General > General Technical Chat
Silicon Valley Bank Collapses
tom66:
--- Quote from: coppice on March 12, 2023, 10:44:44 pm ---
--- Quote from: TimFox on March 12, 2023, 10:25:25 pm ---That's not funny, but the US newspapers discussed the related closure of this bank in the UK, and reported the legal limit there as "$204,544", a rather precise value, which I assume is really 170 k GBP (for a joint account)?
--- End quote ---
I think it used to be 85k for a single, or 170k for a joint account. It has been reduced to 75k for a single account, but its also mixed in with some bail in legislation that might make even that protection meaningless.
--- End quote ---
No, it's still £85,000 per person per banking licence. £170k for joint, and protection up to £1m for balances up to 6 months in certain circumstances, e.g. sale of a house or inheritance funds. https://www.fscs.org.uk/what-we-cover/
The reality is that if a bank did fail in the UK it's very likely the full amount would be covered because it would massively hammer confidence in the banking system if this did not occur.
bdunham7:
--- Quote from: EEVblog on March 12, 2023, 10:39:38 pm ---Official reports that something like 95%+ of accounts were not covered under FDIC insurance. i.e. greater than $250k.
--- End quote ---
By my calculations, ~86% of overall deposits were uninsured. For all the details, I've attached their Dec 2022 call report. The information on why they failed (off balance-sheet losses wiped out capital reserve) is on forms RC and RC-B and the info on uninsured deposits is on form RC-O. They had $151B in uninsured out of a total of $175B.
EEVblog:
--- Quote from: jonovid on March 12, 2023, 10:04:25 pm ---news just in- Silicon Valley venture capital loss
patreon and others tech venture capital loss
--- End quote ---
How is Patreon involved?
coppice:
--- Quote from: tom66 on March 12, 2023, 10:48:25 pm ---
--- Quote from: coppice on March 12, 2023, 10:44:44 pm ---
--- Quote from: TimFox on March 12, 2023, 10:25:25 pm ---That's not funny, but the US newspapers discussed the related closure of this bank in the UK, and reported the legal limit there as "$204,544", a rather precise value, which I assume is really 170 k GBP (for a joint account)?
--- End quote ---
I think it used to be 85k for a single, or 170k for a joint account. It has been reduced to 75k for a single account, but its also mixed in with some bail in legislation that might make even that protection meaningless.
--- End quote ---
No, it's still £85,000 per person per banking licence. £170k for joint, and protection up to £1m for balances up to 6 months in certain circumstances, e.g. sale of a house or inheritance funds. https://www.fscs.org.uk/what-we-cover/
The reality is that if a bank did fail in the UK it's very likely the full amount would be covered because it would massively hammer confidence in the banking system if this did not occur.
--- End quote ---
Watch out for that bail in legislation. There are some interesting conditions which have been added to bank conditions in the last 3 or 4 years. Things like them reserving the right to refuse deposits. So far they don't seem to have given any indication about the scale of balance they are likely to refuse.
I suspect that if one of the big UK banks had any serious trouble, it would be the end of London as a major financial centre, and perhaps the UK. The government had issues coping with RBS last time. Another of the big banks being in trouble, when the government's own borrowing status is not in great shape, is probably something they just couldn't cope with.
coppice:
--- Quote from: EEVblog on March 12, 2023, 10:50:54 pm ---
--- Quote from: jonovid on March 12, 2023, 10:04:25 pm ---news just in- Silicon Valley venture capital loss
patreon and others tech venture capital loss
--- End quote ---
How is Patreon involved?
--- End quote ---
Who do (did) they bank with?
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