Have any of you been impacted by the SVB failure?

[disneysteve]

I looked up a list of the companies affected by the SVB failure. One of them is the main financing company that my daughter's solar and roofing company deals with - Sunnova. Fortunately, SVB is a very minor part of Sunnova's business holding only $15 million out of over $1.35 billion in funding so it doesn't appear it will have any material impact on their business.

I don't sell on Etsy but I've heard that the SVB issue caused some delays in sellers getting paid for their sales.

Ebay doesn't seem to be affected.

So far, I'm not aware of any other personal connection.

[rennigade]

We're all affected. If you pay taxes you're affected.

I did hear that a ton of startup tech companies had their war chests in this bank. No worries though. Everyone has access to all of their funds thanks to uncle sam so it's simply business as usual.

I've always loved the golden rule. He who holds the gold makes the rules.

[bjl584]

My company uses SVB. But so far all is good.

[Drake3287]

Not yet but one of my banks with $100k in deposits looks to be the next in trouble according to todays news, First Republic Bank. I'm not so worried about one or two banks going under because I know we'll be protected. It's the mass run on smaller banks which could cause a huge financial disaster for all of us if many of these go under and there's not enough FDIC funds to cover it. And no, the FDIC doesn't even come close to having the funds to cover a massive disaster like this.

I'd love to have a crystal ball to see how our country deals with all these financial issues in the coming months. And to be honest, listening to our elected officials and other "experts" isn't really reassuring. Most peoples trust in government is running low these days.

[rennigade]

Most peoples trust in government is running low these days.

You would think that would be true but there are still a ton of people who put all of their faith in the government. After all of the things that have come to light over the past couple years, there are those who think big daddy has all the answers. They forget that the government is made up by everyday people who get drunk, cheat on their spouses, go to church, grocery shop, etc etc. They don't have super powers, they're not larger than life, they're you and me and our neighbors. They're flawed like every single person alive.

[disneysteve]

Bank failures actually aren’t uncommon. What made SVB unusual was the size of the bank. Also there had been an atypically long gap since the last failure in October 2020. Normally at least a couple of banks fail each year. There were 4 in 2020, 4 in 2019, 8 in 2017, 5 in 2016, etc.

[Fishindude77]

Bank failures actually aren’t uncommon. What made SVB unusual was the size of the bank. Also there had been an atypically long gap since the last failure in October 2020. Normally at least a couple of banks fail each year. There were 4 in 2020, 4 in 2019, 8 in 2017, 5 in 2016, etc.

Correct
If you take a look at history, there are probably half or less banks in business today in your state than there were 50 years ago.
A lot more have been closed via consolidation rather than failure.

[ua_guy]

Personally, from an "access to my money" perspective, no, not affected. I have never banked with them. My only exposure is to the fallout and panic in the general market.

[Petunia 100]

We're all affected. If you pay taxes you're affected.

I did hear that a ton of startup tech companies had their war chests in this bank. No worries though. Everyone has access to all of their funds thanks to uncle sam so it's simply business as usual.

I've always loved the golden rule. He who holds the gold makes the rules.

FDIC is funded entirely with insurance premiums assessed on banks.

[disneysteve]

FDIC is funded entirely with insurance premiums assessed on banks.

A lot of people don’t understand that. They think their tax dollars pay for it, which isn’t true.

[rennigade]

FDIC is funded entirely with insurance premiums assessed on banks.

uh huh. And with the snap of a finger all accounts are fully insured well over the FDIC amount. Again, its important to put your full trust in the government. Daddy knows whats best for you.

[ua_guy]

uh huh. And with the snap of a finger all accounts are fully insured well over the FDIC amount. Again, its important to put your full trust in the government. Daddy knows whats best for you.

Can you explain how taxpayer money is being used to bail out either SVB or Signature? Or is this more mindless ranting about daddy issues?

[Petunia 100]

uh huh. And with the snap of a finger all accounts are fully insured well over the FDIC amount. Again, its important to put your full trust in the government. Daddy knows whats best for you.

It's bizarre (to me) that simple, verifiable facts can cause such crankiness.

[kork13]

uh huh. And with the snap of a finger all accounts are fully insured well over the FDIC amount. Again, its important to put your full trust in the government. Daddy knows whats best for you.

Yes, they did extend coverage to all accounts. How did they do that? By implementing a long-standing policy allowing FDIC to cover amounts above the limit under exceptional circumstances. The FDIC has the funds to cover it, and they have the assets from SVB that will retroactively cover the outlay. It does increase the risk present in the FDIC's books. But systemically, by covering the immediate problem, it will provide security & assurance to the public & banking sector, inoculating against further damage (sparked by new bank runs).

I totally get your suspicion of politicians & bank executives sticking it to the American public for the irresponsible actions of SVB's management. But FDIC is doing exactly what it was designed to do.

[Fishindude77]

I totally get your suspicion of politicians & bank executives sticking it to the American public for the irresponsible actions of SVB's management. But FDIC is doing exactly what it was designed to do.

I know we are supposed to keep politics out of these forums, but suggesting that there was no political influence here is innacurate.
We taxpayers will take the hit on this because all of the good solvent banks out there will see much higher FDIC premiums, which will be passed on to their customers.