Earlier quoted context omitted.
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Hope should be reserved for good things. I hope the ones who truly had no idea what they were risking come out better and wiser.
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Urgent: Sign the petition now
201–210 of 864 posts
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#202I would recommend people familiarize themselves with what happens historically when bank failures happen unchecked. It’s catastrophic. Good luck to you if any of these companies employs you or owes you money. A good book with a first person blow by blow is “The Great Depression: a diary”
Everyone is aware of the Great Depression. This ain't it.
Re: Urgent: Sign the petition now
#203Earlier quoted context omitted.
Government interference in the economy is bad* *Unless it's to bail me out.
FWIW I've never had that perspective, so I'm not sure why you are saying that.
he's making a joke that I think is pretty clear, and jokes are only funny when they're stripped to their essentials.
if anybody holds the perspective that the govt should use public funds to save a set of companies because ma jobs, ma innovations, etc. in the venture capital sector it would seem that person does hold that perspective, at least enough to joke about it.
Unless you're making a more unlikely point that the government should be intervening all the time?
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#204Re: Urgent: Sign the petition now
#205Trump & 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…
Stress test (financial) > Bank stress test , Payment and settlement systems stress test
https://en.wikipedia.org/wiki/Stress_test_(financial)#Bank_s...
List of bank stress tests > Americas https://en.wikipedia.org/wiki/List_of_bank_stress_tests#Amer...
https://www.google.com/search?q=increased+capital+thresholds...
From "Transparency & Accountability - EGRRCPA (S. 2155) Rulemakings" https://www.fdic.gov/transparency/egrrcpa.html :
> The FDIC is responsible for a number of rulemakings under the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). This page provides links to proposed and final rules and related documents.
"FDIC Releases Economic Scenarios for 2022 Stress Testing" (2022) https://www.fdic.gov/news/press-releases/2022/pr22019.html
How can the scenarios and policies be improved?
Re: Urgent: Sign the petition now
#206Earlier quoted context omitted.
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?
I know that 250k cash is not a lot for a company with a few folks on payroll. But why wouldn’t you distribute cash across multiple banks as a business? It hasn’t to be this situation, but if your accounts are flagged for fraud or someone hacks an account, aren’t you safer by distributing cash in multiple banks?
People keep saying 250k, but it's actually 500k for any account with two signatories, which a company should be trivially able to produce.
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#207LOL, 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.
If this is handled by the ordinary procedures used to handle bank bailouts and if the story is what we've been told (problems w/ bonds going bad because of an interest rate increase) there could be some haircut for depositors but it will not be apocalyptic. If the real problem is the quality of the loan book, however, it calls the startup and VC economy into question. We'll learn a lot more about this in the next few…
If a startup can't pay their employees at the end of the month, it's apocalyptic no matter whether or not they get access to their money again at some future date.
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#208LOL, 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.
SVB has some ordinary people as depositors, with a regular commercial bank as their Boston Private subsidiary. It would be very disruptive and cruel if they lost all or much of their deposits.
SVB's stockholders, on the other hand . . .
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#209I would say it's risky to keep such large deposits with a small bank. We use Wells Fargo for a reason; they make conservative investments and are very unlikely to be shutting down.
Wells Fargo needs to be shut down. Hard to think of a more corrupt Western banking institution
Wells Fargo is the least corrupt large bank I can think of. They were nice and helped bail out one of the 2008 losers then those influx employees started doing mischievous things and gave WF a bad name for a while. I think they've got all that sorted now.
Re: Urgent: Sign the petition now
#210I wonder how many of the petition signers are vehemently against the government's student loan forgiveness plan.
I get the thrust of the comment, but it's not a particularly good analogy. The petition signers are asking for the FDIC to prioritize their debt (deposits at SVB) repayment. They aren't asking for debt forgiveness.