[HN Gopher] A Bank of One's Own
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A Bank of One's Own
Author : foundart
Score : 54 points
Date : 2023-03-11 20:24 UTC (2 hours ago)
(HTM) web link (nayafia.substack.com)
(TXT) w3m dump (nayafia.substack.com)
| RcouF1uZ4gsC wrote:
| > But the only way they were able to participate in that world,
| and serve as a role model for others, was by quietly borrowing
| from a bank that understood what it meant to be a young venture
| capitalist with carry, but not enough savings.
|
| Using borrowed money for venture capital seems very risky and not
| something that a bank should be celebrated for enabling.
| margorczynski wrote:
| Wasn't mixing "normal" banking with investment banking banned
| in the US after 2007? Or this is something else that doesn't
| fall into that category?
| breck wrote:
| > Silicon Valley Bank is not a bank for rich people.
|
| Dataset needed.
| foundart wrote:
| An interesting take on SVB
| latchkey wrote:
| > I'm perplexed, then, to see so many people gleefully celebrate
| the collapse of an institution that helped level the playing
| field for people from all backgrounds.
|
| It isn't about being gleeful. This bank took massive risks, which
| were enabled by Trump changing the laws (and they supported),
| which then allowed them to take even more risky bets (aka: level
| the playing field).
|
| https://www.motherjones.com/politics/2023/03/silicon-valley-...
|
| Now we get to see the fallout from all of that, which was even
| predicted by someone who was paying attention...
|
| https://seekingalpha.com/article/4565388-svb-financial-blow-...
|
| https://seekingalpha.com/article/4586033-svb-financial-blew-...
|
| https://seekingalpha.com/article/4586342-svb-financial-today...
| erik_seaberg wrote:
| It worries me that people assume SVB must have taken crazy risks
| on startups or crypto, when the actual mistake was locking up so
| much money in long-term mortgage and Treasury bonds.
| hn_throwaway_99 wrote:
| I thought this was a great post. I've commented elsewhere that
| I'd be pissed at the moral hazard of unsecured depositors getting
| a federal bailout (though not if the feds just assist in finding
| a buyer or do as much as possible to ensure depositors can access
| their funds quickly), but at the same time I'm saddened by so
| much of the gleeful tribalism I see online (but not too saddened
| - many of the "dancing on your grave" posts stand out primarily
| for their stupidity).
|
| SVB _was_ uniquely positioned to help the startup ecosystem in a
| way that larger banks were not. I hope something similar replaces
| them (albeit with better risk controls for their asset
| portfolio).
| roundandround wrote:
| It seems to me like too much of the current situation has
| jurisdictional gaming. We complain that banks no longer want to
| take the risk of their traditional role in small business loans
| and have a lot of economic distortion from that.
|
| Silicon Valley apparently had better access to a bank that took
| risks and seems to be the bank of over half of tech and public
| health startups..
|
| Other jurisdictions should feel a bit cheated if their
| regulators didn't help their small business get the most out
| financing and FDIC bailouts.. Internationally, other countries
| have to question why they aren't giving some kind of handouts
| to gain more of the startup scene for occasional crises.
|
| Really a fine mess.
| [deleted]
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