SVB customers who lost their deposits remain on the hook for loans
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Re: SVB customers who lost their deposits remain on the hook for loans
#2Re: SVB customers who lost their deposits remain on the hook for loans
#3Related article:
The Pain of Silicon Valley Bank’s Collapse Is Being Felt by These Depositors: Customers that banked at SVB’s Cayman Islands branch have had their funds seized by the FDIC
https://www.wsj.com/articles/the-pain-of-silicon-valley-bank... (https://archive.is/Gzj06)
Posted back in May at https://news.ycombinator.com/item?id=35932002 and https://news.ycombinator.com/item?id=35968213 but not discussed.
Re: SVB customers who lost their deposits remain on the hook for loans
#4Is it normal for loans to be wiped clean in a bank failure?
Re: SVB customers who lost their deposits remain on the hook for loans
#5Is it normal for loans to be wiped clean in a bank failure?
No, definitely not, they are the key source of funds for creditors of the bank.
Re: SVB customers who lost their deposits remain on the hook for loans
#6Live by the sword, die by the sword as far as doing business in regulation-free tax havens goes, I guess?
Re: SVB customers who lost their deposits remain on the hook for loans
#7Is it normal for loans to be wiped clean in a bank failure?
If I go bankrupt and get protected from my debts, that doesn't mean others who are in debt to me also get protected.
Re: SVB customers who lost their deposits remain on the hook for loans
#8https://archive.is/1d4uw
ERR_SSL_VERSION_OR_CIPHER_MISMATCHRe: SVB customers who lost their deposits remain on the hook for loans
#9Is it normal for loans to be wiped clean in a bank failure?
Loans are an asset on the banks balance sheet and can be sold like any other asset.