SVB

[ClydeR]

The Biden administration has announced that customers of Silicon Valley Bank will have full access to their deposits, an extraordinary move by federal officials to backstop billions of dollars in uninsured money amid fears that the bank's collapse could lead to greater panic.

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The move on Sunday effectively waives the $250,000 ceiling on federal deposit insurance for Silicon Valley Bank and Signature Bank.

The deposits will be supported by insurance funds, not taxpayer money.

A senior Treasury official on Sunday stressed Silicon Valley Bank's investors will not be provided with any relief by Sunday's actions.

"The bank's equity and bondholders are being wiped out. They took a risk as owners of those securities. They will take the losses," the official said.

If people put more than the insured amount of $250,000 in a single bank for convenience, why should the government bail them out? If a little bank went broke, the excess savings of depositors would get wiped out, leaving them with just the insured amount.

It's like if a hurricane blows down everybody's house along a coast, then the government will help them rebuild, but if a tornado blows down just your house, then you're on your own.

[Ardwen]

The system is bailing them out, FDIC is bank money not taxpayer money.

[Anebriated]

The system is bailing them out, FDIC is bank money not taxpayer money.

Good for them for taking the hit for the little guys. Finally the banks are stuck paying for the mess they created...


In other completely unrelated news, fees on savings/checking accounts are about to go up.

[Seran]

If people put more than the insured amount of $250,000 in a single bank for convenience, why should the government bail them out? If a little bank went broke, the excess savings of depositors would get wiped out, leaving them with just the insured amount.

It's like if a hurricane blows down everybody's house along a coast, then the government will help them rebuild, but if a tornado blows down just your house, then you're on your own.

I'm in agreement, I'd rather not see the customers receive more than the FDIC insured amount. For the record however, only one bank's depositors ever were not made whole by the FDIC and that was during the 2008 investment bank orgy.

[Parkbandit]

I'm in agreement, I'd rather not see the customers receive more than the FDIC insured amount. For the record however, only one bank's depositors ever were not made whole by the FDIC and that was during the 2008 investment bank orgy.

The Biden Administration bailed out all the depositors of this bank... and this was a bank almost exclusively for millionaires and billionaires.

[Seran]

The Biden Administration bailed out all the depositors of this bank... and this was a bank almost exclusively for millionaires and billionaires.

Yes he did and I disagree with that decision. I understand their rationale, but it's a pretty flimsy excuse to say that companies who relied on those accounts for payroll should be made whole. Yes, the FDIC has done this through it's history, doesn't make it right.

I can't find the link again, but the breakdown of the concentration of wealth of those depositors in excess of 250k? Like 85%.

[Suppa Hobbit Mage]

The Biden Administration bailed out all the depositors of this bank... and this was a bank almost exclusively for millionaires and billionaires.

Democrat donors you mean.

[Parkbandit]

Yes he did and I disagree with that decision. I understand their rationale, but it's a pretty flimsy excuse to say that companies who relied on those accounts for payroll should be made whole. Yes, the FDIC has done this through it's history, doesn't make it right.

I can't find the link again, but the breakdown of the concentration of wealth of those depositors in excess of 250k? Like 85%.

Yea.. I saw the same thing. It was the exact opposite of a normal bank... 80% is normally regular people with 20% Millionaires/Billionaires.

And it looks like the Board had almost zero experience in any banking.

If you want to invest/utilize a bank and you vote people with no banking experience to be the on the board and it fails... you deserve to lose your investment/deposits.

[Parkbandit]

Democrat donors you mean.

Are they? Only person I saw who withdrew his money from the bank prior to it's collapse was Peter Thiel.. who is not a Democrat.

[Neveragain]

The system is bailing them out, FDIC is bank money not taxpayer money.

So we can now only pay for 100k worth of coverage and have it cover 1 million in damages.

I'm all in on this scheme.

My house burned down:



Insurance covered my losses: