SVB Archives

As of March 11, 2023 the following notable companies have disclosed information related to their financial holdings in Silicon Valley Bank:

Roku Inc. (ROKU) – Roku’s SEC Form 8-K states, “The Company has total cash and cash equivalents of approximately $1.9 billion as of March 10, 2023. Approximately $487 million is held at SVB, which represents approximately 26% of the Company’s cash and cash equivalents balance as of March 10, 2023. Approximately $1.4 billion of the Company’s cash and cash equivalents is distributed across multiple large financial institutions…”

Roblox Corp. (RBLX) – Roblox’s SEC Form 8-K states, “Of Roblox Corporation’s (the “Company”) $3 billion of cash and securities balance as of February 28, 2023, approximately 5% ($150 Million, I.K) is held at Silicon Valley Bank. Thus, regardless of the ultimate outcome and the timing, this situation will have no impact on the day to day operations of the Company.”

Ginkgo Bioworks Holdings, Inc (DNA) – Gingko Bioworks’ SEC Form 8-K states, “Only the cash balance of the Company’s wholly-owned subsidiary Zymergen Inc. is held in deposit accounts at SVB, representing approximately $74 million or 6% of the Company’s cash and cash equivalents as of December 31, 2022. The Company does not maintain any other material accounts or lines of credit with SVB.”

Sangamo Therapeutics, Inc. (SGMO) – Sangamo Therapeutics’ SEC Form 8-K states, “As of March 10, 2023, Sangamo had approximately $34.4 million in deposits with SVB, substantially all of which is uninsured.”

Rocket Lab USA, Inc. (RKLB) – Rocket Lab’s SEC Form 8-K states, “On March 10, 2023, the Company announced that it has deposit accounts with SVB with an aggregate balance of approximately $38 million, which is approximately 7.9% of the Company’s total cash and cash equivalents and marketable securities as of December 31, 2022.”

LendingClub Corporation (LC) – LendingClub’s SEC Form 8-K states, “LendingClub’s relationship with SVB is limited to funds on deposit of $21 million, which amount is not material to the Company’s liquidity position or capital levels, and does not pose a risk to the Company’s ongoing business or operations. ”

Payoneer Global Inc. (PAYO) – Payoneer’s SEC Form 8-K states, “Of the Company’s approximately $6.4 billion in total cash balances as of December 31, 2022, less than $20 million is held at SVB, which is held through a combination of cash deposits and money market funds purchased through SVB but managed by a third party asset manager. The vast majority of Payoneer’s cash balances are held across more than 10 global systemically important banks.”

Compugen Ltd. (CGEN) – Compugen’s SEC Form 8-K states, “Compugen Ltd. (the “Company”), through its U.S. subsidiary, currently holds approximately 1.3% of its cash and cash equivalents ($1 Million, I.K) with SVB, and considers its exposure to any liquidity concern at SVB as immaterial.”

QuantumScape Corporation (QS) – QuantumScape’s SEC Form 8-K states, “The Company notes that it has very limited exposure to SVB, with only a low single digit percentage exposure relative to both the Company’s total liquidity and total assets.”

Fubotv Inc. (FUBO) – Fubo’s SEC Form 8-K states, “fuboTV Inc. (the “Company”) is aware that the Federal Deposit Insurance Corp. has taken control of Silicon Valley Bank (“SVB”). The Company does not hold any deposits at SVB or have any other direct investments at SVB.”

Sofi Technologies Inc (SOFI) – Sofi’s SEC Form 8-K states, “SoFi Technologies, Inc. (the “Company”) informs its investors that it does not hold assets with Silicon Valley Bank. The Company has an approximately 40 million dollar lending facility that is provided through Silicon Valley Bank, which is unaffected by the Federal Deposit Insurance Corporation’s receivership of Silicon Valley Bank.”

Lemonade (LMND) – Lemonade’s SEC Form 8-K states, “Lemonade, Inc. (“Lemonade”) is aware of media reports indicating liquidity concern at Silicon Valley Bank (“SVB”). Lemonade considers its exposure to any liquidity concern at SVB as immaterial given that it currently has less than $7,000 in cash at SVB, which is significantly below the FDIC-insured limit of $250,000. We believe our cash and assets are well diversified to minimize risk, and Lemonade uses large financial institutions for its commercial banking services that are not currently exposed to liquidity risk”

Summary

This is not even the full list, that Is the scarey thing here

Sources

https://www.washingtonpost.com/business/2023/03/11/silicon-valley-bank-companies-affected/

https://www.thedailybeast.com/roku-etsy-vox-media-companies-impacted-by-silicon-valley-bank-crash

https://www.pbs.org/newshour/economy/silicon-valley-banks-failure-shakes-companies-worldwide-from-wine-country-to-london

This article is an opinion piece, the biggest joke is I have to put this at the start because search engines like Google know best about Financial experts – OK then, just lik ethe clown on NBC who a couple of days ago said to invest in this bank. Brilliant

I am not a financial advisor. The ideas presented in this article are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.

financial crash image

Whats happened

Silicon Valley Bank’s bankruptcy is shaking Wall Street.

