Correct, the bigger companies got their money out, all the average depositors now have to wait to get their money assuming they will get anything.
Being that today is Friday, I would be willing to bet a good number of people will be wondering where their paychecks are.
The first 10k is insured. Alot of the movement would be funds in excess of 10k in the face of looming bank failure.
FBN interviewed a SVB client that could not remove $10M from their account. Fortunately, they had multiple accounts in other banks.
I pray Congress does not bail them out.
“Correct, the bigger companies got their money out, all the average depositors now have to wait to get their money assuming they will get anything.”
Yep. Someone knew this was coming and kept this information close to their chest. There was no warning whatsoever. The classic case of bankruptcy happening slowly, then all at once.
The big boys secured their funds and left the little guy dangling with a slight hope to recover their money. It will have to be at the expense of the tax-payer (as usual).
Now Credit Suisse has delayed their annual reporting at the request of the SEC. What is going on in the banking sector that we are not being told?
SVB isn’t your usual, retail bank. It was a specialty commercial bank primarily for tech companies. Less than 3% of their deposits were within the $250K FDIC guarantee.
But it is hard for employers to keep deposits that low—and make payroll. There will be a haircut for them, but nothing so bad as to impact immediate checks to employees.