Posted on 03/10/2023 3:37:29 PM PST by marcusmaximus
Uninsured deposits, I suspect they need to fire a few people.
Just because a comp y has good technology doesn’t mean they are brilliant in finance.
I am going out on a limb here .... but I think there is a touch of Trump Curse in all of this Silicon Valley Bank failure here.
Looking forward to seeing the facts that confirm (or debunk) my theory.
Cash equivalents should be short term treasuries that roll over every 30-60-90-180 days. There is really never any reason to leave so much excess cash actually in cash. With short term treasuries you know you can get the cash quickly if you really, really need to.
Wow, my sister is CFO of a large tech company and I know for a fact she would never let them keep all their eggs in one basket.
She will fid this hard to believe
The Cash isn’t stuck.
The Cash is gone.
Bye Bye.
You’re probably correct
And here I was thinking about buying a Roku for the TV 📺
I wonder how many tech companies are going to have problems meeting payroll next week.
I’ll be shocked if it isn’t almost entirely in repo agreements. Should be fully collateralized.
In the word of the great Inspector Cluseau:
“Not anymore”
Their cash was withdrawn last Thursday. I guess the Roku guys were on Spring Break.
Trickle down economics :-(
Roku was just the first to announce their exposure. More companies to come...
The FDIC only covers the 1st $250,000 of an account.
Oops is not an adequate explanation.
Sounds like SVB was primarily a business banking operation.
About 26% of Roku’s $1.9 billion in cashWell, it says right in the portion of the story copied here that they didn't have all of their cash in one bank. About 26% was at SVB, which means that 74% must have been placed somewhere else, if the story is correct.
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