See Who Got Billions in Bailout Money from Uninsured Silicon Valley Bank Deposits
Posted on 06/23/2023
The controversial “bailout” of Silicon Valley Bank has created long-term moral hazards for the U.S. banking industry at the cost of saving uninsured depositors. The decision to guarantee all accounts above the US$ 250,000 federal deposit insurance limit also helped larger companies that were in no real danger of losing their funds.
For Silicon Valley Bank, many of these uninsured depositors were businesses. Bloomberg issued a FOIA to the Federal Deposit Insurance Corporation (FDIC). The FDIC sent an unredacted list of the largest depositors and accounts from Silicon Valley Bank. This was an apparent mistake by the regulator.
Circle Internet Financial, LLC began as a peer-to-peer payments technology company that now manages stablecoin USDC, a cryptocurrency the value of which is pegged to the U.S. dollar. The FDIC guarantee included over US$ 3.3 billion the USDC stablecoin issuer held at the lender.
Interestingly to note is that one of the major depositors is IntraFi Network, LLC. IntraFi’s services help bank depositors to access FDIC insurance above the $250,000 limit through a single bank relationship. IntraFi is not a bank itself; instead, it’s a program that’s designed to help savers maximize their FDIC coverage limits. This is done by permitting savers to establish certificate of deposit accounts through multiple banks through a single outlet.
Top 10 SVB Depositors
| SVB Depositor Owner Name | Type | Total Balance in USD |
|---|---|---|
| Circle Internet Financial, LLC | Cryptocurrency Company / Stablecoin | 3,340,061,357.25 |
| Silicon Valley Bank | Bank | 2,497,556,580.09 |
| SVB Financial Group | Financial Holding Company | 2,118,179,865.33 |
| Sequoia Capital Fund, L.P. | Venture Capital Firm | 1,011,479,029.59 |
| Kanzhun Limited | Beijing-based tech company running Boss Zhipin app | 902,875,700.25 |
| Bill.com LLC | Payments | 761,109,263.00 |
| Altos Labs, Inc. | Biotech | 680,346,027.62 |
| Marqeta Inc | Payments | 634,534,332.85 |
| Roku Inc. | Streaming Company | 420,004,504.53 |
| IntraFi Network, LLC / Promontory | IntraFi’s services help bank depositors to access FDIC insurance above the US$ 250,000 limit through a single bank relationship. | 410,856,940.57 |
Accounts: 1. SVB F Benefit of Nvoicepay, Inc. Clients 2. SVB F Benefit of People Center, Inc. clients DBA Rippling.
Source: Bloomberg FOIA, FDIC.
