And just like that….SVB is bailed out

[Moonglow]

Reads to me like a bail out.

With no senior executives just bureaucrats.

 

[basquebromance]

 

[Moonglow]

But wealthy people know how to handle money better than poor peoples.

 

[basquebromance]

 

[basquebromance]

GOP presidential candidates react to Silicon Valley Bank collapse; Trump blames ‘out-of-control Democrats'

Former President Trump blamed the Biden administration’s "anti-America policies" for contributing to the shocking collapse of Silicon Valley Bank.

www.foxnews.com

 

[theHawk]

Huh? The bank did not have enough funds to pay off all depositors? Where does extra money come from?

It’s magic. They can just print it and it doesn’t cost anything. Actually they don’t even print it, it is just digitally created.

 

[Moonglow]

The bank CEOs should have gotten a second job to help the bank stay afloat.

 

[multivita-man]

It's a bailout for the depositors. The bank is toast.

If that's the deal, I'm okay with it, but not sure they should get 100% of their money back. Moral hazard is moral hazard.

I like how the corporate apologists like Larry Summers will say this is not a time to lecture about moral hazard. And yet if this is an individual, that's exactly the kind of shit he would saying.

The system is corrupt. And over time, it will fail.

 

[basquebromance]

SVB collapse: Gottheimer lays out demands on how government should deal with it - Washington Examiner

Rep. Josh Gottheimer (D-NJ) is laying out his demands for how the Silicon Valley Bank collapse should be dealt with as government authorities scramble to curtail financial contagion. Underscoring the economic dangers of the meltdown, Gottheimer wants the Federal Deposit Insurance Corporation...

www.washingtonexaminer.com

 

[Moonglow]

If that's the deal, I'm okay with it, but not sure they should get 100% of their money back. Moral hazard is moral hazard.

I like how the corporate apologists like Larry Summers will say this is not a time to lecture about moral hazard. And yet if this is an individual, that's exactly the kind of shit he would saying.

The system is corrupt. And over time, it will fail.

But the wealthy know how to run a business and give people jobs.

 

[CrusaderFrank]

Huh, didn’t Yellen just say that we aren’t going to bail them out? I guess that doesn’t include paying all the depositors their uninsured money.

Now, we the taxpayers, just covered all the non-FDIC insured deposts:

Silicon Valley Bank: Regulators offer plan to 'ensure U.S. banking system continues to perform its vital roles'

Treasury Department, Federal Reserve and FDIC said all Silicon Valley Bank clients will be protected and have access to their funds.

www.usatoday.com

Treasury Secretary Janet Yellen says U.S. government won't bail out Silicon Valley Bank

Treasury Secretary Janet Yellen says U.S. government will not bail out Silicon Valley Bank

www.cnbc.com

View attachment 765120

Wow

Just fucking wow

 

[Moonglow]

SVB collapse: Gottheimer lays out demands on how government should deal with it - Washington Examiner

Rep. Josh Gottheimer (D-NJ) is laying out his demands for how the Silicon Valley Bank collapse should be dealt with as government authorities scramble to curtail financial contagion. Underscoring the economic dangers of the meltdown, Gottheimer wants the Federal Deposit Insurance Corporation...

www.washingtonexaminer.com

Probably via confiscation and debt collections.

 

[pknopp]

Why "going forward"? Why not now?

I am a little peeved at the excuse of removing the regulations as the only reason. Make no mistake, the regulations should have never been removed. Make no mistake also, Biden could have worked to put them back but did not also.

There are still bank regulators that appear to have been sleeping on all of this.

 

[saveliberty]

Huh, didn’t Yellen just say that we aren’t going to bail them out? I guess that doesn’t include paying all the depositors their uninsured money.

Now, we the taxpayers, just covered all the non-FDIC insured deposts:

Silicon Valley Bank: Regulators offer plan to 'ensure U.S. banking system continues to perform its vital roles'

Treasury Department, Federal Reserve and FDIC said all Silicon Valley Bank clients will be protected and have access to their funds.

www.usatoday.com

Treasury Secretary Janet Yellen says U.S. government won't bail out Silicon Valley Bank

Treasury Secretary Janet Yellen says U.S. government will not bail out Silicon Valley Bank

www.cnbc.com

View attachment 765120

The deposit insurance fund pays, not the government (or through taxes). Then the banking industry bears the balance by a special assessment. Sounds like Yellin's statement is technically correct.

 

[basquebromance]

 

[basquebromance]

The Fed is extending loans against high quality assets to banks for nearly zero interest to prevent a run on the banks Monday all because SVB didn’t insure over 89% of their deposits and instead hedged on failing funds that offered “sustainable finance and carbon neutral operations to support a healthier planet.” In other words the fools running the bank were woke and almost became broke, but the Democrats and the Fed swooped in to make sure their woke donors at SVB didn’t go under. But how many other small banks will be swept up into this pending disaster. The serious threat here is that with full loans to banks on basically next to zero interest from the Fed will drive down the value of assets owned by banks that aren’t in trouble. And that will cause them to be in trouble. They are manufacturing a banking crisis. This should not be happening.

 

[basquebromance]

Wall Street â not taxpayers â will pay for the SVB and Signature deposit relief plans

The funds to reimburse depositors will be paid out of the Deposit Insurance Fund, which is made up of quarterly fees assessed on financial institutions.

www.cnbc.com

 

[easyt65]

Huh, didn’t Yellen just say that we aren’t going to bail them out? I guess that doesn’t include paying all the depositors their uninsured money.

Now, we the taxpayers, just covered all the non-FDIC insured deposts:

Silicon Valley Bank: Regulators offer plan to 'ensure U.S. banking system continues to perform its vital roles'

Treasury Department, Federal Reserve and FDIC said all Silicon Valley Bank clients will be protected and have access to their funds.

www.usatoday.com

Treasury Secretary Janet Yellen says U.S. government won't bail out Silicon Valley Bank

Treasury Secretary Janet Yellen says U.S. government will not bail out Silicon Valley Bank

www.cnbc.com

View attachment 765120

Ok, so everyone who had money in SVB gets their money...

Is anything going to be done to the criminal PsOS who mismanaged the bank, sold their bank shares in advance to protect their own asses, and doled out bonuses as they screwed everyone else who stood to lose everything?

 

[occupied]

If that's the deal, I'm okay with it, but not sure they should get 100% of their money back. Moral hazard is moral hazard.

I like how the corporate apologists like Larry Summers will say this is not a time to lecture about moral hazard. And yet if this is an individual, that's exactly the kind of shit he would saying.

The system is corrupt. And over time, it will fail.

It's definitely plutocracy in action but still the almighty "job creators" will panic and throw thousands of jobs in the trash if someone does not do something to protect their bottom line.

 

[Circe]

Under what authority can the feds guarantee insuring deposits beyond the legislated limits?

Under the authority that the second duty of the Fed is to preserve U.S. financial stability. So far, looking good. The press release says they are NOT bailing out these (so far two) banks: the uninsured banks will have depositors made whole by an "assessment on banks."

I am pleased. It could all go south but Canada and England are also trying to solve the problems with their branches of these banks.