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"Gruenberg also revealed that $13.3 billion of the $18 billion allocated to protect Silicon Valley Bank, or nearly 74% of the funds used to assist the customers

"Gruenberg also revealed that $13.3 billion of the $18 billion allocated to protect Silicon Valley Bank, or nearly 74% of the funds used to assist the customers, were used to back deposits for a mere 10 accounts. " 74% !?!? to 10 accounts? holy cow! such a large proportion of the funds used to protect such a small number of accounts? some are really more equal then others :(

yieldcrv 4y ago
What do you mean? They insured all deposits, equally. Yes, the amount of money in the hands of a few is that extreme
- oriettaxx 4y ago
  yes, equally but some are more equal :) take is as a joke
  - yieldcrv 4y ago
    can you explain the joke? Is it funny because it is a reference at all, or is there comedy on its own merit with some associated insight
    - lsllc 4y ago
      Paraphrasing George Orwell (from Animal Farm): All Men are Created Equal, But Some are More Equal Than Others From this article [0]: ... by the end of Orwell’s book, the Seven Commandments had disappeared from the wall, replaced by one lone Commandment: All Animals are Equal But Some Animals are More Equal Than Others In Animal Farm, the animals who, in the end, defined themselves as “more equal than others” were the pigs — the same animals who had instigated and led the revolution. [0] https://pagosadailypost.com/2021/08/18/ready-fire-aim-all-men-are-created-equal-but-some-are-more-equal-than-others/ https://pagosadailypost.com/2021/08/18/ready-fire-aim-all-me...
      - yieldcrv 4y ago
        So its the former, its funny because it’s a reference at all? I’m quite aware it is a reference from Animal Farm, I didn't see how it was related and was wondering if there was more, or if the joke was funny aside from “unexpected orwell” Is there a special privilege conveyed to the 10 large accounts over every other depositor that had more than $250k on account?
        deleted 4y ago
        [deleted]
        lsllc 4y ago
        I think the implication is that anyone with an account so large it takes up the lions share of $13B probably has enough influence to make this sort of bailout happen: "Gee [senator|congressperson|etc], my donation to your re-election campaign was in that SVB account, would be a shame if I lost it".
        mrguyorama 4y ago
        Or maybe american politicians have a long history of being buddy buddy with big money Capitalists, which most of SVB's clientele was, and had no qualms with throwing a few billions towards fixing a very local problem with the side benefit of helping their friends and another background benefit of reassuring whales to not pull out of other smaller banks. Letting the whales die would have meant every other whale in every other bank would suddenly feel the need to inspect balance sheets or be whiny or just run. The entire reason SVB failed was poor management on their part, and poor risk hedging, but that's not a systemic problem. However, making every big cash holder suddenly worried they aren't as safe as they expected could be a mild systemic problem.
        vineyardmike 4y ago
        > Is there a special privilege conveyed to the 10 large accounts over every other depositor that had more than $250k on account? Yes the special privilege was a lot of money. Everyone was not treated equally by being bade whole, even though they were treated equitably.
    - deleted 4y ago
      [deleted]

yieldcrv 4y ago

What do you mean? They insured all deposits, equally. Yes, the amount of money in the hands of a few is that extreme

oriettaxx 4y ago
yes, equally but some are more equal :) take is as a joke
- yieldcrv 4y ago
  can you explain the joke? Is it funny because it is a reference at all, or is there comedy on its own merit with some associated insight
  - lsllc 4y ago
    Paraphrasing George Orwell (from Animal Farm): All Men are Created Equal, But Some are More Equal Than Others From this article [0]: ... by the end of Orwell’s book, the Seven Commandments had disappeared from the wall, replaced by one lone Commandment: All Animals are Equal But Some Animals are More Equal Than Others In Animal Farm, the animals who, in the end, defined themselves as “more equal than others” were the pigs — the same animals who had instigated and led the revolution. [0] https://pagosadailypost.com/2021/08/18/ready-fire-aim-all-men-are-created-equal-but-some-are-more-equal-than-others/ https://pagosadailypost.com/2021/08/18/ready-fire-aim-all-me...
    - yieldcrv 4y ago
      So its the former, its funny because it’s a reference at all? I’m quite aware it is a reference from Animal Farm, I didn't see how it was related and was wondering if there was more, or if the joke was funny aside from “unexpected orwell” Is there a special privilege conveyed to the 10 large accounts over every other depositor that had more than $250k on account?
      - deleted 4y ago
        [deleted]
      - lsllc 4y ago
        I think the implication is that anyone with an account so large it takes up the lions share of $13B probably has enough influence to make this sort of bailout happen: "Gee [senator|congressperson|etc], my donation to your re-election campaign was in that SVB account, would be a shame if I lost it".
        mrguyorama 4y ago
        Or maybe american politicians have a long history of being buddy buddy with big money Capitalists, which most of SVB's clientele was, and had no qualms with throwing a few billions towards fixing a very local problem with the side benefit of helping their friends and another background benefit of reassuring whales to not pull out of other smaller banks. Letting the whales die would have meant every other whale in every other bank would suddenly feel the need to inspect balance sheets or be whiny or just run. The entire reason SVB failed was poor management on their part, and poor risk hedging, but that's not a systemic problem. However, making every big cash holder suddenly worried they aren't as safe as they expected could be a mild systemic problem.
      - vineyardmike 4y ago
        > Is there a special privilege conveyed to the 10 large accounts over every other depositor that had more than $250k on account? Yes the special privilege was a lot of money. Everyone was not treated equally by being bade whole, even though they were treated equitably.
  - deleted 4y ago
    [deleted]