SIVB

banditcleaner2

if they seize it, put holders can still exercise, just like with SIVB

MarcusDaLongis

I remember the day they announced SIVB being seized spy went from 393 to 385 

PseudoTsunami

I'm with you. I think if a deposit run was going to take place, it would've happened already, and in today's digital world, very fast. FDIC insuring above $250k for SIVB is providing the backstop that will save FRC from a similar fate.

placetype

It’s all fun and games with FRC until it gets halted permanently like SIVB. Y’all playing with fire rn

bluen

FRC isn't halted like SIVB 🤔🤔🤔 I guess they don't have Congressional customers 🤡🤡🤡

olb3

Seizes them like they did with SIVB

MarcusDaLongis

They may not un halt FRC just like SIVB

Responsible-Rip4366

Dude, go seriously pound sand. There is no rescue for a bank of that size. After the “rich people” bank depositors at SIVB and Signature got bailed out there will be no second round. Any rich folk with over the FDIC insured deposit limit with this one will be told to F themselves by FDIC, and their assets will be sold in receivership. Night night!

devereaux

Banks like SIVB and FRC with equity going to zero means the "too big to fail" banks will just get even bigger when they absorb them.

canufeelthelove

They don't need to go that far back. SIVB was happily trading in the upper 30s, bouncing from its lows, when it was suddenly halted in the pre-market never to be seen again.

OptionExpiration

No it is definitely true. There was a junior trader that once had some underwater positions. He was called into the office by the Managing Director. He kept on using probabilities and expected value to defend his positions. The MD looked at the only thing that mattered.... the market value of his positions. Positions were cut in half. Why? Because the positions were underwater and risky. Likewise, there are capital requirements. You have to meet them (if you don't you are at the mercy of the the markets). This all goes back to your equity and the mark to market value of your positions/portfolio. This is a reason why you don't see professionals sell OTM TSLA/SPX/etc options for 1 cent or 5 cents because even though your model shows that these options are worth zero, it takes capital to hold these positions and the most you can gain is $1 or $5 for an option. Is this really worth it? If the volatility explodes or the position goes against you the short option position destroys your portfolio. Retail gravitates to these kinds of trades (i.e., 'free money', the probability of this event happens once every 30 years. etc. and justifies to themselves that they are happy owning the underlying at the strike price because XYZ is unlikely to go down x standard deviations). Back when options were trading in 1/16 increments, I thought I was a genius selling a bunch of 1/16 puts on a gold stock (hey free money!). Got called in by the Managing Director. Chewed out. The position expired worthless, but the lesson still sticks in my head today..... Remember Long Term Capital Management? Those guys had all their fancy models based on convergence. They blew up (or were bailed out). Remember SIVB and SBNY? All of those long bond positions were put in the held to maturity bucket. (Hey if I don't take a loss, then I will be good.) They were not marked to market. What happened to those positions? Well the banks went belly up. The point of my post is that traders just try and find things that can explain/defend their positions. You can find win rates, probabilities, cost basis, etc., but don't live/depend on them because at the end of the day it is the market value of your positions that matter. If you don't believe what I am saying, then look at Long Term Capital Management, SIVB, SBNY, Lehman, etc. They all could have 99% win rates. They all could have models that say that their positions are wonderful. (I guess I should have emphasized that leverage is also an important factor. If you are unleveraged, you can hold your positions for as long as you want to because you won't have to liquidate at the wrong time.) However, if you just think it through, is everything random? Is it all based on money flow? Is it all noise? Or is everything a complete circle jerk, and we all think of things that explain everything? I don't know.....

hunkofsoup

FRC is the new SIVB

canufeelthelove

Nobody should be holding this POS after this call. You are just begging for a SIVB scenario where one day your shares are worth $0.

porcupine73

Do you already have the shares to deliver for your long put? If not then you'll need to end up short the shares to exercise the put, which could be an issue if the broker isn't able to get shares for you to be short and/or the OCC issues a memo similar to what they did for SIVB. Eventually BBBY should move over to OTC/pink but that could be a while.

