Not learned a thing since the Financial Crisis. Relying on ratings, preferred stock holders found themselves bailed in, bondholders got crushed.
The bank survived the Dotcom Bust. But this bust is far bigger because the Free-Money bubble was far bigger. FDIC may not have a loss on this deal.
SVB is massively involved in all segments of the startup scene that is now facing a mass extinction event.
In 16 months from $239 at peak crypto consensual hallucination to $2.76, including the 44% plunge afterhours.
It just keeps getting funnier with this crypto stuff. Shares crush dip buyers after hours.
Revenues collapsed. Bankruptcy filing hangs over it. This is a money-suck. But hey, it incinerated $11.6 billion on share buybacks.
It has $3.6 billion in real-world debt. The bonds crashed, the stock imploded, reality keeps biting the crypto world.
Wait a minute… It still “believes in” crypto? Is crypto now a religion that a bank “believes in?” FDIC, are you reading this?
Only a couple of smaller banks have significant exposure to cryptos, and their shares have collapsed.
But history doesn’t repeat, it rhymes: For your amusement, a Nasdaq comparison to the Dotcom Bust.