/biz/ - Business & Finance

>>54033046
8/10
As Armstrong puts it, SVB had “a double sensitivity to higher interest rates. On the asset side of the balance sheet, higher rates decrease the value of those long-term debt securities. On the liability side, higher rates mean less money shoved at tech, and as such, a lower supply of cheap deposit funding.”

Also, I am sorry to be rude, but there is another reason that it is maybe not great to be the Bank of Startups, which is that nobody on Earth is more of a herd animal than Silicon Valley venture capitalists. What you want, as a bank, is a certain amount of diversity among your depositors. If some depositors get spooked and take their money out, and other depositors evaluate your balance sheet and decide things are fine and keep their money in, and lots more depositors keep their money in because they simply don’t pay attention to banking news, then you have a shot at muddling through your problems.

>>49639456
>and everyone found out just how retarded “utility” is when it comes to these things
"Utility" has been exposed as retarded in regard to Crypto broadly; it's back to money laundering, ponzis ponzi-ing other ponzis, and using a thousand times the electricity to do online banking. Yet here you are.

>>17844210
We are going to bail out American Airlines, which has spent the last 10 years making unbelievable profits off of rip-off baggage and change fees, because they took an insane amount of debt to buy smaller airlines.
Their debt level is 30x the value of the company on paper.
Pence has already implied that the Airlines will be at the front of the line to the Taxpayer Trough.