4 ms·
The bankruptcy code provides guidance for a 90 day look back period from the date of insolvency where transactions can be clawed back or must be repaid. The FDI
by digitaltrees 4y ago
The bankruptcy code provides guidance for a 90 day look back period from the date of insolvency where transactions can be clawed back or must be repaid. The FDIC will talk to the recipient bank and get a court order to deposit the funds in to a trustee account so that all available assets can be distributed evenly and fairly.
- twblalock 4y agoThey are very unlikely to do that to normal individual account holders. It would undermine the purpose of providing the deposit insurance in the first place.
- deleted 4y ago[deleted]
- digitaltrees 4y agoI would bet many accounts had balances well over the $250k cap and had larger withdrawals that, if left completed, would reward the first movers in the run on SVB to benefit to a greater extent than account holders that waited. I agree that people below the threshold won’t see claw backs.
- tome 4y agoIf this happens then those who took their money out not only caused the bank run but didn't benefit having taken it out anyway!
- BeFlatXIII 4y agoThat's probably the exact reason for the clawbacks.