SVB Bank Collapse in the US

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first crack in the global system .....??
Nah, just more of the same. Greed with minimal consequences. If their bet pays off, they collect huge bonuses, if they can delay impact of bad bet huge bonuses, if they get called out on their bad bet golden parachute severance in contract. Executives can't lose. Employees, people with accounts, etc, nobody cares about them.
 
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IIRC their deposit guarantees are $250,000 USD, about $350,000 CDN. Ours is $100,000 CDN.

One business owner got a warning from a bank investor and strategically transferred out her money in smaller amounts to avoid lighting the fuse. What will be the domino effect for businesses not so connected?

No money for operations or payrolls > No payroll money and people can't pay mortgages.
 
IIRC their deposit guarantees are $250,000 USD, about $350,000 CDN. Ours is $100,000 CDN.

One business owner got a warning from a bank investor and strategically transferred out her money in smaller amounts to avoid lighting the fuse. What will be the domino effect for businesses not so connected?

No money for operations or payrolls > No payroll money and people can't pay mortgages.
You are correct.

To emphasize the $100,000 limit applies per depositor, per institution and per insured category.

So if you're sitting on reserves bigger then this in one institution and you're a bit nervous, you may want to move your money around.

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You are correct.

To emphasize the $100,000 limit applies per depositor, per institution and per insured category.

So if you're sitting on reserves bigger then this in one institution and you're a bit nervous, you may want to move your money around.

View attachment 59824

Good reading. I erroneously thought it was each account in the same bank was covered separately.

The twist in this is that investment companies tell you not to put all your eggs in one basket but want all your eggs in their basket.
 
"This Monday, at least 200 firms employing tens of thousands of people will find they can't pay their staff or suppliers because the bank they had an account with has gone bust," the source said.
Between 30% and 40% or UK start-ups employing up to 50,000 people could be affected by the collapse, the source added.
 
Its awful but lets look at why a UK tech firm was using an American bank. Low threshold on valuations , lower fees , lot less regulatory inputs. And , oh crap, my bank missed that whole "interest rates are going up " conversation of the last year.
 
Its awful but lets look at why a UK tech firm was using an American bank
Maybe because TECH is what SVB invests in. They were financiers of tech start-ups... which are notorious for a long game payout, and SVB was heavily into US gov bonds, which have been taking a beating as the FED has raised interest rates... and SVB didn't get out fast enough.
OOPS!
There is about $30,000,000,000 USD Canadian exposure
 
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