Everyone here fear mongering about SVB’s collapse does not understand how the fdic works. When the fdic takes over a bank, they farm out the deposits to other banks in the industry. Usually with a mega bank like jpm/wells. These banks can absorb the cash flow risk. The “uninsured” deposits do not mean they are lost. The entire point of the fdic is to stop bank runs. It would be a huge embarrassment for the us govt to let 200b disappear from the banking system. Odds are most deposits will be restored 100% with some being 90-95% restored. No one will be hurt. The fdic always takes over banks on Friday’s and always comes back with an answer Monday morning. All the talking heads trying to scare you are doing a bill ackman “hell is coming” to tank stocks. I am confident they all bought calls Friday afternoon to get a quick scalp in next week. Don’t be fear mongered. The us never lets the banking system fail. The only let stock holders fail. Tc: 0, 550k before fintech layoffs 12 yoe
Yep
The calculator (EDIE) on the FDIC website calls bullshit. The FDIC has 125 billion set aside which is basically tax payer money when you bubble down. If all the depositors get back their money, it's another taxpayer funded bailout. It's wrong.
You don’t have to have taxpayers cover all deposits, you can move the accounts to a mega bank and give the bank a loan to cover their reserve risk ratio. The fdic also did not have enough to cover 2008 but nearly all deposits were bridged.
Then the FDIC needs to explain why that isn’t in its documentation and why every example in the PDF it issues says that you lose everything other than $250K.
Bill Ackman is a billionaire and OP is ReadyForWork. Whom should I trust more? Oh, that’s a very hard choice /s.
I wish I could do it too. He’s my market manipulating idol
Maybe the laid off know something.
By the way, “calls” are bullish. If Bill Ackman bought calls, jt means that he believes that it will recover quickly. Did you want to say that he bought puts? Or that he shorted?
If someone spends all day doing rounds on cable financial news saying this is the end of tech stocks, fully knowing that the us protects depositors, and then buys calls right at market close, what do you think the strategy is? Keep in mind. Analysts and md’s have an obligation to maximize profits for their investors.
Agreed.