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A comment on FDIC Takes over Silicon Valley Bank. Parent comment

Re:FDIC Takes over Silicon Valley Bank by sylvainkalache on Friday March 10, 2023 @01:22PM (#35098640)
Speaking of Mercury, they recently announced increasing customers FDIC insurance maximum to $1M for customer accepting to enroll in their sweep program. Not sure SVB offers this but I hope they do.
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Re:FDIC Takes over Silicon Valley Bank by xxpor on Friday March 10, 2023 @01:37PM (#35098879)
How can they do that? They don't choose FDIC limits.
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Re:FDIC Takes over Silicon Valley Bank by dismalpedigree on Friday March 10, 2023 @01:45PM (#35099011)
Mercury is not a bank. It keeps your funds spread across many banks where they open accounts on your behalf. Then they spread the deposits around to stay below the $250k threshold at each bank. Same as Fidelity and many others. I would be shocked if SVB was sweeping deposit funds into other banks.
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Re:FDIC Takes over Silicon Valley Bank by iozero on Friday March 10, 2023 @01:57PM (#35099209)
I've heard from a few people today who have Cash Sweep Accounts at SVB: https://www.svb.com/liquidity-management/deposits-and-invest...

Some claim that these accounts are insured/protected up to $125m, but I can't find any info online to corroborate that.

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Re:FDIC Takes over Silicon Valley Bank by dismalpedigree on Friday March 10, 2023 @02:00PM (#35099248)
This surprises me. I wonder what the mechanism and incentives are for a bank to sweep deposits to another bank.
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