Re:Joint Statement by the Department of the Treasury, Federa...
by epups on Monday March 13, 2023 @04:40AM
(#35132816)
I think you are referring to the $250k limit. It's not very practical for companies to diversify according to that limit. Apple has 50 billion in reserves, do you think they can find 200 thousand banks to spread that around?
Re:Joint Statement by the Department of the Treasury, Federa...
by tetrahedr0n on Monday March 13, 2023 @04:53AM
(#35132924)
> Apple has 50 billion in reserves, do you think they can find 200 thousand banks to spread that around?
Good question and of course, that's not likely. But then 50B in reserves isn't something you keep in a bank account, it's something you have rolled into several different financial instruments with varying levels of available liquidity.
Re:Joint Statement by the Department of the Treasury, Federa...
by epups on Monday March 13, 2023 @05:17AM
(#35133104)
Certainly, but what should be clear here is that we are not rescuing a failed investment. We are not giving out money to those who lost on crypto or whatever other risky asset. People are getting furious because they think something analogous to that is actually happening, when in fact all those companies are not at fault and did not benefit from SVB's suboptimal resource allocation.
Re:Joint Statement by the Department of the Treasury, Federa...
by creato on Monday March 13, 2023 @04:58AM
(#35132972)
> it's something you have rolled into several different financial instruments with varying levels of available liquidity.
Like… SVB
Re:Joint Statement by the Department of the Treasury, Federa...
by JamesDough on Monday March 13, 2023 @05:33AM
(#35133246)
If you have 50 billion in reserves, isn't it easier (and possibly cheaper) to have your own bank? Maybe someone can chime in why that isn't feasible.
But keeping all your money in one bank is surely a huge, obvious risk?