How the last-ditch effort to save Silicon Valley Bank failed
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Re: How the last-ditch effort to save Silicon Valley Bank failed
#2Re: How the last-ditch effort to save Silicon Valley Bank failed
#3Related:
Matt Levine: Silicon Valley Bank Ran Out of Money - https://news.ycombinator.com/item?id=35265027
Re: How the last-ditch effort to save Silicon Valley Bank failed
#4My 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 How is that money in the billions can be withdrawn so quickly esp.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 conditions to delay the withdrawals and give themselves ample time to react?
Re: How the last-ditch effort to save Silicon Valley Bank failed
#5My 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 How is that money in the billions can be withdrawn so quickly esp.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…
I don't think it would have meaningfully helped. Once the word was out that the bank was in distress it was game over. Company I work for also pulled out.
Re: How the last-ditch effort to save Silicon Valley Bank failed
#6My 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 How is that money in the billions can be withdrawn so quickly esp.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…
I doubt those limits would apply to business accounts, which I'd guess were the majority of the withdrawals here.
Are you sure the limits on your account would apply to e.g. a wire transaction? Of course there are limits on ATM withdrawals and some other transfer methods, but I'm not sure they'd apply if you wanted to send a wire.
Re: How the last-ditch effort to save Silicon Valley Bank failed
#7My 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.
Re: How the last-ditch effort to save Silicon Valley Bank failed
#8My 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…
No business is going to park their working capital with a bank that has those requirements.
Re: How the last-ditch effort to save Silicon Valley Bank failed
#9My 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.
Re: How the last-ditch effort to save Silicon Valley Bank failed
#10My 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…
Is that for a debit card? I understand the liability in draining a checking account with nothing more than a 4-digit PIN. On the other hand, I would never bank at a place that made withdrawal restrictions a condition to access my money.