Alaric Aloor🐕🏎⚽️🥃Mar 14, 2023

@alaric

#SVB #SVBFail

Another, as always, fantastic and incredibly detailed piece, from Matt Levine at Bloomberg about the risks that SVB took leading to its failure 👇🏾

“nobody on Earth is more of a herd animal than Silicon Valley venture capitalists”

- Matt Levine

He said this 👆🏾a few days ago and regarding the "herd mentality" of VCS, its not talked about very much but this newsletter is read by a lot of VC bros and their ilk, potentially leading to the run on SVB.

Also, um, Crédit Suisse 🙄
"Credit Suisse Group AG said it found “material weaknesses” in its reporting and control procedures for the past two years, after questions from US regulators last week.

The Zurich-based bank said Tuesday it will take steps to fix ineffective checks on the process it follows to pull together its financial reports. But the firm said its statements for 2022 and 2021 “fairly present” its financial condition."

https://www.bloomberg.com/opinion/articles/2023-03-14/svb-took-the-wrong-risks

SVB Took the Wrong Risks

Also banking as mystery, SVB as securities fraud, and Credit Suisse found some weaknesses.

Bloomberg
Show threadAlaric Aloor🐕🏎⚽️🥃Mar 16, 2023

@alaric

#SVB #SVBFail

Credit Suisse secures $54 billion lifeline as authorities rush to prevent global bank crisis 👇🏾

https://www.reuters.com/business/finance/credit-suisse-borrow-up-54-bln-it-seeks-calm-investor-fears-2023-03-16/

Credit Suisse $54 bln lifeline offers limited respite to global banks

Credit Suisse <a href="https://www.reuters.com/companies/CSGN.S" target="_blank">(CSGN.S)</a> sought to shore up its liquidity and restore investor confidence on Thursday by borrowing <a href="/business/finance/credit-suisse-borrow-up-50-bln-swiss-francs-swiss-national-bank-2023-03-16/">up to $54 billion</a> from Switzerland's central bank, though it proved to offer only limited respite to global banking stocks.

Reuters
Show threadAlaric Aloor🐕🏎⚽️🥃Mar 16, 2023

@alaric

#SVB #SVBFail #FirstRepublic

Bank lends out more money than it has in deposits from customers, investors keep investing money because, "why not?" and then are "spooked" when the facts come out.

A *fascinating industry!

https://www.cnn.com/2023/03/16/investing/first-republic-bank

Show threadAlaric Aloor🐕🏎⚽️🥃Mar 18, 2023

@alaric

#SVB #SVBFail #CreditSuisse

15 years ago, in a deal coordinated by ministers, the Swiss National Bank and federal banking commission, the Swiss government effectively pumped $60bn into UBS, taking virtually the last $50bn of its toxic assets into a special purpose vehicle off its books and owned by the SNB. Today, they are urging UBS to explore an acquisition of all or parts of Credit Suisse Group AG after Credit Suisse pummeled by a "crisis of confidence" aka multiple scandals including mismanagement of funds, the bank closed the 2022 fiscal year with a loss of nearly $8 billion, its biggest loss since the 2008 global financial crisis, preventing money laundering among others.

15 years is apparently how long it takes for history to be forgotten.

Lobbying by the financial industry plays a huge part in why regulation and supervision of the largest financial institutions in the United States and around the world is extremely insufficient.

https://finance.yahoo.com/news/ubs-explore-credit-suisse-deal-231127876.html

Yahooist Teil der Yahoo Markenfamilie

Show threadAlaric Aloor🐕🏎⚽️🥃Mar 19, 2023

@alaric

#SVB #SVBFail #CreditSuisse

UBS makes $1 billion all-share offer for embattled Credit Suisse 👇🏾

Credit Suisse is a penny stock

https://www.msn.com/en-us/money/markets/ubs-makes-1-billion-all-share-offer-for-embattled-credit-suisse-reports/ar-AA18OIU2

UBS makes $1 billion all-share offer for embattled Credit Suisse: reports

A Sunday report in the Financial Times said the offer price would be 0.25 Swiss francs a share, well below Credit Suisse's Friday closing price of 1.86 Swiss francs on Friday.

MSN
Show threadAlaric Aloor🐕🏎⚽️🥃Mar 19, 2023

@alaric

#SVB #SVBFail #CreditSuisse

$2 Billion is *much closer to the $9.5 billion friday close of business valuation than $1 Billion. This place should have been sold for parts years ago.

https://www.msn.com/en-us/money/companies/ubs-reaches-agreement-to-buy-credit-suisse-after-upping-offer-report/ar-AA18OPNO

UBS reaches agreement to buy Credit Suisse after upping offer: report

UBS reportedly reached a deal with Swiss regulators to buy Credit Suisse for $2 billion in a move to prevent the potential collapse of Credit Suisse from roiling markets.

MSN
Show threadAlaric Aloor🐕🏎⚽️🥃

@alaric

#SVB #SVBFail #CreditSuisse

UBS Agrees to Buy Credit Suisse for More Than $3 Billion👇🏾

https://apple.news/A7n9DxCw7TiKporrpvccaBQ

UBS Agrees to Buy Credit Suisse for More Than $3 Billion — The Wall Street Journal

Deal is part of effort to prevent further erosion of confidence in banking system

Mar 19, 2023 at 11:37pmWeb