Does anyone care about the failure of Silicon Valley Bank?

[msc545]

I sure as hell don't.

[WindAtMyBack]

I don't care. The Silicon Valley tech economy is wacko. People throw venture capital around like it's nothing. They are vastly over confident and play a dangerous game.

Several years ago I was both a customer and share holder of another bank that went under. It pissed me off the way the FDIC handles it. They are doing the same thing with Silicon Valley Bank.

Deposits are insured through FDIC. But they are only insured to a certain amount. The FDIC pays out the uninsured amount anyway. If people want to risk depositing more than the insured amount, it should be on them. It should not be up to OTHER people to pay for it. With Silicon Valley Bank it's worse than most banks, because of the nature of the money in that bank. It's all gambling money. Other people should NOT have to pay for that loss.

I have not looked into the finances on this one, but I was very familiar with the finances of the failure I was involved with. I was a shareholder of that one for something like 15 years. There seriously should be a way to prevent runs on the bank. I know with the failure I was involved with, the bank probably would have pulled out of it. But no bank can reasonably be expected to handle a run on the bank. A bank can't even operate if they keep all that money on hand. It gets loaned out. They can't simultaneously loan it out and have it on hand in case everyone withdrawals at once.

[Gibbons44]

Ha, that.

[whirled_up_girl]

I guess I don’t enough about it to have an opinion.

[weysally]

no, not at all, but if it was my bank then yes

[lightbulb27]

yes, it's far reaching effects.

It just got bailed out I hear... that's our govt since around oh say. LTCM... and that's why we have a lot of the corruption and wealth divide we have, granted, letting such things go their course and fail could create total misery as well.

[WindAtMyBack]

The bank didn't get bailed out. The bank will almost certainly be bankrupt and all shareholders lose everything.

The FDIC insures the depositors. The FDIC comes in and takes over all finances. They will physically go to the bank and take over. They will pay the depositors with their own money, which is money they collected as fees paid by the insured bank. The bank itself is not insured, the depositors are. But the bank pays the insurance fees.

The FDIC will pay out of it's own money, so the depositors get their money right away. Then it will liquidate any assets of the bank to recover their money, or as much as they can.

The FDIC creates a temporary name for the bank while this is all going on. Once it's all done, the bank will no longer exist, except in the slight chance it has enough assets to cover everything.

[Kessia99]

Yes it points to a larger systemic risk of the feds inflation reduction policies. Another failed today.

The fed can not continue raising interest rates this fast without destroying the economy.

[Anonymous]

I have read that for the past 9 months their Chief Risk Officer was planning Pride month and other LGPTxyz events. A lot of loans went to underserved minorities which likely went bust too. Anyway, hours before the failure the bank paid out its annual bonuses.

[SnowedIn]

I get your thought process, but banks failing shudder the economy. Never a good thing. There are second and third order effects. (Or could be; seems like we've held off the bad stuff.)

[Keyboardkat]

If you had an account there, I guess you would care very much. If not, I don't see why you would care.

[AviatorTom]

What concerns me more is the federal government bailing it out, willing to payout more than the standard 250K that FDIC insures.

[exitseven]

I only care about it if Biden decides to bail them out with tax dollars loke obama did in 2009

[lightbulb27]

And they just did...

[exitseven]

@lightbulb27 I did not hear that. I heard Janet Yellen say that they would not be doing that. I am not surprised however especially since most of the big shots of the bank were democrat donors.

[lightbulb27]

they were facing a massie meltdown propagating to other banks. but unreal, the execs got some millions, people got bonuses... we get the bill. unreal...
www.cnn.com/.../index.html

[exitseven]

@lightbulb27 damn, Trump would have let it fail as a lesson to the rest.

[RavVid]

I do if it causes financial problems. There are enough world problems at the mo

[NostalgiaSenpi]

I care, only because those asshats can't stop bailing them out. Too big to fail, my ass.

[Anonymous]

Only because those f***os are causing worry in the financial sector and as a result the ripple effect is negatively affecting my financial stocks.

[OddBeMe]

I have been following the several bank failures there. I’m glad we haven’t bailed it out yet.

[Nikki1989]

No, I don't care at all.

[musicbrain5]

I’ve never heard of them before, so nope.

[Dargil]

Their depositors do.

[Justneedtokno]

He quickly got a bill out