Current Events > Silicon Valley Bank shut down by regulators in biggest bank failure since 2008

(+) Yeah! (+)

https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html

Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago. The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money. According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.

The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVBs branch offices will also reopen at that time, under the control of the regulator. According to the press release, SVBs official checks will continue to clear. The FDICs standard insurance covers up to $250,000 per depositor, per bank, for each account ownership category. It is unclear exactly how larger accounts or credit lines for companies will be impacted by the closure. The FDIC said it will pay uninsured depositors an advanced dividend within the next week. As of the end of December, SVB had roughly $209 billion in total assets and $175.4 billion in total deposits, according to the press release. The FDIC said it was unclear what portion of those deposits were above the insurance limit. The last U.S. bank failure of this size was Washington Mutual in 2008, which had $307 billion in assets.

Stock market is tanking right now over it.

UHohhhhhhh spaghettio$$$$$$$

Just give them a bailout. They've earned it

Incoming bailout. Heaven forbid we let a predatory bank go under.

My old company used Silicon Valley bank. I wonder how they are holding up

Surprise!

Any details on how and why the bank failed?

https://twitter.com/GRDecter/status/1634267470662979592

BlueTigerLion posted...

https://twitter.com/GRDecter/status/1634267470662979592

FDIC was meant to prevent a dogpile of regular people from doing a bank run all at once.

Co owners and trusts/beneficiaries will have more insured than 250 but still, a mess whatever way you slice it

[LFAQs-redacted-quote]


LMAO

good riddance

Mark this month down this economy is not sustainable in its current form.

This was all forseeable, unless you were a tech genius
https://twitter.com/mtkonczal/status/1634378154440548353/photo/2

BlueTigerLion posted...

https://twitter.com/GRDecter/status/1634267470662979592

Get fucked lmao

Pleeeease no bailout

Hooray for Biden's economy!!!

Hope GameFAQs didnt bank with them

And Jim Cramer recommended their stock on Mad Money in February. Proving once again that people should do the opposite of what he recommends.

agoat posted...

Probs going to want some cash on hand the next couple of months

Most people don't have 250k (the FDIC insurance limit per bank) in liquid cash to worry about it, and if you do, you deposit in multiple banks. If you are rich enough where this is a problem, you can afford to pay for insuring your money through other means.

Cuticrusader09 posted...

And Jim Cramer recommended their stock on Mad Money in February. Proving once again that people should do the opposite of what he recommends.

uh-oh

https://twitter.com/jimcramer/status/1634222320398086145

The only reason SIVB didn't go to basically zero is because NASDAQ called bullshit and froze trading. This is bad.