Posted on 03/10/2023 5:22:45 PM PST by PK1991
NO ! They can go to Zukerman, Gates, and all their billionaire buddys who are ruining this country.
Exactly what I meant. Thanks for the detailed
Thousands of private companies will not be able to make payroll next week. Companies like Roku. This could be the canary in the coal mine for the next wave of bank failures. There will be at least 15 or 20 other “small” banks that will fail fairly quickly. Remember that in 2008 the entire problem metastasized in 2 weeks and it took 5 or 6 years to recover. And part of the solution was to make big banks even bigger. If this is the canary then the canary just died.
Because they exceed the $250K per person/account insurance limit. With careful planning in the way you title accounts you can get to 7x $250K as maximum coverage. My guess, knowing some folks in Silicon Valley, is that they are wealthy enough not to care about FDIC coverage limits.
That's what I meant. The small businesses received the investments which are deposited in the bank, and now these businesses are at risk, leading to the VC lenders losing out indirectly. Just said it in fewer words "VC investments are gambling".
Accounts are insured up to $250K. If you are a business, you are likely to have tens of millions in your account.
That’s why.
Hell no.
I am sick of this. My kids did not deposit their future earnings there nor did they have any say over how this private bank chose to invest deposits.
This is what is wrong with our nation and we learned NOTHING from the 2008 housing crisis. These people chose to put their money there. They chose poorly. This bank donated to leftist causes and those who managed the money chose poorly.
My kids owe them nothing. Have the executives give back the bonus money and the politicians give back all the donations and we can talk about a bail-out. The executives sold off their stock a week or two ago allegedly.
“ However, they can ask for their deposits to be brokered across multiple banks”
Fidelity does this automatically with cash over $250K
Google Roku
-PJ
I think it's been $250k all of my life... and, I'm OLD! With inflation, it should probably be at least $2-3M now. That would protect most small businesses.
Yes there is a distinction between the stockholders who get wiped out and the users of the bank it’s customers.
Unfortunately the government = taxpayers.
The deposits were well in excess of the FDIC maximum of $250k. The part of each deposit under $250k was insured, the rest is not. No one "opted out" of FDIC insurance to save money.
No matter how much you might not like the thought of a government bailout, the problem is that a significant part of the US competitive advantage around the world lies in Silicon Valley startups, who had large parts of their funding in SV Bank.
I don't like the thought of a bailout at all, but this is going to influence the future American economy as much as the collapse of GM would have, and we bailed GM out. Blighting the whole startup process will influence a lot more than just the companies with money in that bank.
I disagree. If a VC outfit gives $100 Million to a startup in exchange for 30% of their stock, and the startup looses that money because a bank failed, the VC outfit now has worthless stock. They have been damaged.
True, but I consider that to be an indirect effect.
I did. Do you know what a “cash equivalent” is?
And in reality they don’t have enough money to cover even that in complete collapse.
Let em burn. Another bank will pick up the deal - if they are worth it. And if not, then to the trash heap with zombie companies that hate the US. And F### the zombie companies that like us as well. Make money or go bankrupt you useless tossers.
BC this bank funded a lot of VC deals that REQUIRED that the funded company use SVB banking for payroll and general deposits! Whoops;)
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