Opinion
Monday morning, as everyone is patting themselves for a job well done over the weekend protecting businesses small and large who depended on a bank that made a foolishing investing decision, the stock markets are punishing the banks that are still alive.
Here is what I'm reading on Twitter:
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@vcbrags: big week ahead for venture capitalists finding ways to take credit for things they had nothing to do with.
Rachel Louise Ensign (@RachelEnsignWSJ): It was the first bank run ever organized over Slack.
Jonatan Pallesen (@jonatanpallesen): Do we trust Silicon Valley to be able to correctly estimate and handle the risk of superintelligent AI, when they couldn't even see the risk of having all their money in a blatantly badly run bank?
Benedict Evans (@benedictevans): It is very strange how many people think that a five- or 10-person company should do a stress test on their bank's balance sheet every three months just to hold a deposit account.
David Sirota (@davidsirota): The rescue of SVB depositors is a reminder that the government can do big things very quickly when it wants to. So when it doesn't do big things that are necessary or does them slowly, that's not some accident. It's a conscious choice.
Matthew Yglesias (@mattyglesias): What's a little confusing to me about this is banks are getting rescued to avoid financial instability that could slow the economy and they *need* rescue because the fed has raised rates so much but the point of the rate increases was to slow the economy so...
@amlivemon: I thought you guys didn't need governments and dollars? Lol
@cetier1: Semantics if you ask me: taxpayers won't pay, but customers of healthy banks will. It's probably the same folks.
Vivek Ramaswamy (@vivekgramaswamy): Puppet master now applauding the puppet. You spent all weekend stoking bank run fears in America to justify a bailout. SVB argued for lower risk limits because it supposedly wasn't “systemically important.” Now you argue the opposite. Pathetic hypocrisy. But congrats. It worked.
@pwnallthethings: VCs suddenly having great concern over employees potentially losing out in SVB would have a bit more credibility if they hadn't been collectively going out of their way to organise mass layoffs since January.
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In Great Britain, HSBC agreed to buy SVB England for $1:
Jesse Powell (@jespow): Looks like SVB UK is going to HSBC.... If these allegations are to be believed, you sold your nationally strategic asset to China for $1.
James Titcomb (@jamestitcomb): HSBC gets loans of £5.5bn and deposits of £6.7bn for less than the price of a Creme Egg.
M.G. Siegler / @mgsiegler: Looking forward to everyone going back to being an AI expert here.
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