I'll ask the dumb question - he'd already taken his money out, what financial advantage is he meant to have then gained by encouraging others to do the same?
> what financial advantage is he meant to have then gained by encouraging others to do the same?
Assuming the FDIC doesn't make everyone whole, then all of his portfolio companies using SVB will see themselves with valuations lessened by whatever amount of money was lost.
i.e his investments would burn.
That said, we may very well see an outcome where everyone's just fine and instead his investments see a more difficult lending environment. There was once a california law about encouraging bank runs, but it was struck down in 2012 apparently. So not sure what else might apply in criminal or civil code.
> Fintech startup Brex received billions of dollars in deposits from Silicon Valley Bank customers on Thursday, CNBC has learned.
>The company, itself a high-flying startup, has benefited after venture capital firms advised their portfolio companies to withdraw funds from Silicon Valley Bank this week.
And once again, I can't believe I'm saying this in defense of Peter Thiel, but isn't the Occam's razor answer here just that... he was giving his friends good advice? Anyone with money in that bank should have gotten it out, that's not a controversial fact. Surely even Thiel has people he'd rather see not lose their shirts.
Assuming the FDIC doesn't make everyone whole, then all of his portfolio companies using SVB will see themselves with valuations lessened by whatever amount of money was lost.
i.e his investments would burn.
That said, we may very well see an outcome where everyone's just fine and instead his investments see a more difficult lending environment. There was once a california law about encouraging bank runs, but it was struck down in 2012 apparently. So not sure what else might apply in criminal or civil code.