I wonder how SVB hurt the fee-fees of the Bay Area’s most re-eminent thin-skinned fascist billionaire. Now he’s added “help start a bank run” to “fund someone else’s lawsuit” to the methods he’s used to help destroy a business.
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I’m pretty sure that it would be stage left, like all pantomime villains.
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Interesting. As was your other post.
Below is the link to the article you mentioned.
For those who like the bottom line (sort of, in this case):
Silicon Valley Bank was never subjected to the Federal Reserve’s LCR requirement – even as the 16th largest bank in America, it was deemed too small.
I wonder if another bank will buy the assets?
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Might be too early to call. An investigation into the CEO for insider trading and into Thiel’s involvement could wind things back.
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So far, yes. The FDIC is doing what it was designed to do, which that’s great… that doesn’t mean that the various other forms of deregulation around banking won’t play a role in causing larger problems. This is impacting an incredibly powerful sector of the economy.
I just think about how the folks in 1929 kept believing that nothing could ever go wrong…
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Well, that’s just about right. Though it’s also Intuitive Surgical/Nuvasive/Moderna/Shockwave Medical Credit Union (these are all innovative/revolutionary medical device/pharma companies that used banks like SVB when they were startups).
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Banker friend of mine points out that because obscure legal reasons SVB is overseen by CA state regulators, not federal, which is a) dumb but b) the law
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That would be nice, but we have Fox News
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Of course the difficulty is that even if a say ~20% haircut is survivable in the medium term, some of those funds are intended to cover payroll on Monday. I’m not sure how the FDIC handles that sort of thing. Do they provide access to part of one’s funds for hardship cases like that, or to the provide loans secured by the “ballance” that firms have at the bank.
Edited to add: Apparently, the payroll processing company Rippling used them, so there are a fair number of payroll checks that didn’t go out Friday.
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Yeah, state charted financial institutions have never caused problems /s
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Yeah… I know… and what’s worse a whole right-wing eco-system that is even worse than Fox…
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For depositors with $250,000 or less in cash at SVB, the FDIC said that customers will have access to all of their money when the bank reopens.
For those with uninsured deposits at SVB – basically anything above the FDIC limit of $250,000 – they may or may not receive back the rest of their money.
Didn’t all SVB clients have at least $250k deposited? Owie.
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Yep.
Lots of wealthy people in the U.S. having a bit of a nervous weekend, I’d guess.
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Nope, not from US taxes, anyway.
According to Wikipedia: The FDIC receives no funding from the federal budget. Instead it assesses premiums on each member and accumulates them in a Deposit Insurance Fund (DIF) that it uses to pay its operating costs and the depositors of failed banks.
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Maybe. I hear the word “contagion” and the next word that comes to mind is “bailout”. Funded by the US taxpayer, of course. Privatize the gains, socialize the losses.
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Oops
The company had nearly $500 million in “largely uninsured” deposits with SVB.
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[All the facepalm gifs]
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