And just like that….SVB is bailed out

[theHawk]

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

 

[pknopp]

Reads to me like a bail out.

 

[occupied]

Reads to me like a bail out.

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

 

[Rogue AI]

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

 

[pknopp]

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

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

 

[Anomalism]

The Fed can just make it up as they go?

Who can stop them? Lol

 

[Dadoalex]

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

I guess it depends on your definition of "bailout"
Management is gone
Investors lose it all
Unsecured creditors may lose all

But the depositors money is safe and it won't cost $1 to the US taxpayer.

 

[leftwinger]

Could be GOVT looked at the list of the biggest losers and saw many are woke big time donors to DEM?

 

[Manonthestreet]

Second Bank Fails In Spreading Crisis; Feds Say Depositors At Both Will Be “Made Whole”

 

[leftwinger]

I guess it depends on your definition of "bailout"
Management is gone
Investors lose it all
Unsecured creditors may lose all

But the depositors money is safe and it won't cost $1 to the US taxpayer.

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

 

[1srelluc]

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.

 

[pknopp]

Who can stop them? Lol

It's why I support when things burn.

 

[Anomalism]

It's why I support when things burn.

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

 

[BackAgain]

Reads to me like a bail out.

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.

 

[TroglocratsRdumb]

Maybe this was the problem
jan 22

Silicon Valley Bank Announces $5 Billion Sustainable Finance Commitment - ESG Today

Innovative company-focused financial services firm Silicon Valley Bank (SVB) announced today a new sustainable finance commitment, pledging to provide at least $5 billion in loans, investments and other financing to support sustainability efforts by 2027. According to SVB, its sustainable...

www.esgtoday.com

SVB ESG
Innovative company-focused financial services firm Silicon Valley Bank (SVB) announced today a new sustainable finance commitment, pledging to provide at least $5 billion in loans, investments and other financing to support sustainability efforts by 2027. According to SVB, its sustainable finance initiative aims to support companies that are working to decarbonize the energy and infrastructure industries and hasten the transition to a sustainable, net zero emissions economy in several related sectors.
SVB also announced a target to achieve carbon neutral operations by 2025.

 

[basquebromance]

It's problematic that the Fed doesn't have an explicit theory of how raising interest rates slows demands to fight inflation. By causing some banks to fail in a way that costs people their jobs? Apparently not like that! Exclusively through construction layoffs? Why?

 

[basquebromance]

Regulators close crypto-focused Signature Bank, citing systemic risk

U.S. regulators on Sunday shut down New York-based Signature Bank in a bid to prevent the spreading banking crisis.

www.cnbc.com

 

[pknopp]

It's problematic that the Fed doesn't have an explicit theory of how raising interest rates slows demands to fight inflation. By causing some banks to fail in a way that costs people their jobs? Apparently not like that! Exclusively through construction layoffs? Why?

Endless FREE money. That's the ticket!!

 

[basquebromance]

Jim Cramer is hosting CNBC special tonight, entitled "America’s Banking Crisis."

Now I'm really worried

 

[occupied]

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

Apparently they have wide discretion when it comes to bank failures.