Silicon Valley Bank is in Bankruptcy Protection?

justfred

Electoral Member
Dec 26, 2004
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I think it still counts for tax purposes.
In the USA it may count for tax purposes, in Canada I would think that it only counts when the shares are sold. It does not make sense that if on year 1, a bank or public company has an increase in share value, that they pay tax, then year 2 the shares values drop, they get to claim a loss, for tax purposes. Share value are not operational income/expense items.
 

Taxslave2

House Member
Aug 13, 2022
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In the USA it may count for tax purposes, in Canada I would think that it only counts when the shares are sold. It does not make sense that if on year 1, a bank or public company has an increase in share value, that they pay tax, then year 2 the shares values drop, they get to claim a loss, for tax purposes. Share value are not operational income/expense items.
I don’t know for sure. Never been in that problem. Everything I have is in RRSP or cash, and that is different.
But since cities are now taxing on the number of stories a lot is zoned for, instead of the actual height of the building, and PST is charged on what the government decides the used car you bought is with instead of what you actually paid, it wouldn’t surprise me if taxes are applied on theoretical value.
 

petros

The Central Scrutinizer
Nov 21, 2008
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Low Earth Orbit

Silicon Valley Bank’s Toronto branch seized by Canada’s banking regulator amid collapse​

By Aaron D'Andrea Global News

Canada’s banking regulator has temporarily seized the assets of Silicon Valley Bank’s lone Canadian branch after the financial institution collapsed.

U.S. banking regulators were forced on Friday to urgently close the California-based institution after billions of dollars were withdrawn by fearful depositors, leading to a run on the bank, which caters heavily to tech sector firms.

There are now fears other banks could face similar difficulties, but U.S. President Joe Biden stressed Monday morning that Americans can have confidence in the U.S. banking system.

“Americans can have confidence that the banking system is safe. Deposits will be there when you need them,” he said.

“They knowingly took a risk, and when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” he said.

In a statement released Sunday, the Office of the Superintendent of Financial Institutions (OSFI) said Silicon Valley Bank’s Toronto branch has been primarily lending to corporate clients, and that the branch does not hold any commercial or individual deposits in Canada.

 
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petros

The Central Scrutinizer
Nov 21, 2008
108,912
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Did they hold Russian or Chinese accounts?
Hong Kong(CNN)The collapse of Silicon Valley Bank (SVB), which courted Chinese start-ups, has caused widespread concern in China, where a string of founders and companies rushed to appease investors by saying their exposure was insignificant or nonexistent.

SVB, which worked with nearly half of all venture-backed tech and healthcare companies in the United States before it was taken over by the government, has a Chinese joint venture, which was set up in 2012 and targeted the country's tech elite.

The SPD Silicon Valley Bank, which was owned 50-50 owned by SVB and local partner Shanghai Pudong Development Bank, said Saturday that its operations were "sound.""The bank has a standardized corporate governance structure and an independent balance sheet," it said in a statement. "As China's first technology bank, SPD Silicon Valley Bank is committed to serving Chinese science and technology companies, and has always had sound operations in accordance with Chinese laws and regulations."

It's unclear what will happen to SVB's ownership of the joint venture.

SVB Financial Group, the parent company of SVB, also has two business consulting firms and one financial services firm in mainland China, according to corporate database Tianyancha.
 
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justfred

Electoral Member
Dec 26, 2004
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Drumheller
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.
I read what the rules in the USA, similar to Canadian. The limit is covered by the names on the account. Husband and wife count as one, husband only counts as a different account, wife only counts as a different account, each parent with one of their children counts as a different account, covered by insurance.
 

justfred

Electoral Member
Dec 26, 2004
225
37
28
Drumheller
Someone has asked, what would happen if half of the foreign money invested in USA, were to be “cashed in, taken out of USA? In order to pay these investors, the government has to find the money from somewhere, and in order to get investors they may have to pay a much higher rate of interest. This maybe the time that the USA has hit the Debt Ceiling?