Posted on 03/10/2023 8:46:04 AM PST by Oldeconomybuyer
Fears of a broad financial contagion spread on Friday after tech lender Silicon Valley Bank set off alarm bells over liquidity concerns — sparking share losses across the banking sector worth some $52 billion on Thursday.
Peter Thiel’s venture capital firm Founders Firm advised clients to withdraw their deposits from Silicon Valley Bank — despite the fact the lender has been a mainstay for tech startups for decades, according to Bloomberg News.
Bill Ackman, the billionaire hedge fund manager, called on the US government to step in and bail out Silicon Valley Bank.
Michael Burry, the eccentric investor featured in the 2015 film “The Big Short,” warned: “It is possible today we found our Enron.”
Shares of Silicon Valley Bank’s parent company, SVB Financial Group, nosedived by 60% on Thursday evening, wiping out more than $80 billion from its market capitalization.
The company’s stock was down another 45% in pre-market trading on Friday — dragging down the share price of several other publicly traded banking giants.
(Excerpt) Read more at nypost.com ...
Somewhere, somehow, the DNC, Clintons, Bidens and GOPe are involved.................
Just announced, SVB has been closed down immediately.
They all wanted Biden. Let them enjoy the end result.
Steve Bannon just announced on the War Room that California Bank Regulators have closed the SVB immediately. Depositors you just go cut off for the time being.
I just heard that the FDIC has closed SVB IMMEDIATELY!!!!
“Peter Thiel’s venture capital firm Founders Firm advised clients to withdraw their deposits from Silicon Valley Bank “
Obama too.
>>Depositors you just go cut off for the time being.
Yep, and they are already calling for a taxpayer bailout to cover their stupid losses.
>>Isn’t that against the law
No.
The money you deposit in a bank isn’t yours. It’s a loan you make to the bank. If/when the bank fails, you’re on a list of creditors with everyone else.
Good luck getting a dime back.
To some degree you are right, the FDIC insures up to $250,000 in deposits but they probably don’t have the reserves to cover all the potential insured loses and Washington will be hard pressed to live up to that guarantee.
For Immediate Release
WASHINGTON – Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.
All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including on-line banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-866-799-0959.
The FDIC as receiver will retain all the assets from Silicon Valley Bank for later disposition. Loan customers should continue to make their payments as usual.
Silicon Valley Bank is the first FDIC-insured institution to fail this year. The last FDIC-insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.
FDIC: PR-16-2023
https://www.fdic.gov/news/press-releases/2023/pr23016.html
We give Ukraine billions and you get $250,000 worth of Fed insurance on your million dollar deposit. bwahahahahahahh
Hey! Now Gavin Newsome can claim bank failures for his state. He’s a jack off of all trades!
Good luck getting a dime back.
That's gotta hurt if you are a real worker and had million bucks there knowing you may only get a fourth of that back from insurance.
State of California tax revenues will be hit the hardest. Look for that idiot state to go bankrupt or broke when they can’t pay the bills for their stupid high speed fail.
Anyone with a million bucks should have spent an hour or so with an investment expert. That expert would have said to divide your money among different banks. Stay under that $250,000 insurance limit.
Ah, yes. Hindsight. Ain’t it grand?
Women and liberal tech geeks hit hardest
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