Will startups have problems paying salaries now?
FDIC Takes over Silicon Valley Bank
111–120 of 1001 posts
Re: FDIC Takes over Silicon Valley Bank
#112I know SVB was an early partner for Stripe Atlas[1], I hope they've got other options now, and not too many companies get really hurt here.
[1] https://www.svb.com/news/company-news/silicon-valley-bank-pa...
Re: FDIC Takes over Silicon Valley Bank
#113Does this mean $SIVB stock holders who had $265 shares two days ago now have worthless shares? JFC no wonder bank stocks are priced so low compared to earnings... You're just hoping the dividends pay out enough before the inevitable implosion.
Re: FDIC Takes over Silicon Valley Bank
#114LMAO. Can't even believe how many people were confidently asserting that nothing was wrong yesterday. If you had more than $250k in SVB yesterday you probably just took a huge haircut. Hundreds of startups will become illiquid as a result of SVB's collapse, and there will be major layoffs here in the next 90 days as founders realize that they lost their funds and cannot raise in the current VC environment.
[flagged]
Re: FDIC Takes over Silicon Valley Bank
#115Earlier quoted context omitted.
Or a cute 404 page when you login to your account: "Oops, looks like Santa misplaced his bag with all your money! Don't worry, his elves are busy looking for it all over the North Pole."
Kinda seems like it should be a 503 Money Unavailable.
410 Gone is more accurate.
Re: FDIC Takes over Silicon Valley Bank
#116First actual FDIC takeover since 2020, I think.
For comparison, alamena had 68m in deposits compared to SVB’s 175b
Re: FDIC Takes over Silicon Valley Bank
#1172008 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.
> It’s not interesting because of its name, it’s the 18th largest bank in the US.
Given how much media attention silicon valley gets, for better or worse, the name of the bank would have some affect.
Tech and fintwit are both blowing up on SVB, there are like 4 SVB related posts on HN front page, I even some reddit posts.
This will be big in the media, and therefore the public conscience.
Re: FDIC Takes over Silicon Valley Bank
#118[dead]
Re: FDIC Takes over Silicon Valley Bank
#119So any startup which had more than $250k in SVB only has $250k left now I'm assuming? Hopefully this doesn't have a bad domino effect.
250k on march 13th. The rest of the account will be released as the FDIC sells the banks assets, which will probably take months.
Re: FDIC Takes over Silicon Valley Bank
#120some note i've been taking > To protect insured depositors, the FDIC created a new entity called the Deposit Insurance National Bank of Santa Clara, or DINB. DINB will maintain Silicon Valley Bank’s normal business hours, with banking activities resuming no later than Monday, including online banking and other services, the FDIC said. Customers with accounts in excess of $250,000 are being told to contact FDIC direcl…
>Keep in mind 93% of SVB's assest were not FDIC insured. >> Silicon Valley Bank Had About $209.0B in Assets I'm not an expert, but aren't deposits in a bank liabilities ? Assets are things like treasury bills and loans held by the bank.
When Alice deposits $100 into a bank, the bank gains a $100 liability (owes Alice $100), and then a $100 asset (the cash). The asset is likely traded for a bond of some kind, in this case a US 10Y treasury.
The 10Y treasury was worth $100 in 2021, but today is only worth $80. The bank still owes Alice $100 (a $100 liability), but the asset's value has declined. This has caused... issues... culminating in the past week of events.