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🧐 @FDICGov's press release makes it sound like First Citizens Bank took all the loans that #SiliconValleyBank had on its books.
But... it did not.
$90 billion in toxic loans were left behind.
Cost to taxpayers currently estimated at $20bn but it will rise.
But... it did not.
$90 billion in toxic loans were left behind.
Cost to taxpayers currently estimated at $20bn but it will rise.
@FDICgov 🧵 Much of what is being written about #SVB is just as wrong as what's being printed right now about Citizens Bank "buying Silicon Valley Bank".
To be clear: $SIVB had $90 billion in loans so toxic no one would buy them.
#fundbanking / #venturedebt
cryptadamus.substack.com/p/how-everyone…
To be clear: $SIVB had $90 billion in loans so toxic no one would buy them.
#fundbanking / #venturedebt
cryptadamus.substack.com/p/how-everyone…
🧵 lol FDIC couldn’t get #FirstCiitzens to buy this pile of #SVB's garbage #venturedebt even by guaranteeing to share in any losses, which is how it managed to convince Citizens to buy the commercial loans. $SIVB
🧵 In my first tweet I should have said $90bn in toxic *assets*. Only $60 billion of that is the #venturedebt / #fundbanking business. I'm sure a bunch of the rest is also loans to tech bros who won't pay them back, but hey, there could be some weak treasuries or something.
🧵 Maybe it's a good time to remind everyone that $SIVB was shoveling garbage loans out the door TO #SVB EXECS AND INSIDERS at an absolutely incredible rate at the end of 2022, AKA "when the people running the bank knew it was in trouble".
https://twitter.com/Cryptadamist/status/1640201762505216001
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