Haha, pretty sure FDIC, who is looking for stability right now to prevent contagion, is not going to sell it to Elon who has no idea how to run a bank by Monday.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
A couple more things about SVB:
I found this article from netinterest.co to be extremely illuminating about what happened, and how it unfolded so rapidly, despite there having been warning signs for the last five months or so.
I also just got an extremely credible phishing email appearing to be from our payroll provider, that wanted me to read a blog post to reassure me that our payroll was fine. I had already heard from friends in the security industry to be on the alert, a situation like this is made to measure for people to hastily click links. I'm not surprised that it was possible to find out who our company's payroll provider was, but this was pretty well targeted.
I found this article from netinterest.co to be extremely illuminating about what happened, and how it unfolded so rapidly, despite there having been warning signs for the last five months or so.
That is, over 88% of its deposit value is uninsured. That money is inaccessible in the immediate future, although I still expect that much of it will be recovered over time.
I also just got an extremely credible phishing email appearing to be from our payroll provider, that wanted me to read a blog post to reassure me that our payroll was fine. I had already heard from friends in the security industry to be on the alert, a situation like this is made to measure for people to hastily click links. I'm not surprised that it was possible to find out who our company's payroll provider was, but this was pretty well targeted.
Yeah, from a purely balance sheet issue, SVB wasn't actually in a bad spot. They just messed up their messaging. Both when they went to market for the $2.5B equity they tried to raise, and then during the crisis when they tried to reassure people, and screwed that up as well. That's what's so tragic and so precarious about bank runs. It doesn't take much to wipe them out. Hopefully the regulators will take this weekend to make some assertive moves to protect *all* deposits so that people can calm down and not start other bank runs over nothing.
I
We all know Elon is an expert at everything so why not? /s just in case.
He exercised options, which means, yeah, he did buy about 10,000 shares (at the low option strike price). But he didn't buy from the market, these were newly created shares that have been added to the market. He paid Tesla about $40,000 to buy 10,000 shares. Oh to be a CEO with a generous stock option plan.
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JRP3
Hyperactive Member
You really think that $3,200 over 2 years is changing people's retirement plans? For most people that would have allowed them to slightly reduce their debt and nothing more, for many it just replaced some of their lost earnings.
lafrisbee
Active Member
<---- sticks fingers in ears and repeatedly saids, "LA LA LA LALALALALALALLALALLALALALALALA."
Not sure where you're getting the 3200 over 2 years from.
The COVID relief ppl got was immense. And there was even larger scale fraud that happened (mostly perpetuated by a few small business owners). And here we're getting entirely off topic.
In any case, please look at this link for all the ways in which federal government provided COVID relief.
JRP3
Hyperactive Member
That link doesn't really support your claims of people getting windfalls to allow early retirement, (rental and funeral assistance?), but as you say we are getting off topic.
Artful Dodger
"Neko no me"
Ya puts it all on Black (meme stocks, don'cha no?)
The $GME short squeeze on 28 Jan 2021 was peak meme. And the Market majors got roiled.
Well, a year ago Sasha was sounding the alarm that inflation is going to get worst. Multiple videos of him sounding the alarm and those were not very popular on his channel.
Yes, this is a good link and I speak from experience. The last dozen years of my professional experience was building models for interest rate risk when rates move sharply (the stuff that created doubts about SVBs solvency), estimating how quickly deposits run off and whether there's enough liquidity for that, building stress test models, modeling deposit betas, and a few other things that only big banks care about. Of course this included dealing with various regulators as well.
All of this was at a bank that is about twice as big as SVB and a household name in the US.
Looking at the details of what brought SVB down, I am appalled at how lacking their risk management practices have been. Unfortunately they were slightly below an asset size threshold that would have brought a lot more scrutiny of these risks and forced their hand to derisk.
Anyways, I provide this context because, from my perspective even if Elon badly wants to buy SVB, the regulators won't let him have it. It's a huge pain to become a BHC or a bank holding company, because BHCs are subject to a ton of regulation and you can't just buy bank without the Feds blessing it. This is precisely why none of the big techs owns a bank, though several of them like AAPL GOOG and AMZN are involved in banking adjacent activities.
Long story short, if Twitter wants be a fin tech, it can accomplish a lot of what it wants to do without becoming a BHC, and becoming a BHC is time consuming and restrictive in many ways.
Once Elon figures this out hopefully talking to some good advisors, I think he will walk back from the precipice.
willow_hiller
Well-Known Member
Tesla has officially launched their "Powerwall Direct" page. You can order Powerwalls to be shipped directly to your home, without needing to order a solar system: Powerwall Direct | Tesla
Great sign for Tesla's battery supply. Elon stated they ceased standalone Powerwall sales due to battery supply, and would begin again when they had a surplus.
Great sign for Tesla's battery supply. Elon stated they ceased standalone Powerwall sales due to battery supply, and would begin again when they had a surplus.
Not to beat a dead horse, but if there's an eviction moratorium (still there in a few states per my understanding), the tenant doesn't have to pay rent and live rent free at long as they don't care about their credit score.
In these situations, there is really no incentive to work 2 or 3 a-little-over-minimum wage jobs between a husband and wife with a kid. Just make enough from one person working to put food on the table and the spouse takes care of the kids. Entirely different situation if they have to pay for rent plus child care.
But anyways, we can agree to disagree!
SunCatcher
Member
Artful Dodger
"Neko no me"
SIVBP had 68.7% Short selling by volume yesterday, 2023-03-09. FINRA did not publish data for today's session, which ended abruptly in the pre-Market via halted trading. Paging @Papafox (your info, sir)
Gigapress
Trying to be less wrong
Is this saying that the incremental costs are determined by DoE estimates? I had been wondering how that would work. If so then the credit would be about $10k based on these numbers. And how would that affect the Semi?
Just not enough time. It would take him 2 Weeks to start a bank.
Gigapress
Trying to be less wrong
Great sign for the chip supply too. If I remember correctly powerwall uses the same inverters as the cars.
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