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I think I lean towards you, but what people are actually suggesting is that these startups shouldn't be bailed out when they went with a bank with super-high pr
by roflyear 4y ago
I think I lean towards you, but what people are actually suggesting is that these startups shouldn't be bailed out when they went with a bank with super-high promised rates, while they of course knew their deposits over $250k were uninsured.
- tsunamifury 4y agoThey haven’t lost the money yet. Read and understand before you comment. The banks assets lost 10-20% value not 100%
- roflyear 4y agoThat's very rude. I haven't implied they lost money, to start, and 80% today or this week is much different than 80% in months.
- jurassic 4y agoI haven’t heard anything about high rates being the primary thing drawing people to SVB. The trap seems to have been giving startups access to credit that other banks would not provide, but only if you agree to do all your banking with SVB. That, and also several big VCs that required their portfolio companies to bank there. These things are what herded everyone into the building before it caught fire.
- roflyear 4y agoI agree and have heard the same as you have, but SVB's website still does say a 4.5% yield. So the yields were quite attractive.