4 ms·

The president of the USA just announced, on live television, "investors will not be protected in the event a bank fails". So the investors are all pulling thei

The president of the USA just announced, on live television, "investors will not be protected in the event a bank fails". So the investors are all pulling their money out and putting it elsewhere.

christkv 4y ago
Shareholders
rabidonrails 4y ago
Investors = the people who have ownership of the bank (think stockholers) Depositors = people who have deposits sitting in the bank. Though of another way: If you bought SVB on Robinhood then that stock isn't worth anything anymore. If you have money _in_ SVB then it will be available.
- causi 4y ago
  If you bought SVB on Robinhood then that stock isn't worth anything anymore. Would it be worth anything after SVB is bought by a larger bank, or does the takeover process zero out shareholders?
  - onlyrealcuzzo 4y ago
    SVB stock is worthless. Doesn't matter if another bank buys the assets & liabilities.
- albatross13 4y ago
  Investors pulling out are the reason the stock is down 40%, silly goose.
  - rabidonrails 4y ago
    But your initial quote is not new information, it's always true. If a company goes out of business then the investors aren't "made whole" by the government, this is a risk of owning stock. Biden isn't providing new information, he's simply scoring political points because it would look terrible if the government was backstopping investors.
    - idontwantthis 4y ago
      He's not just scoring points, he's letting people know that this won't be like 2008 when the government did save investors by bailing them out.
sowbug 4y ago
That statement is a truism. Hope those fleeing understand that. Investors are never protected when the things they invest in fail. At least, they aren't protected beyond the seniority rules of bankruptcy law.
it_citizen 4y ago
Private profits, private losses for the shareholders (and creditors?) Seems fair to me, government never bail me out when I do a bad investment.

The president of the USA just announced, on live television, "investors will not be protected in the event a bank fails". So the investors are all pulling their money out and putting it elsewhere.

christkv 4y ago

Shareholders

rabidonrails 4y ago

Investors = the people who have ownership of the bank (think stockholers) Depositors = people who have deposits sitting in the bank. Though of another way: If you bought SVB on Robinhood then that stock isn't worth anything anymore. If you have money _in_ SVB then it will be available.

causi 4y ago
If you bought SVB on Robinhood then that stock isn't worth anything anymore. Would it be worth anything after SVB is bought by a larger bank, or does the takeover process zero out shareholders?
- onlyrealcuzzo 4y ago
  SVB stock is worthless. Doesn't matter if another bank buys the assets & liabilities.
albatross13 4y ago
Investors pulling out are the reason the stock is down 40%, silly goose.
- rabidonrails 4y ago
  But your initial quote is not new information, it's always true. If a company goes out of business then the investors aren't "made whole" by the government, this is a risk of owning stock. Biden isn't providing new information, he's simply scoring political points because it would look terrible if the government was backstopping investors.
  - idontwantthis 4y ago
    He's not just scoring points, he's letting people know that this won't be like 2008 when the government did save investors by bailing them out.

sowbug 4y ago

That statement is a truism. Hope those fleeing understand that. Investors are never protected when the things they invest in fail. At least, they aren't protected beyond the seniority rules of bankruptcy law.

it_citizen 4y ago

Private profits, private losses for the shareholders (and creditors?) Seems fair to me, government never bail me out when I do a bad investment.