I haven’t heard anything about high rates being the primary thing drawing people...

jurassic on March 12, 2023 | parent | context | favorite | on: Yellen says government will help SVB depositors bu...

I haven’t heard anything about high rates being the primary thing drawing people to SVB. The trap seems to have been giving startups access to credit that other banks would not provide, but only if you agree to do all your banking with SVB. That, and also several big VCs that required their portfolio companies to bank there. These things are what herded everyone into the building before it caught fire.

roflyear on March 12, 2023 [–]

I agree and have heard the same as you have, but SVB's website still does say a 4.5% yield. So the yields were quite attractive.