# 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:** 2
**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 11, 2023, 1:00am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/21 "2023-03-11T01:00:52Z")
Well. Sucks for them, unfortunately. They _might_ get the money back, but it’s not guaranteed. As I understand it a new owner would need to be found, and that owner may or may not cover those accounts outside the FDIC umbrella. ---
**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 11, 2023, 1:05am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/22 "2023-03-11T01:05:14Z")
Oh yes, buying a big ol’ bag of catshit wrapped in dogshit, what could possibly go wrong? And I think this one is #2 both in absolute numbers and adjusted numbers–WAMU in '08 still has the dubious honor of being number one. ---
**Author:** ![Exapno\_Mapcase](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/exapno_mapcase/32/1051_2.png) [@Exapno\_Mapcase](https://boards.straightdope.com/u/Exapno_Mapcase)\ **Post date:** [March 11, 2023, 1:07am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/23 "2023-03-11T01:07:27Z")
Genevieve Roch-Decter, whoever you are. 100% of SVB depositors are FDIC insured. 97.3% are not _fully_ insured. Two totally different things. ---
**Author:** ![bobot](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bobot/32/21622_2.png) [@bobot](https://boards.straightdope.com/u/bobot)\ **Post date:** [March 11, 2023, 1:09am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/24 "2023-03-11T01:09:37Z")
Wells Fargo holds my mortgage. Does this mean I can stop paying them? That would free up a lotta cash. ---
**Author:** ![Smapti](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/smapti/32/17938_2.png) [@Smapti](https://boards.straightdope.com/u/Smapti)\ **Post date:** [March 11, 2023, 1:10am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/25 "2023-03-11T01:10:03Z")
> [@hajario](#): > > There are news reports of a glitch affecting Wells Fargo direct deposits. Yeah, I got a message today claiming I had a negative balance despite the fact that my direct deposit already came through on Wednesday. It seemed to have sorted itself out by the time I got out of bed and checked on it. ---
**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 11, 2023, 1:21am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/26 "2023-03-11T01:21:22Z")
Caption says this is Boston Private Bank, recently acquired by SVB. People are not looking confident. [![](https://i.redd.it/qkpbfbk1e0na1.jpg) ](https://i.redd.it/qkpbfbk1e0na1.jpg) ---
**Author:** ![Q.Q.Switcheroo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/q.q.switcheroo/32/5713_2.png) [@Q.Q.Switcheroo](https://boards.straightdope.com/u/Q.Q.Switcheroo)\ **Post date:** [March 11, 2023, 1:24am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/27 "2023-03-11T01:24:02Z")
’Twas ever thus: > **[Libertarian Reluctantly Calls Fire Department](https://www.theonion.com/libertarian-reluctantly-calls-fire-department-1819567309)** > > CHEYENNE, WY—After attempting to contain a living-room blaze started by a cigarette, card-carrying Libertarian Trent Jacobs reluctantly called the Cheyenne Fire Department Monday. “Although the community would do better to rely on an efficient,... ---
**Author:** ![Leaper](https://avatars.discourse-cdn.com/v4/letter/l/4bbf92/32.png) [@Leaper](https://boards.straightdope.com/u/Leaper)\ **Post date:** [March 11, 2023, 1:25am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/28 "2023-03-11T01:25:00Z")
[Here’s Wikipedia’s list.](https://en.wikipedia.org/wiki/List_of_largest_U.S._bank_failures) The gap between Silicon Valley and the previous number 2 in 1984 is $160 billion. ---
**Author:** ![burpo\_the\_wonder\_mutt](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/burpo_the_wonder_mutt/32/365_2.png) [@burpo\_the\_wonder\_mutt](https://boards.straightdope.com/u/burpo_the_wonder_mutt)\ **Post date:** [March 11, 2023, 2:04am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/29 "2023-03-11T02:04:51Z")
I heard this is _exactly_ how it went down: [![](https://img.youtube.com/vi/Ovfap2VtpHM/hqdefault.jpg "Bart Simpson Starts a Bank Run") ](https://www.youtube.com/watch?v=Ovfap2VtpHM) ---
