U.S. Economy

Celebrity Mark Cuban Urges Fed to Buy Silicon Valley Bank Debt ‘Immediately,’ Saying It’s ‘Not the Wealthy Taking the Hit’

On Friday, March 10, the bank failed following a bank run that saw investors and depositors trying to withdraw $42 billion on Thursday alone.

Many are now worrying about what ramifications will play out next week. One widespread concern is that many technology ventures that banked with SVB will be unable to pay their employees, starting next week.

Cuban tweeted on Friday night, “The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits.”

Silicon Valley Bank, aka SIVB, the 18th largest bank in the US with $212 billion in assets of which $120 billion are securities (of which most or $57.7BN are Held to Maturity (HTM) Mortgage Backed Securities and another $10.5BN are CMO, while $26BN are Available for Sale, more on that later) funded by over $173 billion in deposits (of which $151.5 billion are uninsured), has long been viewed as the bank at the heart of the US startup industry due to its singular focus on venture-capital firms. In many ways, it echoes the issues we saw at Silvergate, which banked crypto firms almost exclusively.

Investing Ideas

Goldman Call on ESG Debt Paves Way for a Hedge Fund’s Big Short

Credit strategists at Goldman Sachs pointed out that the long-standing premium on debt targeting environmental, social and governance goals had been consigned to history.


Black Wednesday? Credit Suisse Stock Nosedives 78% from 1-year High, Sparks $60 bn Rout in European Banks

Trading was halted in some of the European banks including Credit Suisse on Wednesday March 15 to tame the steep plunging, however, that did not stop the company's stock to hit a record low.