So goes Silicon Valley, so goes the world.
it would borrow up to $54 billion from the Swiss government, which took a page out of the U.S. "backstop" playbook., so it's not fair to draw a straight line to it from SVB. But it also would be naive to ignore the psychological crisis of confidence that SVB sparked last week, and that the U.S. government failed to extinguish on Sunday night.
First Republic shares got crushed at today's open, as did shares of many other regional U.S. banks. Credit Suisse stock, on the other hand, climbed.It feels like we're on the brink of a bank merger wave. And maybe need to be. But a giant caveat is that U.S. banks don't have a clue what the White House will, and won't allow.
Remember, big banks and private equity were basically told "need not apply" to the FDIC auction for SVB last weekend. But the administration hasn't discussed it publicly — not even explaining why it rejected the one takeover bid it did receive. The perception is that there is strong WH opposition to acquisitions by too-big-to-fail banks, even though last weekend suggests the threshold for that descriptor has been significantly lowered. How can First Republic look for a buyer, if it doesn't know the acceptable buyer universe?For example, Stripe yesterdayVCs are telling portfolio companies to be wiser with corporate treasury management, but that's more a technical change than an activity change.
There's still some finger-pointing over the SVB bank run, and ongoing questions over where to bank, but no reason to expect that such recriminations will prevent firms from working with one another in the future.
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