And just like that….SVB is bailed out

[multivita-man]

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.

I have two brains: conventional brain and conspiracy theory brain.

My conspiracy theory brain believes some people trashed SVB intentionally to cause a recession event. Certain people want Joe Biden to get blamed for a bad economy and want either Trump or DeSantis in office.

 

[Circe]

I’m not sure. It saves the hides of investors. But I don’t think it allows the bank to continue. But, I guess we shall find out.

SVB is already dead. I don't know about Signature.

 

[Burgermeister]

Who gives a fuck about what that slug thinks about anything.

 

[basquebromance]

Stablecoin issuer Circle to transfer $3.3 billion in cash held at Silicon Valley Bank to BNY Mellon

Circle, creator of the world’s second-largest stablecoin USDC, will transfer its $3.3 billion in cash held at collapsed Silicon Valley Bank to BNY Mellon on...

www.marketwatch.com

 

[Circe]

So the rules of FDIC insurance mean absolutely nothing? The Fed can just make it up as they go?

You've got it. The catch is, they BETTER be right about what they make up. The huge money giveaway during Covid was inflationary and a big mistake that certainly caused these bank failures now, because of the pressure the Fed put on their holdings when they had to stop runaway inflation caused by the big giveaways.

I hope they do better this week.

 

[basquebromance]

"Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13."

 

[occupied]

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?

That's a mighty progressive attitude you have towards greedy bankers. Too bad the people you vote for have made it very difficult to punish destructive financial chicanery with their reckless attacks on regulation. When the rules go away the bankers will play.

 

[occupied]

I have two brains: conventional brain and conspiracy theory brain.

My conspiracy theory brain believes some people trashed SVB intentionally to cause a recession event. Certain people want Joe Biden to get blamed for a bad economy and want either Trump or DeSantis in office.

It seems some large depositors pulled out their money and sparked a run on the bank. Why this happened is yet to be determined.

 

[g5000]

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

You need to read the announcement again. Your reading comprehension has failed you.

'The taxpayers are NOT paying for the wind down of SVB.

And this isn't a bailout. SVB is shuttered. It is no more. Kaput. Gone.

 

[g5000]

Reads to me like a bail out.

Nope. SVB is out of business. Gone. Kaput.

You people really need to pull your heads out of your asses.

 

[g5000]

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

That is not what the FDIC is doing. They are covering all depositor losses up to $250,000.

After selling off SVB's assets, anything that is left over will be used to cover whatever liabilities the FDIC feels should go to the depositors.

The taxpayer is not going to bear any costs.

 

[g5000]

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

The FDIC. That's why banks pay for that insurance.

 

[easyt65]

That's a mighty progressive attitude you have towards greedy bankers.

'Progressive attitude'?

I posted several links where experts specifically spelled out how the 'woke bank' mismanged assets and helped cause the collapse, as well as interest rates being raised 7 times by tbe Fed, greatly contributing to the collapse.


SVB Execs selling their shares and giving out bonuses just before the bank tanked is reported fact.

 

[g5000]

Shareholders and unsecured debt holders won't be covered.

I think SVB had enough in bonds salted away which will be taken to cover the rest. That's why there won't be a cost to the taxpayer.

Those bonds are all underwater.

I've been looking at SVB's financials, and from 2019 to 2022 the idiots greatly ramped up their bond buying. They went on a huge spree.

Since interest rates have skyrocketed since then, those bonds are almost worthless now. They will have to be sold at a big loss.

I can guarantee you that every investor on the planet who bought sovereign and corporate debt during the Fed's ZIRP bullshit is shaking in their boots right now.

Anyone who is not well capitalized is going to be in trouble, just like SVB.

That's why bank stocks have taken a big dive this past week.

 

[g5000]

I have two brains: conventional brain and conspiracy theory brain.

My conspiracy theory brain believes some people trashed SVB intentionally to cause a recession event. Certain people want Joe Biden to get blamed for a bad economy and want either Trump or DeSantis in office.

Stop peddling horseshit.

 

[g5000]

Too big to fail isn't just talk. We're really in a pickle with these banks.

I've been saying for a long time that when the next collapse hits, the banks are not longer Too Big To Fail.

They are Too Big To Save.

 

[basquebromance]

FDIC: "no losses for Silicon Valley Bank will be borne by the taxpayer."

it will be a silent tax called inflation!

 

[JGalt]

Does anybody realize that the entire US banking system now belongs to the federal government? And that they're going to print enough money to refinance every bad investment made by every bank, and more than cover non insured deposits?

Hyper-Inflation anyone?

 

[basquebromance]

 

[g5000]

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.

SVB's failure has nothing to do with wokeness.

It has to do with massive investments in sovereign and corporate bonds that are now all underwater.

A stress test should have revealed this.