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$13B of the Silicon Valley Bank bailout went to 10 accounts

44 pointsby spragueabout 2 years ago

6 comments

rcmeabout 2 years ago
The math here seems disingenuous. There were 10 accounts with 13B in uninsured deposits. The FDIC used 18B to back the entire deposits of the bank. That doesn&#x27;t mean 13B &#x2F; 18B went to those 10 accounts.<p>A better way of thinking about it would be something like: SVB had 170B (random estimate) in uninsured deposits. 13B of the uninsured deposits were from 10 accounts. So (13B &#x2F; 170B) * 18B = 1.3B went to those 10 accounts.
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mindslightabout 2 years ago
That the bureaucracy can&#x27;t avoid bailing out large connected depositors is precisely why the scope of FDIC coverage should be increased to all bank accounts, with a graduated rate of assessment due to the increased variance caused by large sums. &quot;Just say no&quot; is as impractical here as it is elsewhere.
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oriettaxxabout 2 years ago
&quot;Gruenberg also revealed that $13.3 billion of the $18 billion allocated to protect Silicon Valley Bank, or nearly 74% of the funds used to assist the customers, were used to back deposits for a mere 10 accounts. &quot;<p>74% !?!? to 10 accounts?<p>holy cow!<p>such a large proportion of the funds used to protect such a small number of accounts?<p>some are really more equal then others :(
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WhereIsTheTruthabout 2 years ago
Well, spring started 10 days ago, time for a good cleanup!
TigerTeamXabout 2 years ago
Some animals are more equal than others
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boringuser2about 2 years ago
I&#x27;m not sure why this was necessary. If you bet big and lose, of course you should hold the bag.