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by boeingUH60
1192 days ago
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Of course, that is likely what they're getting. People with sub-$250k will be taken care of by the FDIC as expected and the $250k+ depositors will be made whole from the proceeds of asset sales (bonds, securities, et al) held by Silicon Valley Bank. I really don't think the U.S. government will step in to provide additional funds. It's also possible that the FDIC might sell the remnants of Silicon Valley Bank to a larger bank that will assume all deposits. |
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If it was some small bank that was only impacting “regular people”, then probably the government would not do anything.
But that is not the case here. The depositors of SVB are very wealthy and powerful. Also the standard process of selling assets is too slow, and that delay could create a catastrophic domino effect. Famous investors are already calling for the government to fix the issue within 48hrs.
Maybe the government will step in as a temporary lender, letting depositors borrow against their deposits, which they will eventually get back.