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/biz/ - Business & Finance

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54044657 No.54044657 [Reply] [Original]

Why did tech companies use a meme bank instead of an established one in the first place?

>> No.54044710

>>54044657
it wasn't a meme bank, it was a cornerstone of startup finance for 40 years

they just let a bunch of dumb whores take over the risk department

>> No.54044743
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54044743

>>54044657
Business is about relationships, if you have a good relationship with your bank and you guys work together to help your business keep growing then there's no reason to waste time finding a new bank to work with

>> No.54044749

Memes get shorted. Let that be a message for you.

>> No.54044790

It has existed almost as long as Silicon Valley itself. The real problem is the exclusivity contracts they forced startups to sign. They were entirely dependent on a single industry, which is generally not what you want as a business that could easily diversify.

>> No.54044826
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54044826

>>54044657
An established one wouldn't give them the free clown money they need to start their clown business.

>> No.54044828

>>54044657
Basically, SVB had a higher risk tolerance than, say, BoFA or Wells Fargo and it had a long history of relationships with VCs and other contacts that helped startups develop as other anons said.

>> No.54045152

>>54044657
because they were meme tech companies anon.
>>54044826
this.

>> No.54045184

>>54044657
SVB successfully provided banking to startups for 40 years, it was only when they put diversity hires in charge of investment and risk that it became a problem.

>> No.54045197
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54045197

>>54044710

>> No.54045636

>>54044790
How does a company be forced to deal with one bank?

>> No.54045675
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54045675

>>54045197
>it's real

>> No.54045686

>>54045197

>buy BITCOIN! ladies of TECH

>> No.54045710
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54045710

>>54045197

>> No.54045756

>>54045710
I've said for years that the corporate officers of every single financial services company that took bailout funds should have been permanently disqualified from every working in the industry again.
There should have been some fucking penalty to prevent such idiotic speculation from happening again.

>> No.54045873

>>54045710
Chief Risk Officer.... lmao

>> No.54045885

>>54044657
But the investments they made were as safe as they could be, government bonds are the last place you'd expect fluctuations in, the entire reason your coupon rates are so low is because it's practically risk free. They can't have been the only bank to invest heavily in those bonds, the government should step in bail them out for advertising those trash bonds as risk free and then fucking the bank over

>> No.54045966

>>54045885
Thats the problem with women, they trust in the government too much.

>> No.54046511

>>54045885
Why is your investment team investing it's money in the safest option possible? Why even have a team in the first place then.