> If there was a bank run, First Republic probably would not be able to meet all depositors.
If everyone knows this, why keep your money there? Tech exposure has nothing to do with it. "In a bank run, he who runs first, runs best".
If everyone knows this, why keep your money there? Tech exposure has nothing to do with it. "In a bank run, he who runs first, runs best".
Because that applies to literally every single operative bank, and given FDIC insurance and other refulation, the risk of deposit losses for average joe is so small that they do not need to care.
Meaning, the bankruptcy administrator will absolutely file and get a judgment on your assets, which will be forcibly collected, if you received a payment from a bankrupt entity within the window established by the court.
I don’t know if it would apply to a bank wire transfer of “your own money” unless it was a literal fraud situation (pyramid scheme).
"No we're taking your $50k life savings back so we can give it all to a client that had $5mil and deserves your $50k life savings more than you do"
FDIC doesn't claw back bank transactions that have "settled". So if you wire cleared, you are good for the money.
Search for "FDIC Discretion Without Ongoing Judicial Oversight" in the document below
No ongoing judicial oversight Pursuant to Section 11(d)(13)(D) of the FDI Act, except as otherwise provided, no court has primary jurisdiction over any claims or action for payment from, or actions seeking a determination with regards to, an institution for which the FDIC has become a receiver. Further this provision also limits courts’ ability to engage in a review of any claims relating to acts or omissions of the institution or the FDIC as receiver. Under Section 11(d)(13)(C) of the FDI Act, no court may issue an attachment or execution over the assets that are in the possession of the FDIC as receiver.
https://corpgov.law.harvard.edu/wp-content/uploads/2008/10/0...
I’ve never heard of anything even remotely like this happening. Can you provide even one example?
Regular people and businesses don't hear about these things. Today, only 1 other person in my friend group of 6 heard about SVB.
Thiel tells his startups to bank-run SVB, and they bank-run SVB, and all the other VC start telling their firms to follow suit. It's all herd mentality among an undiversified group of customers (startups all of which are hit hard by raising interest rates), which is perfect for a bank run.
Really? My mom knew about it, and she's a retired teacher who doesn't live in the Bay Area.