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Nope, this is why we have the FDIC, most americans wont even notice
by mtoner23 4y ago
Nope, this is why we have the FDIC, most americans wont even notice
- postalrat 4y agoDid you even read the comment you replied to?
- mtoner23 4y agothe FDIC does more than hand out 250k checks. They will find a buyer for this bank who can successfully manage its assets. and most likely will payout uninsured account holders at least 90 cents on the dollar. Probably even all 100 cents. Remember the bailouts the goverments made to banks on 08, we didnt lose a cent on those. the govt made money. We are gonna be ok
- rickreynoldssf 4y agoThis isn't going to happen before Monday. Or before the AWS bill is due. $250k isn't going to cover most company's operating cash needs.
- mtoner23 4y agofair point. we'll see how it goes though, i dont expect it to be a banking collapse thougu
- in_cahoots 4y agoIf the Twitter saga has shown anything, it’s that companies can afford not to pay on their contracts, at least in the short term. Amazon will give them a grace period because a customer paying a few weeks late is better than the customer going belly-up.
- rickreynoldssf 4y agoIf your company's next payroll is more than $250k you're going to notice. Not even getting into accounts payable for various other suppliers etc.
- swarnie 4y agoI do thin Xe's right in saying "Most Americans wont notice" How many of you are directly paid by the Valley tech sector?
- disgruntledphd2 4y agoIt's the indirect effects that'll get you though. Consider my company has nothing at SVB, but 50% of their customers do. Still gonna be pretty bad when half your clients can't pay you.
- jcadam 4y agoHadn't considered this. I work for a consultancy...
- greatwave1 4y agoYeah, but you're pulling that 50% number from thin air. How many companies do you think actually have 50% of their customers banked by SVB? SVB had ~$200b in total assets, less than 1% of the total assets in banks across the U.S. alone. There are definitely going to be indirect effects, but HN and other voices in early-stage tech are predisposed to overestimate the impact on the broader economy.
- bostik 4y agoThe article gave two numbers I didn't know about, and both came as a surprise: > As at the end of 2022, it had 37,466 deposit customers, each holding in excess of $250,000 per account -- and -- The bank does have another 106,420 customers whose accounts are fully insured but they only control $4.8 billion of deposits So SVB had only about ~150k banking customers. And of those, less than 40k are actually affected by this debacle. But those were concentrated enough to make SVB the 20th largest bank in the US. Puts things in perspective.
- icelancer 4y agoYeah. We're not an SVB client nor are we in Silicon Valley, but we're already auditing our accounts payable and client lists. It's likely we aren't screwed, but our contract accountant who told us to start doing this kind of bookkeeping said some of his other clients have massive counterparty exposure to this bank failure.
- rco8786 4y agoFDIC is only good for $250k per account...
- mtoner23 4y agoThe fdic is much more than just 250k per account
- rco8786 4y agoCan you expand on that? The FDIC per account insurance limit is definitely $250k. Are you saying that the FDIC has other protections in place, or something else?
- astrange 4y agoPer account type per bank per depositor isn't it?