Mike Masnick ✅Mar 12, 2023

So... the summary is that for all the fear some people had that taxpayers would "bail out billionaires," and the corresponding fear that companies had that "a ton of our money could evaporate and destroy the economy with massive downstream impact"... FDIC/Treasury stepped in and did the right thing: depositors made whole, no taxpayer funds, bank assessment to make up any difference, & SVB equity/unsecured debtholders (mostly) wiped out.

A very good result.

Show threadMatt QuirionMar 12, 2023
@mmasnick god, I hope some very online VC types took a bath though.
Show threadMatt CoralloMar 12, 2023
@mquirion they weren’t ever going to, they didn’t have much exposure, that’s not how VC works.
Show threadMatt QuirionMar 12, 2023
@matt eh, I suspect a number of them were pretty heavy shareholders of SVB. Hence the pushing of portfolio companies to the bank and hence the calls from many for a recapitalization.
Show threadMatt Corallo
@mquirion maybe some but most weren’t, SVB offered genuinely better and easier to acquire financial services for startups than larger banks.
Mar 12, 2023 at 11:52pmWeb