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> SVB deposits are being paid for with an assessment on FDIC members.

You're not being totally honest here. If there isn't enough capital to satisfy deposits, the FDIC facilitates an auction of assets owned by the bank. This occurred Sunday night. Not every asset owned by the bank is in the toilet, and ALL the value built up in any asset is given to depositors, not shareholders.

If there is a shortfall between the assets owned by the bank, yes, there may be a special assessment on FDIC members. Special assessments have happened before, and they'll happen again. In 2009 it was 5 basis points, or a whopping 0.05% of deposits after a huge, sprawling economic meltdown.




Yeah, but FDIC considers SVB to be a non-bank financial company.


SVB itself is a FDIC bank company, SVFG (Silicon Valley Financial Group) is the non-FDIC portion of the company.


What was it back in 2014 when Yellen of FRB exempted them?


And if my aunt had wheels, she’d be a tea cart. What does that have to do with anything?




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