The clients that kicked off the bank run are coming back:
“VCs General Catalyst, Bessemer, Greylock, Lightspeed, Lux Capital, Mayfield Fund, Redpoint and Upfront have recommended that their portfolio companies keep or return at least 50% of their total capital with Silicon Valley Bank.”
The FDIC is getting offers to take over the Silicon Valley Bridge Bank, because the bank is worth at least $30 billion more than it’s debts. It’s a more attractive investment than Twitter. Hopefully, Congress repeals the Trump law that let the bank get 5 times bigger in a few years.
At $300 billion for the SVB / Signature bailouts, it comes to around $1,000 per citizen. Hardly small change. And all done without approval from Congress.
SVB is only in this situation because a bunch PABs venture capitalists panicked. The bank was hurting but there were options other than to start a run.
Bank runs should really be called “bank stampedes”, because the mindless herd instinct kicks in.
And the answer is: Yes I have spare change but you cannot have it.