The big question on everyone’s mind: is contagion to the financial system likely?

To answer that question, let’s go back to what transpired in the last few hours.

On Wednesday, March 8, 2023, Silvergate, which had happened to be in danger for some time ever since the FTX debacle, declared that it would end operations.

On Thursday, March 9, 2023, it was learned that Silicon Valley Bank was running out of money. SVB’s share price dropped by 60%.

On Friday, March 10, 2023, SVB was in bankruptcy, taken control by the FDIC. A dismal week for the banking world in America!

In the final hours, SVB attempted to build up working capital but failed. Then SVB attempted to sell itself to a larger sized bank, but without success. Right now, the FDIC will try to protect SVB’s customers’ assets.

The important thing to remember here is that many other banks are experiencing the same problem as SVB. Their bond portfolios are locked at a low rate. As depositors withdraw their money in droves, banks have to sell their bonds at huge losses to rapidly recover the cash they are short.

Whats a bank run

When a bank like SVB faces a bank run, the bank’s deficits become enormous.

SVB’s issues began when the bank reported a $1.8 B loss on the sale of its AFS (Available for Sale) bond portfolio. Rumours started to spread that SVB was in difficulty with massive interest rate risk on its $91B portfolio.

A frenzy was developed amongst SVB’s clients with a bank run that started fairly quickly. The mass withdrawals of customers fed the vicious circle SVB was in by continuing to raise its losses as the bank attempted to protect the withdrawal needs of depositors.

How did this happen

SVB was the casualty of a flawed and not fixable monetary and financial system.

According to this system, SVB theoretically had the assets to cover customer deposits as required by law. The real problem here is that these assets were not liquid enough. Furthermore, when these assets are illiquid, can they be liquidated without triggering huge losses?

The answer was no in the case of SVB and that is how it best gave rise to the second-largest bank failure in American history. The largest since Lehman Brothers in 2008!

With the Fed’s rapid rate hike, some other banks are facing the same liquidity problem as SVB. Take the example of First Republic Bank whose stock lost up to 50% when SVB scared the banking market on March 9, 2023.

However, the word contagion does not seem to apply to bond portfolio concerns. This outcome has little to do with SVB’s connection with other banks.

In fact, managing interest rate risk is an inherent challenge for every bank. SVB has failed. The fear that this induces could however impact other banks, but this would come from customers who would withdraw their deposits en masse from other commercial banks.

In the coming hours and days, investors and analysts will scrutinize all United States banks to find which ones have the same prospective weaknesses as SVB. First Republic Bank has been pinpointed. Various other bank names will come out.

This purge will be considered vital by those who say that banks with bad business practices are the only ones at risk. According to these people, banks that responsibly manage their customers’ deposits and investments are safe.

Comparisons with previous debacles

A lot of want to match up the failure of SVB to the failure of Lehman Brothers in 2008 or Bear Stearns in 2008.

Both of these banks were investment banks while SVB is a commercial bank. A commercial bank can have issues as the SVB case shows, but there is no comparison to the 31x leverage that Lehman Brothers possessed at the time of its collapse.

The situation is different, however the risk on commercial banks is very real with this rapid rise in the Fed’s key rates. The fact that this hike is not going to stop quickly as Jerome Powell said not long ago will put more burden on the United States banks.

The recession that this will induce also will be horrendous for hard working people – the previous crashes have shown this. As for the banks there will be hatred and anger for a few years and then they will

Silvergate and SVB opted for to do trade with FTX, but so did a lot of other overvalued technology companies. The crash of these companies and the FTX fiasco is currently being paid for. The problem is, as always, that it is the customers who will foot part of the bill for the mismanagement by these bankers.

The present banking system is flawed. End of story . Is the current system reparable? I have major doubt sbut then again this might be yet another excuse to push the digital currencies that many countries are peddling – almost all at the same time.

Other banks

For those who question if banks like Wells Fargo or JPMorgan are in danger, here is what Michael Barr, the Fed’s vice chair for supervision, said in the last few hours:

” There are obviously large institutions that are also exposed to these risks too, but the exposure tends to be a very small part of their balance sheet. So even if they experience the same deposit outflows, they are more insulated.”

For those who challenge that this system is moved towards collapse, I believe what is happening at this moment should give them pause. But most importantly, look for a plan B that is separate of the control of central banks and governments. A pure unit of wealth.

Opinion

I have always diversified – crypto, stocks, etfs, gold and silver and many other investments.

The issue is this will impact the less wealthy the most as it always does but this is what happens. The previous major crash, there was a chance to make an example and put in measures. This didn’t happen and that was partly the fault of the US president at the time- Barack Obama.

I’ll let you read that on your own time but the utter cheek that governments are trying to hammer Bitcoin and crypto and yet turn a blind eye to this shambles, it says a lot.

Now, I believe there were issues with what SVB invested in – I had heard that the companies met a lot of current day criteria, not necessarily whether they were sound businesses who could make money but ticked a lot of the ESG boxes. I’ll see what I can dig up

Disclaimer

This content is for education and entertainment purposes only. investinginfo does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

SVB

Some notable companies affected by Silicon Valley Bank