Silicon Valley Bank (SVB) Collapses

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Fidelity's cash management account uses a sweeps system whereby deposits are swept to one of 5 different banks in $245K increments (there are 26 banks who participate), all FDIC insured for $250K meaning balances in the CMA are not only distributed to different banks (in case there are liquidity issues) but also FDIC insured for up to $1.25M.
If true, this doesn't look good:

 
If true, this doesn't look good:


How can that be? I thought the default was FDIC insurance. Unless they are talking about money market deposits and securities which I believe are insured under a different program, SIPC? At least they are at Fidelity up to $500K.
 
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Yep and one month ago a certain stock celebrity was pumping their stock telling viewers to buy buy buy.

He is quiet at the moment.



OMG, WOW!
Great post, I don’t pay much attention to him, but there has been times, and I feel like increasingly more so that I don’t agree with anything he says. One of those names is on the chart of that video. No sense going into that.
I just relish documented facts such as what this video shows. I mean of all banks to promote just blows my mind you have a big one like Citibank that’s been trashed and to me look a lot more attractive or safer than whatever stuff he was spewing out, if you wanted a bank industry stock
 
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OMG, WOW!
Great post, I don’t pay much attention to him, but there has been times, and I feel like increasingly more so that I don’t agree with anything he says. One of those names is on the chart of that video. No sense going into that.
I just relish documented facts such as what this video shows. I mean of all banks to promote just blows my mind you have a big ones like the Citibank that’s been trashed and to me look a lot more attractive than whatever stuff he was spewing out, if you wanted to bank industry stock


I don’t watch him nor do I watch CNBC but this came across on a news show I watch so I sourced the video link.

The smart way to invest in bank stocks would be through a ETF.

I still have not forgotten Jimmy Cramer pumping JNPR way back when. It was going to the moon according to him. That was in the late 90’s. Then something happened.

The Fickle Finger of Fate. Click on ALL.

 
How can that be? I thought the default was FDIC insurance. Unless they are talking about money market deposits and securities which I believe are insured under a different program, SIPC? At least they are at Fidelity up to $500K.
Title is slightly misleading, but FDIC only covers up to 250k per acct. So, it is possible that a large percentage of accounts are at risk for a potential loss.
 
I don’t watch him nor do I watch CNBC but this came across on a news show I watch so I sourced the video link.

The smart way to invest in bank stocks would be through a ETF.

I still have not forgotten Jimmy Cramer pumping JNPR way back when. It was going to the moon according to him. That was in the late 90’s. Then something happened.

The Fickle Finger of Fate. Click on ALL.

He won’t live down SVB for a long long time… then again, the public sometimes has short memories 😐
 
How can that be? I thought the default was FDIC insurance. Unless they are talking about money market deposits and securities which I believe are insured under a different program, SIPC? At least they are at Fidelity up to $500K.

I take that as many of their accounts are much larger than $250k ($500k for joint account holders I believe). That makes sense if VC and startups were putting big sums of money in for short term places to stash cash. I am surprised banking regulations allowed them to make so many long term investments with their deposits.
 
I take that as many of their accounts are much larger than $250k ($500k for joint account holders I believe). That makes sense if VC and startups were putting big sums of money in for short term places to stash cash. I am surprised banking regulations allowed them to make so many long term investments with their deposits.
Good point!
 
I take that as many of their accounts are much larger than $250k ($500k for joint account holders I believe). That makes sense if VC and startups were putting big sums of money in for short term places to stash cash. I am surprised banking regulations allowed them to make so many long term investments with their deposits.
Yeah that makes sense… of course if you ask @JeffKeryk I'm sure it’s all the fabulous SV residents… ;)
 
Or Warren Buffet. It is well known fact that AIG tried to get Warren to loan them cash in 2008 crisis.
Yes, they tried contacting Warren via a text message to his flip phone cell lol. He didn't see it until a few weeks later IIRC and he said he wouldn't help AIG anyway.

He's an insider. So somebody was probably paying him/cnbc to pump it up.
If I have cnbc on its for the streaming tickers. The volume is always turned off.
Cramer's buys are supposed to be good for one or 2 days after he makes the recommendation, ride the pump and sell asap.

Only up to $250K.
Can't you just open multiple accounts in $250k increments or is FDIC one account per bank? What do multi millionaires / billionaires do, not have their bank accounts insured?
 
Yes, they tried contacting Warren via a text message to his flip phone cell lol. He didn't see it until a few weeks later IIRC and he said he wouldn't help AIG anyway.


Cramer's buys are supposed to be good for one or 2 days after he makes the recommendation, ride the pump and sell asap.


Can't you just open multiple accounts in $250k increments or is FDIC one account per bank? What do multi millionaires / billionaires do, not have their bank accounts insured?

$500k per bank for a joint account is a pretty sizable amount for regular expenses. Most 9 and 10 figure net worth types don’t have it in cash. It’s usually in stocks or other investments/business interests. Brokerage accounts have a money market for cash balances and if large cash purchases need to be make they can just wire funds out of that. This is very rare that a bank fails and not a huge concern for many individuals, wealthy or not. Splitting a hundred million would take 200 different banks to keep joint account holders under FDIC limits. Probably not worth the hassle and unlikely that someone would have that much in cash.
 
I've been telling everyone I know for years, all this fake fiat is worthless. If you can just print more with impunity indefinitely it's of no value. Turn it in to hard assets b/c it's all going away. All the macro economic evidence is there if you care to look. It's all unsustainable. This bank is just the first of many... mark my words.
 
I've been telling everyone I know for years, all this fake fiat is worthless. If you can just print more with impunity indefinitely it's of no value. Turn it in to hard assets b/c it's all going away. All the macro economic evidence is there if you care to look. It's all unsustainable. This bank is just the first of many... mark my words.
Good idea but I think it’s going to be used to scare people into digital currency. The government is here to protect you, just let them track your money for your own good.
 
So is this going to set off a “I don’t have to pay bills anymore” event or will it be yet another “keep going to work” event?
 
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