A document released by the Federal Deposit Insurance Corp which the agency said it mistakenly released unredacted in response to a Bloomberg News Freedom of Information Act request, has provided the most detailed glimpses yet into biggest Silicon Valley Bank customers who were bailed out when the Biden administration decided to backstop all the bank's deposits.
As a reminder, when regulators stepped in to backstop all of Silicon Valley Bank's deposits back in March, they saved thousands of small tech startups to prevent what many said would have been a catastrophic blow to a tech sector that relied heavily on the lender.
In May, the FDIC proposed tagging the largest banks with billions of dollars in extra fees to replenish the US government's bedrock deposit insurance fund after it was tapped to backstop deposits above the $250,000 threshold.
As detailed by the FDIC document, we now know for a fact that in addition to serving a legion of startups and fledgling businesses, SVB was a go-to bank for tech industry giants, including some that have kept their relationships with the bank confidential.
Finally, Silicon Valley Bank and parent SVB Financial Group were both listed as having a combined $4.6 billion in deposits.
SVB Financial has argued in its bankruptcy case that at least $2 billion in deposits the parent had with the bank should be returned.
On the retail side, Crane said that investors are shifting out of deposits because of the 4.5%-5% yield available in money funds relative to the sub-1% yield on bank deposits: "That's the greed of a 4% spread," he said.
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