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][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My SIL (on the East coast) works for SVB and my DH’s company (mostly remote, but East coast based - though we live in CA) does it’s banking with SVB. I don’t think they’ll be able to cover next weeks’ bi-weekly payroll if they only have access to $250k, let alone such things as health insurance premiums. [/quote]

Once again: FDIC is issuing dividends to cover uninsured funds. [/quote]

FDIC is not issuing dividends for the full value of uninsured funds. [/quote]

They are for most of it. [/quote]

Yeah but a “dividend” does not mean they have access to their deposits or any guarantee of getting their money back. [/quote]

They will get regular dividends as the FDIC sells off assets. Sure, they will ultimately get a haircut, but they will get most of their money back over the next few weeks/months. Enough to keep payroll going.

The FDIC needs to move fast, however. [/quote]

Why do they get dividends? When they deposited their money they received a notice that only $250k is insured. [/quote]

As I understand it: under the law they have a super priority to the assets of the failed bank as they are liquidated (so sort of similar to bankruptcy). Their deposits over $250k are not guaranteed however. The FDIC guarantee is different from a priority/dividend. [/quote]

The depositors, even if over the limit, get priority in a sale or liquidation. Equity and debt holders of SVB will be wiped out. The depositors get first crack at asset sale proceeds. If anything is leftover, it then goes to SVB secured creditors like holders of SVB debt or structured notes. [/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