EA-adjacent: Silicon Valley Bank has just collapsed after a bank run, as per Bloomberg. (A more in-depth explainer by Matt Levine can be found here.) The California Department of Financial Protection has intervened, citing both liquidity and solvency issues. (Basically these are, respectively, how much money you have ~now vs the money you owe~now , and how much you have in total long-term vs how much you owe in total long-term).
Note that this is not relevant & actionable for most people reading this, that's why I put this in shortform.
I hope the damage ends up being minimal and all depositors[1] get 100% of their money back (but this is not certain due to the cited solvency issues) and I hope all affected orgs manage to pay their employee salaries etc. in time[2]. I further hope no EA orgs are affected. (But if so, we shouldn't panic: they're probably well aware & taking action at this point, and further uncertainty, chaos or doubt would not help them at all.)
Deposits up to 250k are insured, meaning they are guaranteed by the FDIC. This is a small minority of overall deposits ($8B guaranteed/insured vs $165B uninsured). As for the uninsured deposits, what % depositors get back is anyone's guess.
EA-adjacent: Silicon Valley Bank has just collapsed after a bank run, as per Bloomberg. (A more in-depth explainer by Matt Levine can be found here.) The California Department of Financial Protection has intervened, citing both liquidity and solvency issues. (Basically these are, respectively, how much money you have ~now vs the money you owe~now , and how much you have in total long-term vs how much you owe in total long-term).
Note that this is not relevant & actionable for most people reading this, that's why I put this in shortform.
I hope the damage ends up being minimal and all depositors[1] get 100% of their money back (but this is not certain due to the cited solvency issues) and I hope all affected orgs manage to pay their employee salaries etc. in time[2]. I further hope no EA orgs are affected. (But if so, we shouldn't panic: they're probably well aware & taking action at this point, and further uncertainty, chaos or doubt would not help them at all.)
Deposits up to 250k are insured, meaning they are guaranteed by the FDIC. This is a small minority of overall deposits ($8B guaranteed/insured vs $165B uninsured). As for the uninsured deposits, what % depositors get back is anyone's guess.
Payment accounts at SVB are (presumably) also affected.
I seem to remember that Founders Pledge collaborated with them, but I can't remember the details so I'm not sure how much FP are affected