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Silicon Valley Bank is a particularly scary failure. Here's why.
yahoo ^ | 3-10-23 | Alistair Barr

Posted on 03/10/2023 3:41:04 PM PST by dynachrome

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.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Crime/Corruption; News/Current Events
KEYWORDS: barnesisrael; california; charlesschumer; chuckschumer; coraneumann; dncservicescorp; failure; fdic; georgia; gregorymeeks; harder; inc; indiana; joshharder; markwarner; meeks; montana; neumann; newyork; raphaelwarnock; schumer; siliconvalley; stubarnesisrael; svb; virginia; warner; warnock
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To: Alberta's Child

I agree. Mostly business accounts and some rich individuals with very bad advisors. If you have a million dollars just put it in 4 different banks. You can even have multiple accounts in one bank if the ownership is different. For example husband, wife, child, brother or combinations. But that is my recollection from 10 years ago. The rules could have changed.


21 posted on 03/10/2023 4:14:06 PM PST by POWG
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To: TalBlack

22 posted on 03/10/2023 4:16:07 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: POWG

On that note, how does someone with say $50 million in financial assets get insured? How does that work?


23 posted on 03/10/2023 4:16:14 PM PST by FreedomVsControl
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To: blackdog

See my post #22 this thread.


24 posted on 03/10/2023 4:17:03 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: DannyTN

In my experience working for FDIC processing the assets from a failed bank can take several years or even longer if there is fraud involved.


25 posted on 03/10/2023 4:22:21 PM PST by POWG
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To: FreedomVsControl

This does create a dilemma for the progressives in the Democrat Party. Bailing out billionaires. When they discover that that’s where their campaign money comes from, they’ll say okay.


26 posted on 03/10/2023 4:24:04 PM PST by Repealthe17thAmendment
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To: Alberta's Child

Not necessarily

Companies losing their financials (which are the heart blood of Silicon Valley) is not a good thing


27 posted on 03/10/2023 4:27:41 PM PST by Nifster ( I see puppy dogs in the clouds )
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To: FreedomVsControl

If you have 50 million dollars you are on your own. Get good advisors and invest wisely. You could split your money in 200 different banks but that isn’t very practical.


28 posted on 03/10/2023 4:30:03 PM PST by POWG
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To: POWG

Yeah, but there’s not been any allocation of Fraud, has there?

The issue here is that banks were forced to buy assets at near zero yields to cover deposits, and now the Federal Reserve has jacked up rates so fast, that those assets have paper losses.

Liquidating them all at today’s market rates to pay depositors realizes those losses.


29 posted on 03/10/2023 4:30:32 PM PST by DannyTN (<i)
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To: Nifster

I agree, this is a huge story.

It’s the second largest bank failure in US history.

As for the real economy, there was a guy on CNBC today saying that this bank, being so tied to so many businesses, was responsible for the payroll processing of hundreds of thousands of people. Until the Feds and Wall Street can straighten this out, the Silicon Valley economy will come to a screeching halt.


30 posted on 03/10/2023 4:31:40 PM PST by FreedomVsControl
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To: dynachrome

they may be uninsured but my understanding is its about a 10% haircut


31 posted on 03/10/2023 4:35:32 PM PST by joshua c (to disrupt the system, we must disrupt our lives, cut the cable tv)
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To: bunkerhill7

Like a thousand Solyndra like companies?


32 posted on 03/10/2023 4:35:57 PM PST by virgil (The evil that men do lives after them )
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To: DannyTN

Correct. I haven’t seen anything that indicates fraud so far. I was just saying that if they find anything fraudulent it makes everything proceed much slower.


33 posted on 03/10/2023 4:35:59 PM PST by POWG
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To: lump in the melting pot

mostly small businesses, starts up, VCs .


34 posted on 03/10/2023 4:38:04 PM PST by Jonny7797
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To: FreedomVsControl

That’s the point

It’s why when I worked there I always took a paper check and immediately cashed it. Put the money into my own bank


35 posted on 03/10/2023 4:39:33 PM PST by Nifster ( I see puppy dogs in the clouds )
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To: FreedomVsControl
FDIC only insures bank deposits, usually in cash or cash- like instruments.

Wealthy folks usually don’t keep that much cash. They’re invested in real estate, stocks, bonds, etc. which certainly aren’t insured, although they might be hedged.

36 posted on 03/10/2023 4:40:14 PM PST by semimojo
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To: dynachrome

All Trump’s fault.


37 posted on 03/10/2023 4:45:41 PM PST by Parley Baer (WI)
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To: DannyTN

And the Federal Reserve has jacked rates up to supposedly battle Bidenflation. World News Tonight mentioned the rate increases part in this without really covering the why on the rates. But rates did also get a mention in the following jobs report story,


38 posted on 03/10/2023 4:52:25 PM PST by John W (W)
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To: FreedomVsControl

39 posted on 03/10/2023 4:54:52 PM PST by Justa (If where you came from is so great then why aren't Floridians moving there?)
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To: tired&retired

“Cycle Total Democrats % to Dems Republicans % to Repubs
2022 $51,139 $37,902 79.71% $9,647 20.29%”
__________________________________

Sigh.

Can you break that down further, please?

Never, ever, was good at mathematics.

Does it just mean the bank gave more monies to the Dems?


40 posted on 03/10/2023 4:56:55 PM PST by Notthereyet (NotThereYet. )
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