591–600 of 889 posts
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I'll ask then. What happens to an organism when it stops growing? It's an exponential process and there are really only 2 states except for an infinitesimally small space between.
The only "natural" organism that grows without attempting a quasi-stable, dynamic equilibrium with its environment is cancer. The exponential processes you refer to are not "natural" in the general sense and only represent the barest, simplest models.
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To add to the other comments, SVB also courts startup founders for their private banking arm, and there, too, the benefit is that they actually understand startup founders. Example: After our startup went up in flames in 2017 my wife and I (co-founders) got "regular jobs" with nice salaries. Some time later, we tried to refinance our mortgage with Chase. The banker at Chase was very happy to serve us right up until t…
I understand that a C corp is its own legal entity, but from a risk management perspective, the bank’s approach makes perfect sense.
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I'll ask then. What happens to an organism when it stops growing? It's an exponential process and there are really only 2 states except for an infinitesimally small space between.
The only "natural" organism that grows without attempting a quasi-stable, dynamic equilibrium with its environment is cancer. The exponential processes you refer to are not "natural" in the general sense and only represent the barest, simplest models.
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Modern Islamic countries without usury manage to feed their citizens so although I would agree that banning loans would cause a lot of pain in the modern economy, I can't see how it would cause mass starvation.
I look forward to your interview with the Taliban finance ministry and Afghan central bank - let us know how they’re doing
But to be serious, I'm not arguing that the Islamic system is "better", just that it removes certain risks that unrestricted lending cause. I don't think the solution is to ban lending but instead to be aware of the risks and make sure your regulation and enforcement is adequate.
I hate knee jerk dismissal of alternative policies, so I felt I needed to point out to the parent commenter that there are places where there is no debt, and no hunger.
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Behind other banks or behind tech companies? Every bank I've ever used is about 10 years behind when it comes to tech.
USAA is and has always been leaps and bounds ahead of other banks in terms of tech.
Of course, the reason I bank with them at all is they had mobile check deposit in like 2011 or 2012, which was ahead of the game at that point.
This is what a US bank failure looks like.[1] This 2009 picture shows the CEO of a failed bank near Chicago at the moment the 80-person FDIC team has arrived to take over. He's being told that it is no longer his bank. The bank re-opened for withdrawals the next day under FDIC control, and was later sold off to another bank. [1] https://i.postimg.cc/zGQNQmmf/bankfailed.jpg
And an FDIC takeover and forced sale seems like a possible outcome here as well... But the entities that have more than $250K in the failed bank will likely lose some money. As I understand it, those who have over $250K will be issued stock in the new bank so they won't likely completely lose the amount over $250K, but it won't be as liquid as the cash they formerly had either.
If anyone loses money in the SVB downfall, it is entirely the fault of the CEO/CFO for poor management.
Depending on your monthly cash flow and your balances, anything over $100k should be kept in CDARS. It is explicitly designed to keep your cash spread out across banks limiting risk of default at a single institution and keeping the balance at each bank below FDIC insurance maximums.
I just tried to login to svb.connect.com and it is giving me a popup to scan an QR code from the app. The app now gives me a popup requiring two factor auth (which it hadn’t ever before) with a phone number that I don’t have access to. I luckily don’t have much money in this account. As a bootstrapped founder, what would I need to do to get my money if SVB goes under?
NPR did a story fourteen years ago covering a real life example: https://www.npr.org/2009/03/26/102384657/anatomy-of-a-bank-t... This being a bit different, the most likely scenario will be SVB getting bought on the cheap by a bigger bank. The merger will be pushed by the regulator. Since SVB's root problem is lack of diversification in client basis, a larger bank beings the perfect solution. In such a scenario SVB w…