SVB failure

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don’t understand how people can support student loan forgiveness but not depositor protection. And vice versa.

Because normal depositors (under $250k) are already protected by insurance. Uninsured depositors over $250k already have a process to get priority access to assets. Totally different from students who are paying for something that should be free or as close to it as possible.

Tell me you have no experience whatsoever with small business management without telling me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one is advocating for bailing out shareholders or SVB executives. Depositors, who deposited their cash in good faith, need access to their operating accounts tomorrow to meet payroll and pay their trade accounts. If they can’t access their cash deposits, Americans lose faith in the banking system, and there is a risk of contagion. How would everyone on here feel if your company’s operating accounts suddenly vanished and they can’t make your next paycheck? Most Americans rely on their next paycheck to eat, pay rent and keep the heat on.

SVB account holders will have access to $250k starting tomorrow. FDIC insurance works.

Lol. SVB is not a consumer bank. $250k for a business? That won’t get many through even their next payroll. They need access to their operating accounts.

Of course they do, but they also chose to put their money in accounts that are not insured.

$250k on a 2-week payroll is $500k/month = $6mln/year. Let's say avg salary of $150k net (so $180-200k gross) = $250k can cover one 2-week payroll for a company of about 40. They can delay paying the taxes portion, so it's jsut $250k needed in net payments.

[Anonymous]

It is very, very clear who most of the entitled but utterly clueless posters here arguing against depositor protection but who want student loan bailouts are.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one is advocating for bailing out shareholders or SVB executives. Depositors, who deposited their cash in good faith, need access to their operating accounts tomorrow to meet payroll and pay their trade accounts. If they can’t access their cash deposits, Americans lose faith in the banking system, and there is a risk of contagion. How would everyone on here feel if your company’s operating accounts suddenly vanished and they can’t make your next paycheck? Most Americans rely on their next paycheck to eat, pay rent and keep the heat on.

SVB account holders will have access to $250k starting tomorrow. FDIC insurance works.

Lol. SVB is not a consumer bank. $250k for a business? That won’t get many through even their next payroll. They need access to their operating accounts.

Of course they do, but they also chose to put their money in accounts that are not insured.

$250k on a 2-week payroll is $500k/month = $6mln/year. Let's say avg salary of $150k net (so $180-200k gross) = $250k can cover one 2-week payroll for a company of about 40. They can delay paying the taxes portion, so it's jsut $250k needed in net payments.

OMG. You obviously have no idea how small business works. My God.

[Anonymous]

Take to cash out

[Anonymous]

Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one is advocating for bailing out shareholders or SVB executives. Depositors, who deposited their cash in good faith, need access to their operating accounts tomorrow to meet payroll and pay their trade accounts. If they can’t access their cash deposits, Americans lose faith in the banking system, and there is a risk of contagion. How would everyone on here feel if your company’s operating accounts suddenly vanished and they can’t make your next paycheck? Most Americans rely on their next paycheck to eat, pay rent and keep the heat on.

SVB account holders will have access to $250k starting tomorrow. FDIC insurance works.

Lol. SVB is not a consumer bank. $250k for a business? That won’t get many through even their next payroll. They need access to their operating accounts.

Of course they do, but they also chose to put their money in accounts that are not insured.

$250k on a 2-week payroll is $500k/month = $6mln/year. Let's say avg salary of $150k net (so $180-200k gross) = $250k can cover one 2-week payroll for a company of about 40. They can delay paying the taxes portion, so it's jsut $250k needed in net payments.

OMG. You obviously have no idea how small business works. My God.

DP. I have no idea how small businesses work. Can you tell us?

[Anonymous]

Anonymous wrote:Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

That seems to be what the people arguing against depositor protection want. Also add in that they want small businesses at other banks to make bank runs.

Rank stupidity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one is advocating for bailing out shareholders or SVB executives. Depositors, who deposited their cash in good faith, need access to their operating accounts tomorrow to meet payroll and pay their trade accounts. If they can’t access their cash deposits, Americans lose faith in the banking system, and there is a risk of contagion. How would everyone on here feel if your company’s operating accounts suddenly vanished and they can’t make your next paycheck? Most Americans rely on their next paycheck to eat, pay rent and keep the heat on.

SVB account holders will have access to $250k starting tomorrow. FDIC insurance works.

Lol. SVB is not a consumer bank. $250k for a business? That won’t get many through even their next payroll. They need access to their operating accounts.

Of course they do, but they also chose to put their money in accounts that are not insured.

$250k on a 2-week payroll is $500k/month = $6mln/year. Let's say avg salary of $150k net (so $180-200k gross) = $250k can cover one 2-week payroll for a company of about 40. They can delay paying the taxes portion, so it's jsut $250k needed in net payments.

OMG. You obviously have no idea how small business works. My God.

DP. I have no idea how small businesses work. Can you tell us?

Okay. Typically they do not have sophisticated people with deep banking experience on staff. They don’t have the ability to shop different banks or run a complex scheme where payroll is aggregated across multiple banks. They are very cash conservative so keep it in low-yield accounts that are supposed to be safe. They have ongoing outbound payment commitments that their business relies on, so they can’t cut expenses easily to make payroll. What else do you want to know?

I think the people in this thread who are advocating for the widespread failure of small businesses and small banks are entitled nihilists.

[Anonymous]

Time to remove my money from the bank

[Anonymous]

Anonymous wrote:Obviously we should do nothing, experience the ripple affect of companies not making payroll this week, see how it affects confidence in the American banking system, and let Abu Dahbi buy SVB next week, and increase our dependency the Middle East.

British authorities said to be in talks with a Middle Eastern investor to buy SVB UK.

[Anonymous]

FDIC taking bids now on auction for SVB. Hopes for an announcement later today. Of course, it is possible a deal can't be struck.

https://cointelegraph.com/news/fdic-bidding-for-silicon-valley-bank-is-in-progress-report

[Anonymous]

Anonymous wrote:Time to remove my money from the bank

And put it where? Under your mattress?

[Anonymous]

Anonymous wrote:Time to remove my money from the bank

And then put your money in... another bank? PayPal? Where?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Time to remove my money from the bank

And then put your money in... another bank? PayPal? Where?

You do realize that cash still exists, right?