lol so the fact that we didn’t have $250k of runway ends up being a good thing?
I mean, you could argue that relatively speaking you're better off, since you're probably not suddenly trying to satisfy champagne tastes on a malt liquor budget.
FDIC Takes over Silicon Valley Bank
31–40 of 1001 posts
Re: FDIC Takes over Silicon Valley Bank
#322008 bear sterns vibes. The fed's move in interests rates was bound to break something. This is the first big name and, while banks are taken over by the FDIC often and it never makes the news, this one will be especially interesting bc it is Silicon Valley Bank. Naturally, people and the media will associate with the rest of silicon valley, bringing extra scrutiny to every brand name tech company, especially the one…
It’s not interesting because of its name, it’s the 18th largest bank in the US. A domino that big usually doesn’t fall alone. Also, FDIC hasn’t taken over a bank since 2020. This isn’t exactly a common occurrence.
Re: FDIC Takes over Silicon Valley Bank
#33Earlier quoted context omitted.
The difference is that SVB's depositors will see most of their money back, which is the point of the FDIC taking over.
When, though? If your company can't access your money to access payroll for X months, you might as well as be dead.
"When, though": now. The article says checks continue to clear, and branches open Monday, the next business day.
And
Re: FDIC Takes over Silicon Valley Bank
#34First actual FDIC takeover since 2020, I think.
| The last FDIC-insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.
From the release.
Re: FDIC Takes over Silicon Valley Bank
#35Yesterday I read on here that "xyz doesn't mean SVB is going under like FTX did five minutes after doing that".
The difference is that SVB's depositors will see most of their money back, which is the point of the FDIC taking over.
I wouldn't be too sure about that. 93% of SVB deposits are uninsured.
Re: FDIC Takes over Silicon Valley Bank
#362008 bear sterns vibes. The fed's move in interests rates was bound to break something. This is the first big name and, while banks are taken over by the FDIC often and it never makes the news, this one will be especially interesting bc it is Silicon Valley Bank. Naturally, people and the media will associate with the rest of silicon valley, bringing extra scrutiny to every brand name tech company, especially the one…
I mean, potentially.
The reality is they try to protect as much of the assets as they can and even those over 250k will probably not lose as much as they would have without the FDIC
Re: FDIC Takes over Silicon Valley Bank
#37Only 3% of deposits in the bank are FDIC insured; other depositors will need to wait for the receivership process to run to get access to (what remains) of their deposits. edit: replace "bankruptcy" with "receivership" as the latter is usually a faster process than the former.
Where'd you get the 3% figure? The only thing I saw in the article was that it was not determined. > At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers. Is the 3% figure from SVB or an estimate from another source?
Likely number is bigger than 3%, as they had a giant outflow over the last couple days.
Re: FDIC Takes over Silicon Valley Bank
#38Now we just need an "incredible journey" blog post from SVB spinning this acquisition as a great win for both customers and investors.
Re: FDIC Takes over Silicon Valley Bank
#39Earlier quoted context omitted.
The difference is that SVB's depositors will see most of their money back, which is the point of the FDIC taking over.
When, though? If your company can't access your money to access payroll for X months, you might as well as be dead.
The press release answers some of that. Insured money is there on Monday. Uninsured money will get their first payout no later than next week.
After that its a question but typically depositors will know the answer very quickly because their claims come first.
Re: FDIC Takes over Silicon Valley Bank
#402008 bear sterns vibes. The fed's move in interests rates was bound to break something. This is the first big name and, while banks are taken over by the FDIC often and it never makes the news, this one will be especially interesting bc it is Silicon Valley Bank. Naturally, people and the media will associate with the rest of silicon valley, bringing extra scrutiny to every brand name tech company, especially the one…
Re Bear Sterns, there were lots of political reasons it was allowed to fail while others were protected. If I remember right something about them not helping with the Long Term Capital Management collapse for example. There will have been people who had the opportunity to help SVB and collectively decided it was better to let it fail. It will be interesting to understand the decisions that were made when the dust settles