fargo, bank of america, jm morgan, morgan stanley lost $50 billion in market value in one day. that s a hit. on the other hand, those banks still exist. you can t say that for silicon valley bank. svb has gone under completely. that makes the second biggest bank failure in the history of this country. and the significant svb financed nearly half of all venture-backed healthcare companies in the united states. it held significant cash reserves for some of the biggest crip toe currencies. it s gone. federal regulators have rename it and taken it over. that means a lot of people lost a lotf of money. most of that money was not insured, no matter what they tell you. the fdic only guarantees bank deposits up to $250,000. nearly 90% of all deposits at svb exceeded that. and it s unclear if those people see their money again. in fact, when customers show up in svb s branch in manhattan to get the deposits back, managers called the police. so, what we have there is the 1929-style b
in svb s branch in manhattan to get the deposits back, managers called the police. so, what we have there is the 1929-style bank run. that s not a good sign for anyone. the question is if they saw it coming. the ceo sold bank stock in the last two weeks. several other high-level employees of svb including chief marketing officer draper, phil cox, michael zucker, all sold significant amounts of stock in svb this year. did those employees know their bank was in trouble? we don t know. once again, where were the regulators? they were supposed to prevent this. once again, we don t know. the business press? supposed to be telling ordinary people what s happening with business. apparently nobody noticed anything. in fact, as with the ftx crip