Posted on 03/10/2023 4:04:21 PM PST by marcusmaximus
Silicon Valley Bank was aptly named: It held the funds of hundreds of U.S. tech companies and was a crucial player in the valley’s economy. But on Friday, it became the second largest bank failure in U.S. history after a rapid run on its deposits. Some $175 billion in customer accounts were taken over by the Federal Deposit Insurance Corporation (FDIC), which is now tasked with returning money to the bank’s customers.
But more than 85% of the bank’s deposits were uninsured, according to estimates in a recent regulatory filing. That’s because FDIC deposit insurance is meant for everyday bank customers and maxes out at $250,000. Many Silicon Valley startups had millions, or even hundreds of millions of dollars deposited at the bank—money they used to run their companies and pay employees. Right now, nobody’s sure how much of that cash is left.
(Excerpt) Read more at time.com ...
But all the printing presses in Washington DC are running on afterburner this weekend.
Only as long as the FDIC remains solvent. Their current funds are 128B. Current bank deposits are about 20T. If the dominos start falling, FDIC becomes irrelevant real quick.
It would have to be 4 separate banks-—
NOT 4 different branches of the same bank—
Then insurance should kick in on each different account.
You cannot have different accounts with different names except under certain circumstances.
I once sat down & figured out how many different accounts I would have to have IF I won the Lottery.
Finally figured out a LARGE safe would work better!!
But I saw KJP explaining earlier that we don’t have to worry, cuz of all government protections put in place after 2008. KJP is trustworthy, ain’t she? Or preferred personal pronoun - Pcubed for short.
4 DIFFERENt banks-—
NOT 4 branches of the same bank
A father & child could have an account-—
AND the father could have an account-—
And the child could have an account-—
That would give 3 coverages of the 3 accounts by FDIC
AS long as in DIFFERENT banks-—You have separate coverage
NOTICE I SAID DIFFERENT BANKS-—NOT different branches of the same bank
Large companies have many times more than that at any one time in the bank-—
Tesla has over 6000 people on payroll here in N Nevada.
Stephanie Pomboy (economist) just made that point. Also says domino effect coming due to over leverage.
They are banking that money SOMEWHERE
If several bag banks failed at once The FDIC would not have enough to even cover up to $250,000.
Wells Fargo claims their paychecks are not available due to a computer glitch.
I call her The Cabbage Patch Kid-—with about as much brains
See "It's a Wonderful Life" where that's explained during a bank run.
“The rest of our cash assets are with a trusted financial advisor who has been doing business for many years”
Hopefully his name isn’t Bernie.
There was a run on the bank Thursday with over $40 billion withdrawn by end of day. Pretty hard to come back from that.
A large money bin,just beware of the beagle boys.🤪
All the gold in California is in a bank in the middle of Silicon Valley in somebody else’s name.
“Question: If you put $250,000 in four banks that are FDIC insured, is all the money safe from failures?”
Yes.
The $250K is per person so you can put that amount in your account and your spouse can have another $250K in their account and all $500K remains insured.
“Why exactly did this Bank fail”
The bank took the deposits and used them to invest in things that could not be quickly liquidated at the “face value” shown on the balance sheet.
They ran out of cash.
Accounting statements are based on the assumption that the entity being audited is a “going concern”.
They do not reflect liquidation value if there is a run on the bank.
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