, borrowed US$15 billion, and would hold an emergency sale of some of its treasury stock to raise US$2.25 billion. The announcement, coupled...
- Embed this notice
  tsadilas (tsadilas@libretooth.gr)'s status on Tuesday, 14-Mar-2023 01:25:28 JST tsadilas
  in reply to
  
  @evan tbh i did not get you
  
  In conversation Tuesday, 14-Mar-2023 01:25:28 JST permalink
- Embed this notice
  Evan Prodromou (evan@prodromou.pub)'s status on Tuesday, 14-Mar-2023 07:12:30 JST Evan Prodromou
  in reply to
  - Falcon Darkstar
  @falcon depositors are both the villains and the victims in a bank run.
  
  In conversation Tuesday, 14-Mar-2023 07:12:30 JST permalink
- Embed this notice
  Falcon Darkstar (falcon@mastodon.falconk.rocks)'s status on Tuesday, 14-Mar-2023 07:12:31 JST Falcon Darkstar
  in reply to
  
  @evan sure but you have to protect the interests of people who did not destroy the bank but depend on it, like employees. It's good in this case to see the shareholders soaked, the executives sued, and the depositors whole.
  
  In conversation Tuesday, 14-Mar-2023 07:12:31 JST permalink

Public

Conversation

Notices

Feeds