No way 😢
Reddick was incredible in The Wire.
https://www.cnn.com/2023/03/17/entertainment/lance-reddick-death/index.html
Funny thing is, I'm not super mad about how it's working out, all things considered. The leadership of the bank is canned. Depositors are made whole with no meaningful cost or risk to the taxpayer.
The saddest parts are that a lot of SVB employees are out of a job, a bank that was admired for its service is gone, and the biggest banks probably benefit from this.
One story of my career is getting an ad hoc business school education on the job. In that vein, I think it's true that customer acquisition and product distribution are really similar. Maybe the same, if you're a direct-to-consumer business. But any time there's a middleman, like a retailer, broker, or agent, there's a difference.
@carnage4life not just rich people's money. Also pensions and endowments. It's kind of incredible when you really think about where the money for these tech salaries actually comes from. Ain't from revenues 😄
@Tribo I don't even have to rise and grind. Just let the AI do it for me.
@Pat @LouisIngenthron I mean, this is all just semantics. Obviously mom and pop businessesare smaller than that, but there are several orders of magnitude beyond 100-person companies, and people running most 100-person companies are generally nowhere near being billionaires.
@LouisIngenthron I mean, if it were a bank that focused on high net wealth taxes dodgers, I'd be right with you. And to be fair, I think they did do some personal banking focused on the needs of people with a lot of equity wealth. But as banks go, as far as I know (not an expert here), they were one that actually played a productive role in the economy.
I'm so for critiquing Silicon Valley-style entrepreneurship, but the implosion of SVB is probably going to have some level of collateral damage to people who did nothing to deserve it. And even if the system contains it, it's still the loss of an institution that didn't suck, IMO.
@Pat @LouisIngenthron
> Is that even legal?
Don't know, tbh. Hope I don't get arrested 😄
> When the FDIC steps in, deposits are available literally overnight.
Got it. That's comforting to know, for folks in that position. I would assume some things would break though, outside of checks and ACH. Like data feeds for accounting.
> Also, a company would need to have more than 100 employees to exceed the 250K in weekly payroll.
I would consider a company with 100-200 employees a small business. I'm not a corporate finance person, so I don't know at what point you start actively managing the risk of your top 20 bank going under. I do know there are services that sweep cash across banks, effectively increasing insurance, with minimal added complexity.
@LouisIngenthron also you're completely wrong about who keeps more than 250k in the bank. Rich people tend to invest their wealth. Companies need liquidity for payroll and services. You don't have to be a very big company at all to have payroll that exceeds 250k.
@LouisIngenthron Had SVB collapsed then, FDIC would have made us whole. But probably not in time for us to survive.
@LouisIngenthron When I was in grad school a decade ago, a classmate and I started a company with a couple thousand of student loan money. We opened an account with SVB completely online, and were treated like the business we hoped to become one day. Like most businesses, it didn't pan out. We had 99 problems, but business banking wasn't one.
I feel like there's almost a level of glee about SVB going under. But as far as I can tell, it's a big loss for folks who like innovation. And unless arrangements are made to unlock liquidity for depositors, many people may not get paid for their labor and many otherwise viable businesses could fall into crisis.
@acjay@qoto.orrg has moved
boosted
The woman who sued McDonald's after suffering severe burns from hot coffee spent years as a "frivolous lawsuit" punchline -- but returning to the case makes it clear that instead, it's a cautionary tale about the dangers of believing corporate disinformation campaigns:
@davepell Classic prisoner's dilemma
@acjay@qoto.orrg has moved
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@carnage4life I think the prices in the mid 10s were a balancing point between further oblivion from the FTX collapse and a reprieve from destruction. As it turned out, the fallout from FTX didn't knock over all of the dominoes, so it turned out the drop overshot. Silvergate brings things back into "oh God who's next?" territory.
It'll take the collapse of Binance or Tether to drop bitcoin below 10, I think.
@erininthemorn As a former Iowan, this is so incredibly disappointing.
@futurebird sounds like the word "grok" as opposed to "know"
@futurebird it's not coming up right away in search, but I'm gonna try to find it!
I am now @acjay
Joined Oct 2022
