Wall Street: The fight for SVB’s customers

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10 THINGS ON WALL STREET

Hey there! Dan DeFrancesco in NYC.

When federal regulators stepped in to guarantee deposits at Silicon Valley Bank and Signature Bank late Sunday (more on that here), the goal was simple: Ease the public concerns and calm the markets. 

Not so fast, my friend!

There was plenty of pain to be felt in the markets Monday, specifically among regional banks. 

So, what are you waiting for? Let's get into it. 


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SVB

1. So about that auction... SVB Financial Group, the parent company of Silicon Valley Bank, is still looking for a buyer. There was at least one bidder in Sunday night's auction, but it was turned down by the FDIC. More on what comes next and who could still end up buying SVB.

2. And so begins the fight for $200 billion in deposits. The downfall of SVB means that plenty of people and startups are looking for a new bank. Here's an inside look at where they are headed.

3. Who comes out on top from all this? It might seem crass to think about winners and losers, but this is Wall Street. Here's a rundown of the people and firms that are better off now than they were a week ago, and the ones who faced a setback. Check out the full list here.

4. Won't get fooled again. After a tumultuous weekend when they saw their startups' lives flash before their eyes, nine founders who banked at SVB share where they are moving their money. Meanwhile, one tech founder's experience dealing with the SVB led to an existential crisis.

5. Read this if you're a worrywart. A couple banks failing doesn't instill confidence in the wider financial markets. But, rest assured, SVB's blowup is a far cry from the 2008 financial crisis. Here's why.

6. Meanwhile, in the UK. Silicon Valley Bank's UK arm was sold to HSBC for roughly $1 (no, I'm not missing any zeros). Here's an inside look at the wild weekend it took to get the deal done.

7. Silicon Valley Bank died so interest-rate hikes would stop. SVB's failure could put an end to the aggressive rate hikes that have plagued the market for nearly a year. Some silver linings on why SVBs downfall might help the market in the long run.

8. The politicians are weighing in. Republicans are criticizing the bailout for benefiting the rich and pointing to SVB's "woke" politics as the reason for its downfall. Democrats are blaming Trump-era regulations for setting the stage for the collapse. And Democratic Sen. Elizabeth Warren doesn't understand why bank customers get a bailout but not student loan borrowers.

9. This ain't your grandparents bank run. An interesting piece of the SVB failure was how quickly it all occurred. That's thanks in large part to a banking system that's largely digital. More on why the digital age for a lender is also a dangerous one.

10. One SVB asset that's not in decline: company swag. From cardboard boxes to wine tumblers, anything with an SVB logo is being put up for sale on eBay. Check out some of the stuff here.


Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 

 

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