**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 11, 2023, 2:23am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/30 "2023-03-11T02:23:22Z")
The Fed is calling an emergency board meeting on Monday, wouldn’t you love to be a fly on THAT wall? > **[March 13, 2023 -- March 13, 2023 -- Closed Board Meeting](https://www.federalreserve.gov/aboutthefed/boardmeetings/20230313closed.htm#:~:text=It%20is%20anticipated%20that%20the,at%2020th%20and%20C%20Streets%2C)** > > March 13, 2023 -- Closed Board Meeting ETA: Ruh roh, looks like JP Morgan is next! [![](https://i.redd.it/e8f9y9ibtzma1.jpg) ](https://i.redd.it/e8f9y9ibtzma1.jpg) ---
**Author:** ![Ssounder](https://avatars.discourse-cdn.com/v4/letter/s/d07c76/32.png) [@Ssounder](https://boards.straightdope.com/u/Ssounder)\ **Post date:** [March 11, 2023, 2:32am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/31 "2023-03-11T02:32:55Z")
I don’t get why [Security Credit Rating Agencies](https://www.sec.gov/about/divisions-offices/office-credit-ratings/current-nrsros#:~:text=Current%20NRSROs%201%20A.M.%20Best%20Rating%20Services%2C%20Inc.,8%20Kroll%20Bond%20Rating%20Agency%2C%20Inc.%20More%20items) (NSROs) can’t identify these problems before a collapse. I mean; how can Moody’s actually keep credibility when they can’t even keep track of assets/liabilities of a bank this size? ---
**Author:** ![needscoffee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/needscoffee/32/1076_2.png) [@needscoffee](https://boards.straightdope.com/u/needscoffee)\ **Post date:** [March 11, 2023, 2:40am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/32 "2023-03-11T02:40:36Z")
I heard from a CEO today that there’s talk that banks are under pressure now to start offering better interest rates on savings accounts, as the large reason companies were pulling money out of SVB was higher interest savings account rates now being offered by numerous institutions. ---
**Author:** ![Dr.Strangelove](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dr.strangelove/32/6613_2.png) [@Dr.Strangelove](https://boards.straightdope.com/u/Dr.Strangelove)\ **Post date:** [March 11, 2023, 2:50am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/33 "2023-03-11T02:50:29Z")
> [@Exapno\_Mapcase](#): > > Genevieve Roch-Decter, whoever you are. 100% of SVB depositors are FDIC insured. 97.3% are not _fully_ insured. Two totally different things. More importantly, the chart doesn’t give you the distribution of depositors. It’s given as a fraction of total deposits. It may be that 99.9% of depositors are fully covered, while a handful of zillionaires are screwed. ---
**Author:** ![PastTense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pasttense/32/14550_2.png) [@PastTense](https://boards.straightdope.com/u/PastTense)\ **Post date:** [March 11, 2023, 3:14am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/34 "2023-03-11T03:14:18Z")
Well some people have a little foresight, for example the Silicon Valley Bank CEO: > **[Silicon Valley Bank CEO Greg Becker cashed out $2 million just before the...](https://www.marketwatch.com/story/silicon-valley-bank-ceo-greg-becker-cashed-out-2-million-just-before-the-collapse-e45c6b53)** > > The chief executive of Silicon Valley Bank cashed out stock and options for a $2.27 million net gain in the weeks before Friday's collapse, public filings show. > The stock, which Becker sold at prices ranging from $285 to $302, was worthless Friday night after the bank’s sudden two-day collapse. ---
**Author:** ![El\_Famous\_Burrito](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/el_famous_burrito/32/3954_2.png) [@El\_Famous\_Burrito](https://boards.straightdope.com/u/El_Famous_Burrito)\ **Post date:** [March 11, 2023, 3:22am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/35 "2023-03-11T03:22:55Z")
Yeah. That tweet – from a **CFA** , for god’s sake! – is multi-dimensionally stupid. She screwed up what it means to be FDIC insured. And she screwed up counting dollars vs. counting accounts. Sigh. A hundred years ago, she would have been (ignorantly) spreading bad rumors about your local S&L being unstable… thereby catalyzing a self-fulfilling prophecy. The internet has not made us any smarter. ---
**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 11, 2023, 3:41am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/36 "2023-03-11T03:41:15Z")
> [@needscoffee](#): > > I heard from a CEO today that there’s talk that banks are under pressure now to start offering better interest rates on savings accounts, as the large reason companies were pulling money out of SVB was higher interest savings account rates now being offered by numerous institutions. Well, we did just that. Wells Fargo was still offering nothing percent on our savings, and with so many money market funds offering 5% we pulled a big chunk out and invested it in a money market fund through Schwab. We would have been happy to leave it in savings if they had only paid something. ---
