2023
Sam Altman says Silicon Valley Bank failed because it bought very long-dated instruments funded by short-term, variable deposits.
“buying very long dated instruments, secured by very short term and variable deposits”
Topic
Silicon Valley Bank
5 facts from 3 episodes, in date order. These are what speakers said on the shows, each linked to the moment it was said. They aren't independently verified.
2023
Sam Altman says the Silicon Valley Bank run was much faster than the 2008 collapse because of Twitter and mobile banking apps.
“speed with which the SVB bank run happened because of Twitter, because of mobile banking apps”
2023
Jamie Dimon says Silicon Valley Bank, which had about $200 billion in deposits, lost around $100 billion in one day in 2023 after venture capital firms told clients to withdraw.
“And Silicon Valley Bank, I think they had 200 billion in deposits, 200 billion, 100 billion in one day.”
2023
Dimon says Silicon Valley Bank's interest-rate losses were hidden by held-to-maturity accounting, which lets banks avoid marking securities to market.
“And the interest rate exposure was hidden by accounting. It was called held to maturity where you don't have to mark even treasuries to market.”
Undated
Coinbase's acceptance to Y Combinator helped it secure a U.S. bank relationship with Silicon Valley Bank, which was difficult for crypto companies at the time.
“That led to us getting a bank relationship in the U .S. at the time when that was very difficult to do with Silicon Valley Bank of all places”
Episodes