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Every bank account is insured up to $250K. Beyond that, customers have "uninsured deposits" But the FDIC is in the process of selling all the banks assets, wh
by zt 4y ago
Every bank account is insured up to $250K.
Beyond that, customers have "uninsured deposits"
But the FDIC is in the process of selling all the banks assets, which nearly cover all of their outstanding deposits. No one knows how much that difference will be right now. But companies should expect a lot more than just the minimally insured deposits back.
- dannyw 4y agoNearly all? Their "held to maturity" portfolio was down 17% as of year-end 2022. Source: https://www.netinterest.co/p/the-demise-of-silicon-valley-bank https://www.netinterest.co/p/the-demise-of-silicon-valley-ba...
- loeg 4y agoYes, but before it was down, they had substantially more assets than deposits owed. > As of the end of December, SVB had roughly $209 billion in total assets and $175.4 billion in total deposits Say $80B of that is worth 83% of the HTM value on their balance sheet. That would be $14B less, or $195B in assets against $175B in deposits. I don't know the details of their holdings or exact difference between market prices and their HTM accounted value, but the important points are (1) they started with a lot more assets than deposits and (2) different portions of their balance sheet have declined different amounts. It's not all 10-year 1.5% MBS notes; only about $80B is.