Yellen says government will help SVB depositors but rules out bailout

Re:Yellen says government will help SVB depositors but rules... by locallost on Sunday March 12, 2023 @11:04AM (#35120846)

I don't get this comment at all. The post you're replying to literally says the bank has more assets than 250k per client. I read somewhere the insured amount is around $8B whereas the bank's assets are at least 20x that. Where should that money go if every client gets capped at 250k?

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Re:Yellen says government will help SVB depositors but rules... by koolba on Sunday March 12, 2023 @11:09AM (#35120913)

They have more than $250K per client but not the full value.

Each account should be allocated MIN(balance, 250K). Then the remaining should be allocated pro rata. So if one is still owed $1000 (ie the balance was $251K before the collapse), then that account’s share of the remainder is: $1000 / (sum of all remaining balances owed)

The haircut per account is only on amounts beyond $250K.

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Re:Yellen says government will help SVB depositors but rules... by locallost on Sunday March 12, 2023 @02:48PM (#35124416)

But that's exactly what the post you replied to said? Anyway, I am against a bailout here, but haven't seen one announced.

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Re:Yellen says government will help SVB depositors but rules... by ericd on Sunday March 12, 2023 @11:07AM (#35120895)

>then distribute the rest pro rata based upon closing balance from when the fed's took over.

The second part of that sentence addresses your question.

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Re:Yellen says government will help SVB depositors but rules... by cscurmudgeon on Sunday March 12, 2023 @11:14AM (#35121003)

The salty commenters think it should go to them or the govt but won’t say it out loud lol.

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