Yellen says government will help SVB depositors but rules out bailout

Re:Yellen says government will help SVB depositors but rules... by closeparen on Sunday March 12, 2023 @03:36PM (#35125106)

Even if you have 10 banks, losing 10% of your working capital is a huge deal, no?

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Re:Yellen says government will help SVB depositors but rules... by mlyle on Sunday March 12, 2023 @04:13PM (#35125603)

Here, it's more like losing access to the amount of that is above $250k for some time, and maybe losing 5-40% of that amount forever. So, (0.1 * x - 250000) * 0.4.

So if you use IntraFi to place across 10 banks, and you have $10M, maybe you lose $300k.

It is a risk... but there's plenty of ways to lose a few percent of your working capital that are out of your control.

If you want to further reduce the risk, you could do additional things (e.g. buy some T-bills).

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