SVB Collapse and EF Women’s WT Team

[Clean39T]

Not a great day for EF..

Hopefully the other sponsors can step up and keep the team going.

SVB Financial Group (SVB) has sponsored Team EF Education-TIBCO-SVB for 15 years, and assumed title sponsorship status in 2015. SVB is the financial partner of the innovation economy, helping individuals, investors and the world’s most innovative companies achieve their ambitious goals. SVB’s businesses - Silicon Valley Bank, SVB Capital, SVB Private and SVB Securities - together offer the services that dynamic and fast-growing clients require as they grow, including commercial banking, venture investing, wealth planning and investment banking. Headquartered in Santa Clara, California, SVB operates in centers of innovation around the world. Learn more at svb.com/global.

The partnership, now entering its 16th season, is driven by shared values, including the commitment to keep learning and improving, to serve our communities, and to support advancement opportunities for women.

[Red Tornado]

My wife's employers payroll vendor uses SVB. Their direct deposits did not go through today. They're saying hopefully Monday, but we don't know if their payroll is insured. If not, prolly won't be getting paid until vendor finds another bank to work through.
I don't understand how the whole thing works. Seems like the payroll company could take the funds from her employers bank and direct deposit into the employees bank accounts. That's obviously too simple, tho. I don't understand the need for another bank in the process. Regardless, I'm wondering if our income just might have taken a temporary nose dive.

[oldpotatoe]

Info here in case 'somebody' hasn't heard of the bank's collapse..Adios bike sponsorship.

https://www.cnn.com/2023/03/10/inves...ank/index.html

[prototoast]

Maybe FDIC can be the new USPS.

[Hindmost]

SVB has been a major supporter of women's racing locally, nationally, and internationally for many years.

[Elefantino]

No word from Linda Jackson yet anywhere. She has had SVB on board since 2015.

[prototoast]

Originally Posted by Elefantino

No word from Linda Jackson yet anywhere. She has had SVB on board since 2015.

I imagine she probably doesn't know much right now, and the bicycle team sponsorship is the absolute lowest priority for anyone working on this right now.

If I were her, on anybody beyond what they've already received, but if they have a contract for future payments, it's not inconceivable that a buyer for SVB might be responsible for that liability as well as the things they actually care about.

But all that will take time, and until then, I'm really not sure what she is supposed to say.

[Kyle h]

Musk will save the day don’t worry…

[geordanh]

It’s a ****ty situation. One of those days yesterday that felt a week long if you’re affected. Many, many small companies, startups and non profits trying to figure out payrolls and whether or not they need to be laying off a large number of staff next week. Hoping there’s more clarity provided over the weekend on deposits and recovery rates.

SVB played a huge role in banking much of the early stage health/bio/climate tech innovation the past few decades. This is a big setback and they won’t easily be replaced in the ecosystem.

I think highly of pals and associates who work(ed?) at SVB, but clearly senior management made some truly terrible risk management decisions and the equity has rightly gone to zero. Hoping there’s a recovery plan for depositors.

[Blue Jays]

The urgent topic of future cycling sponsorship by Silicon Valley Bank is ranked slightly above who waters the plants at their corporate offices, yet slightly below which vendor stocks the coffee stations.

[Elefantino]

Originally Posted by Blue Jays

which vendor stocks the coffee stations.

You imply this is trivial. It is not.

[robt57]

Originally Posted by Elefantino

You imply this is trivial. It is not.

I took that as a "if you don't laugh you'll cry" response... FWIW

[prototoast]

Originally Posted by Elefantino

You imply this is trivial. It is not.

Do you think he implied the cycling team sponsorship was trivial, or the coffee vendor? SVB had about 8,500 employees. If half the employees have a cup of coffee a day, that costs the company $0.50, over 200 working days, that's $425,000/year, or probably more money than they were paying to sponsor the cycling team.

This obviously puts the cycling team in a rough spot, and as cycling fans, it's fine for us to show disproportionate concern for them, but in the grand scheme of the bank collapse, the cycling team is one of the smallest problems.

[Blue Jays]

Originally Posted by Elefantino

"…You imply this is trivial. It is not…"

Coffee is essential, so you are indeed correct. That should be escalated pronto.
Cycling sponsorship concerns are probably closer to printer paper supply status.

[BdaGhisallo]

Originally Posted by geordanh

It’s a ****ty situation. One of those days yesterday that felt a week long if you’re affected. Many, many small companies, startups and non profits trying to figure out payrolls and whether or not they need to be laying off a large number of staff next week. Hoping there’s more clarity provided over the weekend on deposits and recovery rates.

SVB played a huge role in banking much of the early stage health/bio/climate tech innovation the past few decades. This is a big setback and they won’t easily be replaced in the ecosystem.

I think highly of pals and associates who work(ed?) at SVB, but clearly senior management made some truly terrible risk management decisions and the equity has rightly gone to zero. Hoping there’s a recovery plan for depositors.

SVB was quite unique in that a high proportion of their deposit base were institutional customer and not retail clients as with most banks that fund themselves through deposits. Institutional customers will move their money in a heartbeat in search of a few more basis points of return. Retail clients are far less speedy in moving their deposits around to find yield.

Institutional customers are very interest rate sensitive so they were losing on both sides of their balance sheet. They were having to quickly ratchet up their deposit rates to secure their funding and they were also losing on their asset portfolio, which was heavy on marketable securities. They had other issues but this aspect of their business didn't help.