Are there any public companies that bank with SVB? Startups that went public in recent times?
FDIC Takes over Silicon Valley Bank
141–150 of 1001 posts
Re: FDIC Takes over Silicon Valley Bank
#142For comparison, Bear Stearns had $350b in assets in 2006 (and much less when they crashed in 2008).
SVB had $210b in assets yesterday.
Re: FDIC Takes over Silicon Valley Bank
#143Earlier quoted context omitted.
This case is unique because of the sheer volume of non-FDIC insured deposits. Substantial risk of depositors not being made whole for a while, they’ll probably get all their money but it will still be bad
> Substantial risk of depositors not being made whole for a while Emphasis on for a while. Stock and bond holders (man, did the latter miss the ball) will absorb losses.
What stock holders? Market cap was 2.5 billion pre-market, a small fraction of the 175b of deposits (as of Dec 31, 2022).
Re: FDIC Takes over Silicon Valley Bank
#144Now we just need an "incredible journey" blog post from SVB spinning this acquisition as a great win for both customers and investors.
That's not really possible. SVB as an entity no longer exists once the FDIC steps in.
Not entirely correct. There is still a "bad bank" which is the SVB entity (and will be wound up in bankruptcy), and the "new bank" which has all of the insured deposits.
Re: FDIC Takes over Silicon Valley Bank
#145Earlier 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.
Or 301 Moved Permanently. Or 406 Not Acceptable. Or 410 Gone. Or 417 Expectation Failed. Or 429 Too Many Requests.
So many fitting status codes to chose between I don't know what to do!
Re: FDIC Takes over Silicon Valley Bank
#146So let's say you work at a startup that has all their cash at SVB. Are you basically without a job now?
Re: FDIC Takes over Silicon Valley Bank
#1472008 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…
> And any accounts over $250K, poof. That's not quite true; the FDIC will pay uninsured depositors an advance dividend within the next week.
My finance-foo is quite weak, what does advance dividend mean in this context?
Re: FDIC Takes over Silicon Valley Bank
#148> Silicon Valley Bank is the first FDIC-insured institution to fail this year. Wow FDIC is fully calling it a failed bank. Just yesterday they were releasing statements saying they’re in a good position. Uncle Sam just fully opened Pandora’s box and made the judgement public!
The FDIC calls them failed banks by definition. If they step in, you failed. They have a failed bank list and Sivb is going on it.
Re: FDIC Takes over Silicon Valley Bank
#149Earlier quoted context omitted.
This case is unique because of the sheer volume of non-FDIC insured deposits. Substantial risk of depositors not being made whole for a while, they’ll probably get all their money but it will still be bad
> Substantial risk of depositors not being made whole for a while Emphasis on for a while. Stock and bond holders (man, did the latter miss the ball) will absorb losses.
Possibly forever, if the assets aren't there. A senior claim on $0 is still worth $0. There may be sufficient assets to pay back depositors, but we don't really know at this point.
Re: FDIC Takes over Silicon Valley Bank
#150Why did startups use SVB over larger commercial banks? Every place I've worked has used them for some reason. I don't get it.
common wisdom held that it made it easier for investors to get you money -- especially from the usual sand hill road folks..