Kevin O'Leary, best known for his position as an investor on Shark Tank, advised startup founders to "not put any more than 20% of liquid assets in any one institution" after the collapse of Silicon Valley Bank.
He cited SVB's "idiot management" and "incompetent board" as the reason
for the bank's failure. O'Leary warned founders to be careful and brace
for other possible bank collapses.
- O'Leary stressed that SVB's downfall was due to its exposure to long-term bonds.
- He added that his portfolio companies had deposits in SVB, although he didn't disclose the specifics.
- Although the FDIC now has control over SVB, O'Leary expressed concern about how the regulators were handling the crisis.
- On Thursday, eleven banks agreed to deposit $30B in the First Republic to rescue the embattled regional bank.
