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Urgent: Sign the petition now

ycombinator.com

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Re: Urgent: Sign the petition now

#501

Post by oldgradstudent »

garry wrote: post #315
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…

$250,000 will be available initially, which is doable for payroll of up to 15 to 25 people for one month, generally if you're a startup. FDIC website indicates remediation time in the months-to-years. This is the concern.

You ignore the next sentence:

> The FDIC will pay uninsured depositors an advance dividend within the next week.

This will likely be a substantial fraction of the uninsured deposits. Take a look at the FDIC website.

https://closedbanks.fdic.gov/dividends/

Pick a bank, say, "IRWIN UNION BANK & TRUST CO". The first dividend was almost 47% of the uninsured amount, and anoth 25% or so over a decade.

The failure of SVB as reported is not nearly as bad.

Re: Urgent: Sign the petition now

#502

Post by muyuu »

secondcoming wrote: post #99
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?

In the UK, consumer deposits are protected only up to £85k. Everyone has several bank accounts. If the person on the street knows this, it’s not too much to ask that someone running a business does too.

yep and if US$250K in cash is not a lot to have in deposits, then certainly some basic risk management and due diligence shouldn't be too much to ask for either

Re: Urgent: Sign the petition now

#503

Post by mberning »

snickerbockers wrote: post #481
mberning wrote: post #193

This is just brazen. These people play all kinds of financial games, run business right at the margin of what is legal, decry regulation or legislation that “hurts their competitiveness” (abusing 1099 employees anybody?) and then cry out immediately for a bail out as soon as they feel an ounce of pain. Maybe these CEOs and VCs can fund payroll for a few pay periods. Edit: I fully expect the YC sycophants to flag this…

>Edit: I fully expect the YC sycophants to flag this story to hell and get it off the front page, and the censors here will come along with their canned finger wagging and admonishments of anybody taking them to task. i have news for you lol.

It took all of 10 minutes lol

Re: Urgent: Sign the petition now

#504

Post by subsistence234 »

pixl97 wrote: post #426
echion wrote: post #91

Earlier quoted context omitted.

> 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.

that limit was set in 2008. before that it was $100k

Re: Urgent: Sign the petition now

#506

Post by reducesuffering »

We, the undersigned, do not believe in free markets. If some of us said we did, it was a lie of convenience. If we preach their virtues in the future, we are hypocrites. We put our money, over FDIC limits, into a single bank. We accrued positive benefits by using a bank which was trying to make the profits elsewhere. How they were attempting to make these profits was public information, https://www.cnbc.com/quotes/SIVB?tab=financials . We indirectly put our cash into mortgage-backed securities, those investments declined, and we're asking the public to make up the difference for our bet gone bad. It is up to you each of you Americans, to wire us $600 so that we can eventually be billionaires.

Sincerely, us

Re: Urgent: Sign the petition now

#507

Post by dehrmann »

breck wrote: post #419
garry wrote: post #358

Earlier quoted context omitted.

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 th…

You are in the top 1% and you are asking for a government bailout. Everyone knows that amounts over $250K were not insured. These are not "innocent depositors". A lot of my portfolio companies are affected, but I will not lobby for a government bailout on their behalf. It's not the right thing to do. I 100% agree with you on lobbying for an expedient process, but if these companies have to take a haircut, they have t…

> Everyone knows that amounts over $250K were not insured.

This is technically true, but I think there's a feeling that traditional banks are de-facto safe places to keep money. Depositors losing money in bank runs feels like a 1920's problem.

Re: Urgent: Sign the petition now

#508

Post by owlglass »

anigbrowl wrote: post #479
garry wrote: post #112

Earlier quoted context omitted.

We are advocating better regulation to prevent this from happening in the future. It's in the petition.

You really have this non-answer thing down. If the business thing doesn't pan out you could certainly pivot to politics.

Per Wikipedia, he's the President of YC, he's essentially a politician (without the ostensible duty to the public)

Re: Urgent: Sign the petition now

#509

Post by AlchemistCamp »

doodlesdev wrote: post #134
AlchemistCamp wrote: post #72

Earlier quoted context omitted.

Why is that? This is small and medium sized venture-backed startups, a sector that’s taken a tiny fraction of US investment but represented a major portion of its GDP growth. They did nothing wrong and were failed by their bank. Why are small tech startups building something new less deserving than say, giant banks that knowingly took extreme risks in 2008, or giant auto businesses that refused to modernize and truly…

They did something, they put their money in a bank which was lobbying for less regulations so they could make riskier plays, which put way too much depositor money into MBS (what the actual fuck). They didn't do their due diligence and now they are paying the price. They will receive dividends in advance and any employees which for some reason had money in the bank will still keep their 250k FDIC insured cash. If the…

It’s not just Americans. For many non US-citizen founders, SVB was the only US bank that would serve them. It’s hitting Indian startups hard:

https://techcrunch.com/2023/03/11/silicon-valley-bank-collap...

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