I worked in bank liquidity and treasury for the better part of the last decade, and there is one very interesting risk factor from the SVB collapse that I do not think we have ever witnessed before in modern finance, a 🧵:

First, some context. Following the 2008 financial crisis where a massive driver of stress was caused by low quality assets littering the balance sheets of massive institutions, the regulators sought to create a framework to ensure all banks were verifiably sound.
This meant forcing Federally registered banks to conform to capital and liquidity ratios. If they did not comply, they would not be allowed to issue dividends or buy back stocks, hurting the value of their enterprise.
There was the introduction of the concept of RWA, or risk weighted assets. A simple way to think of these ratios is, the riskier your asset base on a weighted basis, the more high quality capital (think cash) you would need to hold to stay in compliance.
Not only were banks required to regularly be in compliance with these ratios as a going concern, but needed to prove they could maintain certain limits when met with a time of stress across a number of incrementally adverse scenarios.
I believe this framework was developed based on the technical limitations of the time period, which is the early 2010s. Recall that companies like Twitter and Reddit and many fintech start-ups were in infancy or did not exist.
Digital customer experience in banking was improving, but many people, certainly more than today, still relied on branches to deposit checks, met with their bankers and everything had a lot more friction. And communication innovations of social media were in their infancy.
So when setting a framework, it was logical to believe that even if 50% of your depositors were to leave the bank, it would take considerable time to a) process transactions and b) have the word spread, giving these institutions a good buffer and time to recapitalize.
But as we just saw yesterday, these assumptions no longer hold, and in some ways, new tech has forced us into a very interesting position. Ask yourself, could the swiftness and awareness of what was happening yesterday happen 10 years ago? We didn't even all have smartphones.
The massive risk factor that has become very clear from all of this is what I am calling for purposes of this thread "social media risk".
I started to dig into SVB's financial situation on Thursday and had some former co-workers who were there months ago when I quit my consulting job, so I had a decent idea on how they were evolving their risk management processes and their balance sheet.
For all intents and purposes, they appeared to be in compliance with capital requirements, their balance sheet was constructed of very strong HQLA (High Quality Liquid Assets) and looked like they could very easily handle a stressed outflow.
Let me caveat here. A stressed outflow for example, would be a day where some large clients pulled down on their credit lines all at once, a few big depositors pulled out and a portion of their loans became non performing. NOT a full on run.
In fact, it can be argued that no going concern bank has the capital available to handle a full blown instantaneous bank run, thats just not how bank business models work. You can argue the merits of this but at the end of the day, this is how the system is set up.
And so this is where I started to get very confused. SVB had announced they were liquidating their available for sale security portfolio for some extra liquidity and do some rebalancing to capture higher yielding instruments to offset what they were paying in interest deposits.
To stay in compliance, they were raising ~$2B to cover the loss they realized from the sale. Clearly things weren't going great, but raising $2B in capital compared to $175B in deposits to be compliant with conservative regulations didn't seem like a bank-ending event to me.
Apparently in my infinite wisdom, I was dead wrong. The equity holders, rightfully, started selling because they were about to be substantially diluted, making each individual share less valuable post new issuance.
This of course caught the eye of many, making it a top 5 headline on Thursday, but certainly not flashing any crazy alarm bells. Now, enter twitter.
I mentioned in passing to my co-founders "Hey this SVB stuff is crazy eh?" and one of them immediately responded "I heard from a friend they were insolvent". That's when I go worried. First off, who is his friend and second of all, what public evidence was there?
Then the industrial virality complex kicked in. Minutes later, my twitter feed was awash of prominent accounts being retweeted and raised up basically spelling the doom of SVB. The grave dancing party had started, and from there it looked grim.
Low and behold, this is how it all went down. You then hear Peter Thiel told his Founder's Fund companies to pull out and I have to imagine every single venture telegram chat was blowing up. Pull out, pull out was the message.
There was no time for investigation, no time for nuance, it was time to move, and move fast. Pull out your phone, check twitter quick to verify, switch to your SVB app and conduct a wire transfer (I'm assuming its a similar process to my business account at Chase).
We all know where we are now, and it's dripping with uncertainty. I fear we might have shot ourselves in the foot, and with how fast the world works now, there was no real way to stop it. If we had a time machine, I'm pretty sure the past 48 hours were unavoidable.
Back of the envelope, there is a very high probability that depositors of SVB may recovery anywhere from 90% to 100% of their accounts given the quality of assets on their balance sheet and the ability to liquidate the loan portfolio, even assuming 10% losses.
But it will take months now to recover all the funds, months that some companies do not have to wait for cash to hit their accounts. It's painful, but it could have all been avoided, especially if the outcome is indeed max or near max recouping of funds.
So how could this have been avoided? Well for one, SVB should have been doing more prudent portfolio rebalancing and should have been much more communicative way ahead of this incident, both to investors and large depositors.
But the reality is, the banking industry has to start adding this "social media risk" into their frameworks and find a way to get ahead and control the narrative, to avoid this type of situation from happening again.
It's scary to think, but the same types of tactics that can manipulate an election can be used to undermine the strength of a bank. This time around, it was pointing to unrealized losses on high quality assets to pile on and justify a panic. But it can manifest from anything.
The only way I see to combat this is for firms to have a stronger social media presence, one that they take seriously, not just to push certain social messaging and promotions.
Meet your customers where they are, in their preferred medium. Start to do breakdowns of your earnings reports across all channels. Give ad hoc updates during the quarter and make sure everyone is aware of your status. Transparency is the key to this mitigating this risk.
I also strongly believe we, as the consumers, need more opportunities to be better educated on a deeper level on how this system, that we trust with our money, operates. It's been distressing to see some of the commentary on this site the last two days.
tldr:
- Tech advancement has made finreg very dated
- SVB wasn't on the greatest footing, but was largely taken down by virality and panic
- Social media risk needs to be defined and taken seriously
- Banks need to be more transparent about their business on socials.

