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Silicon Valley Bank seized by FDIC after largest failure since the Great Recession

Tony40Tony40 Member
in News

It is the second-largest bank failure in history, behind only that of Washington Mutual in 2008. The bank failed after depositors — mostly technology workers and venture capital-backed companies — began withdrawing their money creating a run on the bank.

https://www.pbs.org/newshour/economy/silicon-valley-bank-seized-by-fdic-after-largest-failure-since-the-great-recession

Thanked by 1treesmokah
«1345

Comments

  • Tony40Tony40 Member

    Here’s how the second-biggest bank collapse in U.S. history happened in just 48 hours

    https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html

  • Tony40Tony40 Member

    Roku says it could lose 25 percent of its cash after Silicon Valley Bank fails

    The company had nearly $500 million in “largely uninsured” deposits with SVB.

    https://www.engadget.com/roku-says-it-could-lose-25-percent-of-its-cash-after-silicon-valley-bank-fails-000615481.html

  • ArkasArkas Moderator
    edited March 11

    @Tony40 said: The company had nearly $500 million in “largely uninsured” deposits with SVB.

    Isn't each account auto insured for $250K by the FDIC? Surely they didn't put all their money in 1 account?

  • Tony40Tony40 Member

    @Arkas said:

    @Tony40 said: The company had nearly $500 million in “largely uninsured” deposits with SVB.

    Isn't each account auto insured for $250K by the FDIC? Surely they didn't put all their money in 1 account?

    @GRDecter : "Only 2.7% of Silicon Valley Bank deposits are less than $250,000.

    Meaning, 97.3% aren't FDIC insured.

    Ouch. "

  • ArkasArkas Moderator

    @Tony40 said: "Only 2.7% of Silicon Valley Bank deposits are less than $250,000.

    Ohhhhhh, that's gonna hurt.

  • treesmokahtreesmokah Member
    edited March 11

    wells fargo suddenly died
    JP Morgan is next

    the biggest bankrun is on its way o/

  • Tony40Tony40 Member

    Bloomberg: "NEW: Silicon Valley Bank CEO Greg Becker sold $3.6 million of company stock under a trading plan less than two weeks before the firm disclosed extensive losses that led to its failure"

  • yongsikleeyongsiklee Member

    @Tony40 said:
    Bloomberg: "NEW: Silicon Valley Bank CEO Greg Becker sold $3.6 million of company stock under a trading plan less than two weeks before the firm disclosed extensive losses that led to its failure"

    Breed of quality

  • drizbodrizbo Member

  • bruh21bruh21 Member, Host Rep

    People out here really having more than 250,000 dollars

  • MikeAMikeA Member, Patron Provider

    When you have too much money and too little brains

  • MikePTMikePT Moderator, Patron Provider

    This isn't good :(

  • acidpukeacidpuke Member

    Anyone over 250k is eating shit right now.

    It really easy for large corporations to keep over 250k in your account never thinking your bank is going to go insolvent.

    This going to be a bloodbath for some companies

  • johnnyquestionjohnnyquestion Member
    edited March 11

    Nobody should be bailed out over the FDIC limit. CEO/CFOs should know to sweep excess funds not leave them in cash
    https://www.svb.com/liquidity-management/deposits-and-investments/svb-cash-sweep

    BTW $USDC is fucked

    Also SVB had a $15BN loan from the FHLB

    DAI fucked too
    https://coinmarketcap.com/currencies/multi-collateral-dai/

    Thanked by 1Tony40
  • vyas11vyas11 Member

    SNF and now SVB.

    Which three letter combo involving the letters S and B is next to cause a financial storm?

  • meatonmeaton Member

    The funny thing is everyone didn't try pull their money at the same time, things would likely be recoverable.

  • NeoonNeoon Member, Community Contributor

  • rattlecattlerattlecattle Member

    @vyas11 said:
    SNF and now SVB.

    Which three letter combo involving the letters S and B is next to cause a financial storm?

    Also SBF aka Sam Bankman Fried.

  • johnnyquestionjohnnyquestion Member
    edited March 11

    @meaton said:
    The funny thing is everyone didn't try pull their money at the same time, things would likely be recoverable.

    Any CEO/CFO worth their salt would have swept unused funds into Treasuries or a MMMF not left them in a cash account.

  • ChievoChievo Member

    How big is that bank? Domino effect? Funk that show again 2008 or 1929 grrrrr

  • vyas11vyas11 Member
    edited March 11

    @rattlecattle said:

    @vyas11 said:
    SNF and now SVB.

    Which three letter combo involving the letters S and B is next to cause a financial storm?

    Also SBF aka Sam Bankman Fried.

    Duh, fat fingers lol

    I did mean SBF.

    Now to find a SNF to make my post valid…

  • AdvinAdvin Member, Host Rep

    @Chievo said:
    How big is that bank? Domino effect? Funk that show again 2008 or 1929 grrrrr

    They are extremely massive among startups, lots of startups will be heavily impacted by this for sure, especially if there is investor money locked into these accounts.

    Thanked by 1Chievo
  • ralfralf Member

    Some good analysis and explanation here:

    Thanked by 2Chievo acidpuke
  • Smith42Smith42 Member

    I don't get it. Banks aren't safe, Crypto is crashing, stablecoins are crashing, Paypal will steal $2.5k for whatever. Where the duck do you keep money? Under the mattress?

  • shafireshafire Member

    Just don't have any money.

  • Tony40Tony40 Member
    edited March 11

    @Smith42 said:
    I don't get it. Banks aren't safe, Crypto is crashing, stablecoins are crashing, Paypal will steal $2.5k for whatever. Where the duck do you keep money? Under the mattress?

    You should not put all your eggs in one basket.
    Diversification is the key to weathering any storm!
    20% cash in a FDIC insured Institution if you have more than 250k get more banks accounts- better safe than sorry.
    10 % real gold.
    30% real estate - properties ... land, house, apartment.
    40% Stocks, CDs, Bonds,401k Retirement Accounts.

    Thanked by 1vimalware
  • FatGrizzlyFatGrizzly Member

    I don't understand American stuff. Isn't bank something like where you deposit money to be safe since it won't be safe in your home, but then you have to protect (insurance) for the money in Bank?.

    India has insurance for bank lockers, but never heard of insurance for a bank account

  • Tony40Tony40 Member

    @FatGrizzly said:
    I don't understand American stuff. Isn't bank something like where you deposit money to be safe since it won't be safe in your home, but then you have to protect (insurance) for the money in Bank?.

    India has insurance for bank lockers, but never heard of insurance for a bank account

    Hello, yes they do. every country have bank deposit insurance.

    Frequently Asked Questions - Reserve Bank of India
    Reserve Bank of India
    https://www.rbi.org.in › Scripts › FAQView
    Each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and ...

    Deposit Insurance (DICGC)

    https://www.rbi.org.in/Scripts/FAQView.aspx?Id=64

    Thanked by 1FatGrizzly
  • Tony40Tony40 Member

    Watcher.Guru: JUST IN: Circle $USDC held an undisclosed amount of cash in Silicon Valley Bank $SIVB.

  • Tony40Tony40 Member
    edited March 11

    Lauren Hirsch: " Per new bankruptcy filing, BlockFi has $227m in Silicon Valley Bank. The bankruptcy trustee warned them on Mon that bc those funds are in a money market mutual fund, they’re not FDIC secured — which could be a prblm w/ keeping in compliance of bankruptcy law"

    Thanked by 1greentea
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