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comment by b_b

No the actual realized losses on accounts above the 250k cap would have been in the 5-15% range. The bank still has lots and lots of assets and lots and lots of cash. So all those assets and all that cash get distributed to account holders before creditors, and if you had $1,000,000 there, then the best estimates I've read said you stood to lose about $75,000 (10% of the sum above $250k). Not chump change, but also not exactly Armageddon.

Just do a thought experiment where instead of being the bank of tech, this was the preferred bank of the Factory Farmers of America or Big Oil or whatever, and that they're all vocal Trump supporters. Do you think it would have played out differently? I do. We can't live in a world where laws don't matter. Ever since the AUMF each president has taken it upon himself to rule by decree, each more so than the last. This is just another example to me.





mk  ·  609 days ago  ·  link  ·  

I don’t think it had anything to do with the type of depositors, but everything to do with preventing contagion. I think this was much bigger than politics.

b_b  ·  609 days ago  ·  link  ·  

We'll have to agree to disagree on that point. The whole thing looks slimy to me. Why write laws if we can just disregard them when it produces outcomes we like better in the immediate term?

mk  ·  609 days ago  ·  link  ·  

https://www.reuters.com/markets/us/first-republic-bank-tumbles-drags-down-shares-other-regional-lenders-2023-03-16/

It’s a desperate struggle atm. The left hates SVB depositors. No political points were scored.

kleinbl00  ·  609 days ago  ·  link  ·