Does this mean that depositors have lost access to their funds until the bankruptcy process, with the exception of $250k which will be available on Monday?
That is correct.
FDIC Takes over Silicon Valley Bank
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Re: FDIC Takes over Silicon Valley Bank
#42Re: FDIC Takes over Silicon Valley Bank
#43What a debacle.
Some gallows humor from twitter: "Imagine raising $100m for your AI enabled dog washing app - and your bank sets it on fire before you can".
Original: https://twitter.com/88888sAccount/status/1634028258500169731...
Re: FDIC Takes over Silicon Valley Bank
#44Unrelated to their finances, but they have an exceptional engineering team over there that I had the privilege of speaking with.
I’m sorry to see this happen.
Re: FDIC Takes over Silicon Valley Bank
#45Earlier quoted context omitted.
The difference is that SVB's depositors will see most of their money back, which is the point of the FDIC taking over.
When, though? If your company can't access your money to access payroll for X months, you might as well as be dead.
> 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.
Re: FDIC Takes over Silicon Valley Bank
#46Yesterday I read on here that "xyz doesn't mean SVB is going under like FTX did five minutes after doing that".
The difference is that SVB's depositors will see most of their money back, which is the point of the FDIC taking over.
We don’t really know yet if they will be getting most of their money back.
The only guaranteed amount is 250k.
Re: FDIC Takes over Silicon Valley Bank
#47Earlier quoted context omitted.
The difference is that SVB's depositors will see most of their money back, which is the point of the FDIC taking over.
I wouldn't be too sure about that. 93% of SVB deposits are uninsured.
I'm super curious why in the world that in 2023, nearly all the deposits in the country's 18th largest bank are not insured ? what?
Re: FDIC Takes over Silicon Valley Bank
#48some note i've been taking > To protect insured depositors, the FDIC created a new entity called the Deposit Insurance National Bank of Santa Clara, or DINB. DINB will maintain Silicon Valley Bank’s normal business hours, with banking activities resuming no later than Monday, including online banking and other services, the FDIC said. Customers with accounts in excess of $250,000 are being told to contact FDIC direcl…
>Keep in mind 93% of SVB's assest were not FDIC insured.
>> Silicon Valley Bank Had About $209.0B in Assets
I'm not an expert, but aren't deposits in a bank liabilities? Assets are things like treasury bills and loans held by the bank.
Re: FDIC Takes over Silicon Valley Bank
#49Earlier quoted context omitted.
Does this mean that SVB customers are going to lose deposits over the FDIC limit (250k?)
For now yes, you get a note on what’s owed that remains and in time you get some of your money back post bankruptcy. Keep your accounts lower than 250k
Or better yet, don't listen to your VC's relationship people and put all of your money in one bank.
Re: FDIC Takes over Silicon Valley Bank
#50Oh dear. It guess this is how the VC pyramid scheme collapses. $151BN uninsured deposits in the bank. [0] Now all those unprofitable startups will be falling like dominoes as now the money is tied up in the bank with withdrawals disabled. [0] https://twitter.com/FedGuy12/status/1634038788468113408
Does this mean that SVB customers are going to lose deposits over the FDIC limit (250k?)
No because SVB has assets with value to sell. That's the "dividend" the FDIC refers to in the press release.