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That's exactly what's happening but many depositors need to be "made whole" faster than the liquidation would allow because they need to make payroll in literal
by mertd 4y ago
That's exactly what's happening but many depositors need to be "made whole" faster than the liquidation would allow because they need to make payroll in literally a few days time.
- bagels 4y agoMost of them don't need to be made whole to make payroll in the short term. The FDIC is talking about a dividend for next week.
- mertd 4y agoYes but some need more than the insurance limit I suppose and again in two weeks etc...
- hedora 4y ago93% of the account holdings were uninsured. Many startups burn more than the FDIC’s $250K limit in two weeks. That’s equivalent to having 50 employees making $125K each, and zero other expenses. I’m guessing anyone with more than 20-30 employees is staring down missed payrolls.
- fnordpiglet 4y agoThe FDIC insurance comes into play after all other options have been exhausted. Given the FDIC can draw on the treasury and SVB has assets significantly in excess of deposits there’s literally no chance anyone will lose anything other than the management of SVB.