News for hackers. Stuff that matters.

A comment on Yellen says government will help SVB depositors but rules out bailout. Parent comment

Re:Yellen says government will help SVB depositors but rules... by gammarator on Sunday March 12, 2023 @11:00AM (#35120794)
> Anything beyond the $250K per account would be money that they are not entitled to per US banking regulation.

This isn’t correct. SVB has assets which are still worth something, even if they are less than their total liabilities. Unsecured depositors are first in line for that money, and the $250k fdic insurance limit has nothing to do with it.

[ Parent | on HN ]
Re:Yellen says government will help SVB depositors but rules... by belter on Sunday March 12, 2023 @11:05AM (#35120858)
As others have pointed out, those assets are not liquid. And selling many of them on short notice, will cause all other kinds of problems. Takes time and you wont get the money equal to their current valuation.
[ Parent | on HN ]