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The first line in the article: > When federal regulators stepped in to backstop all of Silicon Valley Bank’s deposits, they saved thousands of small tech start
by phailhaus 3y ago
The first line in the article:
> When federal regulators stepped in to backstop all of Silicon Valley Bank’s deposits, they saved thousands of small tech startups and prevented what could have been a catastrophic blow to a sector that relied heavily on the lender.
Both can be true. Thousands of the "little guys" were saved. Some big names benefitted too. And?
- flappyeagle 3y agoJob well done. Everyone was saved. Firemen went into the building, and got everyone out. Building owners lost their investment. Look, they could have looked up the architectural plans and realized the building was skirting the edge of code. Chose a different building. Someone of them should have known better. Had the resources to do all of that. But the building had nice amenities at an attractive price. I mean, they should have been sophisticated enough to know that this kind of deal is too good to be true. Rents are high for a reason you know! Why is it up to the public to rescue them?
- mehlmao 3y agoThe "thousands of small tech startups" would have gotten $250,000 immediately so they could make payroll, the majority of their holdings back in a week, and 95-98% of their money back in a month under normal FDIC operation. There was no need to bail out giant companies with no risk management like Roku and the venture capitalists who sparked the bank run.
- muzz 3y agoIt would have been even quicker than that-- a large portion of the uninsured deposits would have been available on Monday March 13 ie _the next business day_ after the bank was seized: https://www.bloomberg.com/news/articles/2023-03-11/fdic-races-to-start-returning-some-uninsured-svb-deposits-monday https://www.bloomberg.com/news/articles/2023-03-11/fdic-race...