dskfjhdfsalks

If they were any other business - I'd be more worried but they're a bank. The government isn't going to let every bank just flop when people become regarded and start buying silver and gold schmekels. SIVB deserved to fail, I don't think this bank does, but what the fuck do I know

proteenator

Not technically a question about options but I dont see a place where I can get it answered Is there any possible reason why I should sit on SIVBQ and not sell it off for pennies ? I know it will never go up to SIVB levels ever. So theres no point in waiting. I know it full well. But just looking for reasons why sitting on it might help me

proteenator

Is there any possible reason why I should sit on SIVBQ and not sell it off for pennies ? I know it will never go up to SIVB levels ever. So theres no point in waiting. I know it full well. But just looking for reasons why sitting on it might help me

italkcloudetc

You got your answer, but just think about it logically. Someone bought those puts to either A) protect the value of their shares or B) profit off the downward movement of the stock while not holding shares. Person A is going to take advantage of that protection that they paid for. Person B is going to take advantage of the premium they paid and the fact that they were correct to get their profits. There's just no situation where this happens where you, the put seller, comes out on top. I hope you diversified, and if you didn't, maybe you can take solace in the fact that lots of people probably sold SIVB 260Ps in mid March.

TheDissRapperr

You would have to call your broker to exercise your positions. You would have to be short shares and close your positions. That's how I got out of my SIVB contracts.

Murghchanay

Just looking at most other regional banks - there is no immediate bounce back. Only because it was valued high before information was revealed does not mean that valuation was "true" or "correct". Zion's, KeyCorp all fell. USB pretty flat and disappointing. And those are the ones less affected by the SIVB fall out.

HaveAGoodLife

Category III banks such as USB are generally considered super regionals, while Category IV banks (which SIVB used to be) are regionals.

DreCapitano

In my opinion the fact every regional is doing well, and the fact FRC has no crypto exposure like $SI and Signature, and did not announce the sale of a significant assets below FMV like SIVB, tells me it's likely not nearly as bad as what's been priced in. The cancellation of preferred dividend is a reason for skepticism but at the same time the fact it took so long also shows it's unlikely they are on the verge of blowing up.

albertez

Stop losses don’t work when prices gap down. SIVB basically went from 260 to 0 with no trading in between. A stop loss at 235 sounds great, but it isn’t going to execute.

Shot_Lynx_4023

What's on Black Rock's books??? Probably similar assets to other large institutions, hold to maturity bonds that with clever accounting, are not at a loss. Even if they were sold right now, substantial loss. Puts aren't exactly easy either. Theta decay, volatility. And as what just happened last month, depends on one's position size, unable to execute. WSJ had an article about SIVB put holders. One individual was -$147,000 on margin. Even though he would end up completely crushing the trade when SIVB started trading again on the pink sheets.

reddituser736985

I should’ve “invested” in bonds like SIVB. It’s all gambling sir. Welcome to the casino.

progfiewjrgu938u938

Did you also invest in SIVB?

solidsneeze

what time is SIVB earnings call?

dansdansy

Maybe some sort of fallout from the SIVB situation on other banks. Money market funds are backed by short term bonds. Maybe mass moves from uninsured deposits into money markets are doing weird things to the underlying bonds? No clue if that's even possible.

Murghchanay

They probably were. The run on SIVB caused a shock and revealed which banks the market deemed in risky position. It seems like FRC had excellent risk management with regards to default risk but somehow completely ignored interest rate risk? I guess they did not factor in that deposits might actually leave. There is a reason why they have been trying to sell but didn't find a buyer. Anyways what is your business case for them going forward? They must go back up because they were high? Unfortunately I don't think they will. They themselves have said they will have to downsize if there is no buyer. And if there is a buyer - what would be the price? Current book value they are equity negative.

ArchangelToast

Either it’s going into your SIVB bank account or invested with Alameda Capital

Paperhands_RC

WAL beat earnings. What a discount that was, thanks SIVB.

dansdansy

Various things already covered to death in the news, BOJ yield control ending, CRE struggling, Consumer balance sheet, fiscal cliff due to college loans and adjustable rate loans rolling over across many different assets. Overall I just think rates are moving through the economy and aren't done enough yet to front run the effects and see through to a new bull. I think banks will need to raise reserves much more than planned for in their recent stress tests and more than they already have post SIVB. We saw a glimpse of those plans in the recent earnings. I also think the Fed will hold rates over 5% longer than people expect. I don't think they'll cut this year unless something systemic breaks, but you can't front run a systemic shock and you can't really anticipate where it comes from other than that rate hikes tend to bring them about. ​ That said, I'm not really attempting to adjust my regular buys based on these things other than not buying the rally in financials and avoiding crowded trades in stuff like AI.

