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Silicon Valley Bank is shut down by regulators, FDIC to protect insured deposits
CNBC ^ | March 10, 2023 | Jesse Pound

Posted on 03/10/2023 8:56:57 AM PST by PJ-Comix

Silicon Valley Bank has been closed by regulators, which have taken control of the bank’s deposits, the Federal Deposit Insurance Corporation announced Friday.

The California Department of Financial protection and Innovation closed SVB, and named the Federal Deoposit Insurace Corporation as the receiver.

The FDIC has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.


TOPICS: Breaking News; Business/Economy
KEYWORDS: bankfailure; bankshutdown; california; fdic; santaclara; siliconvalley; svb
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To: Rockingham

“ The FDIC insurance cap is almost always waived for individual depositors. As a matter of policy, my guess is that it will also be waived for corporate depositors in this instance because of the economic and political importance of venture capital.”
*************************************************
Thanks, I didn’t know that. Why even have an insurance “cap”?


61 posted on 03/10/2023 1:25:08 PM PST by House Atreides (I’m now ULTRA-MAGA. -PRO-MAX)
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To: ping jockey; EBH

ping jockey wrote:


Looks like JP Morgan/Chase, UBS, Bank Anti-America are some that are fixing to take a powder.

How are those 3 connected to SVB and the 10 banks EBH mentioned?


62 posted on 03/10/2023 1:59:26 PM PST by WildHighlander57 ((the more you tighten your grip, the more star systems will slip through your fingers.) )
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To: Lockbox
I heard most customers had over $250,000 in Deposits

SVB said it estimates that at the end of 2022 the amount of deposits in its U.S. offices that exceed the FDIC insurance limit was $151.5 billion.

Is it safe to presume the SVB is one of the many banks that haven't been paying squat for interest on deposits? Plenty of us have been moving our hard earned money to institutions which appreciate customers by paying fair interest.

63 posted on 03/10/2023 2:17:48 PM PST by NautiNurse (There was a 2022 mid-term Red Wave...in Florida! )
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To: House Atreides

The cap would likely be applied if the FDIC had to as a matter of keeping solvent in a wide scale emergency. Otherwise, the cap helps encourage depositors to hedge the risk by spreading their deposits about so as to keep under the cap in any one institution.


64 posted on 03/10/2023 2:29:26 PM PST by Rockingham
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To: Vermont Lt
The more I look at those numbers, the less sense they make. The authors may be wrong about something here. Did mortgage rates ever get so low that the AVERAGE yield on a mortgage-backed security would be only 1.56%?

I’m thinking these are Treasury bills, not mortgage bonds.

65 posted on 03/10/2023 2:30:09 PM PST by Alberta's Child
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To: StAnDeliver

I think the worst of it will hit during the primaries and will benefit Trump.


66 posted on 03/10/2023 2:43:39 PM PST by vivenne
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To: PJ-Comix

ROKU just disclosed they had their money at Silicon Valley Bank, business accounts are NOT FDIC insured?


67 posted on 03/10/2023 2:51:07 PM PST by Sarah Barracuda
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To: PJ-Comix

Over 90% of the money in that bank was NOT insured.


68 posted on 03/10/2023 3:04:06 PM PST by GOPJ (The few sowed the wind, and the many reaped their whirlwind. - Victor Davis Hanson)
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To: PJ-Comix

From yahoo:

“At the end of 2022, SVB had uninsured deposits in its US offices of $151.5 billion, versus total deposits of $173 billion. That’s 88% of all SVB deposits that didn’t have FDIC insurance.”


69 posted on 03/10/2023 3:42:39 PM PST by dynachrome (“We cannot save Ukraine by dooming the US economy.” Rand Paul)
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To: PJ-Comix

All I know is I went to bed last night pretty much broke and I woke up this morning with most of it left.


70 posted on 03/10/2023 3:52:06 PM PST by V1Rotate
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To: wny

If these startups are doomed, they can fly the Ukrainian flag for funding.


71 posted on 03/10/2023 3:53:43 PM PST by bobcat62
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To: Alberta's Child

Treasuries are doing way, way better than 1.5%.


72 posted on 03/10/2023 4:04:53 PM PST by Vermont Lt
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To: Vermont Lt

NOW they are. But how about any Treasuries that SVB purchased in 2021, 2020, 2019, etc.?


73 posted on 03/10/2023 4:06:28 PM PST by Alberta's Child
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To: Theoria

74 posted on 03/10/2023 4:10:03 PM PST by grey_whiskers ( The opinions are solely those of the author and are subject to change without notice.)
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To: PJ-Comix

Insured deposits are only insured to $250,000.

That’s all.

Most of the SVB depositors are going to take a hit. A big one.


75 posted on 03/10/2023 4:16:56 PM PST by MeganC (There is nothing feminine about feminism. )
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To: Theoria

Hold on, is that $80 billion in MBS at 1.5ish? I thought their portfolio was a lot less than that. Where were the risk/strategic management attorneys at to temper business majors addicted to that sweet “free money”/”credit”/repo train?


76 posted on 03/10/2023 5:36:04 PM PST by rollo tomasi
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To: PGR88
Okay, here's my go to reference point. If you are not familiar with Patrick Boyle, you should be. Boyle not only explains it well, but his dry sense of humor is epic. Bank Runs! What's Going On?

Spoiler alert. It involves Crypto.

77 posted on 03/10/2023 6:38:48 PM PST by fhayek
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To: PJ-Comix

If it can be proven that the FDIC incurred undue expense because of recent account-holder membership, perhaps the Feds can FINALLY go after Jim Cramer.


78 posted on 03/10/2023 7:00:29 PM PST by Brass Lamp
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To: Wallace T.
That agency has set up a Deposit Insurance National Bank, so they will manage the assets of the failed bank.

If by 'they' you mean the FDIC as Receiver and not the DINB, I believe that to be correct. It appears that all that passed to the DINB were the insured deposits. The press release did say that an advance dividend would also be paid on the uninsured deposits, with a Receiver's Certificate for the balance of the unisured deposits.

My guess is that they did a DINB because it happened too fast to do anything else. Before it closed this morning, I thought they would do it at close of business today - I don't recall any going back into the 80s with a morning closing, there were a few where they closed a couple of hours before closing time. I also guessed wrong, I thought they would do a Bridge Bank. I was able to only find one other DINB (Citizens State Bank, New Baltimore Michigan (just before Christmas, 2009).

79 posted on 03/10/2023 7:23:43 PM PST by PAR35
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To: PJ-Comix; ransomnote; Jane Long; bitt; bagster; numberonepal; Cletus.D.Yokel; Cathi; tatown; ...

JUST IN: President and CEO of collapsed Silicon Valley Bank Greg Becker was a Class A director at the San Francisco Federal Reserve, Reuters reports.— Watcher.Guru (@WatcherGuru) March 11, 2023

BREAKING: Circle confirms $3.3 billion of the ~$40 billion $USDC reserves are in collapsed Silicon Valley Bank.— Watcher.Guru (@WatcherGuru) March 11, 2023


80 posted on 03/10/2023 8:45:39 PM PST by grey_whiskers ( The opinions are solely those of the author and are subject to change without notice.)
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