- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Can someone who understands venture-capital explain to me why the uproar?
Posted on 3/10/23 at 9:21 pm
Posted on 3/10/23 at 9:21 pm
I see all these tech industry workers whining about how big of a deal this is.
One example was from a big tech company that raised a bunch of money, and deposited it into one of these banks? Now, the market has tanked and most of that money they put in, has dwindled down to almost nothing.
So it’s not like an actual bank, where you just put your money in and it stays there till you need it? More like a 401k, where your investment goes up and down based on the market? You know those risks going in, right?
One example was from a big tech company that raised a bunch of money, and deposited it into one of these banks? Now, the market has tanked and most of that money they put in, has dwindled down to almost nothing.
So it’s not like an actual bank, where you just put your money in and it stays there till you need it? More like a 401k, where your investment goes up and down based on the market? You know those risks going in, right?
7
Posted on 3/10/23 at 9:22 pm to TackySweater
quote:
So it’s not like an actual bank, where you just put your money in and it stays there till you need it?
Apparently you don’t know how banks work
Posted on 3/10/23 at 9:23 pm to TackySweater
quote:
I see all these tech industry workers whining about how big of a deal this is. One example was from a big tech company that raised a bunch of money, and deposited it into one of these banks? Now, the market has tanked and most of that money they put in, has dwindled down to almost nothing. So it’s not like an actual bank, where you just put your money in and it stays there till you need it? More like a 401k, where your investment goes up and down based on the market? You know those risks going in, right?
Yikes.
Posted on 3/10/23 at 9:23 pm to TackySweater
$200 billion of which 90% was not FDIC insured meaning it has basically disappeared and you don't see how it's a big deal?
This post was edited on 3/10/23 at 9:24 pm
Posted on 3/10/23 at 9:24 pm to TackySweater
quote:
So it’s not like an actual bank, where you just put your money in and it stays there till you need it?
Posted on 3/10/23 at 9:25 pm to Brood211
quote:
Apparently you don’t know how banks work
I mean. I’m in my mid 40s and have never had any bank I deal with ever tell me they didn’t have money when I needed it, or drastically alter the amount that I had in it.
Posted on 3/10/23 at 9:26 pm to stout
quote:
90% was not FDIC insured
And those companies know this going in?
Posted on 3/10/23 at 9:28 pm to stout
quote:This is not accurate.
$200 billion of which 90% was not FDIC insured meaning it has basically disappeared
Posted on 3/10/23 at 9:28 pm to TackySweater
quote:Of course. The FDIC only insures up to $250K per account. It was put in place after the Great Depression to guarantee that "retail" (i.e. joe sixpack) was never wiped out again by bank runs.
And those companies know this going in?
Posted on 3/10/23 at 9:28 pm to TackySweater
Thanks for proving I am not the dumbest poster on this board.
Posted on 3/10/23 at 9:30 pm to Big Scrub TX
quote:
This is not accurate.
quote:
On March 10, 2023, Silicon Valley Bank collapsed, causing the largest bank failure since the 2008 financial crisis and the second-largest in U.S. history.[1] Of the bank's US$175 billion in deposit liabilities, Reuters reported that, as of the end of 2022, 89 percent of its deposits were not covered by federal deposit insurance
LINK
Other articles have reported over $200 billion in liabilities but we all know you are always correct about everything.
Posted on 3/10/23 at 9:33 pm to Big Scrub TX
quote:
It was put in place after the Great Depression to guarantee that
Imagine if it wasn't raised from $100K to $250K in 2008. The losses would be greater.
Posted on 3/10/23 at 9:39 pm to Big Scrub TX
quote:
This is not accurate.
- SVB had almost 90% of its deposits uninsured by the FDIC.
- JPMorgan has about 59% of its deposits uninsured via this US government backstop.
Posted on 3/10/23 at 9:40 pm to stout
quote:At least $42B was successfully withdrawn yesterday. That alone negates your claim of "basically disappeared".
Other articles have reported over $200 billion in liabilities but we all know you are always correct about everything.
On top of that, the securities/treasuries portfolio that caused the run in the first place is still largely intact. They paid like $27B for treasuries that were marked down to $25B or something. The $2B in writedown was enough to start triggering capital ratio events, but as you can clearly see - 93% of the value of those securities was still intact. And presumably you understand those assets will be liquidated to pay off depositors. etc. etc.
This post was edited on 3/10/23 at 9:43 pm
Posted on 3/10/23 at 9:41 pm to stout
quote:Maybe. Depositor behavior would likely be different in that scenario, so it's hard to say.
Imagine if it wasn't raised from $100K to $250K in 2008. The losses would be greater.
Posted on 3/10/23 at 9:42 pm to LSUAngelHere1
quote:I didn't say they were insured. I said they weren't "basically disappeared".
- SVB had almost 90% of its deposits uninsured by the FDIC.
This post was edited on 3/10/23 at 9:43 pm
Posted on 3/10/23 at 9:44 pm to TackySweater
That doesn’t mean they’re just putting that money in a vault and leaving it there for you to wait.
They are taking in your deposits, packaging it with deposits of hundreds of other people, lending those packaged funds to businesses for expansion, making a profit on the interest payments of those loans, and then giving you that initial money back later.
They just scale the loan sizes/quantities so that they have enough cash on hand to handle any reasonable number of withdrawals at one time. Hence the impression that they always have your cash when you want it. But if everyone tried pulling their money out at the same time, you’d quickly find out that your money is not just sitting there waiting for you. It’s almost always moving.
They are taking in your deposits, packaging it with deposits of hundreds of other people, lending those packaged funds to businesses for expansion, making a profit on the interest payments of those loans, and then giving you that initial money back later.
They just scale the loan sizes/quantities so that they have enough cash on hand to handle any reasonable number of withdrawals at one time. Hence the impression that they always have your cash when you want it. But if everyone tried pulling their money out at the same time, you’d quickly find out that your money is not just sitting there waiting for you. It’s almost always moving.
Posted on 3/10/23 at 9:47 pm to TackySweater
(no message)
This post was edited on 3/10/23 at 9:49 pm
Posted on 3/10/23 at 9:50 pm to OweO
quote:enjoy ur upvote Wheels
Thanks for proving I am not the dumbest poster on this board.
Posted on 3/10/23 at 10:01 pm to TackySweater
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News