Comment by PragmaticPulp | Hacker News Reader

Comment by PragmaticPulp | Hacker News Reader

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The FDIC’s statement, which is very short and to the point, should be required reading for anyone wanting to discuss the situation.

The FDIC’s handling of the situation appears to be geared toward urgency and keeping depositors up and running. The advance dividend provides significant access to funds beyond the $250K limit.

The number of comments, Tweets, and even opinion pieces I’m reading from people who assume that all money beyond $250K has disappeared is concerning. The FDIC is rushing to provide access on Monday to substantial funds for a takeover that happened on Friday.

Depositors might take a haircut, yes, but the commentary about this being an “extinction level event” is just fear mongering.

I’m sure VCs and investors would love if the government stepped in and covered the remaining X% of missing funds when the dust settles, but the way they’re playing off of public panic to exaggerate the situation is starting to feel distasteful.

There is no certainty over the amount of dividend the FDIC will pay out. IMO this weekend is a critical time: if the FDIC/Government act quickly and provide hard numbers, it will both stabilize the depositors and prevent panic from rippling through the ecosystem. I feel like the urgency and fear mongering is quite justified considering the tiny window of opportunity present to avoid irreversible catastrophic damage to the system.

Urgency should be directed at the process which is providing that advance and rightly demanding the amount to sufficient and the release quick for the reasons you specify. Instead they are off on their own demanding bailouts and rejecting even the systems set up to protect them in this scenario, demanding special cases and further alienating this entire industry in the eyes of the public. It's beyond embarrassing to watch.

They are doing exactly what they should be doing to minimise impact while letting markets be markets, VCs are just too busy making a big mess in their underpants and screaming about why they should be special-cased to read the details

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