[HN Gopher] A Bank of One's Own ___________________________________________________________________ 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] ___________________________________________________________________ (page generated 2023-03-11 23:00 UTC)