Are we looking at another “Too Big to Fail”? I hope not. SVB went woke, now they need to feel the pain of go broke.
They did let LEHMAN BROS go down the tubes ......Maybe this will be the same scenario....
I'm not sure just how 'woke' SVB is/was, but I know that startups are where a lot of conservatives work in the Silicon Valley, and SVB made "just" a mistake of how they invested customer deposits a few years ago (into stable but low interest rate vehicles).
Sure, they should have clued in and made adjustments as soon as Trump made some big deficit spends against COVID, and REALLY after Biden went insane with spending that meant inflation and thus interest rates would be long-term going up.
But fundamentally, this isn't a situation like the 2000 dot-com bust where startup business models are a joke. Not every startup will make it, but at least the business plans aren't laughable.
Based on this, I fully expect someone to swoop in soon to buy up SVB.