Chapter
The Impact of a Capital Raise on Bank Deposits
1:04:42 - 1:11:04 (06:21)
A bank's decision to conduct a capital raise may lead to a run on the bank, resulting in the withdrawal of a significant amount of deposits. The rate at which deposits are taken out can also impact the asset value held at the bank.
Clips
Investing in startups at valuations that don't make sense and not considering left tail risk can wipe out entire portfolios, including LPs' money, as seen in recent misallocations that resulted in burned cash and even more impaired valuations.
1:04:42 - 1:06:14 (01:31)
Summary
Investing in startups at valuations that don't make sense and not considering left tail risk can wipe out entire portfolios, including LPs' money, as seen in recent misallocations that resulted in burned cash and even more impaired valuations.
ChapterThe Impact of a Capital Raise on Bank Deposits
EpisodeE119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
A bank's holding company announced a capital raise which led to investors withdrawing $42 billion or over 20% of the total deposits from the bank.
1:06:14 - 1:09:37 (03:23)
Summary
A bank's holding company announced a capital raise which led to investors withdrawing $42 billion or over 20% of the total deposits from the bank. The bank failed to meet its cash letter with the Federal Reserve despite attempts to transfer collateral from various sources.
ChapterThe Impact of a Capital Raise on Bank Deposits
EpisodeE119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The speaker argues that describing a market response as a panic might not accurately reflect the motivations of individual decision makers.
1:09:37 - 1:11:04 (01:26)
Summary
The speaker argues that describing a market response as a panic might not accurately reflect the motivations of individual decision makers. Instead, the interconnectedness of regional banks may have made the response to current events more temperate than in other markets.