Howie retweetledi

There’s something very ugly happening right now: VCs & startup execs who stand to lose their deposits at SVB are going *out of their way* to push a narrative that there’ll be a bank run on Monday if SVB depositors aren’t bailed out by the government. They’re yelling fire in the proverbial theater, hoping that everyone runs and knocks down a candle on their way out - actually starting a fire that may not otherwise have existed. They’re skipping the fact that SVB’s situation is unique: a staggering *89%* of its deposits were uninsured (way higher than normal banks). And they didn’t hedge interest rate risk which is a cardinal sin given the portfolio they held. Their real “hedge” was to spend $$ to become popular in the right influential circles of their own depositors, pledging $5 billion in 2022 to “sustainable finance and carbon neutral operations to support a healthier planet.” Maybe that hedge will pay off for their depositors if the government bails them out, but that should rightly trigger an “Occupy Silicon Valley” of historic proportions.
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