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How the last-ditch effort to save Silicon Valley Bank failed

wsj.com

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Re: How the last-ditch effort to save Silicon Valley Bank failed

#11

Post by loopdoend »

hackly wrote: post #4

My bank (in Canada) has limits on how much I can withdraw per day, per week, per month. Furthermore, there could be a delay of up to 5 business days before I can get the money to its destination. And that’s for money in the thousands only. How is that money in the billions can be withdrawn so quickly esp. since these were high value accounts each in the millions/billions? Couldn’t they just use one of their terms or…

This does not reflect the reality of business bank accounts in Canada.

When you have treasury access you can wire as much money as you want practically instantly just like with SVB. I bank with one of the big 5.

Nothing is stopping you from going into your bank and wiring money away it's just cash that they don't want to give out without multi-day delays.

Re: How the last-ditch effort to save Silicon Valley Bank failed

#12

Post by timcederman »

tacostakohashi wrote: post #9
hackly wrote: post #4

My bank (in Canada) has limits on how much I can withdraw per day, per week, per month. Furthermore, there could be a delay of up to 5 business days before I can get the money to its destination. And that’s for money in the thousands only. How is that money in the billions can be withdrawn so quickly esp. since these were high value accounts each in the millions/billions? Couldn’t they just use one of their terms or…

Does it, in fact, not permit you to get to the entire balance immediately via, say, cash or a bank check? It sounds like you are referring to something like an ATM withdrawal limit or online transfer limit which is just a risk / fraud limiting measure for those particular channels rather than a limitation on the account itself.

Live Oak Bank limits business account withdrawals to $250k/day.

Re: How the last-ditch effort to save Silicon Valley Bank failed

#13

Post by ant6n »

hackly wrote: post #4

My bank (in Canada) has limits on how much I can withdraw per day, per week, per month. Furthermore, there could be a delay of up to 5 business days before I can get the money to its destination. And that’s for money in the thousands only. How is that money in the billions can be withdrawn so quickly esp. since these were high value accounts each in the millions/billions? Couldn’t they just use one of their terms or…

How would you pay for a house? Or a car?

Re: How the last-ditch effort to save Silicon Valley Bank failed

#14

Post by pavon »

ars wrote: post #7
hackly wrote: post #4

My bank (in Canada) has limits on how much I can withdraw per day, per week, per month. Furthermore, there could be a delay of up to 5 business days before I can get the money to its destination. And that’s for money in the thousands only. How is that money in the billions can be withdrawn so quickly esp. since these were high value accounts each in the millions/billions? Couldn’t they just use one of their terms or…

That's very odd. I don't know if it's your bank, or something specific to Canada. In the US the only limits are via the ATM or Debit card. If you write a check, go in person, or send a wire, you can withdraw as much as you want, with no time delay or restriction. > Couldn’t they just use one of their terms or conditions to delay the withdrawals and give themselves ample time to react? That's simply not a thing.

Every bank I have used in the US has limits and time delays for ACH transfers. While you can take out more with a check, practically speaking those take longer to process than an ACH transfer. And you already mentioned the limits with Debit and ATM. So all the methods that average consumers use to interact with their banks have limits and/or delays, and they may not be aware of other options.

Re: How the last-ditch effort to save Silicon Valley Bank failed

#15

Post by nullc »

pavon wrote: post #14
ars wrote: post #7

Earlier quoted context omitted.

That's very odd. I don't know if it's your bank, or something specific to Canada. In the US the only limits are via the ATM or Debit card. If you write a check, go in person, or send a wire, you can withdraw as much as you want, with no time delay or restriction. > Couldn’t they just use one of their terms or conditions to delay the withdrawals and give themselves ample time to react? That's simply not a thing.

Every bank I have used in the US has limits and time delays for ACH transfers. While you can take out more with a check, practically speaking those take longer to process than an ACH transfer. And you already mentioned the limits with Debit and ATM. So all the methods that average consumers use to interact with their banks have limits and/or delays, and they may not be aware of other options.

The bank will happily tell you that wire transfers have no limits or delays.

Re: How the last-ditch effort to save Silicon Valley Bank failed

#16

Post by notch898a »

nullc wrote: post #15
pavon wrote: post #14

Earlier quoted context omitted.

Every bank I have used in the US has limits and time delays for ACH transfers. While you can take out more with a check, practically speaking those take longer to process than an ACH transfer. And you already mentioned the limits with Debit and ATM. So all the methods that average consumers use to interact with their banks have limits and/or delays, and they may not be aware of other options.

The bank will happily tell you that wire transfers have no limits or delays.

Yes my bank says that, but as soon as I actually do it they suddenly have to "do KYC" aka hold it up for days and give me lots of bullshit reasons why an already thoroughly KYC'd account needs to wait for a wire because reasons. Meanwhile not only can you not access the money in either of your accounts, the bank is drawing sweet sweet overnight IORB interest on it.

Re: How the last-ditch effort to save Silicon Valley Bank failed

#17

Post by lazide »

timcederman wrote: post #12
tacostakohashi wrote: post #9

Earlier quoted context omitted.

Does it, in fact, not permit you to get to the entire balance immediately via, say, cash or a bank check? It sounds like you are referring to something like an ATM withdrawal limit or online transfer limit which is just a risk / fraud limiting measure for those particular channels rather than a limitation on the account itself.

Live Oak Bank limits business account withdrawals to $250k/day.

That’s a policy thing to limit capital outflows, not a technical limitation.

Re: How the last-ditch effort to save Silicon Valley Bank failed

#18

Post by adaml_623 »

notch898a wrote: post #16
nullc wrote: post #15

Earlier quoted context omitted.

The bank will happily tell you that wire transfers have no limits or delays.

Yes my bank says that, but as soon as I actually do it they suddenly have to "do KYC" aka hold it up for days and give me lots of bullshit reasons why an already thoroughly KYC'd account needs to wait for a wire because reasons. Meanwhile not only can you not access the money in either of your accounts, the bank is drawing sweet sweet overnight IORB interest on it.

Why are you still banking with them?

Re: How the last-ditch effort to save Silicon Valley Bank failed

#19

Post by notch898a »

adaml_623 wrote: post #18
notch898a wrote: post #16

Earlier quoted context omitted.

Yes my bank says that, but as soon as I actually do it they suddenly have to "do KYC" aka hold it up for days and give me lots of bullshit reasons why an already thoroughly KYC'd account needs to wait for a wire because reasons. Meanwhile not only can you not access the money in either of your accounts, the bank is drawing sweet sweet overnight IORB interest on it.

Why are you still banking with them?

Honestly I just thought that was the way banking was done. I don't send a lot of wires (and everybody else I have dealt with were even worse).

Re: How the last-ditch effort to save Silicon Valley Bank failed

#20

Post by fsckboy »

lazide wrote: post #17
timcederman wrote: post #12

Earlier quoted context omitted.

Live Oak Bank limits business account withdrawals to $250k/day.

That’s a policy thing to limit capital outflows, not a technical limitation.

but that's exactly what we're talking about
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