4 ms·

May I ask you why do you sound so calm and confident that your money will not evaporate permanently (above the FDIC guarantee)? Banks going bust is a totally no

by ak_111 4y ago

May I ask you why do you sound so calm and confident that your money will not evaporate permanently (above the FDIC guarantee)? Banks going bust is a totally normal thing in a capitalist system, and bigger more established banks than SVB have done so only a decade ago.

whitemary 4y ago
The banks a decade ago got bailed out. None of their customers lost money.
- toomuchtodo 4y ago
  A bailout is not guaranteed. How long it takes to be made whole is unknown. How long can you go without cash while regulators work out the details. How long will payroll and creditors wait for you to get your cash back. Hope for the best, plan for the worst. Edit (epoch time 16784666958): https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-... (Silicon Valley Bank is shut down by regulators, FDIC to protect insured deposits)
  - whitemary 4y ago
    Nonsense. A bailout has more precedent now, and the current political situation with the Democrats in the White House virtually guarantees it. The last bailout never had a precedent or approval of the American people, but they did it anyway and they will do it again. Capitalism doesn’t allow planning for the worst. Karl Marx showed us this 150 years ago, and the working class is regularly reminded in blood, but the ruling class just never seems to get it. I wonder why.
    - dudeDDRrulez 4y ago
      Dodd Frank did away with bail outs. It will be a “bail in” using customer deposits this time around.
    - yanderekko 4y ago
      >Capitalism doesn’t allow planning for the worst. Governments bailing out banks is not capitalism.
      - deleted 4y ago
        [deleted]
- est31 4y ago
  Not all of the banks got bailed out. Lehman Brothers is the one that started the panic because the feds didn't bail it out.
diebeforei485 4y ago
There have been pretty much zero instances of people's money evaporating from U.S. bank accounts, even above the FDIC guarantee.
- mikeyouse 4y ago
  Not sure why this is downvoted. FDIC-insured accounts have never lost funds in the nearly 100 years since the FDIC was established. And I think there was one? maybe two? times depositors lost funds in excess of the FDIC limits over that same time frame?
  - zamnos 4y ago
    When Lehman Brothers collapsed in 2008, many people lost money over $100k. So many, that FDIC retroactively raised the insured limit to $250k and made people whole up to $250k. A lot of the money over that simply evaporated. Today, the limit is $250k, but as SVB's clients were mostly startups, and startups need to make payroll and pay operating expenses like their AWS/GCP bill, they'd easily have cash in excess of $250k at SVB.
    - mikeyouse 4y ago
      >> When Lehman Brothers collapsed in 2008, many people lost money over $100k. So many, that FDIC retroactively raised the insured limit to $250k and made people whole up to $250k. A lot of the money over that simply evaporated. That's not at all true.. 100% of Lehman customers received 100% of their funds. Secured creditors also received 100% of their funds. https://www.sipc.org/news-and-media/news-releases/20220928 https://www.sipc.org/news-and-media/news-releases/20220928 100% of depositor funds from WaMu (including every penny over the FDIC limit) were safe as well after the Chase buyout. https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/wamu-q-and-a.html#:~:text=The%20FDIC%20is%20required%20by,not%20incur%20a%20loss%20either https://www.fdic.gov/resources/resolutions/bank-failures/fai....
      - zamnos 4y ago

by ak_111 4y ago

whitemary 4y ago

The banks a decade ago got bailed out. None of their customers lost money.

toomuchtodo 4y ago
A bailout is not guaranteed. How long it takes to be made whole is unknown. How long can you go without cash while regulators work out the details. How long will payroll and creditors wait for you to get your cash back. Hope for the best, plan for the worst. Edit (epoch time 16784666958): https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-... (Silicon Valley Bank is shut down by regulators, FDIC to protect insured deposits)
- whitemary 4y ago
  Nonsense. A bailout has more precedent now, and the current political situation with the Democrats in the White House virtually guarantees it. The last bailout never had a precedent or approval of the American people, but they did it anyway and they will do it again. Capitalism doesn’t allow planning for the worst. Karl Marx showed us this 150 years ago, and the working class is regularly reminded in blood, but the ruling class just never seems to get it. I wonder why.
  - dudeDDRrulez 4y ago
    Dodd Frank did away with bail outs. It will be a “bail in” using customer deposits this time around.
  - yanderekko 4y ago
    >Capitalism doesn’t allow planning for the worst. Governments bailing out banks is not capitalism.
    - deleted 4y ago
      [deleted]
est31 4y ago
Not all of the banks got bailed out. Lehman Brothers is the one that started the panic because the feds didn't bail it out.

diebeforei485 4y ago

There have been pretty much zero instances of people's money evaporating from U.S. bank accounts, even above the FDIC guarantee.

mikeyouse 4y ago
Not sure why this is downvoted. FDIC-insured accounts have never lost funds in the nearly 100 years since the FDIC was established. And I think there was one? maybe two? times depositors lost funds in excess of the FDIC limits over that same time frame?
- zamnos 4y ago
  When Lehman Brothers collapsed in 2008, many people lost money over $100k. So many, that FDIC retroactively raised the insured limit to $250k and made people whole up to $250k. A lot of the money over that simply evaporated. Today, the limit is $250k, but as SVB's clients were mostly startups, and startups need to make payroll and pay operating expenses like their AWS/GCP bill, they'd easily have cash in excess of $250k at SVB.
  - mikeyouse 4y ago
    >> When Lehman Brothers collapsed in 2008, many people lost money over $100k. So many, that FDIC retroactively raised the insured limit to $250k and made people whole up to $250k. A lot of the money over that simply evaporated. That's not at all true.. 100% of Lehman customers received 100% of their funds. Secured creditors also received 100% of their funds. https://www.sipc.org/news-and-media/news-releases/20220928 https://www.sipc.org/news-and-media/news-releases/20220928 100% of depositor funds from WaMu (including every penny over the FDIC limit) were safe as well after the Chase buyout. https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/wamu-q-and-a.html#:~:text=The%20FDIC%20is%20required%20by,not%20incur%20a%20loss%20either https://www.fdic.gov/resources/resolutions/bank-failures/fai....
    - zamnos 4y ago