SVB's programmatic payment systems are back online

Post by baq » Mon, Mar 13, 2023, 8:55 PM UTC

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.

Post by baq » Mon, Mar 13, 2023, 9:03 PM UTC

ChickenNugger wrote: post #50

kentonv wrote: post #21

Earlier quoted context omitted.

Because (apparently; I'm just reading from their web site) they deposit your funds into 12 separate accounts at 12 separate FDIC banks so you are insured up to $3M and a single-bank failure can at worst take 1/12 of your deposits. Seems like services like this should be more popular.

Am I the only one wondering why they're allowed to circumvent the $250K cap like this? Presumably there's a cap for a reason, and presumably it's to protect ordinary Americans who rarely have $250K in assets, and not rich people who can literally afford to lose that much and still be rich.

Post by dougSF70 » Mon, Mar 13, 2023, 10:33 PM UTC

londont wrote: post #41

dougSF70 wrote: post #20

Earlier quoted context omitted.

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.

Hi there, co-founder of Gusto here. Running payroll from your personal account won't work. It has to be a business account. Please see below a msg I wrote earlier in the thread about some advice on how to get that done on time -- * 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 p…

Post by slv77 » Tue, Mar 14, 2023, 1:16 AM UTC

TrainedMonkey wrote: post #30

partiallypro wrote: post #25

Earlier quoted context omitted.

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.

Interest rates are already high, so whoever get the inflows can buy 3 months treasure notes to get the cake and eat it too. There is still risk of interest rates rising significantly higher, but with 3 months treasure notes the downside is limited. edit: typoed