Also in today's newsletter: Silicon Valley Bank was, based on the market value of their assets, technically insolvent last quarter and is now levered 185:1.
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I don't expect a bank run; banks don't technically *need* equity, they just need depositors to have a good reason not to flee, and an equity cushion is a great reason. On the other hand, pretty weird situation.
Since this is making the rounds again: thediff.co (Past performance is no guarantee of future results, but wouldn’t it be nice if it were?)
Update: they delevered a bunch and raised more capital.
Replying to @AndrewRangeley and @ByrneHobart
wow raising a ton of equity, General Atlantic coming in for $500mm and sold its entire available for sale portfolio...
I wonder what terms Berkshire is offering them right now...
There's like a non-trivial chance that your newsletter talking about the possibility of a SVB bank run is what will have caused a SVB bank run.
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