Peter Thiel's Founders Fund withdrew every penny from SVP

[Demovictory9]

https://finance.yahoo.com/news/thiel-founders-fund-withdrew-millions-005223787.html

Peter Thiel’s Founders Fund had no money with Silicon Valley Bank as of Thursday morning as the bank descended into chaos, according to a person familiar with the matter.

Thiel’s Founders Fund Withdrew Millions From Silicon Valley Bank

Founders Fund withdrew millions from SVB, said the person, who asked not to be identified discussing private information. It joined other venture funds that took dramatic steps to limit exposure to the now-failed financial institution. Founders Fund also advised its portfolio companies that there was no downside to moving their money away from SVB, even if the risk was low.

Founders Fund acted in other ways to move its business away from SVB. On Thursday, as the bank was beginning to unravel, the firm started what’s known as a capital call. That’s a run-of-the-mill activity in the venture capital world, in which a VC firm asks its investors, or limited partners, to send it money in order to make investments in startups — the core function of most VC firms. It began by asking those backers to transfer the funds to accounts at SVB, as it has done for years, the person said.

But the firm learned that its limited partners were encountering issues using SVB services as they tried to transfer the funds — they weren’t immediately going through as expected, the person said.

Quickly, Founders Fund asked its investors to transfer the money to other banks instead. The fund acted to ensure that startup funding deals that were slated to close in the coming days were not delayed, the person said.

[TheRealNorth]

1. Funny how these SOB's know ahead of time

[TheBlackAdder]

2. Yeah, it's almost like someone was tipping them off. Like the insider trading CEO.

[karynnj]

5. Knew ahead or drove the collapse?

From various articles, it was not that the bank made risky investments that failed, but invested too much in long term treasury bills. The bank deserves criticism for not having most of its money in shorter term stocks.

My question is whether Theil played the it's a wonderful life role of Potter causing the stampede that made the banks future in jeopardy.

[uponit7771]

7. +1, the bonds weren't a bad position until the feds raised rates then they should've gotten out of

... them.

I don't know why they would've held on to those bonds knowing they would be close to deposit red line

[Pantagruel]

3. Thiel's a Trumper

Wants to cause chaos in financial markets and he grabbed this opportunity to create a panic . It worked very well.

[Kid Berwyn]

4. The bank prez cashed in a few mil just the other day.

SVB Financial CEO Greg Becker Sold $3.6 Million in Stock Nearly Two Weeks Ago

https://www.barrons.com/articles/svb-financial-stock-sale-ceo-greg-becker-f5089a4d

The guy’s not gonna tip off his owner?

[WarGamer]

6. Nearly everyone obviously wanted to get their money out and there WAS a short window.