For context, here’s one investors opinion:<p>>> “Government intervention should be considered,” warned billionaire investor Bill Ackman on Thursday. “SVB could destroy an important long-term driver of the economy as VC-backed companies rely on SVB for loans and holding their operating cash. If private capital can’t provide a solution, a highly dilutive Government-preferred bailout should be considered.”<p>Source:<p>https://www.asiamarkets.com/million-dollar-svb-stock-trade/
If you have $250,000 in the bank then you are covered by the FDIC and will be made whole.<p>These VCs must have more than that and they can lose it. The usual scenario for a failing bank is that the feds will try to merge it with a healthy bank. Could be a bloodbath though, they could get a bailout, could be the end of ‘big money’ backing crypto and crypto adjacent stuff.