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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don’t think you all understand what happened. FDIC took over the bank. All FDIC-insured deposits are guaranteed and FDIC will pay a dividend out against non-insured funds. Branches will open as usual on Monday.

For all practical purposes, the bank essentially switched ownership.[/quote]

This isn’t a bank for mom and pop. These are startups and VCs, which banked their operating capital at SVB.  It was a symbiotic relationship since SVB dabbled in VC as well. But they had balances much bigger than $250k. I thought I read about 90% of funds were not FDIC insured.

Now that doesn’t mean it’s loss, but it means assets are frozen until court bankruptcy is processed, and there will be a haircut for what is recovered. [/quote]

Customers will get a dividend against uninsured funds within about the next week. That’s according to the FDIC’s announcement.[/quote]

Well as long as dividend payments match their capital needs that will help. [/quote]

The reason these companies banked with SVB to begin with is that they burn huge amounts of cash.  Reality is there is going to be a lot of orgs that already have more than 250K due out between now and early next week.  Cash is their lifeblood and its going to be hard to hold one of these businesses together even for a few days without access to operating funds.   [/quote]

+1 This is the real issue.[/quote]

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