FDIC AND SVB question.

[flyingillini]

What is the purpose of FDIC with the 250k insurance if they are covering all of it now. Something doesn't seem right with this at all. My whole life i have known to banks covering 250k if something happens, now that it has, they are covering everything.

 

[53defense]

This whole situation has a stench to it ….

Everyone asleep at the wheel????

can’t make it up.

 

[flyingillini]

This whole situation has a stench to it ….

Everyone asleep at the wheel????

can’t make it up.

The whole 250k is puzzling to me. That # is there for a reason. Now that # is irrelevant? What is really going on here ?

 

[jjgold]

Everyone will be paid that’s all you need to worry about here. Thank you Joe Biden.

 

[BigJay]

 

[flyingillini]

Everyone will be paid that’s all you need to worry about here. Thank you Joe Biden.

It’s the most disgraceful thing what is happening. Why isn’t anyone questioning why they are being paid more than the 250k.

 

[BigJay]

 

[nappyx]

They are being paid more than 250k because they had more than that amount on deposit at the bank. For example, the company that I work for had 2 million on deposit which is about 1% of their cash. Can you imagine the number of bank accounts one would need to have to remain under the 250k limit. Making depositors whole also inspires confidence in the banking system and prevents a run on the banks.

 

[nappyx]

If people loose faith in banks, the economy would go into a recession.

 

[Tanko]

It's really BS.

By covering everything, all they are going to do is push more banks to go belly up since the banks know the gov't will cover their depositors.





I know they are covering all depsoitors over $250k just because they are worried about the ripple effect to other banks. A LOT OF SMALL Silicon Valley companies had all their money in this one bank. So if the gov't didn't cover them, most of those companies likely go bankrupt and possibly impact other simlar banks. I guess the gov't wanted to avoid that scenario.

 

[Tanko]

I hope everyone realizes Silicon Valley Bank paid out bonuses to all employees the DAY BEFORE FDIC took over. The CEO got $2M on Thursday.

Seems like a planned event.

Someone should go to jail.

 

[eddycash]

This is a scam to steal more money.

 

[JDS]

Damn I’m like a total sponge in this thread. I don‘t know shit about Insurance.

 

[nappyx]

The government may need to do more than insure depositors as the contagion is spreading to other banks. Lot's of folks are dumping stocks of regional banks such as First Republic and PacWest. Equity holders of SVB Bank got wiped out in the restructuring plan

 

[samsncharge99]

this isn't an issue for 99.999% of people.

especially 99.99999999% of a gambling forum who doesn't have $250 to their name, let alone worry about $250,000 in a bank account haha

not taking shots at anyone, hope you are all rich, but reality is, we are NOT

 

[Super_Position _98]

It’s the most disgraceful thing what is happening. Why isn’t anyone questioning why they are being paid more than the 250k.

Rise up Illinois we are being had

 

[Tanko]

this isn't an issue for 99.999% of people.

especially 99.99999999% of a gambling forum who doesn't have $250 to their name, let alone worry about $250,000 in a bank account haha

not taking shots at anyone, hope you are all rich, but reality is, we are NOT

Sammy, I'm glad you provided the opportunity for me to come out of the closet on this.
I'm actually a millionaire.

 

[jjgold]

Most banks aren’t in trouble they did not have the tough restrictions that other banks require

 

[Tanko]

Anyone buying bank stocks while they are down so much?

You better pick the right ones because it sounds like the gov't is covering depositors while shareholders are getting nothing. And, I'm 100% OK with the shareholders getting nothing.

 

[nappyx]

this isn't an issue for 99.999% of people.

especially 99.99999999% of a gambling forum who doesn't have $250 to their name, let alone worry about $250,000 in a bank account haha

not taking shots at anyone, hope you are all rich, but reality is, we are NOT

Just because your broke, don't assume everyone you interact with on the forum is... I'm not sure what "we" you are referring to