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॥ॐ॥
अस्य श्री गायत्री ध्यान श्लोक:
(gAyatri dhyAna shlOka)
• This shloka to meditate personified form of वेदमाता गायत्री was given by Bhagwaan Brahma to Sage yAgnavalkya (याज्ञवल्क्य).

• 14th shloka of गायत्री कवचम् which is taken from वशिष्ठ संहिता, goes as follows..


• मुक्ता-विद्रुम-हेम-नील धवलच्छायैर्मुखस्त्रीक्षणै:।
muktA vidruma hEma nIla dhavalachhAyaiH mukhaistrlkShaNaiH.

• युक्तामिन्दुकला-निबद्धमुकुटां तत्वार्थवर्णात्मिकाम्॥
yuktAmindukalA nibaddha makutAm tatvArtha varNAtmikam.

• गायत्रीं वरदाभयाङ्कुश कशां शुभ्रं कपालं गदाम्।
gAyatrIm vardAbhayANkusha kashAm shubhram kapAlam gadAm.

• शंखं चक्रमथारविन्दयुगलं हस्तैर्वहन्ती भजै॥
shankham chakramathArvinda yugalam hastairvahantIm bhajE.

This shloka describes the form of वेदमाता गायत्री.

• It says, "She has five faces which shine with the colours of a Pearl 'मुक्ता', Coral 'विद्रुम', Gold 'हेम्', Sapphire 'नील्', & a Diamond 'धवलम्'.

• These five faces are symbolic of the five primordial elements called पञ्चमहाभूत:' which makes up the entire existence.

• These are the elements of SPACE, FIRE, WIND, EARTH & WATER.

• All these five faces shine with three eyes 'त्रिक्षणै:'.
#ஆதித்தியஹ்ருதயம் ஸ்தோத்திரம்
இது சூரிய குலத்தில் உதித்த இராமபிரானுக்கு தமிழ் முனிவர் அகத்தியர் உபதேசித்ததாக வால்மீகி இராமாயணத்தில் வருகிறது. ஆதித்ய ஹ்ருதயத்தைத் தினமும் ஓதினால் பெரும் பயன் பெறலாம் என மகான்களும் ஞானிகளும் காலம் காலமாகக் கூறி வருகின்றனர். ராம-ராவண யுத்தத்தை


தேவர்களுடன் சேர்ந்து பார்க்க வந்திருந்த அகத்தியர், அப்போது போரினால் களைத்து, கவலையுடன் காணப்பட்ட ராமபிரானை அணுகி, மனிதர்களிலேயே சிறந்தவனான ராமா போரில் எந்த மந்திரத்தைப் பாராயணம் செய்தால் எல்லா பகைவர்களையும் வெல்ல முடியுமோ அந்த ரகசிய மந்திரத்தை, வேதத்தில் சொல்லப்பட்டுள்ளதை உனக்கு

