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Fixes what? An insolvent bank got was taken over by a national authority, all of the deposits were insured, account holders don’t even notice anything happened
by ajhurliman 4y ago
Fixes what? An insolvent bank got was taken over by a national authority, all of the deposits were insured, account holders don’t even notice anything happened unless they’re following the news, the banking system doesn’t even skip a beat.
This sounds like everything went according to the highly regulated plan.
- dragonwriter 4y ago> all of the deposits were insured There's no official accounting yet, but most accounts seem to estimate that a very large fraction are not, because of FDIC insurance limits.
- ajhurliman 4y agoThe accounts are still insured even if the insurance doesn’t cover 100% of the deposits
- zamfi 4y ago> all of the deposits were insured Only up to $250k -- and an overwhelming majority of SVB's deposits were in accounts in excess of this amount.
- willmadden 4y agoFDIC insurance only covers accounts up to 250k. It's really only suitable for protecting middle class individuals, not corporations. 97% of the 175 billion on deposit was not covered by FDIC insurance. Those companies are going to be wiped out unless the government steps in and exceeds the requirements of the insurance.
- voisin 4y ago> 97% of the 175 billion on deposit was not covered by FDIC insurance. Source?
- willmadden 4y agoIt's a minimum of 85% uninsured from a recent regulatory filing: https://time.com/6262009/silicon-valley-bank-deposit-insurance/ https://time.com/6262009/silicon-valley-bank-deposit-insuran... The equally bad part is that lines of credit that startups were drawing from are wiped out.