Silicon Valley Bank

[Anbell]

Banking is built on confidence as they lend your money to others. That’s always been the problem with banking is that it’s undone by bank runs, pretty much since the day they were created.

Deposit insurance has mostly solved this for registered domestic banks

[Naffman]

Banking is built on confidence as they lend your money to others. That’s always been the problem with banking is that it’s undone by bank runs, pretty much since the day they were created.

I think I read SVB was worth $300B and the loss on their bonds trade was about $2B, so the bank run started from a loss of less than 1%, as you say it’s all about confidence

[Archangel]

The market value of Credit Suisse last week was around 10bn , UBS just bought it for 3

Either thats the deal of the century or CS were way overvalued by the market, which makes you wonder about other banks valuations