Silicon Valley Bank has failed

[twenty02]

2nd largest bank failure in US history.

Lots of startup, VC backed firms gonna be in major trouble if they held their cash there.


Hopefully not the first of further dominoes

 

[larsIU]

Dammit

 

[mcmurtry66]

@snarlcakes it’s happening….

 

[UncleMark]

Elizabeth Warren will be getting a lot of face time now.

 

[Cortez88]

I can’t do this again. I just can’t.

 

[larsIU]

I can’t do this again. I just can’t.

How close to retirement? I'm at t-minus 12 years at minimum right now. So, maybe an opportunity? I'm trying to look for silver linings but I feel a f*cking bailout coming.

 

[Cortez88]

How close to retirement? I'm at t-minus 12 years at minimum right now. So, maybe an opportunity? I'm trying to look for silver linings but I feel a f*cking bailout coming.

Will turn 49 this year. With the kids, probably 12 more years. Very similar.

 

[Hoopsdoc1978]

I just got 20 years in at my job. I can retire fully vested and with insurance for my wife and I for life after 25.

I really should start paying attention to this stuff.

 

[twenty02]

I can’t do this again. I just can’t.

I wouldn't get too worked up about it.

Well I guess unless you work for a company that banked there.... then I wouldn't count on the paycheck.

 

[snarlcakes]

@snarlcakes it’s happening….

A bailout will be happening. Don’t you know the rules? Private profits and socialized risk. It’s a great gig if you can get it.

 

[twenty02]

A bailout will be happening. Don’t you know the rules? Private profits and socialized risk. It’s a great gig if you can get it.

No there won't be.

 

[TheOriginalHappyGoat]

That happened fast. First time I heard about this bank was this morning.

 

[dbmhoosier]

Everyone was warned.

 

[twenty02]

That happened fast. First time I heard about this bank was this morning.

Almost all their deposit accounts are corporate.... 90% of them are in excess of the $250k FDIC protection. Some firms have upwards of $100m sitting there (now inaccessible).

They aren't a consumer banking name, so wouldn't be well known to the public. That of course was their downfall. Banks that have huge amounts of small consumer accounts (under FDIC limits) are at very low risk for a bank run. These guys were the opposite

 

[UncleMark]

That happened fast. First time I heard about this bank was this morning.,

Not following the narrative ,are you?

 

[TheOriginalHappyGoat]

Almost all their deposit accounts are corporate.... 90% of them are in excess of the $250k FDIC protection. Some firms have upwards of $100m sitting there (now inaccessible).

They aren't a consumer banking name, so wouldn't be well known to the public. That of course was their downfall. Banks that have huge amounts of small consumer accounts (under FDIC limits) are at very low risk for a bank run. These guys were the opposite

I'm not familiar with the industry. If the FDIC doesn't do them any good, what do corporations have available to them to protect liquid assets?

 

[snarlcakes]

No there won't be.

You’re probably right, but I wouldn’t count it out. I read they are short 150+ billion. There is going to be some major fallout from it.

 

[dbmhoosier]

 

[twenty02]

I'm not familiar with the industry. If the FDIC doesn't do them any good, what do corporations have available to them to protect liquid assets?

money market accounts, T Bills, etc.... which are basically as secure as you can get. But obviously businesses have to use regular deposit accounts to conduct their daily operations. A good CFO and Treasurer would constantly being doing risk assessments, etc.

Of course most of these firms aren't mature corporations with robust risk mgmt practices.

 

[twenty02]

Roku says 26% of its cash reserves are stuck in Silicon Valley Bank

Around $487 million of Roku's cash reserves are stuck at Silicon Valley Bank, the streaming media company said Friday.

www.cnbc.com

 

[Marvin the Martian]

How close to retirement? I'm at t-minus 12 years at minimum right now. So, maybe an opportunity? I'm trying to look for silver linings but I feel a f*cking bailout coming.

I am 2-5 years depending on what happens. I moved from nearly 100% stocks to 50% about 3 weeks ago ( dow has lost 6% since). Another down day Monday and I am moving back in to those funds.

 

[UncleMark]

Roku says 26% of its cash reserves are stuck in Silicon Valley Bank

Around $487 million of Roku's cash reserves are stuck at Silicon Valley Bank, the streaming media company said Friday.

www.cnbc.com

They better not fvck with my wife's streaming or there will be hell to pay.

 

[TheOriginalHappyGoat]

money market accounts, T Bills, etc.... which are basically as secure as you can get. But obviously businesses have to use regular deposit accounts to conduct their daily operations. A good CFO and Treasurer would constantly being doing risk assessments, etc.

Of course most of these firms aren't mature corporations with robust risk mgmt practices.

Is it possible to buy extra insurance to go past the FDIC 250K? I'm thinking of my old boss who is a small business owner, but his business sometimes has up to half a million in cash reserves. If he suddenly lost half of that, I mean, he'd probably survive, but it wouldn't be pretty.

 

[dbmhoosier]

They better not fvck with my wife's streaming or there will be hell to pay.

You mean you won't get to fvck with her?