Theta_Ome

You would sooner make the SIVB and SI banks the peers of FRC when FRC did not go into receivership? Now who is deluded? There is a closer relativity between FRC and the other regionals, like WAL which has reported, than there is between SIVB and SI - which were taken over. I hope you ARE on the other side of this trade. Your inability to weigh relativity in data and sectors is refreshing. There is no point in addressing EVERY point where you're wrong when I've already identified that you're wrong on even the most basic levels of evaluation. SECTOR comparison to peers when some earnings have already come out is a valid data point and you dismissed it as 'crap number'. You are eating crayons and declaring yourself king. For your Hypothetical - banks understand that a BANK RUN will compound exponentially the days that it continued. SIVB had 44 billion in withdrawal requests in 6 hours (how are you on your other data points? OR am I going ot feed every piece of data to you because you don't know how to find relevant data on your own? So you're piggybacking on more intelligent analysis) As I was saying - perhaps the parenthesis threw you off on your comprehension level, SIVB had 44 billion in withdrawal requests. You don't give a deposit for the amount that's already flowing out. You go above and beyond to maintain a specific deposit level that gives \*without question\* the support they need. But I know that's just... a way of thinking way above whatever you're working with.

Fox_Technicals

The less likely the pivot the more likely the dollar gets an oversold bounce is my opinion. The sentiment was really high for a pivot after SIVB but now yields recently have been implying the Fed is going nowhere which is what basically what they’ve been saying

Theta_Ome

Interesting. I originally had a short bias on it. When information changed, my position changed. You did a cursory search on posts, not comments, and searched FRC not the SIVB and SI situation as I had stated. Promising start to a one sided discussion. You then did minimal research on a stock you don't have a position in (see: a googling) and have decided I'm entirely wrong. Negating my weeks of research and proving yourself victorious. Good luck.

Theta_Ome

I saw extensive comments in the SIVB and SI posts about shorting FRC. An analyst from Wedbush came out with a PT of $5 (details being, if it went into receivership) and $5 Puts exploded. A lot of comments, not posts. News dropped headlines about majority of activity on FRC being retail but not saying short/long and one obscure 'anonymous' hedge fund person involved during the initial SIVB receivership weekend saying they were very concerned FRC was turning into a 'meme play'. Doesn't take a genius...FOMO is a powerful drug. They chased and bought lotto tickets.

the_dalailama134

Regional banks will rip. Absolutely. Panic is fake. ​ FRC did have margins come crashing down the last 2 quarters though. I started studying all regional bank margins after SIVB and I have a list of ones that really lost a ton of margin like SIVB. Includes FRC, WAL, PNC, and US Bancorp... ​ Now PNC has reported already and it wasn't a death sentence. They are bigger of course so that may be a difference. ​ I didn't need the level of volatility that FRC has so I picked some other banks that have very good margin trends like EWBC, RF, and ZION. I also have SCHW which killed it today.

Theta_Ome

1. Rumor 2. A couple advisors left, they've been poaching advisors for years. they have a rep for it 3. They backed a SINGLE bank and that's a factor that matters, it was because of proximity and it was one of the best run. FDIC looked their books over and gave them a green light. 4. There is no evidence or filings for a shelf. Dividends were required to be suspended as part of the FDIC liquidity terms Shorts got the world worst case of FOMO seeing those Puts printing on SIVB and SI and chased the first thing that was in the headlines. And now, they don't know how to let go.

the_dalailama134

This report was honestly pretty damn bullish. They have more assets than they did before SIVB!!!

smokeyjay

The standard is once you hit 50% profit or more because someone did the math, and the extra 50% further gain doesn't justify the risk or time premium. Selling puts/calls could be like picking up pennies in front of a steam roller. A lot of ppl in r/theta were burned because they would sell CSP on shit companies (SIVB). Do the research and when you have to sell/buy you don't end up freaking out. Better to trade on only a few companies that you know well. You also get dinged on short term capital gains tax so take that into account.

miler4salem

I would agree on SPX as a whole mostly because of tech. I've been holding UPRO since SIVB and would be completely out by the time we hit 4200. I'm still bullish on all the stuff you said was lagging though. Tons of stuff that hasn't rallied as much as tech has improving margins etc. right now

ImJoeontheradio

Most of the regional banks were already down a bunch before SIVB. KEY (where I'm gambling) is down 55% from ATH.

