Matthew Yglesias

Matthew Yglesias @mattyglesias

The issue with SVB is that the VC and startup communities and their social peers all clustered into this one bank to the point where it became awkwardly sized and the list of feasible buyers is very short. It’s not bias or politics that makes it hard. It’s just size. — PolitiTweet.org

Matthew Yglesias @mattyglesias

The reason this works is that most banks are small so the set of possible buyers is large and someone usually turns out to be ambitious enough to go for it. When rural banks fail that’s what happens there’s no big controversy. — PolitiTweet.org

Matthew Yglesias @mattyglesias

I think a lot of the tech community has misconstrued what makes this situation difficult. Normally failed banks get resolved with no losses to depositors (insured or otherwise) and no government bailout because the FDIC sells the bank to some other more solvent bank. — PolitiTweet.org

Matthew Yglesias @mattyglesias

Rising interest rates depress bond prices impairing bank balance sheets leading to bank failures leading to flight to quality leading to lower interest rates which raise bond prices and improve bank balance sheets. The circle of life. — PolitiTweet.org

Matthew Yglesias @mattyglesias

RT @IrvingSwisher: The one Fed Governor who did not go along with aggressive implementation of dereg efforts post-2018 is now the head of t… — PolitiTweet.org

Matthew Yglesias @mattyglesias

@PeterMoskos I feel like with today’s technology you could probably improve on it somewhat with cameras on dots… — PolitiTweet.org

Matthew Yglesias @mattyglesias

Top priority has to be getting the best possible bid for Silicon Valley Bank and its assets, prioritizing any other let agendas would be a huge mistake. — PolitiTweet.org

Matthew Yglesias @mattyglesias

RT @IrvingSwisher: @OpinionsInFlux @mattyglesias They got screwed by interest rate risk on the asset side (liquid and illiquid) alongside a… — PolitiTweet.org

Matthew Yglesias @mattyglesias

How much affordable housing will be created by building nothing? — PolitiTweet.org

Matthew Yglesias @mattyglesias

In general if you’re looking for a bank that will do racism (“statistical discrimination” to be polite) in lending, you want to go with a small community bank. The big banks are more woke, but Fintech startups wokest of all. https://t.co/2iuDY82jhL https://t.co/PPXjqTyrED — PolitiTweet.org

Matthew Yglesias @mattyglesias

Can anyone even begin to challenge Amalgamated for the title of wokest bank in the United States? And yet they seem to be in fine shape. — PolitiTweet.org

Matthew Yglesias @mattyglesias

FDIC should maintain a running list of banks ranked by wokeness — PolitiTweet.org

Matthew Yglesias @mattyglesias

Here’s an idea: “I chose of my own free will to completely ignore the safety and soundness of the bank I entrusted with my unsecured deposits because that bank provided me with other benefits that I valued and in retrospect I should not have done that.” — PolitiTweet.org

Matthew Yglesias @mattyglesias

This is neither here nor there as a forward-looking question. But a good way for VCs and startup executives to get what they want would be to show a little less bad attitude and a little more spirit of “I am sorry that my errors in business judgment contributed to this.” — PolitiTweet.org

Matthew Yglesias @mattyglesias

Silicon Valley Bank wanted to be treated as if normal FDIC resolution would not threaten the economy. That made the bank’s deposits more lucrative which laid the groundwork for the various services it offered that the tech industry valued more than it valued soundness. — PolitiTweet.org

Matthew Yglesias @mattyglesias

Again, SBV and its allies fought at great length and great expensive in multiple venues to *not* have the same regulatory status as the largest banks. It took tremendous effort on their part to achieve this outcome, it wasn’t done to them by their enemies. — PolitiTweet.org

Matthew Yglesias @mattyglesias

We love our discount window hijinks too! This would not formally guarantee uninsured deposits at non-SBV banks but should mean that in practice everyone can get their money if they want it, which one would hope means they don’t actually demand it. https://t.co/GGyOzQVOjU — PolitiTweet.org

Matthew Yglesias @mattyglesias

We love our large banks! — PolitiTweet.org

Matthew Yglesias @mattyglesias

As for “why doesn’t Janet Yellen conjure up a nationwide unlimited deposit insurance scheme with no money or legal authority?” well that sort of answers itself. — PolitiTweet.org

Matthew Yglesias @mattyglesias

I’m not saying that this is a good outcome — I wrote at the time that it was bad — but it’s just wildly misconstruing things to see the regional banks as victims of the big bad regulators. As for their uninsured customers I have somewhat mixed feelings. — PolitiTweet.org

Matthew Yglesias @mattyglesias

Again, this is the outcome the large regional banks lobbied for. They fought for it in congress. They fought in the trenches of the FDIC and the Fed. They got the backing of the Trump administration. They fought like hell and they won. — PolitiTweet.org

Matthew Yglesias @mattyglesias

It’s unfortunate that you can’t hold an auction for $200+ billion worth of banking assets at the speed of the most impatient people on Twitter but would really suggest everyone try to remain somewhat calm. — PolitiTweet.org

Matthew Yglesias @mattyglesias

Important questions about second-order effects but people spooked by Friday night tweets about companies being unable to make payroll tomorrow should know that’s not going to happen — a large share of uninsured deposits will be available we just don’t know exactly how large. https://t.co/9tO2kGne7s — PolitiTweet.org

Matthew Yglesias @mattyglesias

Really obvious AI shortcomings are going to get fixed pretty quickly… — PolitiTweet.org

Matthew Yglesias @mattyglesias

RT @TheStalwart: Interesting coordination problem is how do relatively decentralized industries prevent their least decorous members from b… — PolitiTweet.org

Matthew Yglesias @mattyglesias

@DavidSacks For the sake of everyone’s deposits, please stop tweeting — PolitiTweet.org

Matthew Yglesias @mattyglesias

RT @tolstoybb: Fomenting a panic in publicly traded American financial institutions is low key goated when going to prison is the vibe — PolitiTweet.org

Matthew Yglesias @mattyglesias

@RichardHanania My understanding was that past deals had similar results as long as they lasted. But I’ll admit I haven’t looked closely. — PolitiTweet.org

Matthew Yglesias @mattyglesias

@RichardHanania I do think it’s true that the reduction in violence is mostly due to a deal with MS-13 and not to the more distinctly conservative aspects of his brand. — PolitiTweet.org

Matthew Yglesias @mattyglesias

@AndyHarless Isn’t this the long and variable lags we were promised from the prior rate hike? — PolitiTweet.org