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Urgent: Sign the petition now

ycombinator.com

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Re: Urgent: Sign the petition now

#351

Post by moviedo »

nocoiner wrote: post #8

LOL, 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.

I work at a startup that may be affected by this situation and even I agree with your sentiment. If the startups affected by this ordeal are bailed out, then at the bare minimum we the public should get 10% equity for every startup saved. Let's go the VC route and get something for our tax dollars(socialize those gains).

Re: Urgent: Sign the petition now

#352

Post by toast0 »

TedDoesntTalk wrote: post #314
pixl97 wrote: post #189

Earlier quoted context omitted.

I mean the 250-500k limits have been around for a long time now, that said they are rather low due to inflation. Most larger companies reduce this risk by spreading assets over a number of banks. Just banking with a large bank does nothing if they fail.

You don’t even need to use multiple banks. Each individual amount is insured to $250k. So if you have monthly payroll due of $1M, then open four checking accounts (all at the same bank), and don’t keep more than $250k in each.

Four checking accounts at the same bank and titled in the same name get only one helping of deposit insurance.

> Coverage Limit: All deposits owned by a corporation, partnership, or unincorporated association at the same bank are added together and insured up to $250,000, separately from the personal accounts of the owners or members.

> The corporation, partnership, or unincorporated association must be separately organized under state law and operate primarily for some purpose other than to increase deposit insurance coverage.~

https://www.fdic.gov/resources/deposit-insurance/financial-p...

Re: Urgent: Sign the petition now

#353

Post by secondcoming »

garry wrote: post #167
axlee wrote: post #127

Earlier quoted context omitted.

There was nothing arbitrary about that choice. This bank promised better deals BECAUSE they were not careful enough about the risk it entailed. That was their competitive advantage, and they made bank for it. Well, tough luck, now it's not anymore: it has nothing to do with being a large bank or a small bank, it has to do with healthy business practices.

Many startups chose SVB because they were the ones willing to open a bank account for them at all. I remember going to a branch of Bank of America to open a bank account for Posterous and not being able to.

Was that before you had an account at SVB?

Would BoA have been more willing to open an account for you if your business already had one?

Re: Urgent: Sign the petition now

#354

Post by readonthegoapp » 

  "we are asking you to save innovation in the American economy."
lol.

be nice if so much of this innovation wasn't about destroying american workers, spying on americans, exploiting developing world labor, and controlling the public mind in new ways.

Re: Urgent: Sign the petition now

#356

Post by baq »

garry wrote: post #291
baq wrote: post #24

Pathetic to be honest. Yes it’s bad. Yes it’ll get worse if no buyer at 100 cents to the dollar is found by Monday morning. And yet, literally everyone involved signed up for it! It isn’t like there aren’t other banks? The thing had a circus for its risk management office. The big mighty all-knowing VC firms shouldn’t go around crying like babies and signing petitions but be organizing bridge loans until FDIC, the mo…

These are businesses that had a reasonable expectation for their deposits to be there, and we are not advocating for a bailout of SVB's management or equity holders.

Sir you should talk rather firmly to your VC friends who told their portfolio companies to withdraw to maybe not spread FUD next time because things happen. It sucks this time around. Get those founders bridge loans instead of replying to a rando on the internet (though I appreciate the opportunity to interact).

Re: Urgent: Sign the petition now

#358

Post by garry »

prepend wrote: post #133

What would I gain as a taxpayer in return for this bailout? Would the taxpayer receive 10% equity in YC? It seems like YC could have insured these funds, but didn’t. They saved money and accepted the risk. This risk is now realized. Seems bizarre that YC would be made whole. Certainly it saves jobs, but it benefits YC more than anyone else.

These are deposits at a bank. We're advocating for protection of 37,000 small business accounts, a small number of which are YC.

We discovered about 30% of YC companies would not be able to make payroll even after the $250,000 insured amount if they were to wait months for their payments. That is detailed on the FDIC website currently as the process for remediation.

This petition represents the lived experience of thousands of founders, and this is how we are communicating this is a real problem that DC needs to be aware of.

Again, this is not about saving SVB, the bank that made decisions that led to this, nor their equity holders. This is about saving innocent depositors.

Re: Urgent: Sign the petition now

#359

Post by throwmeaway1212 »

stanleydrew wrote: post #210
lapcat wrote: post #21

I 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.

I'm sorry, maybe I misunderstand, but they are asking for this 'Small business depositors at Silicon Valley Bank should be made whole', any good business should be aware of the max insured amount, so it sounds like they are asking for more than is specified by law (that they should have known about), and therefore asking the government to give them money that they knew was at risk. Currently given the regulations they would get back up to $250k, yet they are asking for more, from the government. So...they are asking the government for free money to help run their businesses....why is that different from students asking the government for free money to pay off their student debts?

Re: Urgent: Sign the petition now

#360

Post by sailingparrot »

afavour wrote: post #57

[deleted]

> Was there something particularly incredible about SVB that led so many businesses to use it, and use it solely?

Yes, they allowed non-US founders to open a bank account for their companies. They weren't the only one, but many other banks won't do it.

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