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FDIC insured funds haven’t been disbursed yet right?

• dragonwriter 4y ago
  > FDIC insured funds haven’t been disbursed yet right? The bank was closed on Friday, and at the time an announcement was made that the Deposit Insurance National Bank of Santa Clara would open with all insured deposits on Monday (this will not happen if between now and Monday a buyer is found and that bank instead takes over operations on Monday.) There’s not really a “disbursement” of insured funds, just a transfer to a new bank, which may or may not be run by the Federal government. For uninsured funds, the announced plan (which also might be cancelled if a bank takeover provides better terms for them) is to provide an initial dividend during the week, and a “receivership certificate” for any remaining uninsured balances. Most likely (given history) a bank takeover would also preserve uninsured balances as normal deposits at the new bank; but that’s not guaranteed.
  • rdl 4y ago
    As of about an hour ago, the government through some weird indirection is basically guaranteeing 100% of the par value of all the assets, so SVB or the DNIBoCA (I guess? honestly not sure which) should re-open Monday AM with 100% of assets available to depositors. i.e. bullet dodged.