Posted on 03/10/2023 10:12:25 AM PST by EBH
Fintech startup Brex received billions of dollars in deposits from Silicon Valley Bank customers on Thursday, CNBC has learned.
Other companies including JPMorgan Chase, Morgan Stanley and First Republic have also seen heightened inflows Thursday, as SVB’s stock tanked amid VC-fueled concerns of a bank run.
The exodus of deposits put increased pressure on SVB, which attempted to raise equity funding earlier this week and had turned to a potential sale, CNBC reported. Regulators shut down the bank on Friday.
Fintech startup Brex received billions of dollars in deposits from Silicon Valley Bank customers on Thursday, CNBC has learned.
The company, itself a high-flying startup, has benefited after venture capital firms advised their portfolio companies to withdraw funds from Silicon Valley Bank this week.
Brex opened thousands of new accounts totaling billions of dollars in inflows on Thursday, said a person with direct knowledge of the situation. By midday Friday, regulators shut down SVB and took control of its deposits, according to the Federal Deposit Insurance Corp.
Other companies including JPMorgan Chase , Morgan Stanley and First Republic have also seen heightened inflows Thursday, as SVB’s stock tanked amid VC-fueled concerns of a bank run. The dramatic decline in SVB shares sparked a sector-wide sell-off that reminded some startup founders of what happened during the 2008 financial crisis. Earlier this week, crypto-focused bank Silvergate said it was winding down operations.
The exodus of deposits yesterday put increased pressure on SVB, which attempted to raise equity funding earlier this week and had turned to a potential sale, CNBC reported.
(Excerpt) Read more at cnbc.com ...
SVB failed per newer article. FDIC in charge of it now.
Correct, the bigger companies got their money out, all the average depositors now have to wait to get their money assuming they will get anything.
Being that today is Friday, I would be willing to bet a good number of people will be wondering where their paychecks are.
They pulled their funds YESTERDAY! BILLIONS OF DOLLARS...INSIDER STUFF
The first 10k is insured. Alot of the movement would be funds in excess of 10k in the face of looming bank failure.
For individual depositors, I thought the amount was 250k which was insured. Although I wonder if the FDIC has the reserves to live up to their obligations.
https://www.fdic.gov/resources/deposit-insurance/financial-products-insured/
FDIC insurance covers traditional deposit accounts, and depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank.
The information below briefly describes the various deposit products offered, the FDIC ownership categories and their applicable insurance coverage limit. For more detailed information about your specific situation, you can use the Electronic Deposit Insurance Estimator (EDIE). You can also visit the FDIC Information and Support Center to submit a request for deposit insurance coverage information or call 1-877-ASK-FDIC (1-877-275-3342) to ask any other specific deposit insurance questions.
- - - - - - - - - - - - - - - - -
For single account holders (for example, having 1 checking account plus 1 savings account), scroll down to "Single Account" at the FDIC website link and click on the right arrow, to reveal:
"A deposit account owned by one person, without named beneficiaries, including:
Checking accounts
Savings accounts
Money market deposit accounts"
For the first few that fail, they do. But if more continue to fail or if it’s a major player, it will be bailout time again.
It’s the FDIC’s job to interrupt the dominos as early as possible. Economic illiterates and fantasists in the democratic party might make it impossible to avoid the crash. The fantasists want the crash because the believe they are the ones who will pick up the pieces and usher in their longed for new world order/ global reset.
I tend to think that they will be unpleasantly surprised.
Bigger question is will they fire up the printers or not. Reserves don’t matter these days.
FBN interviewed a SVB client that could not remove $10M from their account. Fortunately, they had multiple accounts in other banks.
I pray Congress does not bail them out.
There have been 4-5 banks closed in the last 5 years, I’m sure they have ample funds to pay insured depositors.
“Correct, the bigger companies got their money out, all the average depositors now have to wait to get their money assuming they will get anything.”
Yep. Someone knew this was coming and kept this information close to their chest. There was no warning whatsoever. The classic case of bankruptcy happening slowly, then all at once.
The big boys secured their funds and left the little guy dangling with a slight hope to recover their money. It will have to be at the expense of the tax-payer (as usual).
Now Credit Suisse has delayed their annual reporting at the request of the SEC. What is going on in the banking sector that we are not being told?
We need people like you on FR who add so much to the discussion, it must be difficult and time consuming to scan FR relentlessly looking for things to complain about
Did Thiel tip it?
SVB isn’t your usual, retail bank. It was a specialty commercial bank primarily for tech companies. Less than 3% of their deposits were within the $250K FDIC guarantee.
But it is hard for employers to keep deposits that low—and make payroll. There will be a haircut for them, but nothing so bad as to impact immediate checks to employees.
Probably not. Folks make fun of Silicon Valley start ups. Hose guys pay attention to the money. As soon as one of them got a whiff, it was off to the races. Phone calls and texts were sent. And that’s how runs start.
The average guy on the street is not paying attention. But, the money guys are.
Banks, in general, are properly reserved. This does not suggest a big liquidity problem. It suggests these guys were not handling their assets well. And then…one big depositor wants their cash.
This isn’t how the BIG guys operate.
The FDIC will be fine.
It’s better than Freepers making shit up and scaring the less informed.
linMcHlp wrote:
“
Are My Deposit Accounts Insured by the FDIC?
https://www.fdic.gov/resources/deposit-insurance/financial-products-insured/
FDIC insurance covers traditional deposit accounts, and depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank.
The information below briefly describes the various deposit products offered, the FDIC ownership categories and their applicable insurance coverage limit. For more detailed information about your specific situation, you can use the Electronic Deposit Insurance Estimator (EDIE). You can also visit the FDIC Information and Support Center to submit a request for deposit insurance coverage information or call 1-877-ASK-FDIC (1-877-275-3342) to ask any other specific deposit insurance questions.
- - - - - - - - - - - - - - - - -
For single account holders (for example, having 1 checking account plus 1 savings account), scroll down to “Single Account” at the FDIC website link and click on the right arrow, to reveal:
“A deposit account owned by one person, without named beneficiaries, including:
Checking accounts
Savings accounts
Money market deposit accounts”
Coverage Limit: All single accounts owned by the same person at the same bank are added together and insured up to $250,000.
“
Where do IRAs with CD’s within them fit into this?
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