 

[larsIU]

Is it possible to buy extra insurance to go past the FDIC 250K? I'm thinking of my old boss who is a small business owner, but his business sometimes has up to half a million in cash reserves. If he suddenly lost half of that, I mean, he'd probably survive, but it wouldn't be pretty.

There’s insurance for everything. Believe me.

Hell, there’s insurance for insurance companies.

 

[twenty02]

Is it possible to buy extra insurance to go past the FDIC 250K? I'm thinking of my old boss who is a small business owner, but his business sometimes has up to half a million in cash reserves. If he suddenly lost half of that, I mean, he'd probably survive, but it wouldn't be pretty.

Easy, just open an account at a different bank. Don't keep more than $250k in one bank.

Actually now you can get Cash Management accounts.... for example Fidelity offers a CMA, operates just like a checking account, but they split your funds up across 5 different FDIC insured banks, so with one account you've got $1.25m in coverage.

Or just use a mega bank. I mean if JP Morgan Chase or BofA goes tits up, we've got a lot bigger issues than FDIC coverage

 

[TheOriginalHappyGoat]

Easy, just open an account at a different bank. Don't keep more than $250k in one bank.

Actually now you can get Cash Management accounts.... for example Fidelity offers a CMA, operates just like a checking account, but they split your funds up across 5 different FDIC insured banks, so with one account you've got $1.25m in coverage.

That makes sense. I know a guy who works for a chain, and they have separate accounts in various banks for each location. I doubt any of those accounts ever carry more than 250K.

 

[UncleMark]

Easy, just open an account at a different bank. Don't keep more than $250k in one bank.

Actually now you can get Cash Management accounts.... for example Fidelity offers a CMA, operates just like a checking account, but they split your funds up across 5 different FDIC insured banks, so with one account you've got $1.25m in coverage.

Or just use a mega bank. I mean if JP Morgan Chase or BofA goes tits up, we've got a lot bigger issues than FDIC coverage

Can't you just have multiple accounts?

 

[twenty02]

Can't you just have multiple accounts?

No. It's $250k coverage per depositor. By account type. You can't open 4 checking accounts at the same bank and expect to have $1m in coverage

 

[UncleMark]

No. It's $250k coverage per depositor. By account type. You can't open 4 checking accounts at the same bank and expect to have $1m in coverage

Okay. So separate savings and checking accounts wouldn't help? If not I might have to make some changes...

/yeah, right

 

[TheOriginalHappyGoat]

No. It's $250k coverage per depositor. By account type. You can't open 4 checking accounts at the same bank and expect to have $1m in coverage

Back to my post a few posts ago, is it per institution or per location? If Goat's Bar and Grill #304 in Indy and Goat's Bar and Grill #455 in Atlanta both bank at their local Chase branch, are they both covered independently? Or is it combined because it's the same company banking with the same bank?

 

[UncleMark]

That makes sense. I know a guy who works for a chain, and they have separate accounts in various banks for each location. I doubt any of those accounts ever carry more than 250K.

Each of the six stores in our NAPA company bank in their home towns. Not that they would necessarily have more that $250K on hand, but since there's a lot of actual green cash involved they have to bank locally for deposits.

 

[larsIU]

Back to my post a few posts ago, is it per institution or per location? If Goat's Bar and Grill #304 in Indy and Goat's Bar and Grill #455 in Atlanta both bank at their local Chase branch, are they both covered independently? Or is it combined because it's the same company banking with the same bank?

Service creep @twenty02 . Don’t let him get away with it.

 

[twenty02]

Back to my post a few posts ago, is it per institution or per location? If Goat's Bar and Grill #304 in Indy and Goat's Bar and Grill #455 in Atlanta both bank at their local Chase branch, are they both covered independently? Or is it combined because it's the same company banking with the same bank?

Are they the same business operating under the same EIN#? Or are they operating under different corporate names and each have their own EIN?

A business is going to open an account using their EIN#. And that entity is going to get $250k total in coverage. Branch locations are totally irrelevant.

 

[twenty02]

Saw someone else mention this today.... say you are a small startup that just got $15m in VC money. What are you going to do to protect your cash while you are likely burning through it paying employees, buying shit etc? You aren't thinking of going and opening 60 different checking accounts at different 60 different banks to keep your money insured.

Going to be ugly.

 

[JamieDimonsBalls]

Elizabeth Warren will be getting a lot of face time now.

 

[anon_6hv78pr714xta]

You’re probably right, but I wouldn’t count it out. I read they are short 150+ billion. There is going to be some major fallout from it.

Lawsuits! Yay!

 

[JamieDimonsBalls]

View embedded media

Tell him to pony up then

 

[JamieDimonsBalls]

No there won't be.

Lots of rumors about govt orchestrated sale this weekend. Apparently PE funds are the lead per what I’ve heard (my sources don’t know shit though).

 

[JamieDimonsBalls]

That happened fast. First time I heard about this bank was this morning.

It started a few days ago, but you seem like the WSJ type. If you look back, plenty of signs weeks ago (I know Hindsight is 20/20)