these are commercial banks. companies have millions and millions of dollars in these accounts. they are not, primarily, for individuals. $750k is basically nothing for 99% of the companies banking there.
should they keep it under their mattresses or idk, in a bank?! all of these companies had plenty to cover payroll, in cash, in a checking account. it's now inaccessible while FDIC liquidates SVB.
I understand that. But also companies should do dd on who they are banking with and be fiscally responsible.
Again if we're saying all deposits should be insured fully no matter what that should just be nationalizing banking.
From everything Ive read this is just a one off small issue unless the regulators force luquiditation of the asset portfolio then look out below. But this company could not have mismanaged this any worse (obviously). This was a creation of their own doing
this was one of the biggest banks in the US, not a mom and pop shop. certainly now everyone will be banking with BofA and JPM as they'll view them as much more stable. is that a win?
Because the previous poster brought up individuals increasing their insured balances. Maybe you have them blocked
We got MMillys with chase and wells fargo. If chase or wells fargo fails the world is fucked so who cares about our money. I wouldnt use a regional bank for these specific reasons.
This is cringe but I agree with you regarding investing in the banks that if they fail I'm hunting humans next
sure, but again, i already told you i don't agree with it. in this case, my strong belief and strong assumption is that there is enough assets to cover
I'd assume most do. Most of that could get wiped out then 10,000s of normal workers aren't getting paid bc a single bank went bad in 45-60 days
government should only bail banks and or other things out when its of direct or indirect benefit to me
But seriously if we're just securing all deposits we should just run the banks and socialize the benefits of that
“I know nothing about car engines but by god you are going to hear my fucking opinions on how to fix them!”
FWIW, this is based on a discussion with FDIC (not my notes): What's happened? SVB has $160B deposits, 10% are insured, 90% uninsured ($144B) there's $18B shortfall based on current (12.5% of the $144B) Will I get my money? We expect typically will get btwn 87.5% and 100% of funds eventually How long will it take? Insured deposits - Mon we should get instructions from the bank for removing $250K for each account Accelerated receipt of uninsured deposits - dividend for all account holders, that could be available in 1-2 weeks (potentially sooner) will be in amt of 15-30% of uninsured deposits Remainder of deposits will trickle in as FDIC liquidates short-term and long-term assets (3-9 months)
This is pretty huge. Pretty much all the VCs and tons of startups bank there. I’d expect a lot of small businesses will go under because of this
Silvergate happened like two weeks ago. And no one seemed to care. What is the difference and why the sudden interest in $250k FDIC? I’m failing to see why the publicity is exponentially bigger for SVB vs. Silvergate.
My wife's company uses Rippling for their HR/payroll. Rippling used SVB for payroll payments. NOTGREATBOBGIF. She just received a message that paychecks from Rippling for Chase accounts should hit today. Other banks Sat or Monday. So hopefully, payrolls start getting fulfilled this weekend.
Can we get government funded healthcare while we're insuring billion dollar deposits? That would be cool
Silvergate was a crypto bank with $6B in assets when it failed. SVB banked broadly with startups (both large and small) and had $209B in assets. (I say had because the bank is dead, not because those assets are gone)