271–280 of 1001 posts
Oldie but goodie on what actually happens when a bank is taken over. https://www.npr.org/2009/03/26/102384657/anatomy-of-a-bank-t...
From the looks of the news stories, it looks like the FDIC isn't as efficient in taking over a bank as it used to be: https://nypost.com/2023/03/10/nypd-called-to-silicon-valley-...
Oldie but goodie on what actually happens when a bank is taken over. https://www.npr.org/2009/03/26/102384657/anatomy-of-a-bank-t...
will companies with money in SVB even be able to make payroll? Seems like this could cause huge issues in the short term and long term
Likely many companies won’t be able to do mid-month payroll.
Someone will setup a market for the FDIC warrant on uninsured deposits, but that will take time.
Does 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.
Now we just need an "incredible journey" blog post from SVB spinning this acquisition as a great win for both customers and investors.
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."
Wow, the government acted incredibly swiftly and decisively to crush the possibility of a general bank panic. The current US banking system is very different from the 2008 system.
Bear Stearns in 2008 was an investment bank, they were not hawking FDIC insured accounts.
Does this settle the question of insolvency then? I didn't see that term in the other announcement.
Earlier quoted context omitted.
Disrupt disrupt disrupt! Those old stodgy banks just slow us down with their old-fashioned risk-averse ways! The cool kids can do it better! If I had a nickel for every time I heard this from actual friends in the past couple decades, or for when I said it myself a few times... :)
Thing is, it's probably true for 1% of the cases, that things are slow for no good reason. Trick is how to identify that 1% of times when you can truly make something better. But 99% of the times, it's all shit and ends up like this, or similarly.
What a debacle. Some gallows humor from twitter: "Imagine raising $100m for your AI enabled dog washing app - and your bank sets it on fire before you can". Original: https://twitter.com/88888sAccount/status/1634028258500169731...
Disrupt disrupt disrupt! Those old stodgy banks just slow us down with their old-fashioned risk-averse ways! The cool kids can do it better! If I had a nickel for every time I heard this from actual friends in the past couple decades, or for when I said it myself a few times... :)
Earlier quoted context omitted.
Yeah famously the feds step in and cover your deposits when a crypto exchange collapses
You're not supposed to keep your money in exchanges