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Urgent: Sign the petition now

ycombinator.com

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Re: Urgent: Sign the petition now

#421

Post by [deleted] »

scarface74 wrote: post #383
briHass wrote: post #223

Earlier quoted context omitted.

Just to clarify, these depositors specifically exceeded the FDIC deposit insurance limit (250K), right? That isn't a new or unknown rule; either through ignorance or calculated risk, those depositors that exceeded the limit took a chance. I don't disagree that something should be done in the future to prevent this, but when you gamble, sometime you lose.

Were they gambling by putting their money in an FDIC insured bank? How do you even run a payroll system if your money is spread out between a dozen banks?

[deleted]

Re: Urgent: Sign the petition now

#422

Post by pm90 »

PragmaticPulp wrote: post #280
jimrandomh wrote: post #37

Statement 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 FDI…

The FDIC’s statement, which is very short and to the point, should be required reading for anyone wanting to discuss the situation. The FDIC’s handling of the situation appears to be geared toward urgency and keeping depositors up and running. The advance dividend provides significant access to funds beyond the $250K limit. The number of comments, Tweets, and even opinion pieces I’m reading from people who assume tha…

There is no certainty over the amount of dividend the FDIC will pay out. IMO this weekend is a critical time: if the FDIC/Government act quickly and provide hard numbers, it will both stabilize the depositors and prevent panic from rippling through the ecosystem. I feel like the urgency and fear mongering is quite justified considering the tiny window of opportunity present to avoid irreversible catastrophic damage to the system.

Re: Urgent: Sign the petition now

#423

Post by ENGNR »

garry wrote: post #101
wnevets wrote: post #67

Earlier 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.

Perhaps not you personally, but certainly the organisation you're representing has had that perspective

Re: Urgent: Sign the petition now

#424

Post by fsckboy »

SVB got pummelled by the market when it's portfolio of mortgaged backed securities declined in the face of soaring interest rates.

I'm not sure I agree that banks should even be allowed to buy mortgage backed securities. Banks earn their keep by lending money and writing mortgages and selling the mortgages to securitizers. A bank buying mortgage backed securities is like Target announcing they will no longer focus on sales of goods, but rather, returns!

Re: Urgent: Sign the petition now

#425

Post by Denvercoder9 »

fbdab103 wrote: post #162
fshbbdssbbgdd wrote: post #108

Earlier quoted context omitted.

The most plausible idea would be some other bank buys SVB. Depending on the current state of SVB’s balance sheet (which is not publicly known), other banks may be willing to pay as little as $0 or there may be no takers.

What is the incentive for someone to buy SVB? Just to stop the spread of contagion or is there any scenario in which that was a profitable move?

If you're well-capitalized, so you can weather the bank run, and have time, you might be able to sell SVB's assets for more than their liabilities.

Re: Urgent: Sign the petition now

#426

Post by pixl97 »

echion wrote: post #91
jarym wrote: post #32

Earlier 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?

> Are you saying if I deposit [...] I should just accept the impact [...] due to events unrelated to my actions and choices? You chose that bank and you chose to deposit more than $250,000. Are you saying the limit should be higher?

I mean when that limit was set 250k was a lot, but it really needs to be pegged to inflation.

Re: Urgent: Sign the petition now

#427

Post by user982 »

nwienert wrote: post #370
version_five wrote: post #332

Earlier quoted context omitted.

I posted it, I'm aware of the rules about titles, but honestly I thought my title was way more clear about what the story was. In retrospect I should have called it "Tell HN: YC is asking for a bailout", think that would have been fair. The fact that it's been edited here is not cool with me, especially as the story is unfavorable to YC (though I certainly believe readers are smart enough to draw their own conclusion…

I think it was maybe the fastest rising post I’ve ever seen. That was solely because of the title.

And now it's flagged.

Re: Urgent: Sign the petition now

#428

Post by esalman »

A lot of the tech bros currently asking for bailout have a track record for being anti-bailout, anti-handout, anti-government control, anti-money printing, anti-taxation, anti-stimulus. Absolutely no sympathy for them.

Re: Urgent: Sign the petition now

#429

Post by CSSer »

josalhor wrote: post #250

Everyone here seems pretty negative about the petition based on the title that says "YC Is Asking for a Bailout", when actually the content of the post is quite different: > Small business depositors at Silicon Valley Bank should be made whole. Regulators need to conduct a backstop of depositors. We are not asking for a bank bailout. With emphasis on that "We are not asking for a bank bailout". They are also asking f…

No, it’s not different. Y Combinator does want to be be bailed out. The old title wasn’t “Y Combinator wants Silicon Valley Bank to be bailed out.” Depositors aren’t going to get completely hosed by this anyway. And as for the domino effect, it’s scaremongering as a means to an end. Don’t piss down my back and call it rain.

Re: Urgent: Sign the petition now

#430

Post by nightmarish »

tikkun wrote: post #157
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.

Disagree. People who invested in SVB should be wiped out, probably. People who deposited in SVB should not be wiped out. Depositors in banks aren't expected to do due diligence on the financial statements of the bank they're depositing in. Have you read the 10-K filings of your bank in detail?

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