Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
According to the BBC
https://www.bbc.co.uk/news/business-64937251
I'm not clever enough to know how complete/accurate this is, but it read well enoughs:
https://www.reddit.com/r/Economics/comments/11nucrb/silicon_valley_bank_is_shut_down_by_regulators/jbq7zmg/
"When money was cheap as dirt in 2021 and people were making huge deposits- SVB bought government bonds. At the time the fed rate was low as ****. Let's say 1%
Fast forward to today- the free money spigot has been turned off so VCs are also reducing funding to startups. In order to keep operating, startups need to withdraw money from the bank. SVB had a ton of money tied up in these government bonds. The bonds themselves are secure but don't pay out until they mature- however you can sell your bonds to someone else for cash. Problem is- the fed has been hiking interest rates steadily so a bond from 2021 may only pay out 1% but a bond purchased today may pay out 5%. Nobody is going to buy a 2021 bond unless it was cheap so SVB needed to take a loss because the bonds they bought in 2021 pale in comparison to bonds you can buy today that pay out 5%. So they basically had to take an L to provide liquidity to their clients.
EDIT:
For what it's worth- SVB was solvent. They weren't upside down. The deathknell for SVB was Foundersfund- a VC- telling startups to pull their money out of SVB because they felt it too risky. This created a run on the bank. This then caused several other VC firms to tell their portfolio companies to pull their money as well.
SVB had assets- just not instantaneous liquidity for everyone to pull their money because again- locked up in government bonds.
SVB likely could have rode it out had the VCs not instigated a run."
I suspect we dropped on Friday in tandme with the US price.And that likely dropped due to an important report on the state of the US economy (NonFarm Report) which turned out a lot better than expected giving some temproary confidence back to the dollar.
>I guess most people didn't have telescopes back then We'll no, they didn't. >or simply weren't interested in observing the motions of the planets/sun. For those that were interested, death for heresy was almost certain. I'll believe anything you say if it stops you burning me at the stake.