(Replying to PARENT post)

2008 bear sterns vibes.

The fed's move in interests rates was bound to break something. This is the first big name and, while banks are taken over by the FDIC often and it never makes the news, this one will be especially interesting bc it is Silicon Valley Bank. Naturally, people and the media will associate with the rest of silicon valley, bringing extra scrutiny to every brand name tech company, especially the ones that are still barely profitable.

And any accounts over $250K, poof.

Edit - this has been the first fdic takeover since 2020, so no, it does not happen often.

๐Ÿ‘คgame_the0ry๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0

(Replying to PARENT post)

Edit - this has been the first fdic takeover since 2020, so no, it does not happen often.

This chart of historic bank failures paints a different picture:

https://www.fdic.gov/bank/historical/bank/

๐Ÿ‘คmywittyname๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0

(Replying to PARENT post)

> And any accounts over $250K, poof.

That's not quite true; the FDIC will pay uninsured depositors an advance dividend within the next week.

๐Ÿ‘คborski๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0

(Replying to PARENT post)

Re Bear Sterns, there were lots of political reasons it was allowed to fail while others were protected. If I remember right something about them not helping with the Long Term Capital Management collapse for example. There will have been people who had the opportunity to help SVB and collectively decided it was better to let it fail. It will be interesting to understand the decisions that were made when the dust settles
๐Ÿ‘คversion_five๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0

(Replying to PARENT post)

I mean, potentially.

The reality is they try to protect as much of the assets as they can and even those over 250k will probably not lose as much as they would have without the FDIC

๐Ÿ‘คPasorrijer๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0

(Replying to PARENT post)

Itโ€™s not interesting because of its name, itโ€™s the 18th largest bank in the US. A domino that big usually doesnโ€™t fall alone. Also, FDIC hasnโ€™t taken over a bank since 2020. This isnโ€™t exactly a common occurrence.
๐Ÿ‘คyeahsure22๐Ÿ•‘2y๐Ÿ”ผ0๐Ÿ—จ๏ธ0