With news of Silicon Valley Bank's collapse sending shockwaves throughout the financial system, video of CNBC host Jim Cramer urging his viewers to purchase stock in the bank last month is now going viral.
Jim Cramer said Silicon Valley Bank was a buy last month at $320— Inverse Cramer (Not Jim Cramer) (@CramerTracker) March 10, 2023
Today it is being closed by California regulators pic.twitter.com/x1xMBTrQTS
From The New York Post:
“This company is a merchant bank with a deposit base that Wall Street has mistakenly been concerned by,” Cramer said in the clip.
Cramer touted the fact that the bank was “less dependent upon private equity and venture capital offerings.”
He said the stock was the “fourth-worst performer of 2022” though it was worth buying because “being a banker to these immense pools of capital has always been a very good business.”
The bank's collapse on Friday marked the "largest bank failure since the Great Recession," according to the AP.
JUST IN - U.S. bank regulators seize Silicon Valley Bank in largest bank failure since the Great Recession — AP— Disclose.tv (@disclosetv) March 10, 2023
The bank's execs were selling stock while Cramer was urging his viewers to buy.
Silicon Valley Bank CEO, CFO and CMO sold +$4.4MM in stock over the last 2 weeks.— Genevieve Roch-Decter, CFA (@GRDecter) March 10, 2023
But they didn’t know anything right? pic.twitter.com/mipeaRKgn6
Per new bankruptcy filing, BlockFi has $227m in Silicon Valley Bank. The bankruptcy trustee warned them on Mon that bc those funds are in a money market mutual fund, they’re not FDIC secured — which could be a prblm w/ keeping in compliance of bankruptcy law pic.twitter.com/hnpo8anrrS— Lauren Hirsch (@LaurenSHirsch) March 10, 2023
“Roku has $487 million of cash and cash equivalents in uninsured deposits at failed Silicon Valley Bank…About 26% of Roku’s $1.9 billion in cash was deposited with SVB…Roku shares tumbled nearly 5% after hours on the news.”https://t.co/UbYM7XNK39— Steve Lookner (@lookner) March 10, 2023
Customers were seen lining up around the block outside of Silicon Valley Bank in Menlo Park.
Customers lining up outside of Silicon Valley Bank at its Menlo Park, CA branch. pic.twitter.com/nWK2HommcY— Cointelegraph (@Cointelegraph) March 10, 2023
Shades of 1930’s. This is my bank in Wellesley this morning. Boston Private Bank, recently acquired by Silicon Valley Bank. Ruh, roh. pic.twitter.com/MAD46ozShx— Lawrence Lepard, "fix the money, fix the world" (@LawrenceLepard) March 10, 2023
"Silicon Valley Bank, the nation's 16th-largest bank, failed after depositors hurried to withdraw money this week amid anxiety over the bank’s health," the AP reports. "It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008."
The bank served mostly technology workers and venture capital-backed companies, including some of the industry’s best-known brands.
“This is an extinction-level event for startups,” said Garry Tan, CEO of Y Combinator, a startup incubator that launched Airbnb, DoorDash and Dropbox and has referred hundreds of entrepreneurs to the bank.
“I literally have been hearing from hundreds of our founders asking for help on how they can get through this. They are asking, ‘Do I have to furlough my workers?’”
Treasury Secretary Janet Yellen, who spent last week traveling to Ukraine to pledge another $10 billion from US taxpayers to the Zelensky regime, said the US banking system "remains resilient" despite SVB's collapse.
"Secretary Yellen expressed full confidence in banking regulators to take appropriate actions in response and noted that the banking system remains resilient and regulators have effective tools to address this type of event," the Treasury Department said in a statement.
Congressman Eric Swalwell (D-CA) is now lobbying for a bailout.
I’m working with my CA colleagues to address the Silicon Valley Bank crisis. We must make sure all deposits exceeding the FDIC $250k limit are honored. Banking is about confidence. If depositors lose confidence on the safety of their deposits over 250k then we are in trouble.— Rep. Eric Swalwell (@RepSwalwell) March 10, 2023
Whether they're bailed out or not will depend entirely on their political connections.
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