How The Fdic Stepped In To Backstop Svb Depositors

There it is. A backstop of SVB customer deposits will prevent a run on most other regional and specialty banks this week.

Not a bailout of SVB shareholders or execs. The assets will be sold off and SVB will be no more.

There will still be some major disruption in the tech community as this all settles out in the upcoming weeks and months.

And funded startups should get used to being treated like regular small businesses at other banks.

These are my next questions:

  1. How exactly will taxpayers not lose money on sending funds in to cover this if SVB is sold off at a discount?
  2. SVB was in the S&P 500 index and won’t be tomorrow. Is there a proportional hit to everyone’s stock index funds as we were indirect SVB shareholders?
  3. Why would anyone keep money at SVB this week? And why would any bank buy their evaporating portfolio?
  4. How much of a reputation hit will Silicon Valley, VCs, hotshot startup founders, and big tech take this year? I think it will be big.
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