Posted on 03/10/2023 9:47:33 AM PST by EBH
Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the Global Financial Crisis more than a decade ago.
The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money.
According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.
The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB’s branch offices will also reopen at that time, under the control of the regulator.
According to the press release, SVB’s official checks will continue to clear.
The FDIC’s standard insurance covers up to $250,000 per depositor, per bank, for each account ownership category. It is unclear exactly how larger accounts or credit lines for companies will be impacted by the closure. The FDIC said it will pay uninsured depositors an advanced dividend within the next week.
(Excerpt) Read more at cnbc.com ...
PAY Uninsured?....................
Let’s go Brandon!!
NOW WILL THEY BLAME THIS ON TRUMP!...................
Treasury ETF’s like TLT are skyrocketing.
Executive Order 12631
>>PAY Uninsured?....................
Even if you have more than 250K in the bank, it doesn’t mean you lose it all - that would only be true if the bank had no assets left.
Everyone get’s upto 250K that insured, after that is it likely to be a percentage of the money they can recover - all of SVB’s money didn’t just disappear in a flash - maybe the bank owes depositors $100B, and they still have $50B available - that $50B gets returned to depositors to cover some of their losses above the insured amount.
Not a bailout. It's a payment from the bank's funds of what the FDIC thinks will ultimately be recovered.
The depositor will take a haircut and it won't be tax dollars.
Except it says Dividend!
Dividend = A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business.
I get it if it said paying out remaining assets to uninsured creditors (given the businesses and individuals are the creditors to bank) but is says dividends!
Billions upon billions for Ukraine and not a dime more for U.S. depositors? Really?
How many lies will it take to keep people from panicking?
Monday??
Back in the 80’s I was on a team that closed banks. We would enter bank at about 4pm closing, work through the night and new bank would be operating next morning.
Well, as long as it’s just a couple of small banks. s/
The Fed insurance amount of 250k nowadays is not really realistic. To put it in perspective, we've pledged over 25 billion of taxpayer dollars to Ukraine.
Please, please - no bail-outs again!!!!!
>>Except it says Dividend!
A ‘dividend’ is just ‘A quantity to be divided.’ *by definition* -
why are you picking a single alternative definition, that doesn’t apply here and getting upset about it?
Because it is a financial institution and in finance it has a specific meaning.
If we were taking in a math class I would agree with you but we are not.
In case you missed it the CEO of SVB sold off over 3.5 million in stocks over the last 2 weeks and there are growing calls for a total bail out.
SVB serviced something like 44% of the venture capitalists in tech and healthcare.
Are you so sure they just mean dividing up the assets?
Your own link shows my usage as a primary definition and yours as a lower usage case.
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