Alex HopmannMar 11, 2023
Dare Obasanjo

The difference between a bank failure and a crypto project failure is that when a regulated bank fails, you aren’t able to get your money back right now.

When a crypto project fails, you aren’t getting your money back.

A lot of SVB hot takes think banks are like crypto schemes.

Mar 11, 2023 at 8:17pmWeb
Show threadBlake Helms Mar 11, 2023

@carnage4life to be clear you can get $250,000 of your money back from the FDIC. More for different kinds of accounts.

More reason why we should bring back “Glass-Stegall” and keep a tighter control on the types of risk that commercial banks are able to engage in.

For me, I only use Credit Unions.

Show threadGaëtan PerraultMar 11, 2023

@blake @carnage4life Right, normal humans can get the $250k, which should in fact cover most people.

But there are companies using these banks and they get different treatment. And honestly, even the $250k is just a minimum guarantee. There are lots of tools available here.

Which is there benefit to the full banking system.

Show threadAlex HopmannMar 11, 2023
@blake @carnage4life you get back $250k for sure but typically a real bank actually has plenty of real assets. SVB depositors can expect to get substantially all of their $ back but it could take a year or more.
Show threadMDKMar 12, 2023
@alexhop @blake @carnage4life not if SVB assets were crypto
Show threadChristina WarrenMar 12, 2023
@mattdkerr @alexhop @blake @carnage4life the assets weren’t crypto. The assets are bonds. Mortgage backed securities. The problem is they don’t reach maturation for 6 years and interest rate increases have dropped the mark to market price. But this is still actually backed securities. The problem is, if could be months/a year before companies get their money unless another bank can step in to do 1:1 for depositors.
Show threadMDKMar 12, 2023
@film_girl @alexhop @blake @carnage4life
Show threadMark HughesMar 11, 2023
@carnage4life so a crypto project is exactly like a business 🤔
Show threadMark HughesMar 11, 2023
@carnage4life also, what happens when a Central Bank fails - do you get your money back then?
Show threadShannon ClarkMar 12, 2023
@carnage4life seeing even very smart people assuming that depositors will get nothing which (and that somehow the FDIC insurance is coming out of tax payers - it’s fully funded by banks - ie by all bank customers). And into the breach the scammers and opportunists are already circling
Show threadBill WoodcockMar 12, 2023
@carnage4life

Well, you get $250k of it back, eventually. I believe SVB catered to depositors who had more than $250k in the bank.