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 ...
FDIC insurance will get you your $250K or less quickly.
Here is the information from their web site:
https://www.fdic.gov/consumers/consumer/news/cnfall14/misconceptions.html
“The simple fact is that the FDIC has only a fraction of what would be needed to cover the whole ball of wax. So, depending on how bad it gets, you could get close to nothing.”
This is deeply wrong.
1. Funds insured up to $250 are insured—really insured—as in will be funded usually within twenty four hours.
2. If the FDIC runs out of money Congress will get them more.
Why? Because otherwise the entire banking system collapses.
Immediately. There is zero chance Congress will allow that to happen.
I remember watching my AMD stock lose 1/3rd of the value in 6 weeks by the end of Dec 21 then 2/3rds by Oct 22. Now up about 50% from there. Only the FED and congress are holding back the economy growing.
Tech CEO With at Least $10M in Silicon Valley Bank: ‘Worst 18 Hours of my Life’
https://freerepublic.com/focus/f-news/4137249/posts
Etsy sellers notified that money owed to them will not be deposited to their bank accounts due to SVB collapse.
Genevieve Roch-Decter, CFA
@GRDecter
Only 2.7% of Silicon Valley Bank deposits are less than $250,000.
Meaning, 97.3% aren’t FDIC insured.
https://twitter.com/GRDecter/status/1634267470662979592
BREAKING: Before the collapse of Silicon Valley Bank, $SIVB, the CEO sold $3.57 million of stock within the last two weeks.
https://twitter.com/unusual_whales/status/1634250625319075840
Hah! They’ll just print more, as they always do and devalue what the rest of us barely have.
FDIC has 30 years to pay back the $250,000 “insured” deposits on each account. Let that sink in.
Yes, banks are only required to have a small percentage of cash on hand relative to their total deposits. This is because they are taking your deposits and loaning to others in order to collect interest.
A bank run will quickly deplete those fractional reserves, resulting in the situation we have here with SVB.
Dodd Frank Act allows bale ins. You know what like happened in Greece. They will take funds. The FDIC doesn’t have enough reserves to pay out $250,000 per depositor.
How do you balance out the fed printing dollars?
I hadn’t heard this. Do you have a reference to this policy? Thanks in advance.
But at each bank the total insured amount for the father or for the child could not exceed $250,000. This total is for all accounts at a given bank. The best they could do is to protect $500,000 total for the father and the child.
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