Silicon Valley Bank is in Bankruptcy Protection?

justfred

Electoral Member
Dec 26, 2004
162
18
18
Drumheller
I wonder if silicone valley bank, executives are part and parcel of the demise of the bank? It is interesting that day went into bankruptcy protection, in a very short order. Give us some input as to why you think the bank went into Bankruptcy Protection and should all of society in United States be responsible to cover all of the deposits of the bank, as some are saying that the government should take over?
 

Tecumsehsbones

Hall of Fame Member
Mar 18, 2013
53,271
5,620
113
Washington DC
I wonder if silicone valley bank, executives are part and parcel of the demise of the bank? It is interesting that day went into bankruptcy protection, in a very short order. Give us some input as to why you think the bank went into Bankruptcy Protection and should all of society in United States be responsible to cover all of the deposits of the bank, as some are saying that the government should take over?
Wrong bank. It's Silicon Valley that's gone belly up.

Silicone Valley is fine, standing proud and firm, drawing stares from all and sundry.

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But those aren't real, you know.
 

Ron in Regina

"Voice of the West" Party
Apr 9, 2008
20,044
5,476
113
Regina, Saskatchewan
WILMINGTON, Del. (AP) — Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money.

The Federal Deposit Insurance Corporation insures deposits up to $250,000, but many of the companies and wealthy people who used the bank — known for its relationships with technology startups and venture capital — had more than that amount in their account. There are fears that some workers across the country won't receive their paychecks.

Yellen, in an interview with CBS' “Face the Nation,” provided few details on the government's next steps. But she emphasized that the situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry (Fanny May, Freddie Mack-Daddy, etc…).

Regulators seized the bank's assets on Friday. Deposits that are insured by the federal government are supposed to be available by Monday morning.
 
  • Wow
Reactions: Twin_Moose

Taxslave2

Council Member
Aug 13, 2022
1,607
814
113
I wonder if silicone valley bank, executives are part and parcel of the demise of the bank? It is interesting that day went into bankruptcy protection, in a very short order. Give us some input as to why you think the bank went into Bankruptcy Protection and should all of society in United States be responsible to cover all of the deposits of the bank, as some are saying that the government should take over?
More like fallout from the downturn in the small market they serve. Essentially, they had all their eggs in one basket and someone dropped the basket.
 

justfred

Electoral Member
Dec 26, 2004
162
18
18
Drumheller
In reading some comments generated over the past few days, there is an indication that the bank had placed a lot of their cash, from deposits, into long term maturity assets, gaining very little income. When the deposits rates took a large increase, due to inflation, and then the economy slows down, and the bank was not able to lend the money out at a higher rate, they cannot make a profit. Having said this, did the bank executives take a pay cut, to help the bank make a profit? Let them prove that they did, before we pass judgement, but I would place my bet on NO, they did not.
Reports are out there that a high placed executive, sold $3,000,000 worth of stock a couple of weeks before. Sounds like insider trading to me, let that guy/gal defend their position in court.
 

justfred

Electoral Member
Dec 26, 2004
162
18
18
Drumheller
Now comes the problem of how does anyone pick a bank to place your say $10,O00,000, into, which is what one lady says she had in Silicon Valley bank. If she gets it back, or if you have that much, do you then put only $240,000 into 42 banks. ($10,000,000/240,000=42)
That becomes harder to manage but then puts the strain on the governments deposit protection program. Just so people know, USA had about 500 more or less bankruptcies or bank take overs since 2007. Canada had ZERO.
 

Taxslave2

Council Member
Aug 13, 2022
1,607
814
113
Now comes the problem of how does anyone pick a bank to place your say $10,O00,000, into, which is what one lady says she had in Silicon Valley bank. If she gets it back, or if you have that much, do you then put only $240,000 into 42 banks. ($10,000,000/240,000=42)
That becomes harder to manage but then puts the strain on the governments deposit protection program. Just so people know, USA had about 500 more or less bankruptcies or bank take overs since 2007. Canada had ZERO.
It doesn’t have to be 42 different banks. Just 42 different accounts.
 

harrylee

Man of Memes
Mar 22, 2019
2,038
2,621
113
Ontario
I wonder if silicone valley bank, executives are part and parcel of the demise of the bank? It is interesting that day went into bankruptcy protection, in a very short order. Give us some input as to why you think the bank went into Bankruptcy Protection and should all of society in United States be responsible to cover all of the deposits of the bank, as some are saying that the government should take over?
Yeah....That will help.
 

Taxslave2

Council Member
Aug 13, 2022
1,607
814
113
Sorry for throwing a high fast ball at you. I am not sure what you wanted to say when you said, IT does not have 42 different banks. Can you tell us what you are implying IT is! Thank you.
Where the money is put. You can put millions in a single bank, just have to split it up enough to have each account under whatever the insurance limit is.