**Author:** ![Dr.Strangelove](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dr.strangelove/32/6613_2.png) [@Dr.Strangelove](https://boards.straightdope.com/u/Dr.Strangelove)\ **Post date:** [March 11, 2023, 3:51am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/37 "2023-03-11T03:51:55Z")
> [@El\_Famous\_Burrito](#): > > Yeah. That tweet – from a **CFA** , for god’s sake! – is multi-dimensionally stupid. Unfortunately, domain-specific expertise seems almost totally unrelated to critical thinking skills. Any statistic, of any kind, should prompt questions like “is there likely to be a gap between the median and the mean here?” and “what is the distribution like, anyway? Pareto, maybe?” But mostly that doesn’t happen. ---
**Author:** ![Exapno\_Mapcase](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/exapno_mapcase/32/1051_2.png) [@Exapno\_Mapcase](https://boards.straightdope.com/u/Exapno_Mapcase)\ **Post date:** [March 11, 2023, 4:15am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/38 "2023-03-11T04:15:47Z")
I was going to nitpick further by mentioning that the $250,000 amount is per account type, so if you have checking and savings and money market and other accounts you are covered for each. But the basic tweet was so silly it didn’t really need actual research. ---
**Author:** ![JRDelirious](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jrdelirious/32/9531_2.png) [@JRDelirious](https://boards.straightdope.com/u/JRDelirious)\ **Post date:** [March 11, 2023, 4:30am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/39 "2023-03-11T04:30:55Z")
However the classification is not necessarily by type of account but by “category of ownership” - single, joint, corporate, trust (several types) HSA/employee benefit etc. [From the FDIC page](https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/): > The FDIC adds together all single accounts owned by the same person at the same bank and insures the total up to $250,000. > > ## Example 1: Single Account > > | Account Title | Deposit Type | Account Balance | > | --- | --- | --- | > | Marci Jones | MMDA | $15,000 | > | Marci Jones | Savings | $20,000 | > | Marci Jones | CD | $200,000 | > | Marci’s Memories (A Sole Proprietorship) | Checking | $25,000 | > | Total | $260,000 | | > | Amount Insured | $250,000 | | > | Amount Uninsured | $10,000 | | > > #### Explanation > > Marci Jones has four single accounts at the same insured bank, including one account in the name of her business, which is a sole proprietorship. The FDIC insures deposits owned by a sole proprietorship as the single account of the business owner. The FDIC combines the four accounts, which equal $260,000, and insures the total balance up to $250,000, leaving $10,000 uninsured. “Single account” meaning an account exclusively controlled by the one person. ---
**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\ **Post date:** [March 11, 2023, 4:42am UTC](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997/40 "2023-03-11T04:42:22Z")
> [@Exapno\_Mapcase](#): > > Genevieve Roch-Decter, whoever you are. 100% of SVB depositors are FDIC insured. 97.3% are not _fully_ insured. Two totally different things. Your nitpick is incorrect. There are no data presented about the proportion of depositors who not fully insured. Here’s what Genevieve said; > [@Fear\_Itself](#): > > > Only 2.7% of Silicon Valley Bank deposits are less than $250,000. > > Meaning, 97.3% aren’t FDIC insured. She is clearly just subtracting the 2.7% in the prior sentence from 100%, and correctly saying that 97.3% of _deposits_ (by value) are uninsured. That’s a correct reading of the data in the table, described thus: > “Exhibit 1 = Deposits less than $250K as a percentage of total deposits.” > [@El\_Famous\_Burrito](#): > > Yeah. That tweet – from a **CFA** , for god’s sake! – is multi-dimensionally stupid. She screwed up what it means to be FDIC insured. And she screwed up counting dollars vs. counting accounts. > > Sigh. I risk being called multidimensionally stupid too, but what she said appears to me to be quite correct. [Previous page](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997.md?page=1) [Next page](https://boards.straightdope.com/t/have-you-checked-your-bank-account-today-you-better-silicon-valley-bank-is-crashing/980997.md?page=3)