Posted on 03/10/2023 3:41:04 PM PST by dynachrome
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.
On that note, how does someone with say $50 million in financial assets get insured? How does that work?
See my post #22 this thread.
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.
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.
Not necessarily
Companies losing their financials (which are the heart blood of Silicon Valley) is not a good thing
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.
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.
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.
they may be uninsured but my understanding is its about a 10% haircut
Like a thousand Solyndra like companies?
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.
mostly small businesses, starts up, VCs .
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
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.
All Trump’s fault.
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,
“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?
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