Have you checked your bank account today? You better, Silicon Valley Bank is crashing

Direct deposits are apparently not getting credited.

Mine is okay but there was a pop up box saying if the balance isn’t connect, they are working on the problem.

Huh, my bank was fine this morning. And the debit card is still working.

I know at least one back crashed out west (SVB, Silicon Valley Bank), were there more?

Banks have crashed before, that’s what the FDIC is for, and it’s worked fine since it was established during the Great Depression.

Yeah there’s like a list of them. I think the main culprit that started it all was a bank called Silicon Valley Bank.

There was a peak of bank crashes during the Great Recession around 2008. Civilization is still standing.

Affected folks may not be able to access funds until Monday.

From NPR:

Bank analysts at Morgan Stanley said in a note “the funding pressures facing” Silicon Valley Bank “are highly idiosyncratic and should not be viewed as a read-across to other regional banks.”

“We want to be very clear here,” they wrote. “We do not believe there is a liquidity crunch facing the banking industry.”

Not the final word on anything, but a useful perspective. If you read the article, it’s pretty clear that Silicon Valley Bank is a fairly specialized bank that faced unusual circumstances.

The only other one I could find was a crypto bank.

My bank is one that was affected.

You will all be happy to know that I just checked and my funds are safe.

My piggy bank said "oink":pig:

I’m all good, really.

I am sorry to hear that.

The FDIC is very reliable. You are definitely covered up to $250,000. Take a deep breath, you will have access to your funds, but probably not over the weekend.

Announcing a bank failure on a Friday is pretty typical. The FDIC is supposed to give you your funds within two business days (not calendar days).

(My mom used to work next door to an FDIC office, I base the above on those folks, people I know who experienced a bank failure as a depositor, and Google)

Tech bro David Sacks, staunch libertarian, one of Musk’s right-hand men at Twitter, and opponent of government regulation, support, and bailouts is singing a rather different tune today. The comments are gold:

One can’t help idly wondering what kind of exposure Twitter might have here.

Yo, Mr. Sacks - all deposits up to $250k ARE safe. And those above that might also be OK, but getting a new owner for a failed bank doesn’t happen overnight. (That’s why they announce it on Friday - to give them several overnights to start the process).

Wikipedia on the FDIC and bank failures:

(What, the Libertarian doesn’t want a Free Market solution this time…?)

Here’s my understanding of the problem. SVB has deposits from a lot of venture capitalists, and since that market is now so bad, they have been withdrawing money. But the assets of the bank is substantially in bonds, and they have been falling in value due to high interest rates, so their capitalization has decreased.
I did see something saying that money should be available by Monday. Similar, smaller banks are getting clobbered in the markets, not the big ones.
Side effect of the Fed raising interest rates. Nothing crooked going on, for once.

From what I can gather, SVB is a big repository for Rippling, which is a payroll company. Rippling being without their funds means they’re not able to process payroll for a whole lot of companies that otherwise might not be affected by SVB at all. Oh, and the other bank that’s having a bad day is Silvergate, it’s lost over 60% of its stock value in the last few days. Shit’s going adrift.

SVB is also a huge venture capital lender for tech startups, so don’t be too surprised when a bunch of smaller businesses start folding when they no longer have access to millions in deposits and lines of credit they were operating with.

I checked - Wells Fargo seems unaffected.

Wells Fargo is affected. Lots of people on TikTok are posting about it.

There are news reports of a glitch affecting Wells Fargo direct deposits. Reporting says that it is unrelated to the SV Bank crash.

Oh ok. Thanks

And don’t be surprised if, over the weekend, another bank buys SVB, perhaps with an FDIC subsidy, and takes on almost all of its obligations. (But I’m no expert and willing to stand corrected if one is here.)

News reports say this is the second biggest U.S. bank failure ever, but that is without adjusting for inflation. Does anyone know if this is true with adjustment for inflation?

Only 2.7% of Silicon Valley Bank deposits are less than $250,000.