4 ms·

The difference is that SVB's depositors will see most of their money back, which is the point of the FDIC taking over.

by karpierz 4y ago

dannyw 4y ago
When, though? If your company can't access your money to access payroll for X months, you might as well as be dead.
- w10-1 4y ago
  "When, though": now. The article says checks continue to clear, and branches open Monday, the next business day. And
- kasey_junk 4y ago
  The press release answers some of that. Insured money is there on Monday. Uninsured money will get their first payout no later than next week. After that its a question but typically depositors will know the answer very quickly because their claims come first.
  - delfinom 4y ago
    Not quite, the uninsured money will be partially paid out depending on how the books look (since the FDIC has to liquidate the bank), however a chunk of the money can be in limbo for now via receivership certificate that tracks the amount you have claim to. From the PR >The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds This is a 100% standard FDIC statement and not unique to SVB btw. https://www.investopedia.com/terms/a/advance-dividend.asp#:~:text=What%20Is%20an%20Advance%20Dividend,the%20receiver%20of%20its%20assets https://www.investopedia.com/terms/a/advance-dividend.asp#:~....
- karpierz 4y ago
  > All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week.
  - deleted 4y ago
    [deleted]
  - HDThoreaun 4y ago
    So you'll get 250k plus an unspecified percentage of the other 93% of deposits the bank is holding. Startups have millions in SVB, it will be at least months before they have access to that.
    - delfinom 4y ago
      Yep, the additional percentage paid out in advance will be based on the bank's books once the FDIC digs into it to estimate what can be recovered. The rest is after liquidation.
johnbellone 4y ago
I wouldn't be too sure about that. 93% of SVB deposits are uninsured.
- kevin_nisbet 4y ago
  But SVB also has locked in assets to be auctioned off. So it's going to depend on what sorts of haircuts occur on those assets sales.
- jb1991 4y ago
  I'm super curious why in the world that in 2023, nearly all the deposits in the country's 18th largest bank are not insured ? what?
  - rcme 4y ago
    The FDIC only insures up to $250K per account holder.
  - mynameisvlad 4y ago
    FDIC insurance, regardless at which bank, only covers the first 250k per depositor per bank.
    - dragonwriter 4y ago
      ...per ownership category, of which their are, I think 14, and sometimes the insured party isn’t the depositor (e.g., “Employee Benefit Plans” are a category, and the plan participants are treated as the insured party for calculations in that category—and since its a separate category, it doesn't effect any single or joint accounts those participants happen to have at the same institution.)
      - mynameisvlad 4y ago
        I had it in my comment initially and removed it. When the bank's deposits are several magnitudes more than the limit, I don't think that distinction will do anything but muddy the waters. Even if each owner had all 14 types, they only get $3.5mil in insurance. And the bank has, allegedly, somewhere around $200bil in deposits.
CamelCaseName 4y ago
Only 2.7% of SVB's deposits will be covered by FDIC.
- dllthomas 4y ago
  I thought it was 2.7% of accounts are fully covered by FDIC? That's only going to be 2.7% of deposits by coincidence, and what it means for the others depends on just how dramatically over the limit they are... unless I miss something (which is plenty possible).
  - dllthomas 4y ago
    Per another thread, it may in fact be 2.7% of deposits insured rather than accounts.
kgwgk 4y ago
We don’t really know yet if they will be getting most of their money back. The only guaranteed amount is 250k.
dragonwriter 4y ago
> The difference is that SVB's depositors will see most of their money back Depositors will see all of their insured money back, uninsured deposits will be recovered based on available assets and/or terms of any resale by the FDIC, but could be lost in whole or substantial part. Large depositors could potentially see substantial losses.
- manquer 4y ago
  The assets are all regulated t-bills and MBS with real interests and secured by hard assets not made up first party coins with manipulated values

The difference is that SVB's depositors will see most of their money back, which is the point of the FDIC taking over.

dannyw 4y ago

When, though? If your company can't access your money to access payroll for X months, you might as well as be dead.

w10-1 4y ago
"When, though": now. The article says checks continue to clear, and branches open Monday, the next business day. And
kasey_junk 4y ago
The press release answers some of that. Insured money is there on Monday. Uninsured money will get their first payout no later than next week. After that its a question but typically depositors will know the answer very quickly because their claims come first.
- delfinom 4y ago
  Not quite, the uninsured money will be partially paid out depending on how the books look (since the FDIC has to liquidate the bank), however a chunk of the money can be in limbo for now via receivership certificate that tracks the amount you have claim to. From the PR >The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds This is a 100% standard FDIC statement and not unique to SVB btw. https://www.investopedia.com/terms/a/advance-dividend.asp#:~:text=What%20Is%20an%20Advance%20Dividend,the%20receiver%20of%20its%20assets https://www.investopedia.com/terms/a/advance-dividend.asp#:~....
karpierz 4y ago
> All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week.
- deleted 4y ago
  [deleted]
- HDThoreaun 4y ago
  So you'll get 250k plus an unspecified percentage of the other 93% of deposits the bank is holding. Startups have millions in SVB, it will be at least months before they have access to that.
  - delfinom 4y ago
    Yep, the additional percentage paid out in advance will be based on the bank's books once the FDIC digs into it to estimate what can be recovered. The rest is after liquidation.

johnbellone 4y ago

I wouldn't be too sure about that. 93% of SVB deposits are uninsured.

kevin_nisbet 4y ago
But SVB also has locked in assets to be auctioned off. So it's going to depend on what sorts of haircuts occur on those assets sales.
jb1991 4y ago
I'm super curious why in the world that in 2023, nearly all the deposits in the country's 18th largest bank are not insured ? what?
- rcme 4y ago
  The FDIC only insures up to $250K per account holder.
- mynameisvlad 4y ago
  FDIC insurance, regardless at which bank, only covers the first 250k per depositor per bank.
  - dragonwriter 4y ago
    ...per ownership category, of which their are, I think 14, and sometimes the insured party isn’t the depositor (e.g., “Employee Benefit Plans” are a category, and the plan participants are treated as the insured party for calculations in that category—and since its a separate category, it doesn't effect any single or joint accounts those participants happen to have at the same institution.)
    - mynameisvlad 4y ago
      I had it in my comment initially and removed it. When the bank's deposits are several magnitudes more than the limit, I don't think that distinction will do anything but muddy the waters. Even if each owner had all 14 types, they only get $3.5mil in insurance. And the bank has, allegedly, somewhere around $200bil in deposits.

CamelCaseName 4y ago

Only 2.7% of SVB's deposits will be covered by FDIC.

dllthomas 4y ago
I thought it was 2.7% of accounts are fully covered by FDIC? That's only going to be 2.7% of deposits by coincidence, and what it means for the others depends on just how dramatically over the limit they are... unless I miss something (which is plenty possible).
- dllthomas 4y ago
  Per another thread, it may in fact be 2.7% of deposits insured rather than accounts.

kgwgk 4y ago

We don’t really know yet if they will be getting most of their money back. The only guaranteed amount is 250k.

dragonwriter 4y ago

> The difference is that SVB's depositors will see most of their money back Depositors will see all of their insured money back, uninsured deposits will be recovered based on available assets and/or terms of any resale by the FDIC, but could be lost in whole or substantial part. Large depositors could potentially see substantial losses.

manquer 4y ago
The assets are all regulated t-bills and MBS with real interests and secured by hard assets not made up first party coins with manipulated values