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Silicon Valley Bank Collapses

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EEVblog:

--- Quote from: coppice on March 12, 2023, 10:58:01 pm ---
--- 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?

--- End quote ---

Well I assume that if they are involved. But anyone got a link?

SiliconWizard:
I also have read hints that Patreon was linked to SVB, but I can't find any definite proof of that. This far, Patreon seems to be silent about it.

EEVblog:
Roko, Rublox caught short

https://techcrunch.com/2023/03/11/roku-roblox-and-others-disclose-their-exposure-to-svb-in-sec-filings/

jpanhalt:
There will certainly be a ripple effect.  An article on Market Watch compared several US national banks.  Unfortunately, it has decided to restrict access to that article now to subscribers only.  I really do love capitalism. (no sarcasm intended)

One of the metrics it used was AOCI

--- Quote ---Accumulated Other Comprehensive Income (AOCI) are special gains and losses that are listed as special items in the shareholder equity section of a company's balance sheet.
--- End quote ---

Clear as mud, but SVB had a very large percentage of net as AOCI.  I spent a little time today checking my banks.  You can find the AOCI quite easily.

As for FDIC, there are some things to be aware of:
1) When a bank fails, all deposits per depositor are lumped, e,g,, CD's, savings, and checking for the limit for the same account type and holder.
2) An IRA is a different type, so far as I know (no guarantee).
3) FDIC may not cover interest anticipated on instruments such as CD's and payment can take quite a while.
4) Relative to #3, if you have an IRA and are subject to MRD, you may want to consider the effects of a late payment.  I am looking into that tomorrow (Monday).
5) One way to extent the limit is to add individuals (e.g,, children) as beneficiaries on death.  That can get you to 1$million aggregate (again, that is not financial advice).

As financial markets in the US showed dramatically in 2009, it is a house of cards.

TimFox:
The Silicon Vallen Bank (SVB) failure is particularly nasty.
According to the NY Times, not only tech companies are involved, but also the better winemakers in California.
Normally, the US FDIC closes the bank, freezes its assets, and then arranges for a solvent bank to take over the business.
The FDIC had to close SVB before the close of business
The failure of Washington Mutual in 2008 (which apparently kicked off a large series of failures) resulted in the fire sale of the assets to J P Morgan Chase.
Only 24% of WaMu's deposits were not FDIC insured, but 87% of SVB's deposits are uninsured.
As of this writing, apparently no bank has agreed yet to the acquisition (although J P Morgan Chase may well be the solution).
SVB is now the second-worst failure in the US, trailing WaMu in 2008.
WaMu's problems were tied to property lending, i.e. subprime mortgages, but SVB's problem is different.
The government predicts depositors will be good on Monday, and are talking about the full deposits amount, but denying it's a bailout.
There seems to be another pile of cash, not in the FDIC but at the Federal Reserve, with which I was not acquainted.

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