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Silicon Valley Bank seized by FDIC after largest failure since the Great Recession
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.
Thanked by 1treesmokah
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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
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
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. "
Ohhhhhh, that's gonna hurt.
wells fargo suddenly died
JP Morgan is next
the biggest bankrun is on its way o/
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
People out here really having more than 250,000 dollars
When you have too much money and too little brains
This isn't good
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
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/
SNF and now SVB.
Which three letter combo involving the letters S and B is next to cause a financial storm?
The funny thing is everyone didn't try pull their money at the same time, things would likely be recoverable.
Also SBF aka Sam Bankman Fried.
Any CEO/CFO worth their salt would have swept unused funds into Treasuries or a MMMF not left them in a cash account.
How big is that bank? Domino effect? Funk that show again 2008 or 1929 grrrrr
Duh, fat fingers lol
I did mean SBF.
Now to find a SNF to make my post valid…
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.
Some good analysis and explanation here:
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?
Just don't have any money.
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.
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
Watcher.Guru: JUST IN: Circle $USDC held an undisclosed amount of cash in Silicon Valley Bank $SIVB.
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"