Accounts are FDIC-insured up to $250,000.
That used to be a common part of bank commercials. Maybe it still is. So why this?
According to S&P Global, entities had $151.6 billion in uninsured deposits at Silicon Valley Bank, or 93.9 percent of the company’s total holdings. [WaPo]
I presume, from context, that company’s means SVB’s, recent victim of the complexity of the current financial system, or tactical financial blundering.
I’m amazed.
Don’t banks offer some sort of “spillover” feature, where no account owned by a company can have more than $250,000, and overflows cause new accounts to be automatically opened, registered with the FDIC, and used?
This just seems like madness. No doubt it’s because I don’t work in the banking industry. Maybe the uninsured money was in uninsurable accounts that offered more return on more risk. But Still.
