93% of the account holdings were uninsured. Many startups burn more than the FDIC’s $250K limit in two weeks. That’s equivalent to having 50 employees making $125K each, and zero other expenses. I’m guessing anyone with more than 20-30 employees is staring down missed payrolls.
The FDIC insurance comes into play after all other options have been exhausted. Given the FDIC can draw on the treasury and SVB has assets significantly in excess of deposits there’s literally no chance anyone will lose anything other than the management of SVB.
