Reply to SVB failure

Forum Index » Money and Finances

Reply to "SVB failure "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Lots of tech companies that have loans at SVC have all their deposits there and can't move them because of loan covenants.  Some are very stressed about being able to make payroll on 3/15 because accounts are frozen. [/quote]

Well they couldn’t move their deposits regardless, so.

Maybe these genius Californians should be smarter about doing all their banking in the same place. [/quote]

Californians?  It's much bigger than a California problem.  It affects the entire tech industry.  I've you've got any money invested in a venture fund, reach out and ask them what percentage of their portfolio is affected.  I'd wager it's over 50%.[/quote]

My venture fund sent out an email this evening - minimal exposure. Got lucky there.

I am surprised 90% of the money isn’t FDIC-insured. Don’t they have brokered deposits?[/quote]

This is what I don’t get - brokered deposits are incredibly common and the brokers will parse them out among various banks in custody. Very easy to break up the deposits into insurable amounts.

There must have been some sort of incentive or restriction by SVB that kept such a huge amount of uninsured deposits.

My prediction is that there will end up being a future rule on an allowable amount of uninsured deposits at an institution. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics