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Silicon Valley Bank Collapses
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Rick Law:
This info is not exactly about technology, but I think knowing it is beneficial to a tech person.

Silicon Valley Bank (SVB) has collapsed and as of Friday, it is shutdown and taken over by regulators.  SVB has been in business for 40+ years funding technology startups and being the banker for many firms in the Silicon Valley area.

For example: Ruko just filed with regulators that they have about $1.9b cash but at this time uncertain the exact amount they have in SVB account(s).  Rumor (unconfirmed reports from CNN, Hollywood Reporters...)  has it that Ruko has about 1/4 of its asset in SVB account.  It is unknown if any of it will be recoverable and if so, when?  For sure Ruko is not the only tech/media firm to be caught in that mess.

SVB like most banks in the USA is covered by FDIC insurance.  But it is only $250K per account.  For many tech firms, $250K is not even a day's operational expenditure.

Expect some or perhaps plenty of smell all over the valley now that the stuff hit the fan...  Closures, layoffs, what not.

Do you have an order with a company located in Silicon Valley or banking at SVB?  If so, perhaps look again before you send a purchase order or a payment for yet-to-arrive items...
Rick Law:

--- Quote from: karpouzi9 on March 12, 2023, 03:35:40 am ---good luck figuring out what bank a company uses without asking them.

--- End quote ---

If you have money in SVB, it is too late -- doors already lock.  If you are merely planning on ordering, just wait a couple of weeks after the dust clears if you can.

Not sure about SVB, but when I had my already-cashed checks back each month, the receive bank name is stamped on the back.  "Had" because now I moved to accounts that doesn't send me my cashed checks.  But even without image, when I had a service provide claiming non-payment but my check was cashed.  Tracing the check with my bank, my bank was able to tell me exact date and bank it was deposited to.

So if your supplier can't tell you and you have used them before (prior payments occurred), check with your own bank.

EDIT: adding this below:

At the very least, if you know you are ordering something from a valley company, alert your procurement department in writing.  It is far less trouble writing an email to purchasing than explaining to your boss afterward that the $100K or whatever you asked purchasing to send when into the abyss.
jonpaul:
1/ never have over THE FDIC limit total, in any bank per person/SS number

2/ check list of 20 most at risk US banks

3/ pay invoice, vendors after goods are,recieved

Jon
bdunham7:
I'd wait until Monday evening to panic, but I suppose not completing any orders for a day won't hurt.  The Fed is having an emergency meeting Monday.  That's a mistake, they should be having it tomorrow (Sunday).  Lots of banks don't have the issue that SVB did but are still vulnerable to runs if something doesn't change quickly.

And look for immediate layoffs next week if the bank isn't acquired--and it may not be.  Usually they line that up ahead of time, but this is a WaMu level event that happened suddenly and was not initiated by the FDIC, so perhaps they're still trying.

Anyone here affected by this?  I'm guessing so...
jonovid:
news just in- Silicon Valley venture capital loss
patreon and others  tech venture capital loss
 Silicon Valley bank runs
https://www.forbes.com/sites/qai/2023/03/12/investors-wiped-out-as-bank-run-causes-collapse-of-silicon-valley-bank/?sh=1707ed63e95c

https://www.wsj.com/articles/investors-startups-work-to-find-cash-lifelines-after-silicon-valley-bank-collapse-1b7c9ceb
is this the 2008 financial crisis part 2?
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