Here's what to expect: 1. Depositors WILL get their money back. Some may need to wait days to weeks, but they will get it. FDIC well make sure of that. 2. Nevertheless lots of tech companies are about to go into the toilet, and either lay people off or close up shop, not from deposit losses, but instead from lack of liquidity and credit SVB was lending money to all kinds of tech companies that really didn't have a lot of other great options to get financing. It helped them achieve liquidity with lines of credit and it financed them medium to long term with commercial loans. Now those lines of credit will be frozen making it hard for those companies to operate short term if they were relying on the credit lines for operations. Soon many of them will also need to refinance their loans or maybe had been expecting additional loans that they now won't get. They will either get hit with much higher interest rates from traditional lenders, or else they may not find financing at all. In fact the failure of SVB is going to spook a lot of banks and commercial lenders who will probably decide not to touch lending to tech with a ten foot pole. So that's going to fuck a lot of smaller tech companies that won't be able to get financing or liquidity they had been counting on. They will lay a lot of people off to reduce costs and some of them may just fold completely.
2/10
Andy will take our bananas away
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FDIC only insures for 250k, dummy.
Doesn't matter people will get their money back. Banking regulations require banks to maintain large capital reserves. The underlying assets will be there for depositors to get their money back even above 250k, and FDIC will administer that. But companies in tech weren't relying on SVB for deposits. They were relying on it for loans.
For anything above they’ll have to go through the bankruptcy claims process it they’ll get it, while the claim is in progress they’ll have nothing though