SheepherderSea2775

Powell has made no indication he will slow down and still increased rates by 25 bps to “ease” the regional banks. He specifically said an in the last FOMC, yes inflation slowed but has not reached an increase of 2% YoY. We aren’t there yet, so rates will still go up. As for profits, after the fall of SIVB and the other one I forgot, there was a small flight of depositors to move assets to bigger safer banks. We still don’t know what regional bank’s earnings will look post-SIVB.

miler4salem

I have checked up on their margins the last 5 quarters. They are basically in an uptrend ever since COVID. With increasing EPS as well. Maybe they did take a hit since SIVB but there were no signs at all through Q4 2022. I still think it's prices for complete disaster ATM

the_dalailama134

So I looked at margins when I picked them. SIVB and SBNY had margins plummeting the last 2 quarters before going belly up. These have flat or slightly increasing margins lately. RF, EWBC, and ZION. I also have SCHW.

miler4salem

Just look into what happened with SIVB. Everyone was scared shitless over its takeover by the FDIC. Then a couple weeks later FCNC buys most of their portfolio and their market cap has doubled. And the PTs are coming in even higher than that. Unless defaults takeoff here, these beaten down banks are worth so much more than the share price. If they get bought out.

Not_Sure_68

Sure, the question is, does the backstop ever bite back? Has enough time passed that people have forgotten being looted last time the bankers screwed up and socialized their losses? I suppose if FDIC, the fed, and treasury had chosen to bail-in investors of SIVB, Silvergate, and Signature we may have seen more backlash at this point. I personally peg the odds of this latest installment of "greedy stupid banker goes broke" being over at near zero. It's tough to tell which banks are financial landmines for unsecured creditors because bankster balance sheets have conveniently been made opaque by absolving them of having to mark their assets to market. It's likely when, not if, more banks blow up and how the so called "regulators" handle it that will determine how the masses respond, buy yeah, probably most whine and cry a bit about it and then do nothing. Government employees will probably do nothing even when they discover their pensions are an exit strategy for bankers and they've no say in the matter. Banking is made to appear very complex when the basic concept is actually very simple. Borrow short --> counterfeit --> profit. It's far more profitable now with high yields on excess reserves at the fed. IORB is what? 4.9%? Some kinda gig if you can get it.

the_dalailama134

Fed speak can move the market I know, but I put less than 0 stock in what fed members say as a prediction. Credit spreads spiked last year, and they tried to spike when SIVB happened but didn't touch last years levels. Right now credit spreads are coming right back down since SIVB. And at no point in the last 2 years have they gotten even in the same ballpark as past recessions. Credit spreads are big for me as they have predicted things for years up and down long-term. ​ I don't put any faith in QQQ doing really well because ATM, tech looks like the weakest sector earnings-wise. don't know exactly why but their last quarter and forecasts are...abysmal. Especially for companies trading at their PE. The real economy is still chugging but slower.

miler4salem

The media fooled you. Didn't fool me. There was no bank crisis. Some tech bros killed their own community banks and fear spread from there. Financial institutions are fine and any issues there were with unrealized losses were erased when everyone bought bonds since SIVB. Regional banks will get even bigger pumps when they kill it next week

Fox_Technicals

They’ve been pretty clear they’re not done, back half of this week was the market starting to realize SIVB isn’t enough to back off. The mandate is 2% and we’ve only come a little more than half way since the 9% print

Not_Sure_68

FDIC had only $125b before Silvergate, SIVB, and Signature collapsed and they've less in reserve now. Americans have roughly $17t on deposit at commercial banks in the United States currently. If there's another wave of bank collapses similar to 2008, then FDIC will not have nearly enough debt digits in reserve to insure all deposits without simply having that currency conjured from thin air at the federal reserve. Doing so would lower the value of all existing debt digit dollars in the world, including those held by foreign governments as reserves. The response from those reserve holders would surely be decisive in response, in that they'd immediately accelerate efforts to dump those US debt dollar denominated reserves...which would in turn further lower the purchasing power of US debt digits domestically. FDIC insurance is fine on a small-ish scale, yet seeing it as a put against banking collapse is unrealistic. One could have their digits back in such a scenario, and still not be made whole in terms of purchasing power.

