Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPeter Thiel's Founders Fund withdrew every penny from SVP
https://finance.yahoo.com/news/thiel-founders-fund-withdrew-millions-005223787.htmlPeter Thiels Founders Fund had no money with Silicon Valley Bank as of Thursday morning as the bank descended into chaos, according to a person familiar with the matter.
Thiels Founders Fund Withdrew Millions From Silicon Valley Bank
Founders Fund withdrew millions from SVB, said the person, who asked not to be identified discussing private information. It joined other venture funds that took dramatic steps to limit exposure to the now-failed financial institution. Founders Fund also advised its portfolio companies that there was no downside to moving their money away from SVB, even if the risk was low.
Founders Fund acted in other ways to move its business away from SVB. On Thursday, as the bank was beginning to unravel, the firm started whats known as a capital call. Thats a run-of-the-mill activity in the venture capital world, in which a VC firm asks its investors, or limited partners, to send it money in order to make investments in startups the core function of most VC firms. It began by asking those backers to transfer the funds to accounts at SVB, as it has done for years, the person said.
But the firm learned that its limited partners were encountering issues using SVB services as they tried to transfer the funds they werent immediately going through as expected, the person said.
Quickly, Founders Fund asked its investors to transfer the money to other banks instead. The fund acted to ensure that startup funding deals that were slated to close in the coming days were not delayed, the person said.
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
7 replies, 1454 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (6)
ReplyReply to this post
7 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Peter Thiel's Founders Fund withdrew every penny from SVP (Original Post)
Demovictory9
Mar 2023
OP
Yeah, it's almost like someone was tipping them off. Like the insider trading CEO.
TheBlackAdder
Mar 2023
#2
TheRealNorth
(9,435 posts)1. Funny how these SOB's know ahead of time
TheBlackAdder
(28,073 posts)2. Yeah, it's almost like someone was tipping them off. Like the insider trading CEO.
karynnj
(59,475 posts)5. Knew ahead or drove the collapse?
From various articles, it was not that the bank made risky investments that failed, but invested too much in long term treasury bills. The bank deserves criticism for not having most of its money in shorter term stocks.
My question is whether Theil played the it's a wonderful life role of Potter causing the stampede that made the banks future in jeopardy.
uponit7771
(90,225 posts)7. +1, the bonds weren't a bad position until the feds raised rates then they should've gotten out of
... them.
I don't know why they would've held on to those bonds knowing they would be close to deposit red line
Pantagruel
(2,580 posts)3. Thiel's a Trumper
Wants to cause chaos in financial markets and he grabbed this opportunity to create a panic . It worked very well.
Kid Berwyn
(14,651 posts)4. The bank prez cashed in a few mil just the other day.
SVB Financial CEO Greg Becker Sold $3.6 Million in Stock Nearly Two Weeks Ago
https://www.barrons.com/articles/svb-financial-stock-sale-ceo-greg-becker-f5089a4d
The guys not gonna tip off his owner?
https://www.barrons.com/articles/svb-financial-stock-sale-ceo-greg-becker-f5089a4d
The guys not gonna tip off his owner?
WarGamer
(12,106 posts)6. Nearly everyone obviously wanted to get their money out and there WAS a short window.