Regulators need to step in to do a *backstop* of depositors (not a bailout of a bank) 40,000 SVB depositor small businesses 30% will fail to make payroll in the next 30 days Estimate 10 employees each 120,000 jobs on the line Years of US innovation on the line
650 founders who employ over 20,000 people have already signed this petition Thousands of startups and small businesses are at risk due to the SVB failure. We ask for depositors to be made whole, and for regulation to prevent this catastrophe. 650 founders who employ more than 22,000 people, have already signed. Please spread the word. ycombinator.com/blog/urgent-si…
@garrytan I wonder if panic tweets are helping at all. The bank is already in receivership. FDIC insured funds will be transferable as early as Monday i imagine. The San Francisco Fed is already in negotiations to place the remaining assets with another bank. Disruptive, yes. Doom, no.
@garrytan Do you do this for the banks that fail next week too?
@garrytan the feds can force SVB to be acquired, but taxpayers will foot the bill, as when bofa acquired ML in 2008 fin crises. recall S&L crises in 80s, fed sold $400B in assets from 750 failed institutions. Rising interest rates, greed, lax laws = history repeats
@garrytan The fight against the "bailout" of depositors is so weird. If you bought a lawnmower for $1000 and before you received it the company went bankrupt, should you not be given a "bailout" by getting your $1000 back? Most people would say that you definitely should.
@garrytan People greatly underestimate the ripple effects this would have on the job market. My non startup friends don’t know what SVB is. More people know of Oswego NY than of Silicon Valley Bank
@garrytan Is there precedent for startups missing a week of payroll due to exogenous factors then closing, losing all built up work etc etc