நான் உபதேசிக்கிறேன், கேள் என்று கூறி உபதேசித்தார். முதல் இரு சுலோகங்கள் சூழ்நிலையை விவரிக்கின்றன. மூன்றாவது சுலோகம் அகத்தியர் இராமபிரானை விளித்துக் கூறுவதாக அமைந்திருக்கிறது. நான்காவது சுலோகம் முதல் முப்பதாம் சுலோகம் வரை ஆதித்ய ஹ்ருதயம் என்னும் நூல். முப்பத்தி ஒன்றாம் சுலோகம்

இந்தத் துதியால் மகிழ்ந்த சூரியன் இராமனை வாழ்த்துவதைக் கூறுவதாக அமைந்திருக்கிறது.
ஐந்தாவது ஸ்லோகம்:
ஸர்வ மங்கள் மாங்கல்யம் ஸர்வ பாப ப்ரநாசனம்
சிந்தா சோக ப்ரசமனம் ஆயுர் வர்த்தனம் உத்தமம்
பொருள்: இந்த அதித்ய ஹ்ருதயம் என்ற துதி மங்களங்களில் சிறந்தது, பாவங்களையும் கவலைகளையும்


குழப்பங்களையும் நீக்குவது, வாழ்நாளை நீட்டிப்பது, மிகவும் சிறந்தது. இதயத்தில் வசிக்கும் பகவானுடைய அனுக்ரகத்தை அளிப்பதாகும்.
முழு ஸ்லோக லிங்க் பொருளுடன் இங்கே உள்ளது
https://t.co/Q3qm1TfPmk
சூரியன் உலக இயக்கத்திற்கு மிக முக்கியமானவர். சூரிய சக்தியால்தான் ஜீவராசிகள், பயிர்கள்
The best morning routine?

Starts the night before.

9 evening habits that make all the difference:

1. Write down tomorrow's 3:3:3 plan

• 3 hours on your most important project
• 3 shorter tasks
• 3 maintenance activities

Defining a "productive day" is crucial.

Or else you'll never be at peace (even with excellent output).

Learn more


2. End the workday with a shutdown ritual

Create a short shutdown ritual (hat-tip to Cal Newport). Close your laptop, plug in the charger, spend 2 minutes tidying your desk. Then say, "shutdown."

Separating your life and work is key.

3. Journal 1 beautiful life moment

Delicious tacos, presentation you crushed, a moment of inner peace. Write it down.

Gratitude programs a mindset of abundance.

4. Lay out clothes

Get exercise clothes ready for tomorrow. Upon waking up, jump rope for 2 mins. It will activate your mind + body.

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THE MEANING, SIGNIFICANCE AND HISTORY OF SWASTIK

The Swastik is a geometrical figure and an ancient religious icon. Swastik has been Sanatan Dharma’s symbol of auspiciousness – mangalya since time immemorial.


The name swastika comes from Sanskrit (Devanagari: स्वस्तिक, pronounced: swastik) &denotes “conducive to wellbeing or auspicious”.
The word Swastik has a definite etymological origin in Sanskrit. It is derived from the roots su – meaning “well or auspicious” & as meaning “being”.


"सु अस्ति येन तत स्वस्तिकं"
Swastik is de symbol through which everything auspicios occurs

Scholars believe word’s origin in Vedas,known as Swasti mantra;

"🕉स्वस्ति ना इन्द्रो वृधश्रवाहा
स्वस्ति ना पूषा विश्ववेदाहा
स्वस्तिनास्तरक्ष्यो अरिश्तनेमिही
स्वस्तिनो बृहस्पतिर्दधातु"


It translates to," O famed Indra, redeem us. O Pusha, the beholder of all knowledge, redeem us. Redeem us O Garudji, of limitless speed and O Bruhaspati, redeem us".

SWASTIK’s COSMIC ORIGIN

The Swastika represents the living creation in the whole Cosmos.


Hindu astronomers divide the ecliptic circle of cosmos in 27 divisions called
https://t.co/sLeuV1R2eQ this manner a cross forms in 4 directions in the celestial sky. At centre of this cross is Dhruva(Polestar). In a line from Dhruva, the stars known as Saptarishi can be observed.