And just like that….SVB is bailed out

[g5000]

I wonder if this will make Fed Chairman Powell reconsider his 50 basis point hike on March 21.

 

[RhodyPatriot]

I wonder if this will make Fed Chairman Powell reconsider his 50 basis point hike on March 21.

As long as the Urkraine filthy lucre keeps flowin'; who gives a fuck?

 

[pknopp]

I wonder if this will make Fed Chairman Powell reconsider his 50 basis point hike on March 21.

Because a bank was making bad loans? He shouldn't do the right thing because a bank was irresponsible?

 

[g5000]

Because a bank was making bad loans? He shouldn't do the right thing because a bank was irresponsible?

Because the collapse of SVB was caused by rising interest rates.

 

[RhodyPatriot]

Because the collapse of SVB was caused by rising interest rates.

Caused by Joseph R. Biden.

 

[g5000]

Caused by Joseph R. Biden.

Nope. Caused by the Fed's ZIRP. QE4ever.

And the $8 trillion of debt by Obama and $4 trillion of debt by Trump.

 

[g5000]

Investment securities totaled $128.0 billion at December 31, 2021, an increase of $78.7 billion, or 159.5 percent, compared to $49.3 billion at December 31, 2020. Our investment securities portfolio is comprised of: (i) an AFS securities portfolio and a HTM securities portfolio, both of which represents interest-earning fixed income investment securities; and (ii) a non-marketable and other equity securities portfolio, which represents primarily investments managed as part of our funds management business, investments in qualified affordable housing projects, as well as public equity securities held as a result of equity warrant assets exercised. The major components of the change in investment securities are explained below.

Inline XBRL Viewer

www.sec.gov

See page 66.

 

[RhodyPatriot]

Nope. Caused by the Fed's ZIRP. QE4ever.

And the $8 trillion of debt by Obama and $4 trillion of debt by Trump.

If only we had a Ukrainian size hole to dump all that capital straight down.

Blue and yellow forever, bitch.

 

[g5000]

If only we had a Ukrainian size hole to dump all that capital straight down.

Blue and yellow forever, bitch.

You are doing a great job of exposing your total ignorance.

 

[RhodyPatriot]

You are doing a great job of exposing your total ignorance.

Better than exposing my total dick.

 

[Dadoalex]

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

Banks.
They pay into the FDIC

This was in the linked story.

 

[pknopp]

Because the collapse of SVB was caused by rising interest rates.

It's been known for a very long time rates were going up. If the bank acted like they were not, I have to wonder about the wisdom of everything.

 

[1srelluc]

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.

SVB collapse is a blight on US regulators

Damn!

 

[Rogue AI]

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.

If depositors have 'access' to all their money, it's being guaranteed by the feds. Nothing is free, and all the money the government has access to is ours. Even if other institutions aid in this endeavor, it won't be out of altruism.

 

[theHawk]

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

The deposit insurance fund is only $128 billion. So how are they going to cover the $200+ billion for this one bank? That money is meant for the insurance of all American’s bank accounts under $250k.

 

[themirrorthief]

The deposit insurance fund is only $128 billion. So how are they going to cover the $200+ billion for this one bank? That money is meant for the insurance of all American’s bank accounts under $250k.

maybe they can borrow money from Ukraine...I hear they are loaded now...thanks Joe you worthless old piece of shit

 

[theHawk]

 

[Biff_Poindexter]

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.

Biden needed Manchin and Sinema to vote in favor of re-instating those regulations.....which of course, they weren't going to do

 

[Biff_Poindexter]

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.

Haven't you heard?

Stress tests are woke

 

[multivita-man]

Stop peddling horseshit.

I'm not. I made my disclaimer clear.

I acknowledge there's a rational economic explanation for what happened, but this was also an event that was literally caused by ultra wealthy individuals who are blatantly political and who have an interest in shaping the economic/financial/labor/political regime to their liking. And with the kinds of money they possess, they have the power to do it. The plutocrats may not have the collective financial firepower of central banks, but they have the power to foil central bank, treasury, and labor policies they don't like.

So yeah, that's a conspiracy theory of mine -- that and nothing more. But you're naive if you think it's implausible that they would help tank the economy in the short term to get the long term results they want. They want the power to dominate labor and the lower classes, and they want a government that is sympathetic to that end.