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SVB is a commercial bank for tech/biotech, venture & private equity firms. FDIC insurance of 250k is a months salary for <25 engineers. Less than 3% of deposit
by antoniuschan99 4y ago
SVB is a commercial bank for tech/biotech, venture & private equity firms.
FDIC insurance of 250k is a months salary for <25 engineers. Less than 3% of depositors hold less than 250k.
FDIC takeover does not necessarily mean that SVB will cease operations permanently. I haven't yet read of depositors not being able to withdraw vs when FTX was collapsing. With FDIC taking over, seems they're going to liquidate more assets to pay off creditors and depositors. Or sell the bank to another financial institution. SVB is Top 20.
Washington Mutual was also a top consumer bank that FDIC seized and was sold to JP Morgan. JP Morgan ended up assuming responsibility of the depositors.