Bank Crash
Game Over: FDIC Shutters Silicon Valley Bank, Appoints Receiver | ZeroHedge
https://www.zerohedge.com/markets/silicon-valley-bank-crashes-65-halted-pending-news
CNBC and other news outlets are covering what they can of this. Payroll going through this bank may be a problem.
Inverse Cramer says JP Morgan is going down after the real Jim Cramer tweeted JP Morgan is a fortress!
This afternoon they were shut down by the Feds.
https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html
So there will be a bank run on Monday until they run out of cash then they'll lock the doors again?
Or the doors will reopen under FDIC management and they'll lock the doors when the FDIC runs out of money before 12 pm?
Insured depositors are those who had $250,000 or less in an account. If they had more than that, they get a voucher for some of the proceeds when assets are sold. These seem to be referred to as the 'uninsured'Quote: ChumpChangeI keep misinterpreting this line - "The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning."
So there will be a bank run on Monday until they run out of cash then they'll lock the doors again?
Or the doors will reopen under FDIC management and they'll lock the doors when the FDIC runs out of money before 12 pm?
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The insured will get their money Monday, or leave it in the bank knowing it's FDIC insured ... at a different bank now
Quote: ChumpChangeI keep misinterpreting this line - "The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning."
So there will be a bank run on Monday until they run out of cash then they'll lock the doors again?
Or the doors will reopen under FDIC management and they'll lock the doors when the FDIC runs out of money before 12 pm?
link to original post
Usually,when the FDIC seizes a bank, the FDIC seizes on a Friday, finds another bank to buy the seized bank over the weekend, and reopens on Monday under new ownership and business as usual. Otherwise, if there is no buyer, the depositors get paid up to their insured amounts by the FDIC within a few days. With FDIC and SIPC and other depsoit insurance mechanisms in place, there's no need for bank runs like in the Great Depression years or what happened to Washington Mutual.
https://www.fdic.gov/consumers/banking/facts/payment.html
Someone genuinely concerned about this might suggest raising the FDIC limit to $5 billion per account.
Quote: odiousgambitInsured depositors are those who had $250,000 or less in an account. If they had more than that, they get a voucher for some of the proceeds when assets are sold. These seem to be referred to as the 'uninsured'
The insured will get their money Monday, or leave it in the bank knowing it's FDIC insured ... at a different bank now
I don't believe that is correct. The FDIC insures deposits up to $250,000. If you had more you are still insured for the first $250k.
Quote: ChumpChangeNobody can really imagine what would buy this bank, maybe Elon Musk?
Someone genuinely concerned about this might suggest raising the FDIC limit to $5 billion per account.
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A bank will buy SVB for pennies on the dollar in a distress sale.
