Re:FDIC Takes over Silicon Valley Bank
by CydeWeys on Saturday March 11, 2023 @11:27AM
(#35109767)
Bank accounts are very sticky and most people don't move them in search of better rates. In particular, people are not thinking of cash sitting in a checking account as anything other than short term cash they don't expect to earn a return on anyway, so you wouldn't change your entire commercial bank (that everyone else in your industry also uses and expects) just to chase some small returns.
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Re:FDIC Takes over Silicon Valley Bank
by darkerside on Saturday March 11, 2023 @06:03PM
(#35113701)
SVB was holding so many uninsured deposits because they were the operating cash for businesses. If you have $100M, the difference in interest would be $3M a year between 1% and 4%. What kind of business wouldn't be paying attention to that?