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hey there! Dan Defrancesco in New York.
When federal regulators stepped in late Sunday to insure deposits at Silicon Valley Bank and Signature Bank (more on that here), the goal was simple: Allay public concerns and calm markets.
Not so fast, my friend!
there was A lot of pain felt in the market monday especially among local banks.
what are you looking for Let’s get into it.
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Silicon Valley Bank was shut down by regulators on Friday.
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1. Now about that auction… Silicon Valley Bank’s parent company, SVB Financial Group, is still looking for a buyer. At least he had one bidder at Sunday night’s auction, which was turned down by the FDIC. We’ll detail what’s next and who might still buy his SVB.
2. And then the battle for the $200 billion deposit begins. The collapse of SVB means that many people and start-ups are looking for new banks. Let’s take a look inside to see where they’re headed.
3. Who comes out on top from all this? It may seem silly to think about winners and losers, but this is Wall Street. Here’s an overview of the people and businesses who are wealthier today than they were a week ago, and those who have faced setbacks. Check out the full list here.
Four. No more cheating. After a turbulent weekend that saw startup life flash before our eyes, nine SVB-banked founders share where they’re moving their money. Meanwhile, one tech founder’s experience with SVB led to an existential crisis.
5. If you have anxiety, read this. The failure of a few banks does not lend confidence to the broader financial markets. But rest assured, the SVB collapse is far from the 2008 financial crisis. Here’s why:
6. Meanwhile in the UK. The UK division of Silicon Valley Bank was sold to HSBC for around $1 (no, we didn’t miss 0). This is inside the wild weekend it took to close the deal.
7. Rate hikes stopped because Silicon Valley Bank died. The SVB’s failure could put an end to aggressive rate hikes that have plagued the market for nearly a year. There are some silver linings as to why the SVB drop might help the market in the long run.
8. Politicians are intervening. Republicans criticize the bailout for benefiting the rich, pointing to the SVB’s “awakened” politics as the reason for its downfall. Democrats blame Trump-era regulations for setting the stage for the collapse. And Democratic Senator Elizabeth Warren doesn’t understand why bank customers get bailouts but student loan borrowers don’t.
9. This is not your grandparents bank run. What’s interesting about SVB’s failure is how quickly it happened. This is thanks in large part to the digitized banking system. Learn more about why the digital age for lenders is also a dangerous age.
10. One of the undiminished SVB assets: company swag. Everything from cardboard boxes to wine tumblers with the SVB logo is on eBay. Check out some things here.
Curated by Dan DeFrancesco, New York. Feedback or tips?Email ddefrancesco@insider.com, Tweet @dandefrancescoagain Connect on LinkedInEdited by Jeffrey Cane (Tweet) @jeffrey_cane) New York and the Hallam Block (tweet) @hallam_bullock) in London.
