ZINGER KEY POINTS
- Following SVB's collapse, analysts and economists have begun discussing the way forward.
- Elon Musk's fans think Twitter could lap up the bank and transform into a digital bank.
The collapse of SVB Financial Group’s Silicon Valley Bank and the way forward has been the talk of the town ever since the crisis came to light.
Musk Is Interested: When a Twitter user suggested Twitter should buy SVB and become a digital bank, Elon Musk, who now owns the social media platform, seemed to agree with the plan.
“I’m open to the idea,” he tweeted.
Commenting on the original tweet, Dogecoin co-founder Billy Markus said, “Elon Musk would be like ‘y’all are worried about contagion from SVB? I AM the contagion!’” Others chimed in as well.
A Twitter user pointed to the fact that SVB operated in only a few countries and doesn’t possess the scale to make a global app like Twitter a digital bank or super app. Another said Twitter should focus on becoming profitable first.
There were others who backed the plan, suggesting that “Twitter Bank” is a great idea and that it could use Starlink for user-connected terminals trading in digital currency.
Chanos Chimes In: When money manager Genevieve Roch-Decter asked on Twitter whether Musk should buy SVB, Jim Chanos took potshots at the Tesla CEO.
“Again, Silicon Valley Bank no longer exists, despite what the World’s Smartest Man thinks/says. It was seized yesterday by the FDIC,” he said. Musk is free to bid on the assets of the bank just like any other investor, he added.
One Of Many Possibilities: Kobeissi Letter, which provides global capital market commentary, tweeted out several potential outcomes following SVB’s collapse. Among those mentioned were Musk tabling a bid for SVB and Twitter merging with SVB to form a leading payment platform.
Comments