[Alberta's Child]

I think too many people are engaging in conspiratorial nonsense here. From what I could see with the numbers, SVB has more than enough reserves to pay off every depositor in full. The bank just couldn’t continue to function if it had to liquidate its reserves to make the customers whole.

It’s like a homeowner who defaults on a $400,000 mortgage. If the value of the home has declined to $300,000 by the time this happens, the bank is going to have a problem. But if the home is worth $550,000 then the bank can foreclose on the property and sell it for enough to cover all its costs and pay off the loan.

[ConservativeMind]

I know I've seen the asset versus deposit accounts, and that looked okay, but loans and investments have to be sold at a discount, or be taken out to maturity.

My problem is with this Treasury quote:

“For the banks that were put into receivership, the FDIC will use funds from the Deposit Insurance Fund to ensure that all of its depositors are made whole,” said a senior Treasury Department official…”

[Fury]

I think too many people are engaging in conspiratorial nonsense here.

The number of zany and downright kooky comments is on the rise since COVID-19.