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jh937hfiu3hrhv9 t1_jcbclz0 wrote

What are SVB's assets?

Does the depositer's refund come from bank reserves or the FDIC?

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politico OP t1_jcbdk2f wrote

SVB's assets are largely longer-term Treasuries and government-backed mortgage securities. These securities have little risk of loss if they're held to maturity, but they lost paper value as interest rates increased - so when SVB lost deposits and had to sell assets, they had to bear those losses.

While depositors have immediate access to their funds—which may needed to be funded in the short-term by the FDIC—the FDIC will only lose money if its sale of the assets (and/or liabilities) of SVB is less than enough to cover all the depositors. And, if the FDIC's insurance fund dips below what it determines to be sufficient coverage for the system - it will levy the banking system for the shortcoming.

- Steven

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politico OP t1_jcbe18b wrote

Sam here: They've also got a loan book that a lot of private equity firms are reportedly circling.

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jh937hfiu3hrhv9 t1_jcbeq6j wrote

So their assets are crap and nobody will buy them but the FDIC and taxpayers are bailing out banks again. Cool.

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politico OP t1_jcbf2ps wrote

Nah, they've got a lot of good assets. But the real reason another bank would want to buy them is relationships with all those customers (a big chunk of whom are tech startups). - Victoria

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jh937hfiu3hrhv9 t1_jcbjulf wrote

What are the startups besides apps to extract and sell personal information to advertisers?

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