All the Companies Facing Major Troubles After Silicon Valley Bank Crash

[Yo_Mama_Been_Loggin]

As a result of Silicon Valley Bank’s (SVB) sudden implosion on Friday, a bevy of companies have started releasing filing information, sending out calls for help, and putting holds on their company’s payroll systems. Businesses like Roku, Vox Media, and Etsy are among them.

The Federal Deposit Insurance Corporation (FDIC) seized SVB’s $209 billion in assets on Friday, ordering the bank closed after the crash. SVB is the 16th-largest bank in the country, and this crash has become the biggest bank failure since the 2008 financial crisis. SVB, which was formed in 1983, was used by a handful of startups in the country.

“All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023,” the FDIC said in a statement. “The FDIC will pay uninsured depositors an advance dividend within the next week.”

Insured deposits include anything under $250,000. However, a handful of companies had millions—and some had billions—invested in the company.

https://www.msn.com/en-us/money/companies/all-the-companies-facing-major-troubles-after-silicon-valley-bank-crash/ar-AA18v246

[uponit7771]

1. K&R, how many other banks are still STUPIDLY holding on to savings bonds that have dropped ...

... in value after being warned repeatedly the feds were going to increase interest rates.

these people are sloppy

[Yonnie3]

5. Savings Bonds?

They don't have a variable value and they are not, to my knowledge, re-sold on a secondary market. I've never heard of a bank investing in them. There are much better fixed income investments like US Treasuries they they do hold.

Perhaps you mean corporate bonds or treasury fixed income instruments called US treasuries, bills or bonds.

[spooky3]

2. I can't understand why these companies put so much cash in one institution, knowing the insurance

limit was $250000. Did the bank give them incredibly high interest rates?

[Renew Deal]

3. Do companies insure against bank failures?

Seperate from FDIC?

[spooky3]

4. good question nt