[HN Gopher] How the last-ditch effort to save Silicon Valley Ban...
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How the last-ditch effort to save Silicon Valley Bank failed
Author : marban
Score : 31 points
Date : 2023-03-22 11:36 UTC (11 hours ago)
(HTM) web link (www.wsj.com)
(TXT) w3m dump (www.wsj.com)
| krmbzds wrote:
| https://archive.is/Pn6Ky
| dang wrote:
| Related:
|
| _Matt Levine: Silicon Valley Bank Ran Out of Money_ -
| https://news.ycombinator.com/item?id=35265027
| hackly wrote:
| My bank (in Canada) has limits on how much I can withdraw per
| day, per week, per month. Furthermore, there could be a delay of
| up to 5 business days before I can get the money to its
| destination. And that's for money in the thousands only. How is
| that money in the billions can be withdrawn so quickly esp. since
| these were high value accounts each in the millions/billions?
| Couldn't they just use one of their terms or conditions to delay
| the withdrawals and give themselves ample time to react?
| loopdoend wrote:
| This does not reflect the reality of business bank accounts in
| Canada.
|
| When you have treasury access you can wire as much money as you
| want practically instantly just like with SVB. I bank with one
| of the big 5.
|
| Nothing is stopping you from going into your bank and wiring
| money away it's just cash that they don't want to give out
| without multi-day delays.
| computerex wrote:
| I don't think it would have meaningfully helped. Once the word
| was out that the bank was in distress it was game over. Company
| I work for also pulled out.
| bitdivision wrote:
| I doubt those limits would apply to business accounts, which
| I'd guess were the majority of the withdrawals here.
|
| Are you sure the limits on your account would apply to e.g. a
| wire transaction? Of course there are limits on ATM withdrawals
| and some other transfer methods, but I'm not sure they'd apply
| if you wanted to send a wire.
| ars wrote:
| That's very odd. I don't know if it's your bank, or something
| specific to Canada.
|
| In the US the only limits are via the ATM or Debit card. If you
| write a check, go in person, or send a wire, you can withdraw
| as much as you want, with no time delay or restriction.
|
| > Couldn't they just use one of their terms or conditions to
| delay the withdrawals and give themselves ample time to react?
|
| That's simply not a thing.
| ozi wrote:
| No business is going to park their working capital with a bank
| that has those requirements.
| tacostakohashi wrote:
| Does it, in fact, not permit you to get to the entire balance
| immediately via, say, cash or a bank check?
|
| It sounds like you are referring to something like an ATM
| withdrawal limit or online transfer limit which is just a risk
| / fraud limiting measure for those particular channels rather
| than a limitation on the account itself.
| yardie wrote:
| Is that for a debit card? I understand the liability in
| draining a checking account with nothing more than a 4-digit
| PIN. On the other hand, I would never bank at a place that made
| withdrawal restrictions a condition to access my money.
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