4 ms·
ELI5?
by samirillian 4y ago
ELI5?
- LandoCalrissian 4y agoI can't remember all the specifics, but after the 2008 crash banks with a certain levels of holding have to pass stress test showing they can survive scenarios like this. I think the old limit was 50 billion but go changed to I think 150 billion which puts SVB below the threshold for the stress test.
- CalChris 4y agoTrump increased this to $250B in 2018. SVB as the 16th largest bank in the US at $209B didn’t trip this wire because the wire was moved.
- egberts1 4y agoYou missed the part about "non-bank" exempted from ANY limit on March 14, 2014 in the FR Notice.
- CalChris 4y ago“I think the old limit was 50 billion but go changed to I think 150 billion which puts SVB below the threshold for the stress test.” Maybe the parent post missed that but I was responding to that post.
- KRAKRISMOTT 4y agoWhy should non-interest bearing electronic wallets be subjects to the same limits? Cash is less of a liability for them.
- maxbond 4y agoPerhaps it'd be better to combine a dollar value with a percentile, eg, "each of the top banks representing X% of total deposits or with > $YB of deposits"