This outfit probably has more in common with Molten Ventures and Tek Capital than with a uk bank, but it will be interesting to observe the reaction and any fallout in and outside of the States. I didn’t think it merited its own thread.

EDIT: UK banking shares down by 4% early doors! Ludicrous really.


Shares in Silicon Valley Bank (SVB), a key lender to technology start-ups, plummeted on Thursday as investors moved to withdraw their deposits.

The slide came after the bank announced a $1.75bn (£1.5bn) share sale to help shore up its finances.
Shares in banks have fallen around the world - with the four largest US banks, including JP Morgan and Wells Fargo, losing more than $50bn in market value.

One venture capitalist told the BBC the day's events were "wild" and "brutal".

On Friday, shares in Asian banks were also trading lower.

Shares in SVB saw their biggest one-day drop on record as they plunged by more than 60% and lost another 20% in after-hours trade.

The firm launched the share sale after losing around $1.8bn when it offloaded a portfolio of assets, mainly US Treasuries.

But more concerningly for the bank, some start-ups who have money deposited have been advised to withdraw funds.

Hannah Chelkowski, founder of Blank Ventures, a fund that invests in financial technology, told the BBC the situation was "wild". She is advising companies in her portfolio to withdraw funds.
"It's crazy how it's just unravelled like this... The interesting thing is that it's the most start-up friendly bank and supported start-ups so much through Covid. Now VCs are telling their portfolio companies to pull their funds," she said.

"It's brutal," she added.

A crucial lender for early-stage businesses, SVB is the banking partner for nearly half of US venture-backed technology and healthcare companies that listed on stock markets last year.
SVB did not immediately respond to a BBC request for further comment.
In the wider market, there were concerns about the value of bonds held by banks as rising interest rates made those bonds less valuable.

Central banks around the world - including the US Federal Reserve and the Bank of England - have sharply increased interest rates as they try to curb inflation.

Banks tend to hold large portfolios of bonds and as a result are sitting on significant potential losses. The falls in the value of bonds held by banks is not necessarily a problem unless they are forced to sell them.

But, if like Silicon Valley Bank, lenders have to sell the bonds they hold at a loss it could have an impact on their profits.

"The banks are casualties of the hike in interest rates," Ray Wang, founder and chief executive of Silicon Valley-based consultancy Constellation Research told the BBC.

"Nobody at Silicon Valley Bank and in a lot of places thought that these interest rate hikes would have lasted this long. And I think that's really what happened. They bet wrong," he added.

I'm with Terry Smith on banks. Their equity can be wiped out quickly if the market moves against you. Plus they are too complicated beasts to understand.

Warren buffet has always held banks in his portfolio. Bank of America is his second largest holdings at the moment.
Banks are not for me but if I was to buy I would only buy what Warren bought.
He can take the blame if it goes wrong.

Just thought banks are the mainstay of Vietnamese invest trusts. A part of my portfolio.

Unsure how. Share price is up over 5% over the past month. Add in that they need to buy stock to cover their short.

Here's their declared short position with dates.

Marshall Wace LLP NATWEST GROUP Plc GB00BM8PJY71
0.70 12/04/2023
0.61 23/03/2023
0.57 22/03/2023
0.48 20/03/2023
0.51 10/03/2023
No one else is shorting the stock according to the register.

Also the Treasury have recently announced an extension of 2 years from Aug 23 to Aug 25 to sell down the Government's remaining holding. Takes the pressure off so to speak. While NWG continue to buy back shares.

UK banks still good value in my humble … NatWest results due Friday I think? Money making machines.

LONDON — Barclays on Thursday reported net profit of £1.78 billion for the first quarter, beating expectations and coming in 27% higher year-on-year.

A consensus Reuters poll of analysts forecast net profit at £1.432 billion.

Income from the bank’s consumer, cards and payments division rose 47%, compensating for just 1% growth in its corporate and investment bank division.

Barclays said it “remains on track to deliver its 2023 targets, with all performance metrics in line with or ahead of guidance” at the first quarter.

Chief Executive Officer C. S. Venkatakrishnan described it as a “strong” quarter, with income up 11% to £7.2 billion.

“The momentum across the group allows us to maintain a robust capital position, deliver attractive returns to shareholders, and support our customers and clients through an uncertain economic environment,” he said in a statement.