Update from Silicon Valley Bridge Bank CEO
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Re: Update from Silicon Valley Bridge Bank CEO
#2"The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days."
Re: Update from Silicon Valley Bridge Bank CEO
#3Effectively there are two banks (Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A.) with de facto unlimited FDIC insurance, as there's explicit guarantee for all existing and new deposits.
Re: Update from Silicon Valley Bridge Bank CEO
#4"The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days."
Nah I’m good
Re: Update from Silicon Valley Bridge Bank CEO
#5Effectively there are two banks (Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A.) with de facto unlimited FDIC insurance, as there's explicit guarantee for all existing and new deposits.
There is no way this is permanent, right? What's the end goal of this? Rebuild confidence in SVB and then return to normal insurance?
I think the first step they have to do if there is any hope of a successful relaunch, is a full rebrand.
Re: Update from Silicon Valley Bridge Bank CEO
#6Effectively there are two banks (Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A.) with de facto unlimited FDIC insurance, as there's explicit guarantee for all existing and new deposits.
There is no way this is permanent, right? What's the end goal of this? Rebuild confidence in SVB and then return to normal insurance? I think the first step they have to do if there is any hope of a successful relaunch, is a full rebrand.
My guess is they are probably looking for a buyer, who will likely roll everything into their offering. So, the more they can get back, the higher the sale price.
Re: Update from Silicon Valley Bridge Bank CEO
#7Effectively there are two banks (Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A.) with de facto unlimited FDIC insurance, as there's explicit guarantee for all existing and new deposits.
Somewhere between "$250k" and "infinite" would have been less moral hazard.
Feels like we've set a dangerous precedent, but only for depositors who are politically connected and can instill panic.
When does the de facto unlimited FDIC insurance expire/ When does Silicon Valley Bridge Bank go back to normal?
Second: IIUC, any shortfall in making SVB depositors whole will come from a levy on the rest of the banking system (and maybe small (<$400m) clawbacks from execs' share sales). How much will that levy cost the rest of us? Can it be legally or politically challenged? Are any Congressmen challenging it? (Where are the libertarian Republicans on this?)
Re: Update from Silicon Valley Bridge Bank CEO
#8IMHO, it feels like at minimum the regulators should have required that in exchange for reduced oversight for banks in the $50-$250B range - they should have reduced FDIC coverage for depositors and have been required a form to be filled out by existing and new customers to notify them of this reduction in coverage.
[1] https://www.wsj.com/articles/barney-frank-pushed-to-ease-fin...
Re: Update from Silicon Valley Bridge Bank CEO
#9Run your bank off a cliff, require every rule be broken to save your bacon, and now ask people to reline your coffers with more deposits. Absolutely stunning...
On second thought - SVB is apparently the safest place on the planet to park enormous amounts of cash. Why would you not deposit everything here? The Government will just save you if SVB screws it up again... right? Absolutely zero risk in parking everything with SVB... what a great signal to be sending the public.
Re: Update from Silicon Valley Bridge Bank CEO
#10"The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days."
Nah I’m good
> depositors have full access to their money and both new and existing deposits are fully protected by the FDIC. This action by FDIC effectively means that deposits held with SVB are among the safest of any bank or institution in the country.