4 ms·

I don't think "being made whole" means what you think it means.

• JohnFen 4y ago
  The FDIC will cover the portion that they couldn't recover from bank assets. The depositors will be made whole (up to $250k), but it may take some taxpayer money to do that.
  • deleted 4y ago
    [deleted]
  • Danieru 4y ago
    The subject of OP's post is the non-insured deposits. No one, yet, has expressed doubt on the credit of the FDIC. Sub 10% of SVB's deposits were insured. Meanwhile SVB's HTM bonds have taken a 20%+ loss which will, barring an acquisition, cause non-insured deposits to take a 19%+ haircut. Combined with an indeterminate period of waiting. So start ups with cash in SVB should expect to lose 20% and find alternative sources to make payroll, pay payroll taxes, and pay suppliers. I expect we will see many startups close us shop when founders are unwilling to bail out their own company's balance sheet with personal money.
    • JohnFen 4y ago
      Ah, my bad. Then yes, I agree they probably won't be made whole by the fed or government. Nor should they, in my opinion.