SVB failure

[Anonymous]

So are all the SVB execs going to get golden parachutes? Will there be any repercussions?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Why do they not have a treasury direct account? I have held hundreds of thousands there, know that its safe and liquid and also significantly protected from simple fraud since it does not have cash checking or such access

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Do parents have more than $1 million? As said before, it is easy enough to have $1 million covered by FDIC at any bank of your choice. Two banks $2 mil. You would give up a lot these days if you move your savings from your bank that offers best interest on savings to somewhere else just so that they can manage FDIC insurance for you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Why do they not have a treasury direct account? I have held hundreds of thousands there, know that its safe and liquid and also significantly protected from simple fraud since it does not have cash checking or such access

DP. Treasuries are risky these days obviously as SVB just found out. So, if you want a deposit equivalent you would need to buy 1 months bills. Does treasuries direct offer to roll them from month to month or you need to buy a new batch every month?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Do parents have more than $1 million? As said before, it is easy enough to have $1 million covered by FDIC at any bank of your choice. Two banks $2 mil. You would give up a lot these days if you move your savings from your bank that offers best interest on savings to somewhere else just so that they can manage FDIC insurance for you.

Yes.

They want to “set and forget.” That’s how they got into this mess.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Why do they not have a treasury direct account? I have held hundreds of thousands there, know that its safe and liquid and also significantly protected from simple fraud since it does not have cash checking or such access

DP. Treasuries are risky these days obviously as SVB just found out. So, if you want a deposit equivalent you would need to buy 1 months bills. Does treasuries direct offer to roll them from month to month or you need to buy a new batch every month?

Talk about ridiculous convolutions. Just HTM in your TD and get full principal back out. It’s not like you savings account gives you ANY yield until like last week.

For boomer parents a laddered portfolio of treasury bonds would cover 99% of their use cases.

[Anonymous]

Anonymous wrote:So are all the SVB execs going to get golden parachutes? Will there be any repercussions?

SVB execs are going to get an anal probing of their finances, emails, text messages, etc.
No parachutes this time.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

All interaction I think is online, so you may need to help boomer parents set it up but then it's good. 4.05% interest is great too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Why do they not have a treasury direct account? I have held hundreds of thousands there, know that its safe and liquid and also significantly protected from simple fraud since it does not have cash checking or such access

DP. Treasuries are risky these days obviously as SVB just found out. So, if you want a deposit equivalent you would need to buy 1 months bills. Does treasuries direct offer to roll them from month to month or you need to buy a new batch every month?

Let me Google that for you….

Why yes they do: https://www.treasurydirect.gov/savings-bonds/manage-bonds/treasurydirect/td-tour-individuals/reinvest-marketables/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Why do they not have a treasury direct account? I have held hundreds of thousands there, know that its safe and liquid and also significantly protected from simple fraud since it does not have cash checking or such access

DP. Treasuries are risky these days obviously as SVB just found out. So, if you want a deposit equivalent you would need to buy 1 months bills. Does treasuries direct offer to roll them from month to month or you need to buy a new batch every month?

No they aren't. Sorry but that was just ignorant.

You can reinvest treasuries.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Why do they not have a treasury direct account? I have held hundreds of thousands there, know that its safe and liquid and also significantly protected from simple fraud since it does not have cash checking or such access

DP. Treasuries are risky these days obviously as SVB just found out. So, if you want a deposit equivalent you would need to buy 1 months bills. Does treasuries direct offer to roll them from month to month or you need to buy a new batch every month?

Let’s get real. Few household needs access to more than $$500k within a year without significant advance warning.

So buy 1-3 year bonds for $1.5M and put $$250k in two banks (and everyone should have two banks, because you can always be hacked and locked out).

[Anonymous]

My dad was born in 1940. He could not write an email to save his life but knew how to walk to a bank branch and open separate accounts to ensure they kept under the limit of $100k. Of course his parents went through real bank failures, unlike now where we expect bailouts for essentially any hiccup.

[Anonymous]

Anonymous wrote:So are all the SVB execs going to get golden parachutes? Will there be any repercussions?

SVB execs and shareholders get nothing. No “bailout” is being proposed. Depositors need access to their deposit accounts to make payroll and operate their businesses. They didn’t assume any risks in their cash accounts. Watch there be a run on other smaller banks starting tomorrow morning.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have most of our cash savings with Wealthfront. It's guaranteed up to $2mln because they spread it across a few different banks to deal with the $250k/account limit:
https://www.wealthfront.com/blog/cash-account-2m-fdic-insurance

That’s pretty cool. How do you like them? I have Boomer parents who have way too much cash and are super spooked right now.

Why do they not have a treasury direct account? I have held hundreds of thousands there, know that its safe and liquid and also significantly protected from simple fraud since it does not have cash checking or such access

DP. Treasuries are risky these days obviously as SVB just found out. So, if you want a deposit equivalent you would need to buy 1 months bills. Does treasuries direct offer to roll them from month to month or you need to buy a new batch every month?

Let me Google that for you….

Why yes they do: https://www.treasurydirect.gov/savings-bonds/manage-bonds/treasurydirect/td-tour-individuals/reinvest-marketables/

Thanks. Limited to 2 years but not too bad

[Anonymous]

Anonymous wrote:

Anonymous wrote:So are all the SVB execs going to get golden parachutes? Will there be any repercussions?

SVB execs and shareholders get nothing. No “bailout” is being proposed. Depositors need access to their deposit accounts to make payroll and operate their businesses. They didn’t assume any risks in their cash accounts. Watch there be a run on other smaller banks starting tomorrow morning.

SVB execs deserve less than nothing - they need their comp clawed back.