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A comment on 30% of YC companies exposed through SVB can’t make payroll in the next 30 days. Parent comment

Re:30% of YC companies exposed through SVB can’t make payrol... by Asparagirl on Friday March 10, 2023 @05:53PM (#35102408)
There is absolutely no evidence people above FDIC limits will recover “80-90% of the capital”. It’s a guess, a crapshoot, and it’s not taking into account historical loss rates for banks of this size that were seized by the FDIC. See also: IndyMac, WaMu, etc.

And whatever they do get back above FDIC limits, it will not be immediate. Months at a minimum.

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Re:30% of YC companies exposed through SVB can’t make payrol... by femto113 on Friday March 10, 2023 @07:21PM (#35103374)
I expect the losers in SVB will be the same as for WaMu: bondholders, shareholders, and investors. No reason yet to expect depositors will suffer anything more than inconvenience. And if, like WaMu, the FDIC can rapidly effect a sale to another bank that inconvenience could actually be quite short.
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Re:30% of YC companies exposed through SVB can’t make payrol... by rufus_foreman on Friday March 10, 2023 @08:11PM (#35103891)
WaMu:

"The closure had no immediate effect on depositors. All deposits even those above the FDIC limit were transferred to Chase. As the FDIC stated, "No one lost any money that was deposited in Washington Mutual Bank." In addition, all existing WaMu CDs were honored by Chase to maturity."

-- https://www.depositaccounts.com/blog/2010/09/twoyear-anniver...

Looks like for IndyMac, uninsured deposits got paid back at 50 cents on the dollar.

If this is like WaMu, the bank opens on Monday and everything goes back to normal. If this is like IndyMac (or worse, Silver State Bank, 11 cents on the dollar recovered), a bunch of startups are now fucked companies.

Might be some politics going on this weekend.

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Re:30% of YC companies exposed through SVB can’t make payrol... by decodebytes on Saturday March 11, 2023 @07:00AM (#35107584)
I honestly expect their will be an acquisition on Monday, with a lot of executive (whitehouse) pressure behind it. So much of the American economy is based on a tech advantage as is its national security. I could of course be completely wrong.
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