Roku held nearly $500 million at Silicon Valley Bank and does not know if it will recover the funds

[highplainsdem]

https://amp.cnn.com/cnn/2023/03/10/business/roku-svb-cash/index.html

Roku held approximately $487 million of its $1.9 billion in cash at Silicon Valley Bank, which collapsed Friday and was taken over by the Federal Deposit Insurance Corporation, the streaming technology company disclosed in an SEC filing.

That's approximately 26% of the company's cash and cash equivalents, Roku (ROKU) said, adding that most of its deposits with the bank are uninsured.

"The company's deposits with SVB are largely uninsured," Roku said. "At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB."

However, Roku said it has enough existing cash and cash flow from operations to "meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond."

-snip-

[usonian]

1. Rep. Swalwell (D-CA) wants to find a way to restore holdings over the $250K FDIC guarantee.

snap of his twitter

MANY startups used the bank.
I think it's called a bailout.

[Fiendish Thingy]

9. No bailouts!

Reimburse up to the FDIC max, and let them sue for the rest.

They were supposed to have something like $175 million cash on hand, and couldn’t raise $1.5 million in capital before going belly up.

Somebody needs to go to jail, and the taxpayers shouldn’t bailout the big dollar depositors.

[Bettie]

11. NO. These are the supposed financial geniuses that

run our entire system. They just lost all their fucking money, maybe they can take the loss and learn from it. For once, maybe some rich guys can face the consequences of their actions.

[harumph]

16. Right...innocent employees, etc... depending on paychecks, who have over 250K

in deposit - in - a - single - bank. This is the kind of language that
republicans traffic in & it's unseemly coming from a democrat.

[usonian]

17. Devil's advocate. It's the startups who can't make payroll to pay the employees.

I bet that most employees have a small fraction of that, what with Silicon Valley rents and home prices.

Goes right back to the banks!

[roamer65]

2. Here we go again.

Socialism for the wealthy.


https://en.wikipedia.org/wiki/Reconstruction_Finance_Corporation

https://en.wikipedia.org/wiki/Resolution_Trust_Corporation

https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program

[Roland99]

3. Seems very incompetent of roku

[TheBlackAdder]

7. Looks like the streaming device maker allowed itself to get played.

[GP6971]

6. Welcome to DU. n/t

[Cha]

5. Wow.. that makes my head Swim!

what in the world?! They had no Clues? Millions of $$$$$ up in Smoke??

[sarcasmo]

8. The old saying, don't keep all your eggs in one basket.

[onenote]

10. 26 percent is hardly "all of your eggs"

To limit their deposits to the $250,000 insured level, they would have to spread $1.9 billion over 7600 banks.

[gratuitous]

12. But since depositors didn't do that

The rest of us are supposed to bail them out? Meanwhile these overrich motherfuckers badmouth the poorest and most vulnerable from the multi-million dollar mansions as they live on the street? I'll go on record as saying, "Fuck that shit."

[ecstatic]

13. Interesting. I always thought that people would only hold up to 250k

In each account. Looks like my Roku stock has probably plummeted to nothing. Afraid to look. Haven't looked in months. Lol

[BlueWaveNeverEnd]

14. yikes!

[mainer]

15. So if you're a business with millions in assets

Where should you park those assets? You need those assets to make payroll. Where does Apple keep its money? Since Roku kept 75% of its funds elsewhere, it doesn’t seem like they were reckless, but it does make me wonder how businesses keep their assets safe.