# Have you checked your bank account today? You better, Silicon Valley Bank is crashing **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [March 10, 2023, 10:58pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997 "2023-03-10T22:58:31Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Grrr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/grrr/32/146_2.png) [@Grrr](https://boards.straightdope.com/u/Grrr)\ **Post date:** [March 10, 2023, 10:58pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/1 "2023-03-10T22:58:31Z")
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. ---
**Author:** ![Broomstick](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/broomstick/32/246_2.png) [@Broomstick](https://boards.straightdope.com/u/Broomstick)\ **Post date:** [March 10, 2023, 11:00pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/2 "2023-03-10T23:00:57Z")
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. ---
**Author:** ![Grrr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/grrr/32/146_2.png) [@Grrr](https://boards.straightdope.com/u/Grrr)\ **Post date:** [March 10, 2023, 11:03pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/3 "2023-03-10T23:03:21Z")
Yeah there’s like a list of them. I think the main culprit that started it all was a bank called Silicon Valley Bank. ---
**Author:** ![Broomstick](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/broomstick/32/246_2.png) [@Broomstick](https://boards.straightdope.com/u/Broomstick)\ **Post date:** [March 10, 2023, 11:04pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/4 "2023-03-10T23:04:20Z")
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. ---
**Author:** ![Roderick\_Femm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/roderick_femm/32/14875_2.png) [@Roderick\_Femm](https://boards.straightdope.com/u/Roderick_Femm)\ **Post date:** [March 10, 2023, 11:04pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/5 "2023-03-10T23:04:20Z")
From [NPR](https://www.npr.org/2023/03/10/1162599556/silicon-valley-bank-collapse-failure-fdic-regulators-run-on-bank): > 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. ---
**Author:** ![Roderick\_Femm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/roderick_femm/32/14875_2.png) [@Roderick\_Femm](https://boards.straightdope.com/u/Roderick_Femm)\ **Post date:** [March 10, 2023, 11:08pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/6 "2023-03-10T23:08:53Z")
> [@Grrr](#): > > there’s like a list of them The only other one I could find was a crypto bank. ---
**Author:** ![Grrr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/grrr/32/146_2.png) [@Grrr](https://boards.straightdope.com/u/Grrr)\ **Post date:** [March 10, 2023, 11:11pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/7 "2023-03-10T23:11:36Z")
My bank is one that was affected. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [March 10, 2023, 11:12pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/8 "2023-03-10T23:12:39Z")
You will all be happy to know that I just checked and my funds are safe. ---
**Author:** ![Beckdawrek](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/beckdawrek/32/3647_2.png) [@Beckdawrek](https://boards.straightdope.com/u/Beckdawrek)\ **Post date:** [March 10, 2023, 11:15pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/9 "2023-03-10T23:15:09Z")
My piggy bank said "oink"🐖 I’m all good, really. ---
**Author:** ![Broomstick](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/broomstick/32/246_2.png) [@Broomstick](https://boards.straightdope.com/u/Broomstick)\ **Post date:** [March 10, 2023, 11:15pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/10 "2023-03-10T23:15:24Z")
> [@Grrr](#): > > My bank is one that was affected. 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) ---
**Author:** ![HMS\_Irruncible](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hms_irruncible/32/7394_2.png) [@HMS\_Irruncible](https://boards.straightdope.com/u/HMS_Irruncible)\ **Post date:** [March 10, 2023, 11:19pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/11 "2023-03-10T23:19:16Z")
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. ---
**Author:** ![Broomstick](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/broomstick/32/246_2.png) [@Broomstick](https://boards.straightdope.com/u/Broomstick)\ **Post date:** [March 10, 2023, 11:21pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/12 "2023-03-10T23:21:03Z")
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: > **[Federal Deposit Insurance Corporation | Resolution of insolvent banks](https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation#Resolution_of_insolvent_banks)** > > Upon a determination that a bank is insolvent, its chartering authority—either a state banking department or the U.S. Office of the Comptroller of the Currency—closes it and appoints the FDIC as receiver. In its role as a receiver the FDIC is tasked with protecting the depositors and maximizing the recoveries for the creditors of the failed institution. The FDIC as receiver is functionally and legally separate from the FDIC acting in its corporate role as deposit insurer. Courts have long recogni... (What, the Libertarian doesn’t want a Free Market solution this time…?) ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [March 10, 2023, 11:24pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/13 "2023-03-10T23:24:57Z")
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. ---
**Author:** ![SmartAleq](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/smartaleq/32/163_2.png) [@SmartAleq](https://boards.straightdope.com/u/SmartAleq)\ **Post date:** [March 10, 2023, 11:27pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/14 "2023-03-10T23:27:25Z")
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. ---
**Author:** ![teelabrown](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/teelabrown/32/8412_2.png) [@teelabrown](https://boards.straightdope.com/u/teelabrown)\ **Post date:** [March 10, 2023, 11:42pm UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/15 "2023-03-10T23:42:30Z")
I checked - Wells Fargo seems unaffected. ---
**Author:** ![Grrr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/grrr/32/146_2.png) [@Grrr](https://boards.straightdope.com/u/Grrr)\ **Post date:** [March 11, 2023, 12:04am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/16 "2023-03-11T00:04:18Z")
Wells Fargo is affected. Lots of people on TikTok are posting about it. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [March 11, 2023, 12:06am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/17 "2023-03-11T00:06:12Z")
There are news reports of a glitch affecting Wells Fargo direct deposits. Reporting says that it is unrelated to the SV Bank crash. ---
**Author:** ![Grrr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/grrr/32/146_2.png) [@Grrr](https://boards.straightdope.com/u/Grrr)\ **Post date:** [March 11, 2023, 12:07am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/18 "2023-03-11T00:07:37Z")
Oh ok. Thanks ---
**Author:** ![PhillyGuy](https://avatars.discourse-cdn.com/v4/letter/p/ed655f/32.png) [@PhillyGuy](https://boards.straightdope.com/u/PhillyGuy)\ **Post date:** [March 11, 2023, 12:47am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/19 "2023-03-11T00:47:48Z")
> [@SmartAleq](#): > > 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. 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? ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [March 11, 2023, 12:53am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/20 "2023-03-11T00:53:10Z")
> [@Broomstick](#): > > Yo, Mr. Sacks - all deposits up to $250k ARE safe. Only 2.7% of Silicon Valley Bank deposits are less than $250,000. > [Next page](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997.md?page=2)