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> Silicon Valley Bank is the first FDIC-insured institution to fail this year. Wow FDIC is fully calling it a failed bank. Just yesterday they were releasing s
by azinman2 4y ago
> Silicon Valley Bank is the first FDIC-insured institution to fail this year.
Wow FDIC is fully calling it a failed bank. Just yesterday they were releasing statements saying they’re in a good position. Uncle Sam just fully opened Pandora’s box and made the judgement public!
- kasey_junk 4y agoThe FDIC calls them failed banks by definition. If they step in, you failed. They have a failed bank list and Sivb is going on it.
- Havoc 4y agoThat's pretty normal for confidence based stuff like this. There isn't really a point in regulators/insurers releasing a "well we're about half confident" message. So it flips from full confidence to zero confidence. Bit jarring but the sharp transition is not unexpected.
- purpleblue 4y agoThis is how quickly a bank run can happen. They announced they were seeking funding, people started withdrawing all their money, and the investors all pulled out, leaving SVB high and dry. Now it's dead.
- NovaDudely 4y agoIt is fun (in a morbid kind of way) just seeing how quickly the confidence on these things turn. "Company is 200 years old and we will go for another 200 years more!" 2 Days later "Whoops, all the moneys gone. Bye!"