Silicon Valley Bank's Manhattan branch calls COPS on investors trying to pull their cash out

[LiberalArkie]

A Silicon Valley Bank branch in Manhattan today called the cops on tech investors trying to pull their cash out as a run on the bank forced regulators to seize its assets.

Police were called after 'about a dozen' financiers, including former Lyft executive Dor Levi, showed up outside the building on Park Avenue as investors scrambled to get their money out amid the biggest collapse since the Great Recession.

The Federal Deposit Insurance Corporation (FDIC) seized SVB's assets today after depositors - mostly tech workers and start-up firms - triggered a run on the bank following the shock announcement of a $1.8bn loss. The bank took a hammering in pre-market with its price plunging 66 percent before trading was halted.


Police were called after 'about a dozen' financiers, including former Lyft executive Dor Levi, showed up outside the building on Park Avenue as a run on the bank Friday morning forced the Federal Deposit Insurance Corporation to seize its assets. SVB blocked them from entering and two cop cars arrived to tell the investors to get out of the building.


Ashley Tyrner, CEO of Boston wellness firm FarmboxRx, said she had at least $10m deposited with SVB and has been frantically calling her banker. She called it 'the worst 18 hours of my life'

Snip

https://www.dailymail.co.uk/news/article-11845495/Silicon-Valley-Bank-branch-calls-NYPD-tech-investors-tried-pull-cash.html

[SoCalDavidS]

1. Why Are Those Guys Smiling?

Don't they realize that their money is gone?

[sir pball]

3. If the FDIC is involved, they still have their money

FDIC insured accounts are covered for $250,000. That's one of the big problems with most crypto exchanges, and investments in general - they are not FDIC insured. It seems this "bank" was a Real Bank and was therefore subject to FDIC rules.

I get that warning, "this is not an FDIC insured investment", every time I log into my IBKR account — like, yeah I know this isn't a bank account and I can lose it all, let me gamble!

[LiberalArkie]

4. Yep, all but $250,000. And after all settlements are made, maybe a small percentage of their

$9,750,000

[Joinfortmill]

2. Holy shit

[moonscape]

5. Okay, I've never had 10M cash

to worry about, but why would you deposit that much in a single bank unless you are a billionaire? And if the later, suppose you could afford the loss.

[Silent3]

6. If you wanted $10M fully FDIC insured you'd have to use 40 different banks n/t

[moonscape]

7. Yes. But I'd spread that 10 to reduce risk,

enough so that a singular loss would not be the worst day of my life. 10 deposits makes more sense than 1.