overitallofit

That's why it was so great for $SIVB!

satireplusplus

A week after SIVB meltdown it would have been max headache too though. Because people had to exercise their puts to get their money. Not enough margin for the 100-300% margin requirement? Out of luck.

dragontamer5788

I mean, fuck. The other way also makes no sense. The 1M being 4.08% means that the FFR rate is expected to drop below 4% in the near future, which seems unlikely to me. The bond market seems to have gone completely insane since the SIVB collapse. I wonder how much of it is banks moving their money around due to increased scrutiny...

ArchangelToast

I had SIVB puts that expired a week before the meltdown. That assaults me on a daily.

dansdansy

It's a combo, JPOW was right to frame the dot plot by saying that banks tightening credit in reaction to SIVB was the equivalent to more Fed hikes than noted on the plot. This graph shows he was right to account for that.

Fox_Technicals

Fed fund futures dropping like a rock again...the SIVB shit wasn't enough to pivot with a 5% print

Tfarecnim

Looking at puts months out, there is a lot of money riding on an SIVB-type situation.

dddboulderingddd

returning here to tell you that I exercised my SIVB puts, got a short position, and closed last week when it became SIVBQ, about a 50x trade. I've never seen someone be more wrong, and it's a good lesson for me to remember that people on the internet have no idea what they're talking about.

Bronto_Chad

With options you can turn $30 to a $1 mil in a day if you are lucky , SIVB puts.

AP9384629344432

This is only a partial response, but an important point is that with SIVB and others, the problem was *not* non-performing loans, delinquencies, or generally unsafe debt. The problem was mis-managed duration risk triggered by rate hikes, and they only became a systemic problem because of the bank run. Now that short-term liquidity is easily available via BTFP, FHLB, and the discount window, this duration risk is basically a non-issue for now (which is why the banking panic is over). So the only real issue is if commercial real estate starts to turn delinquent and make banks insolvent. But we know, ignoring the duration issues, that banks are well-capitalized, and the above post shows that NIM can easily cover even Great Depression era of losses. CRE wasn't an issue in 2008, and I don't see it as *the* issue today.

Investorofallthings

Is there much a difference between .14 and .58 compared to 0 when you are buying at $14? Because that is where SBNY and SIVB are currently trading. So sure, it might not got to zero right away, but you are still staring at a 99% loss or so.

dansdansy

Yes but CRE isn't the only HTM asset at a loss they have on their sheets. They also have bonds that have fallen out from under them as we saw with SIVB which aren't a problem until the bank is in trouble. If a bank primarily relied on long bonds and CRE as their "safe assets" or collateral while they took risks elsewhere, they have a problem and the effects of the loans coming due and defaulting are amplified. There's a bit of an uncertainty factor as a layman, especially if there's leverage we're blind to like if CRE is commonly used as leveraged collateral in certain countries.

dansdansy

Much more CRE narratives popping up since SIVB blew up. I can't figure out whether I should bother worrying about those defaults or not. Morgan Stanley seems like they see an imminent risk to the economy there as adjust rate loans term out. [https://finance.yahoo.com/news/commercial-real-estate-headed-crisis-215416495.html](https://finance.yahoo.com/news/commercial-real-estate-headed-crisis-215416495.html) Commercial real estate includes office buildings, shopping centers, multifamily apartments, hotels and data centers. “It’s a wide bucket of assets,” says Mark Grinis, EY Americas Real Estate, Hospitality & Construction leader. “If you go to our data centers or in our industrial buildings that are powering e-commerce, they're doing quite well. If you go into the multifamily business, rents may be softening a little bit, but there's still an undersupply of housing. The elephant in the room is office space, that’s going through a transformative shift.” When it comes to office loans since 2021, 44% more by volume were in delinquency and 55% more were in special servicing, according to Trepp, a provider of data and insights on commercial real estate. With small- and medium-size banks accounting for 80% of commercial real estate lending, the situation might soon get worse, says experts. Commercial property prices could fall as much as 40% “rivaling the decline during the 2008 financial crisis,” forecast Morgan Stanley analysts.

