Streaming platform Roku Inc. (ROKU) on Friday said it “does not know” to what extent it would be able to recover the cash it has deposited with the recently-failed Silicon Valley Bank. Roku said it had cash and cash equivalents of around $1.9 billion as of Friday, with around $487 million — or roughly 26% — at the bank. Roku said its deposits with SVB were “largely uninsured.” Read More...
TechCrunch
Silicon Valley Bank shoots self in foot
It will go down in the history books about Silicon Valley: the time that its most prominent bank, a bank founded nearly 40 years earlier, inflicted such grievous injury on itself that it it had to be abruptly shut down by the FDIC. If you’re just catching up, here’s what happened: Silicon Valley Bank lost $1.8 billion in the sale of U.S. treasuries and mortgage-backed securities that it had invested in, owing to rising interest rates. It owned bonds, for example, that are no longer attractive compared with more newly issued bonds, and took a financial hit on these.
