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Fintech startup Brex got billions of dollars in Silicon Valley Bank deposits Thursday, source says
CNBC ^ | 3/10/23

Posted on 03/10/2023 10:12:25 AM PST by EBH

Fintech startup Brex received billions of dollars in deposits from Silicon Valley Bank customers on Thursday, CNBC has learned.

Other companies including JPMorgan Chase, Morgan Stanley and First Republic have also seen heightened inflows Thursday, as SVB’s stock tanked amid VC-fueled concerns of a bank run.

The exodus of deposits put increased pressure on SVB, which attempted to raise equity funding earlier this week and had turned to a potential sale, CNBC reported. Regulators shut down the bank on Friday.

Fintech startup Brex received billions of dollars in deposits from Silicon Valley Bank customers on Thursday, CNBC has learned.

The company, itself a high-flying startup, has benefited after venture capital firms advised their portfolio companies to withdraw funds from Silicon Valley Bank this week.

Brex opened thousands of new accounts totaling billions of dollars in inflows on Thursday, said a person with direct knowledge of the situation. By midday Friday, regulators shut down SVB and took control of its deposits, according to the Federal Deposit Insurance Corp.

Other companies including JPMorgan Chase , Morgan Stanley and First Republic have also seen heightened inflows Thursday, as SVB’s stock tanked amid VC-fueled concerns of a bank run. The dramatic decline in SVB shares sparked a sector-wide sell-off that reminded some startup founders of what happened during the 2008 financial crisis. Earlier this week, crypto-focused bank Silvergate said it was winding down operations.

The exodus of deposits yesterday put increased pressure on SVB, which attempted to raise equity funding earlier this week and had turned to a potential sale, CNBC reported.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: banks; bigbanks; brex; fintech; firstrepublic; jpmorgan; jpmorganchase; morganstanley; siliconvalley; siliconvalleybank; svb
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To: Vermont Lt

I can see we have more than one person who takes it upon themselves to scan FR relentlessly, sort of like a caped crusader, looking for things to complain about


21 posted on 03/10/2023 1:53:08 PM PST by srmanuel
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To: srmanuel; Vermont Lt
Nah, we’re there to look out for those who don’t know what they’re talking about. Yeah, I can be pretty snippy, too.

FWIW, I worked for the FDIC during the last bank crisis. We shut down 500 banks, and ALL INSURED DEPOSITS were covered.

22 posted on 03/10/2023 2:02:08 PM PST by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Gonzales! Come and Take It!)
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To: Night Hides Not

I stand by my recent comment, I don’t care who you worked for, but scanning FR looking for OPINIONS that you don’t like and correcting them as if they were posted as facts adds a lot to FR and we appreciate it.


23 posted on 03/10/2023 2:07:49 PM PST by srmanuel
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To: Night Hides Not

I spent most of my working career as an IT Contractor, one day while swapping stories a buddy told me in his last job, he was at a customer site looking to extend his contract and got a call to return to his office immediately, when he got back to the office, the company had shut down and the doors were locked, he was allowed to enter by security guards who accompanied him to his desk to clean out his personal belongings and then escorted out.

That was cold.


24 posted on 03/10/2023 2:11:57 PM PST by srmanuel
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To: srmanuel

I can see we have village idiots as well.


25 posted on 03/10/2023 4:05:53 PM PST by Vermont Lt
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To: srmanuel

Yes, Vermont Lt is an FR AH.


26 posted on 03/10/2023 5:31:52 PM PST by NetAddicted (MAGA2024)
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To: Vermont Lt

I can see my assessment of you is shared by others getting hated on a message board is quite the feat congratulations


27 posted on 03/10/2023 10:14:32 PM PST by srmanuel
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To: NetAddicted

They’re trying me of things on FR I disagree with but I don’t make it my mission to call them by trying to insult the poster unless attacked first.

It’s a MESSAGE BOARD where strong opinions are shared getting your panties in a wad over a single post is foolish, let it go and respond to another post

Unfortunately as we can see others don’t do that


28 posted on 03/11/2023 2:28:50 AM PST by srmanuel
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To: srmanuel

This AH continually insults me. I’m sick of it. I’ve put up with it, but no more.


29 posted on 03/11/2023 4:10:30 AM PST by NetAddicted (MAGA2024)
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To: NetAddicted

The biggest thing on FR that bothers me, you make a post thinking it’s no big deal, you’re not trying to be intentionally controversial, then out of nowhere, you are called stupid, crap, or worse.

If I did that, I would spend about 75% of my time on FR personally insulting people. It adds nothing to the debate, but it’s a fact on FR, so I skip what I don’t like and move on to something that interests me.


30 posted on 03/11/2023 4:46:55 AM PST by srmanuel
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...

31 posted on 03/11/2023 6:13:48 AM PST by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: SunkenCiv

Thank you.


32 posted on 03/11/2023 1:35:28 PM PST by TribalPrincess2U (D.I.S.T.R.A.C.T.I.O.N.S.)
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To: TribalPrincess2U

My pleasure.


33 posted on 03/11/2023 8:31:19 PM PST by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: WildHighlander57; srmanuel

There are so many FDIC links at fdic.gov, but the following is supposed to be the most comprehensive and up-to-date FDIC info source that will likely be found online, for most of us concerned about FDIC insurance coverage:

https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/

The downloadable “High Resolution PDF” file is also comprehensive - but it has, near the top of its first page, an alert that includes a link . . . that actually leads to the link I used, immediately above.

The link’s info has a lot of info, and so does the PDF file. Each source has several illustrations and examples.

I used TinyURL.com to create a shorter version of the FDIC link to the FDIC “High Resolution PDF” file - so that smaller Internet browser windows are not overwhelmed:

https://tinyurl.com/2ndt8kn5


34 posted on 03/13/2023 2:52:36 AM PDT by linMcHlp
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To: linMcHlp

A couple of things worry me about SVB now that the dust is starting to settle.

FDIC accounts are insured up to $250,000, many of the accounts SVB have far more than $250,000 in them, we now hear accounts are going to be made whole even the parts over $250,000. I’ve heard estimates that amounts to over 160 billion at SVB alone.

WE also hear government officials saying this is not a bailout, IMO clearly it is a bailout. In the span of 2-3 days the $250,000 insured amount has gone away now it’s unlimited, in the case of SVB it could be 160 billion, what happens if some day it’s Bank of America or some other money center bank, when the amount is hundreds of billions or trillions that gets made up or 5-10 smaller banks all go under and the amount need to make everyone whole is off the charts.


35 posted on 03/13/2023 3:10:54 AM PDT by srmanuel
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To: linMcHlp

Many thanks!!!


36 posted on 03/13/2023 7:31:03 AM PDT by WildHighlander57 ((the more you tighten your grip, the more star systems will slip through your fingers.) )
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