TheNewbieInvestor

Thanks for the kind words. I'm not sure I agree with you fully on your points though. PayPal isn't a bank. Their main source of revenue are transaction fees. Having users keep less funds on PayPal shouldn't affect them their income much. Plus, I don't think that's actually true. If you look at their 10K, you'll see that the amount of funds they owe to customers, e.g. customer deposits, has gone up a bit. Same goes for the bonds - the losses are unrealized, but PayPal doesn't actually need to realise them, e.g. sell the bonds. They are not in the same situation as SIVB and they are not liable to anything resembling a bank run so there's no reason to sell the bonds at a loss to raise cash. Plus, these unrealized losses are actually recorded on the comprehensive income statement and are about half a billion. Regarding share repurchase - they repurchased $1.6bln in 2020 during the bull run, $3.37bln in 2021 and $4.2bln in 2022. They've massively accelerated share repurchases after their price dropped and now they're committing a lot more of their FCF (\~75%) to doing that.

Nice_Guy_Nucky

FRC Let's fucking go 🚀🚀🚀🚀🚀🚀 SIVB Let's fucking go 🚀🚀🚀🚀🚀🚀 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

Prestigious-Ad-7927

I’m curious as to why you just didn’t just do an ITM debit spread such as Buying April21 one 25 call and Selling one 28 call for a debit of 2.25 if you were planning to exit early. You also get positive theta with this trade but you don’t have upside risk even if BAC goes up to 50 after earnings. The max you will lose is 2.25 if BAC is less than 25 at expiration. Only risk is downside with a little bit of protection down to 27.25 as your breakeven. Also with this trade you can trade what you’re actually willing to lose. For example, if you are willing to risk $4,500 then do 20 contracts. With your original trade, you are risking $20k even though you are really accepting much less than that. For example, you may only be willing to take a loss of $5k but not the whole $20k. Regardless, $20k is still on the line if something similar to SIVB were to happen to BAC. Not saying it will happen but it is a small possibility.

Rrrandomalias

I thought that was SIVB?

tealcosmo

SIVB. Bought for 350/share. Now trading at 0.81

greyenlightenment

SIVB at 0.7990 back to where it was in 1987. so not a total loss

Daytraderjoey

I'm sure there plenty of smart people that tried to buy the dip in SIVB and lost a lot as well.

ideletedmyaccount04

You deleted your previous comment , which I was typing to. The bull case is that because $SIVB went belly up the Fed will cut rates in september, and the Fed balance sheet exploded the second $SIVB was closed, hence the term Fed Put. I am like have in cash. But I got some covered calls to expire in the money. Hopefully by July, I will be cash gang. I am a long term bull, but I believe we are short term overbought.

gridflash

They probably said that about SIVB when the execs started selling...

tuna_pannini

Yeah SIVB passed a stress test weeks before collapse. CS also. If you belive that stress tests are indicators of banks being stable then I worry that you do not understand what you are talking about.

Neither_Can9748

SIVB

TheGeoninja

If SIVB and CS have been any indication, regulation is not the safety net that everyone thinks it is, because it safeguards against the last problem that caused a bank to fail, not the newest issue. Sure there might be money to be made by being a contrarian and believing in TD but you are fighting against a lot of selling pressure against all bank stocks coupled with the added dynamic of USD/CAD and TD’s exposure to the Northeastern United States

sNeKbIt99

Nope just bought in last week. The same guy that called the SIVB collapse is bullish on this one. Check it out.

ithinkwegotelves

>“Even worse, the stress testing based on the scenario devised by the Federal Reserve Board . . . never incorporated interest rates at higher levels,” he added. He's not wrong. And go back to early 2022 and the Fed dot plot was showing a peak of 2.5-3%. Every signal the banks got from government was that this wasn't a risk. $SIVB would still be here today if that were true.

rashaniquah

It's not one bank, it's actually 3 banks, 2 of them are currently in deeper shit than SIVB. I hope those positions are hedged because if they experience a bank run it will create a sizeable hole in their balance sheets.

gaurav0792

There's so many. $CVNA, $CLOV, $SPCE, $OPEN, $SOFI, $CS, $SIVB(lol)

lipmanz

If Blackstone blocked withdrawals in March why didn’t SIVB do it?

Expensive_Tip_3776

No one knows anything anywhere. It’s why bailouts exist to keep it from having a meltdown Look how many big dogs were trapped in SIVB

1600hazenstreet

Welcome to clown world, where SIVB has a higher esg score than Tesla

gtani

next thing to worry about, some banks commercial portfolios very safe, others are tilted towards non performing office space, strip malls, SIVB's sold for 78 cents on dollar https://www.barrons.com/articles/regional-banks-commercial-real-estate-loans-68eb5b75?

ahminus

Like how they knew a lot more about the health of SIVB than the market did?

Murghchanay

I have shares, it's ridiculous to put them in the basket with effing Crypto banks and SIVB. There is no Peter Thiel at USB who can orchestrate a bank run and then walk away just like that. And if a bank like USB fails, then there is much bigger trouble for the whole market than the stock I own.

MJinMN

You are welcome to judge them however you want. I will enjoy reading your posts about how much shareholder value the banks have created in the first quarter as their bond portfolios increased in value. Personally, I don't consider that value-creation, I focus on the actual cash flows from the securities and don't pay too much attention to temporary mark-to-market measurements at any given time, particularly on AAA-rated securities, since I know it's always coming back to zero at maturity. The only time that the unrealized loss on a portfolio becomes a major issue is if you are forced to sell it (see SIVB).

Satorius96

My only regret was not buying more when SIVB shit the bed

PhillyChapter9

After the FDIC deal with first citizens for SIVB what is the incentive for anyone to buy FRC? Let it blow buy the performing assets, get a below market fdic loan rate, and let the fdic share in any losses. Why would anyone take on the risk themselves if they can potentially get that deal after a failure?

borrowedbook1

So. We had a plan for a Pandemic. Leaders didn't want to follow it. We had a plan fir Afghanistan. Leaders didn't want to follow it. We had a plan for infrastructure (and mobey). Leaders didn't want to follow it. We had a plan for Ukraine. Ukraine didn't want to follow it. We had a plan for law and order. Leaders didn't want to follow it. We had a plan for Climate BS. Leaders didnt want to follow it. We had a plan for the budget. Leaders didnt want to follow it. We had a plan for SIVB. Leaders didn't want to follow it. Problem isn't the bureaucrat. They all did their jobs. Just everyone in leadersship ignored them. It is always a problem if leadership. We haven't had any in over 16 years. And SPY still over 400.

InvestmentActuary

They basically said SCHW isnt any different than SIVB or FRC. That a bank run will topple them

OptionExpiration

Once when the stock began trading again, you could have purchased 100 shares of stock and then exercise your put option. So let's say you paid $1 for the stock on the open, $13.10 for the put, then your profit would be ($50 - $13.10 - $1) = $35.90. Unfortunately, there was a lot of 'misinformation' (on /r/options and /r/thetagang) where people with no knowledge were saying that SIVB and SBNY options would pay out in cash. This was never true since the OCC has always emphasized that the deliverable was always 100 shares. This is why you always go to the source ([theocc.com](https://theocc.com)) for up to date information about an options contract.

animositisomina35

Erased all of the losses since SIVB capitulated.

greytoc

SIVB is a bankrupt company, so it has been delisted. That means it is only available to trade OTC. Access to OTC markets are available though most decent retail brokers. If you don't know what OTC means - you probably shouldn't be trading the stock. It's one of the reasons why Robinhood doesn't provide access to OTC any more. All bankrupt companies that trade OTC have a "Q" appended to their ticker so the ticker is SIVBQ. You are failing to understand the basics of how a bankruptcy reorg works and the likely outcomes. The likelihood that equity owners receive anything is close to 0%.

TomatoUgli

SIVB goes OTC *then* pumps 150% lmao

diqster

23.7% short fee rate on IBKR for FRC. I also loved selling puts on SIVB until I didn't. I won't be able to sit down for years.

AlexFL39

No worries, bought SIVB shares for $37. Plan was to sell for $40. At 39.45 it got halted and bank got closed. Today, this morning sold my shares for .36c.

thevoidsquid

SIVB loses 70% aftermarket: nothing LULU gains 30% aftermarket: Nothing CNXC gains 5% aftermarket: Halted instantly.

alfapredator

is SIVB an ape stock now? up 5x today

cbusoh66

And just like that, they burnt all those puts that piled in in the last couple of weeks after SIVB failed.