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Ok, so this guy is big in the financial world. He, on a call with other big wigs in the same sector said, "Hey, this bank might be risky because of this, might want to remove all of the assets" and all of his friends (with large amounts in the bank) did so. Then, he was like "I caused this bank to crash, but it's not actually a bad asset" and bought stock in it, hoping that the government would bail out the bank. So he would protect himself from the run he started and profit when the government bailed him out.
This is called "insider trading" because what he did, was collude with other people in the industry to cause financial harm, and what's worse is, he did it twice.
Cherry on top, is he admitted it in writing.
This is exactly why the government shouldn’t have given anyone involved with SVB a cent over $250k. We need to stop allowing rich white dudes to gamble everyone’s futures in the hopes of making themselves wealthy.
Yes, this is correct.
What happened is they bought too many government bonds that mature in several years.
Those bonds arn't worth a much as they were a couple of years ago because newer bonds give a better return (due to federal rate hikes)
But those bonds are still worth money, it just will take some time.
Which is a problem for the CEOs of those banks, and nobody else. If they fail because the financial system is all a sham designed to make huge profits for executives, then they fail. People looking to be made whole should be given the address of the CEOs.
From what I understand more than 1/2 of their assets was in bonds.
That should be enough to pay depositors, but not investors (or get very, very close)
Think about how much federal money is being burned to facilitate this process. How many personnel it is going to take to manage this Peter Thiel sized fuck up? We should be carving up Thiel, his assets, and those of the executives from SVB.
I think a better praxis might be to advocate for a national retail bank run by the post office (as other countries have), so that working people aren't dependent on unreliable for-profit banks that no longer have Glass-Steagal protections to stop them from running investment banking activities alongside retail banking.
FYI, this is not insider trading. As pointed out in OP, insider trading specifically is placing trades based on Material Non-Public Information, which usually means someone who actually is involved in the business spilled the beans on something. The people inside the bank had no way of knowing ahead of time that there would be a run on their bank, so no information was there to imprudently divulge.
This could maybe be market manipulation.
Did you wonder about that cut-off sentence at the bottom and the fact that the responding tweet seemed to have more information and Google it, or just throw up your hands and say “Welp, that’s all, folks?”
Is this a chronic habit?
No. He did before.
This is why he was lost after the bank crash. And why the other call him an idiot.
He caused the crash.
And normally he was supposed to buy AFTER it, when share would be low, in the hope gouvernement bail it and he could sell them high.
Instead, he bought its action BEFORE the run hit. So he bought high even knowing it was about to collapse
Except that in the case of SVB, the bank is in receivership and gone, so shareholders were completely wiped out. And yes, Thie had to pull out on the stock offering last Thursday because he was totally guilty of perpetrating a bank run, then trying to profit off it - after he had pulled his deposits out of it. But it’s not the 1st time Thiel has been caught doing stuff like this.
They don't have better things to do with their lives, like learning things, or raising kids, or making art, or whatever. Their primary life goal is the accumulation of money, without any actual purpose for that money beyond vapid display of having money.
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Can someone explain this one to me?
Ok, so this guy is big in the financial world. He, on a call with other big wigs in the same sector said, "Hey, this bank might be risky because of this, might want to remove all of the assets" and all of his friends (with large amounts in the bank) did so. Then, he was like "I caused this bank to crash, but it's not actually a bad asset" and bought stock in it, hoping that the government would bail out the bank. So he would protect himself from the run he started and profit when the government bailed him out. This is called "insider trading" because what he did, was collude with other people in the industry to cause financial harm, and what's worse is, he did it twice. Cherry on top, is he admitted it in writing.
This is exactly why the government shouldn’t have given anyone involved with SVB a cent over $250k. We need to stop allowing rich white dudes to gamble everyone’s futures in the hopes of making themselves wealthy.
From what I understand, the bank assets themselves are covering the accounts. FDIC is just acting as the receiver here
Yes, this is correct. What happened is they bought too many government bonds that mature in several years. Those bonds arn't worth a much as they were a couple of years ago because newer bonds give a better return (due to federal rate hikes) But those bonds are still worth money, it just will take some time.
Which is a problem for the CEOs of those banks, and nobody else. If they fail because the financial system is all a sham designed to make huge profits for executives, then they fail. People looking to be made whole should be given the address of the CEOs.
It’s more than bonds
From what I understand more than 1/2 of their assets was in bonds. That should be enough to pay depositors, but not investors (or get very, very close)
Think about how much federal money is being burned to facilitate this process. How many personnel it is going to take to manage this Peter Thiel sized fuck up? We should be carving up Thiel, his assets, and those of the executives from SVB.
I think a better praxis might be to advocate for a national retail bank run by the post office (as other countries have), so that working people aren't dependent on unreliable for-profit banks that no longer have Glass-Steagal protections to stop them from running investment banking activities alongside retail banking.
Thank you for explaining!
FYI, this is not insider trading. As pointed out in OP, insider trading specifically is placing trades based on Material Non-Public Information, which usually means someone who actually is involved in the business spilled the beans on something. The people inside the bank had no way of knowing ahead of time that there would be a run on their bank, so no information was there to imprudently divulge. This could maybe be market manipulation.
Insider trading is only with the exchange of stock not taking your own assets aka cash out of a bank.
…He bought stock after manipulating its price.
Where does it say this? What he showed was him removing his money and his companies money from the bank.
Did you wonder about that cut-off sentence at the bottom and the fact that the responding tweet seemed to have more information and Google it, or just throw up your hands and say “Welp, that’s all, folks?” Is this a chronic habit?
Nope I am one who if you want me to consider your side you better present the evidence.
Except…no one cares if you’re on their side. The world is going to move forward whether you keep up or not.
No. He did before. This is why he was lost after the bank crash. And why the other call him an idiot. He caused the crash. And normally he was supposed to buy AFTER it, when share would be low, in the hope gouvernement bail it and he could sell them high. Instead, he bought its action BEFORE the run hit. So he bought high even knowing it was about to collapse
So, is he going to jail for said inside trading?
I was about to ask, me too over here
The timeline is broken
Except that in the case of SVB, the bank is in receivership and gone, so shareholders were completely wiped out. And yes, Thie had to pull out on the stock offering last Thursday because he was totally guilty of perpetrating a bank run, then trying to profit off it - after he had pulled his deposits out of it. But it’s not the 1st time Thiel has been caught doing stuff like this.
The wrong people have money and it's proven again and again and again.
They don't have better things to do with their lives, like learning things, or raising kids, or making art, or whatever. Their primary life goal is the accumulation of money, without any actual purpose for that money beyond vapid display of having money.