Stephanie Glass

US Attorney - Corporate and Capital Markets with Baker McKenzie

[Stephanie Glass @stephmglass]

@mrjoeaston @Qantas Another brilliant piece of reporting.

[Stephanie Glass @stephmglass]

@mrjoeaston @Qantas @mrjoeaston you must deserve an Order of Australia at this point for your series of reporting on Q.

[Baker McKenzie @bakermckenzie]

With a team led by Partners Derek Poon, Tracy Wut and Isabella Liu, we are advising Prenetics on a USD 200 million joint venture “Insighta”, which will offer multi-cancer early detection screening.
https://t.co/JWjeSemgBu

#TransactionalPowerhouse

[Stephanie Glass @stephmglass]

Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."

[Stephanie Glass @stephmglass]

"After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, in a manner that fully protects all depositors…

[Stephanie Glass @stephmglass]

Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC | U.S. Department of the Treasury https://t.co/QZUDm6sG5K

[Chris Bakke @ChrisJBakke]

Running a company:

2020: can you survive a pandemic?

2021: still here? we’re going to give all of your competitors $100m series A rounds.

2022: wow, you made it? okay, all engineers cost $600,000/year now.

2023: nice job! okay, we’re going to take away your bank account.

[Stephanie Glass @stephmglass]

Joint statement from VC leaders that met yesterday to discuss the failure of SIVB

[Bill Ackman @BillAckman]

The gov’t has about 48 hours to fix a-soon-to-be-irreversible mistake. By allowing @SVB_Financial to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank. Absent @jpmorgan @citi or @BankofAmerica acquiring SVB before the open on Monday, a prospect I believe to be unlikely, or the gov’t guaranteeing all of SVB’s deposits, the giant sucking sound you will hear will be the withdrawal of substantially all uninsured deposits from all but the ‘systemically important banks’ (SIBs). These funds will be transferred to the SIBs, US Treasury (UST) money market funds and short-term UST. There is already pressure to transfer cash to short-term UST and UST money market accounts due to the substantially higher yields available on risk-free UST vs. bank deposits. These withdrawals will drain liquidity from community, regional and other banks and begin the destruction of these important institutions. The increased demand for short-term UST will drive short rates lower complicating the @federalreserve’s efforts to raise rates to slow the economy. Already thousands of the fastest growing, most innovative venture-backed companies in the U.S. will begin to fail to make payroll next week. Had the gov’t stepped in on Friday to guarantee SVB’s deposits (in exchange for penny warrants which would have wiped out the substantial majority of its equity value) this could have been avoided and SVB’s 40-year franchise value could have been preserved and transferred to a new owner in exchange for an equity injection. We would have been open to participating. This approach would have minimized the risk of any gov’t losses, and created the potential for substantial profits from the rescue. Instead, I think it is now unlikely any buyer will emerge to acquire the failed bank. The gov’t’s approach has guaranteed that more risk will be concentrated in the SIBs at the expense of other banks, which itself creates more systemic risk. For those who make the case that depositors be damned as it would create moral hazard to save them, consider the feasibility of a world where each depositor must do their own credit assessment of the bank they choose to bank with. I am a pretty sophisticated financial analyst and I find most banks to be a black box despite the 1,000s of pages of @SECGov filings available on each bank. SVB’s senior management made a basic mistake. They invested short-term deposits in longer-term, fixed-rate assets. Thereafter short-term rates went up and a bank run ensued. Senior management screwed up and they should lose their jobs. The @FDICgov and OCC also screwed up. It is their job to monitor our banking system for risk and SVB should have been high on their watch list with more than $200B of assets and $170B of deposits from business borrowers in effectively the same industry. The FDIC’s and OCC’s failure to do their jobs should not be allowed to cause the destruction of 1,000s of our nation’s highest potential and highest growth businesses (and the resulting losses of 10s of 1,000s of jobs for some of our most talented younger generation) while also permanently impairing our community and regional banks’ access to low-cost deposits. This administration is particularly opposed to concentrations of power. Ironically, its approach to SVB’s failure guarantees duopolistic banking risk concentration in a handful of SIBs. My back-of-the envelope review of SVB’s balance sheet suggests that even in a liquidation, depositors should eventually get back about 98% of their deposits, but eventually is too long when you have payroll to meet next week. So even without assigning any franchise value to SVB, the cost of a gov’t guarantee of SVB deposits would be minimal. On the other hand, the unintended consequences of the gov’t’s failure to guarantee SVB deposits are vast and profound and need to be considered and addressed before Monday. Otherwise, watch out below.

[Stephanie Glass @stephmglass]

Startups and VCs Scramble to Pay Employees After SVB’s Collapse — The Information #sivb https://t.co/mjI5yKObwi

[Stephanie Glass @stephmglass]

The Demise of Silicon Valley Bank - by Marc Rubinstein - great article on how we got here #sivb #fdic https://t.co/FbaMlfPyyE

[Stephanie Glass @stephmglass]

'Love' is that condition in which the happiness of another person is essential to your own. Robert Heinlein

[Stephanie Glass @stephmglass]

Alternative fact: if you worry about something long enough you can rest assured that it will not happen.

[Stephanie Glass @stephmglass]

@theallinpod Really well moderated jcal - delightful

[Stephanie Glass @stephmglass]

Love is that extremely difficult [and painful] realisation that something other than yourself is real - Iris Murdoch.

[Stephanie Glass @stephmglass]

@annabelcrabb “real action on climate change”

[Stephanie Glass @stephmglass]

Art is a habit-forming drug - Marcel Duchamp

[Stephanie Glass @stephmglass]

@theallinpod @Twitter @DavidSacks @chamath @friedberg @Jason Also: Agree with Sachs that @chamath performance summary table is brilliant - any chance you submitted it as a comment to the SEC’s call for responses to their proposed rule changes to the IAA?

[Stephanie Glass @stephmglass]

@theallinpod @Twitter @DavidSacks @chamath @friedberg @Jason Took me a few years but it was extremely meaningful to me that I paid it all back (with interest) - I like a lot of your comments about tailoring programs like these to incentivise certain industries (STEM) because lord knows we probably don’t need that many more lawyers