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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

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

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. [/quote]

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.[/quote]

OMG. You obviously have no idea how small business works. My God. [/quote]

DP.  I have no idea how small businesses work. Can you tell us?[/quote]

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. [/quote]

I find it pretty laughable that you think Silicon Tech companies 1. Are cash conservative 2. Don’t have the ability to shop different banks 3. don’t have sophisticated staff that should have known to protect assets over 250k 4. Can’t run a complex scheme to aggregate payroll snd 5.  Don’t have the ability to cut any expenses.

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You are so wildly ignorant. [/quote]

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