This used to be our bank in a previous company and actually may be it today for a startup I am with. I work at a start up and this bank fuels creativity. I'm bummed.

more than we already lost.

no high hopes for it though either way.

Large businesses going through $250K in a day or even less. The current $250K is unsustainable.

Most people and businesses who use commercial banks are not bad actors and fraudsters. There is no reason to risk their assets along with the livelihoods of thousands or hundreds of thousands of bad actors. We need more regulations and supervision. Perhaps we need government owned and operated banks. Whatever it is, we need something.

Taxpayers don’t need to bail out corporations.

Increase regulations, not taxpayer funded insurance.

Are you willing to bankrupt them and force all of those people to lose their jobs through no fault of the owner simply because of some bad bankers?

Individual depositors are not the only players in the commercial banking realm. There are enormous ramifications if they cannot maintain secure bank deposits.

This was true until 2018, when SVB aggressively lobbied congress to relax regulations (on the Dodd-Frank bill) on cash liquidity because the regulators were breathing down their neck.

50 Democrats supported the bill, which somehow escaped being filibustered in the senate (edit: it was because 17 Senate Democrats supported the bill ), and Trump signed it into law. The regulators disappeared.

Taxpayers should not be on the hook for losses above $250k - the small businesses should have to sue the bank in court, and there should be criminal investigations, although, with the relaxed regulations, what they did might have been perfectly legal.

I don’t know how many, if any, small businesses that weren’t tech start ups used SVB- do you?

You're arguing for the latter while I am emphasizing the former.

It's been 13 years since the last time the FDIC raised the insured cap. We've had 37% inflation since then. The current cap is far too low.

I’m fine with raising the FDIC cap to that amount for individual depositors, but I am adamantly opposed to bailing out companies for more- that’s what civil courts are for.

We can distinguish the good actors from the bad actors, just like during a natural disaster. Ruining lives and destroying the public's confidence in the banking sector is not who we are. You're setting the stage for bank runs and people hoarding cash at home and in their business. That's a far worse scenario.

Again, SVB wasn’t a mom and pop bank serving middle class depositors. They existed to generate venture capital for risky tech start ups, and they gamed the system to allow them to raise the stakes to their investors without government oversight.

Without bailouts, maybe those libertarian tech gamblers will cry out for more regulations to proactively protect them, rather than taxpayer funded bailouts after the fact.

When a bank fails due to mismanagement or corruption, people will suffer. Individual depositors under $250k($342k) should always be protected, but the others must deal with the consequences of “small government”.

Edit- I grew up in Silicon Valley before it was known as that; in 90’s-early 2000’s, I had many friends, as well as clients’ families (I was a therapist) who were affected by the high stress, high risk culture of the tech world, especially after the dot com bust of 2000. Moving past that crash, the naïveté of most folks had worn off, and they knew what they were getting into by working for a startup.

The benefits could be huge- one of our closest friends worked at Yahoo in the (my dates may be off, going from memory)late 90’s/ early 2000’s as a facilities manager (making sure the job sites were clean and all the light bulbs got changed), but got laid off after, I think, the dot com crash. They had two kids, and struggled for a bit until he got a job as facilities manager at Home Depot. That struggle ended about a year or two after he was laid off, when his Yahoo stock options matured, and he cashed them in.

They became instant millionaires (not mega-multi-millionaires, but millionaires nonetheless) and quit their jobs not long after.

It takes some kind of magician to make billions of dollars just disappear into thin air, so it begs the question, "Who will profit from this failure?"

Coming soon to a legislature near you. As soon as these hedge funds go crying to Congress.

House of cards.