[darcys22]

They deposited 3B with this bank for the specific purpose of it being a safe place.

Their 10B in cash was spread over 6 banks to diversify the bank risk.

They have plenty of higher risk investments in their treasury, but these ones were the safe ones intentionally put into banks with insurance. If the government protection wasn't there the investment would’t have been there in the first place

[JumpCrisscross]

> 10B in cash was spread over 6 banks to diversify the bank risk

This is nonsense Treasury management. Fidelity spreads checking account deposits across twenty-six banks to reach $3mm FDIC coverage [1]. Beyond sweep, Circle’s assets should be in short-term, on-the-run Treasuries, repos and commercial paper.

[1] https://accountopening.fidelity.com/ftgw/aong/aongapp/fdicBa...

[darcys22]

They do hold 32B in short term treasury bills though

https://www.blackrock.com/cash/en-us/products/329365/

These funds appear to be specifically for short term redemptions, if they turn over 3B in redemption's every 7 days then how are they meant to keep less then that in the banks

[benatkin]

But the insurance doesn't apply to the full amount.

[oldgradstudent]

The insurance is negligible for them.

[benatkin]

Hence the government protection should be partial. Mostly just making sure SVB's assets are used to lessen the impact of the closure. If that results in Circle getting pennies on the dollar then so be it.

[oldgradstudent]

> Mostly just making sure SVB's assets are used to lessen the impact of the closure

That's standard practice.

Money from liquidation goes first to insured deposits, then what remains goes to uninsured deposits, then to pay other debts, and finally if anything is left, to shareholders.

Looks like here it will only cover insured deposits and substantial fraction of uninsured deposits.

[benatkin]

Yeah, some think that substantial fraction will be 100%. We'll see!

I don't want to give Circle one cent of bailout money, though. And their post is saying that they are owed a full bailout because they participated in the bank run on the day of the bank run, and also begging for a full bailout. Pretty pathetic.

[humanizersequel]

>And their post is saying that they are owed a full bailout because they participated in the bank run on the day of the bank run, and also begging for a full bailout.

Where in this post does it say that?