SVB Collapse

[gimmethesimplelife]

What's your take on the SVB Collapse and what it means (or doesn't mean) for the US economy? Rob

[beckyliz]

And now Signature Bank in New York state. re: SVB- they had invested a big chunk of their deposits into government agency bonds, which is fine - you'll get 100% of your principal back if you hold them to maturity. The problem was that they invested when interest rates were low. Now tech companies are trying to get their funds out because their other streams are running dry and SVB had to sell their bonds at a steep discount. Signature Bank had a niche with crypto investors, as i understand and their customers got spooked by SVB. I understand that the FDIC is covering 100% of the deposits at both banks, even above the FDIC limit of $250K per account. They're doing this to show that the banking system is solid and can be trusted. Last I checked, the DJIA and the NASDAQ are holding steady.

[LDAHL]

If you’re a bank depositor with two or three hundred million in a checking account, and haven’t made use of the various available risk mitigation tools (collateral agreements, third party insurance, etc.), you are every bit as culpable as the SVB’s irresponsible treasury management policies. They should pay for their unprofessional management.