4 ms·

If 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 ago
I 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 ago
  It'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 ago
    Hadn't considered this. I work for a consultancy...
  - greatwave1 4y ago
    Yeah, 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 ago
      The 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 ago
    Yeah. 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.

swarnie 4y ago

I 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 ago
It'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 ago
  Hadn't considered this. I work for a consultancy...
- greatwave1 4y ago
  Yeah, 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 ago
    The 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 ago
  Yeah. 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.