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SVB locking money they might need access to is the FEDS fault do I understand you correctly? Did they hold a gun to their head? I'm not saying they're doing any
by worksonmine 4y ago
SVB locking money they might need access to is the FEDS fault do I understand you correctly? Did they hold a gun to their head? I'm not saying they're doing anything different than their competitors, but that's a stupid excuse.
The only thing that's broken is the financial system. A customer should be aware when depositing money that that money might be locked away, and agree to those terms, and get a cut.
This is SVB gambling and losing the bet, simple as. Everything else is just a pathetic excuse, don't enable it.
Just look at the term "excess liquidity", that's newspeak. I expect the bank to have my 100$ the day I ask for it. I'm not a using bank because I want to, but if I store it under my bed I get to deal with the IRS. They make themselves necessary to live, then expect my deposits to work for them.
- scrozier 4y agoWhy/how does the IRS care if you store it under your bed? Serious question.
- notch898a 4y agoCTR and/or SAR and/or form 8300 and/or Fincen 105 when you actually spend it, either directly or they investigate and find you're the second link back. And if you escape civil action by IRS, the fed or local government can simply take it as civil asset forfeiture without accusing you of wrongdoing. .gov really really hates big piles of printed currency and if they find out you have it the temptation for them to take it can become overwhelming to various entities that survive off of the taking.
- dboreham 4y ago> Serious question. Because criminals/tax evaders do that.
- scrozier 4y agoThat doesn't answer my question. The IRS taxes income, not assets. They don't care where your money is.
- worksonmine 4y agoThey do care where it comes from though. And you have to prove it with a bullet-proof paper trail or it's assumed to be criminal gains. I didn't claim I couldn't prove it, but I'll still have to deal with the headache and make my case.
- deleted 4y ago[deleted]
- worksonmine 4y agoOthers have already answered but the proof of guilt is the inverse, I have to prove my money is legit, or it will be confiscated. Then when I deposit it in a bank the bank gambles and looses the money anyways, because excess liquidity. The game is rigged. Give me a bank where I just deposit my funds, and nobody touches it and I'm happy to pay for the service. Maybe I want a portion of it to grow and I'll allow it to be lended, for interest. The bank should work in my interest, not their investors.
- strbean 4y ago[flagged]
- eep_social 4y agoYour personal inability to understand the risk SVB took isn’t universal.
- MrMan 4y agofrom the comments on HN it seems well-nigh universal.
- reducesuffering 4y agoThey didn't buy treasury bonds, they bought mortgage-backed securities with average duration of ~10 years (risky), why are people still wrongly repeating this?
- opportune 4y agoBonds of any kind are not safe if you need the capital before they mature (which SVB did) in the face of interest rate increases. The longer duration the bond, the harder it hurts when interest rates increase. There are financial instruments like interest rate swaps specifically for banks to hedge against this exact scenario. Let’s not extrapolate some simplified personal finance advice to financial professionals who should have known better
- worksonmine 4y agoIf I can't access my funds because they're invested without my approval I don't give a fuck if you invested in immortality. I don't have to explain why I want it right fucking now. I'm buying hookers and coke why do you care give me my fucking money. Also I want my cut.