Mark Cuban raised questions about how regulators had allowed Silicon Valley Bank to end up in such a vulnerable position, and demanded that the Federal Reserve take immediate action.
Cuban, who made clear that he has no money with the bank, raised a number of questions about the bank and its oversight, finding it baffling that the bank operated as it did and perhaps unsurprising that it failed.
"It's insane that a small company with say 2.5m in payables and payroll at the end of the month should be ‘prudent’ and split their cash across 10 banks in case of a run," Cuban wrote. "The fees and admin would be crazy. But great for banks." A person from inside Silicon Valley Bank, middle rear, talks to people waiting outside of an entrance to Silicon Valley Bank in Santa Clara, California, Friday, March 10, 2023. The Federal Deposit Insurance Corporation seized the assets of the bank o? They were supposed to watch and warn," he continued. "Can’t wait to see how many people yanked their money, told others to, and shorted the stock.
Cuban insisted that his suggested actions for the Fed were not a bailout, but instead "providing cash to end the run" and in turn acquiring "long"SVB didn’t buy failing assets," he stressed. "No run, and they survive." While he has no money in the bank personally, Cuban acknowledged some of his portfolio companies have.
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