Silicon Valley Bank

I appreciate you sharing the knowledge. Fascinating stuff.

 

The government will partner with someone like Goldman Sachs and bail out the uninsured accounts. Tax payers to the rescue again

 

Thiel got his money out.

 

I’m pretty sure this isn’t correct. I’d ask that you provide some support for this rather significant assertion.

 

Are you questioning the ability to insure a large sum of cash(well over fdic 250k) across multiple banks?

 

The last time I looked, as of 12/31/21, the FDIC had net assets sufficient to cover about 3-4% of insured deposits. And, substantially all of the assets were US Treasuries. Folks are better served buying treasuries than placing $$ in commercial paper like bank CDs.

 

If I am not mistaken, if your money is in a joint account, each name on the account is insured up to $250k. Additionally, if that account is in a Trust with beneficiaries, each one of them is insured up to $250k. Additionally, credit unions are not FDIC insured, but have their own shared insurance fund.

I could be wrong here, since I am not in banking, but I think that by using shared accounts at multiple major banks, additional credit unions, brokerage accounts using brokerage CDs and money funds, and finally creating an appropriate trust, you can protect a lot of money without being a $Billionaire.

 

Banks are a rich persons problem. 90% of Americans have no savings. In fact the median savings is $5,300 including rich people bringing that up.

The Average Savings Account Balance In The U.S. | Bankrate.com

 

In one view. However if the banks holding the payroll for dozens or hundreds of small businesses go under, those same people with $5300 in savings are impacted.

So, not quite so easily a rich vs poor discussion.

 

And the employees paid by businesses with money in that bank?

 

It is, serious. Ask your financial advisor. You really have to do your research, or rather they have, in order to know which banks operate outside of the Big 3. For instance, our favorite local bank, Bryant Bank, is based only in Alabama, yet if you read the fine print, the are managed by Bank of America. If we have an account with Bryant Bank and another with Bank of America, only one maybe covered by FDIC. It gets mirky here and it's why we chose to close our B of A account because of this (we still use their credit card). You also can't open accounts with each branch because it's still the same bank. You could open an account with each of the Big 3 and there are different types of accounts you can have at each that count as separate accounts. For instance, single accounts like savings, checking, money market and CDs can work side-by-side with certain retirement accounts and each would be a separate $250K. But you can only have one of each so if you have a savings and a checking account and dump $250k in each, only one is insured for the full $250K. But if you have a savings account with $250K and an IRA for $250K, both are insured. But you can't have multiple IRAs with separate coverages, all are added up and the first $250k is covered. Like I said, the best thing to do is talk with your financial advisor, but that's if you got more than $250k in your portfolio.

Roku just made bad decisions. You would think they would have knowledgeable people on their retainer to advise them better than the high school dropout they used.

 

there's an ETF for that

 

$35k is the median 401k…. Including wealthy.

 

Always a reason to bail out wealthy while working poor are called bad decision making grifters.