5 ms·
Disagree. People who invested in SVB should be wiped out, probably. People who deposited in SVB should not be wiped out. Depositors in banks aren't expected
by tikkun 4y ago
Disagree.
People who invested in SVB should be wiped out, probably.
People who deposited in SVB should not be wiped out.
Depositors in banks aren't expected to do due diligence on the financial statements of the bank they're depositing in. Have you read the 10-K filings of your bank in detail?
- cmurf 4y agoCorrect. The $250,000 FDIC cap is a favor to banks. They only pay fees to insure up to that amount. And it's bogus. The FDIC should require deposits to be insured, no matter the amount.
- oldgradstudent 4y agoThe insurance is there to prevent run on retail banks by the general public. It is expected that you manage your risks if you have significantly more than the insured amount.
- downvotetruth 4y agoI'm not going to pay to insure a millionaire. Insurance is not free.
- geodel 4y agoWith the way things are going, don't be surprised if some silicon valley innovator come with insurance product that can be purchased after the fact. With marketing like "Come, Disrupt the Insurance Industry" it might just work out fine
- whiterace1488 4y ago[dead]
- muyuu 4y agothe regulations say only $250K are insured per account smaller depositors should be ensured by the FDIC you can, and should, have accounts in different banks if you have over a quarter million in US$
- shkkmo 4y ago> Depositors in banks aren't expected to do due diligence on the financial statements of the bank they're depositing in. Have you read the 10-K filings of your bank in detail? If you're depositing more than the FDIC insurance limit, you should probably do some due diligence and/or get private insurance for the risk.
- oldgradstudent 4y ago> Depositors in banks aren't expected to do due diligence on the financial statements of the bank they're depositing in. Have you read the 10-K filings of your bank in detail? If you have less than the insured amount you are not expected to do anything. If you have significantly more than the insured amount you should do your homework and manage your risk. Anyone who was alive during the 2008 crisis should be aware of the problem.
- givemeethekeys 4y agoI know a few small business-people. They have more than 250k cash but not in the millions. They definitely spread their cash in several bank accounts. But then, they are not tech people.
- nightmarish 4y ago[flagged]
- muzz 4y agoDepositors are not at risk of being wiped out. The first 250k is insured and it looks like they will get back a lot of the uninsured portion