What makes you say that SVB will continue operations?
SVB will cease to exist: it's being liquidated.
What makes you say that SVB will continue operations?
SVB will cease to exist: it's being liquidated.
This isn't like when Best Buy went bankrupt, the banking operations will continue, the branches will still run. It will take a long time to absorb SVB's operations into a larger entity, the larger entity may choose to run them as a subsidiary. You are making assumptions about the operations and staff based on no information, if SVB is going to be open for services on Monday as the regulator has promised everybody will have to show up for work.
What do you think that the regulator has promised exactly?
The only promise I see is that people will be able to access all their money at the Deposit Insurance National Bank of Santa Clara (DINB).
They are running it under a new name. I understand how this can be confusing but they have to keep everything in place so that the systems will all still work and people can get their money, payroll systems, internal systems and processes all still work. And when a buyer for their operations is found it will keep on running and slowly be incorporated into the acquiring entity because it will in effect be a very large bank merger that will take time and effort.
Depositors might choose to run, but any business that runs their payroll though SVB is going to ask their CFO what to do and that guy is going to say, "We're full guaranteed, how much money to you want to spend to accomplish nothing?"