Shark Tank star Kevin O’Leary and his portfolio of corporations have been hit by the collapse of Silicon Valley Bank (SVB) and now the multi-millionaire investor is not going to shrink back from severing ties with a now-defunct financial institution.
Appearance on “Cavuto: From coast to coastOn Tuesday, O’Leary commented on the announcement by the US Federal Reserve and other institutions that they’d cover all depositors without burdening taxpayers.
“There’s going to be issues here because, frankly, I do not think deposit insurance alone shall be enough for everybody to simply keep all their money in a regional bank,” O’Leary said. “Going forward, I believe numerous bank managers will say, ‘Wait a minute, I’m not taking any probabilities… because if something goes flawed, so long as I follow the banking rules to me, because the Fed covers all my depositors.’
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He also revealed that inside the portfolio of his own investment firm, O’Leary Ventures, all assets had been transferred to “five different financial institutions” and noted that almost all other high-level investment firms would “do the same”.
O’Leary also maintained that SVB’s popularity had been completely tarnished, noting that irrespective of what the bank tried to do to bounce back, it might find it difficult to achieve the public’s trust.
“The franchise value of the words ‘Bank of Silicon Valley’ has been wasted,” he said bluntly. “It’s no higher than radioactive waste. He became the poster boy for managing idiots. So no one will want this brand. Neither here nor anywhere. So I’m unsure in the event that they’ll be bought.”
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O’Leary wasn’t the only “Shark Tank” star whose money was donated by SVB.
Co-star and billionaire Mark Cuban has been vocal on social media after the bank collapse, speaking of his desire for presidency agencies and regulators to step in and help get well funds for corporations which will have lost most of their financial assets, which is in contrast to what O’ Leary needed to be done.
“The Fed should IMMEDIATELY redeem all the securities/debts the bank holds at near par, which ought to be enough to cover most deposits,” he said. he said via Twitter, revealing that his portfolio of corporations had an estimated $8-10 million that were managed by SVB, although none of those assets were his personal funds. “Any losses covered by equity and latest debt from the latest bank or whoever buys it. The Fed knew it was a risk. They need to own it.”
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Depositors were granted access to SVP funds on Monday morning, although shareholders and holders of unsecured debt weren’t protected.