Might seem like an ahole but can't you guys making 100k+ per year ride it out? We are talking about startup a here, have we forgotten the risks and implications that come with this model?
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#32LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.
Are you saying if I deposit more than $250k (which is NOT a lot for a business) into a reputable and regulated US bank at negligible rates of interest I should just accept the impact of the bank shutting down due to events unrelated to my actions and choices? And that my deposit should vanish into thin air?
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#33Regulation sucks until it does not.
Less regulation equals more cases of failures like SVB.
Striking a good balance is hard. It‘s certainly not zero regulation.
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#34So Paul Graham, who is vehemently against taxing the rich, wants a bailout? Funny...
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#35Trump & republicans cut banking regulations and increased capital thresholds from 50 to 250 billion for banks to comply with an FDIC stress test as mandated by Dodd-Frank (which was enacted after the mortgage crisis). SVB would have not gone bankrupt had they been required to pass this stresstest. This change was widely supported by tech companies and banks and here we are again with a bank engaging in risky behavior holding out their hand for taxpayers to bail them out: NO.
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#36I don't get the sense there is a lot of sympathy from HN over this event. People lost money, payroll may be missed, that's a detrimental thing for a lot of people. If little sympathy, why?
There’s nothing more annoying than being prattled to by morons who think that money equates to intelligence.
May they burn brightly.
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#37Statement by the FDIC: https://www.fdic.gov/news/press-releases/2023/pr23016.html
Key paragraph:
> "All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors."
The advance dividend presumably should protect most of the small-business account holders from imminently missing payroll. Presumably after that, there will be a secondary market in receivership certificates, and the question will be how much of a discount these trade at relative to the original account balances.
It's still a bad situation to be in, but it shouldn't be as thoroughly catastrophic as many seem to think.
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#38For posterity, the chefs kiss title of this submission as of now is:
“YC Is Asking for a Bailout”
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#39Can we get the Fed to bail out dang? Life will go on if some VCs go under, but this website must survive.
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#40LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.
Are you saying if I deposit more than $250k (which is NOT a lot for a business) into a reputable and regulated US bank at negligible rates of interest I should just accept the impact of the bank shutting down due to events unrelated to my actions and choices? And that my deposit should vanish into thin air?
That is the contract you are signing, so yes?