Aaron Parecki

3) FDIC doesn't usually end up putting in a lot of $ at all; whatever the gap is between deposits and liabilities tends to get made up by stockholders and lenders. And anything they do put in is made up for by charging banks higher insurance premiums. FDIC is not taxpayer funded

Oh my. Some Silicon Valley startup was set to announce layoffs today. But it had to cancel the announcement, because the SVB collapse means it currently doesn't have the money to offer severance https://www.bloomberg.com/news/articles/2023-03-10/startups-are-worried-about-paying-their-people-after-svb-fails?sref=vuYGislZ

Running a company:

2020: can you survive a pandemic?

2021: still here? we’re going to give all of your competitors $100m series A rounds.

2022: wow, you made it? okay, all engineers cost $600,000/year now.

2023: nice job! okay, we’re going to take away your bank account.

Theory: The SVB bank run is (partly) happening because their depository base is all of a few thousand startup CEOs who spend too much time on Twitter and meme'ed all this into existence.

(In addition to bad risk management around their bond portfolio.)

People have no idea how bad things are right now and the ripple effects.

The Silicon Valley Bank situation is catastrophic.

I don't think many people understand the level of chaos happening in tech right now.

This is just fucking insane

As a classically trained cellist, composer, former Apple employee, and CEO of a design studio that specialized in icon and UI design, I am ~uniquely qualified~ to comment on the Apple Music Classical app.

My lead investor just texted me this about SVB.

Tons of coding tutorials drive traffic to paid courses, video sponsorships, and a little Adsense sprinkled on top.

Immersive retail company CAMP sends this letter to customers, offering 40% off to help build its asset base in a new account at Chase.

“You can use the code BANKRUN at checkout”

$SIVB

I need to take a little break because the level of financial ignorance from grown men in tech is giving me a literal headache. How did these guys run actual companies without understanding how banks work or the basic principle that money is finite and specific. Back in a few.

This is not hard to picture. Imagine you have $13 million in your bank account on the 9th of the month.

Then imagine it's the 15th of the month, and you have to cut usual checks for payroll.

But instead of $13 million, you have zero in your bank account. That is where we are.

*Phish Incoming Alert*
Former Silicon Valley Bank users —
your bank closing will likely be used as a phishing pretext by cyber criminals over email, text message, and phone call. Financial fear tricks folks fast.
Slow down & verify any email/text/call is legit before taking… https://twitter.com/i/web/status/1634237369888149506