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SVB's programmatic payment systems are back online

news.ycombinator.com

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Re: SVB's programmatic payment systems are back online

#31

Post by patrickdward »

dougSF70 wrote: post #20
chatmasta wrote: post #3

Brex and Gusto have been nagging us to setup a new bank account, but is this urgently necessary if SVB ACH is operating normally now? What are other people doing? We'll obviously open a new account eventually but it doesn't seem urgent?

I am going to run payroll from my personal checking account because gusto wants a different bank to SVB. I will then wire funds from SVB to my personal account. Then I will find a new business banking provider.

Get board approval first. This can create legal issues for you.

Re: SVB's programmatic payment systems are back online

#32

Post by invokestatic »

jacooper wrote: post #10
chatmasta wrote: post #3

Brex and Gusto have been nagging us to setup a new bank account, but is this urgently necessary if SVB ACH is operating normally now? What are other people doing? We'll obviously open a new account eventually but it doesn't seem urgent?

So the new DIND bank created by the FDIC is an actual bank? Not just some kind of temporary org until everyone withdraws their money?

The DINB, as I understand it, is now closed and all assets moved to a new entity called Silicon Valley Bank, NA which is a “bridge bank” operated by the FDIC and should operate like any other bank does. Until another bank buys it.

Re: SVB's programmatic payment systems are back online

#33

Post by rexreed »

Karunamon wrote: post #14
chatmasta wrote: post #8

Earlier quoted context omitted.

Brex has been promoting their business checking account, and claims it's FDIC insured up to $2.25m. Anyone moving there?

I would think twice about them after they unceremoniously cut off a bunch of their customers, followed by the higher ups responding to the outrage with lame PR corpspeak https://news.ycombinator.com/item?id=31772211

They also dramatically and unilaterally devalued their rewards: https://news.ycombinator.com/item?id=35121124 as well as had a big layoff round: https://techcrunch.com/2022/10/11/fintech-brex-layoffs-restr.... Be wary, manage your risk, don't overconcentrate, diversify.

Re: SVB's programmatic payment systems are back online

#34

Post by dgacmu »

chatmasta wrote: post #12
jacooper wrote: post #10

Earlier quoted context omitted.

So the new DIND bank created by the FDIC is an actual bank? Not just some kind of temporary org until everyone withdraws their money?

It's quite bizarre and I'm also wondering this. I have no idea if it's possible to deposit into SVB. But they claim that the bank is operating normally.

Yes. The bank is now a bridge bank: https://www.fdic.gov/news/press-releases/2023/pr23019.html

This is a mostly fully functional bank designed to help smooth the transition for depositors away from SVB to their new permanent homes.

Re: SVB's programmatic payment systems are back online

#35

Post by toast0 »

partiallypro wrote: post #25
churchill wrote: post #13

I wonder why no one has said it yet but Mercury will come out the biggest winner from this mess. I can't estimate how the traffic from SVB > Mercury has been but I saw a post by Arc.tech saying they'd received hundreds of millions in deposits between 8 - 10 March. Given Mercury was a more popular contender, I'm going to bet they had an inflow of basically double-digit billions.

But mass inflows of deposits are exactly how SVB got into the situation it's in now. You have to pay interest on the deposits. I'd much rather go to a truly "too big to fail" bank that can easily cover the deposit interest with a diverse line of business.

> You have to pay interest on the deposits.

Eh, how much does BofA or Chase pay on deposits? Interest rates have gone up, so they might hit 0.05% now?

Re: SVB's programmatic payment systems are back online

#36

Post by dmckeon »

robertlagrant wrote: post #15
HPMOR wrote: post #4

Earlier quoted context omitted.

It is not urgent. All depositors assets, uninsured & insured, are being backstopped by the Treasury. No need to worry if your assets are being held by the FDIC receivership. Now, if your assets are at First Republic, there might be some concern, but I believe that the Treasury has sent a strong signal that depositors will be made whole.

What does "sent a strong signal" mean in reality?

This was pretty strong: https://home.treasury.gov/news/press-releases/jy1337

Re: SVB's programmatic payment systems are back online

#38

Post by TimTheTinker »

epa wrote: post #19

No one cares about accounting controls until they need them. Let this be a lesson to all technical founders.

I think there are a lot of good reasons accountants, not MBAs, should be the ones running companies.

I work at a mid-size company (~550 employees) run by accountants. Their leadership and handling of the company is fantastic.

Re: SVB's programmatic payment systems are back online

#40

Post by londont »

chatmasta wrote: post #3

Brex and Gusto have been nagging us to setup a new bank account, but is this urgently necessary if SVB ACH is operating normally now? What are other people doing? We'll obviously open a new account eventually but it doesn't seem urgent?

Hi there, co-founder of Gusto here. To clarify — If you have not yet updated your bank account on file to another (see article), you will have to wire funds to Gusto in order to make payroll on time. Log in to the app, run payroll, and you’ll get a prompt with more details and the specific cut-off, but it’s usually 10am PST in the morning of payroll.

In terms, of getting a new bank set up, I’ve seen people open bank accounts same-day with Mercury (online) or Chase (walking into a branch). Wiring funds from SVB to one of these banks should take But yes, you CAN initiate a wire transfer from SVB if you prefer to do that. Note that some SVB customers are seeing issues with the portal right now (probably given high traffic).

Hope this helps.

Oh, also we created this resource hub to help SVB customers with tips like the above: https://gusto.com/company-news/silicon-valley-bank-closure-r...

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