Silicon Valley Bank experienced unprecedented growth from its tech startup clientele in 2020 and 2021, but was ultimately brought down by a one-two punch: their exclusive exposure to riskier investments combined with the regulations enacted post 2008. This forced them to heavily invest customers’ deposits into U.S Treasuries which created an unsustainable situation as volatile […]
(Bloomberg) — FedNat Holding Co., a Florida-based homeowners insurance company, filed for bankruptcy after an increase in severe weather events in the state weighed on its balance sheet. The company filed for Chapter 11 bankruptcy in Fort Lauderdale on Sunday, court papers show. FedNat listed $33.8 million of assets and $171 million of debts in […]
(Bloomberg) — Sam Bankman-Fried, disgraced founder of the now collapsed crypto exchange FTX and trading house Alameda Research, apologized to staff in a letter that outlined a crash in “collateral” to $9 billion from $60 billion. “I didn’t mean for any of this to happen, and I would give anything to be able to go […]
(Bloomberg) — FTX co-founder Samuel Bankman-Fried, one of his related companies, and two other top executives at the collapsed cryptocurrency exchange received massive loans from affiliated trading arm, Alameda Research, according to a bankruptcy court filing Thursday. Alameda’s receivables included $4.1 billion in combined loans to “related parties,” according to a footnote in a document […]