Posted on 03/12/2023 9:09:03 PM PDT by SeekAndFind
What are they going to do about all the other ones sitting on piles of sub 2.5% yielding mid to long term bonds as assets???
It is Silicon Valley. The Swamp is bailing out Democrats who donate to Swamp politicians and provide cover.
There *is* a method to their madness.
Joseph Zeballos-Roig
@josephzeballos
Former Rep. Barney Frank (D-MA) endorsed changes to his own Dodd-Frank law in 2018 that freed mid-sized banks from undergoing stress tests. He sits on Signature Bank’s board, which just collapsed.
I reached him via phone tonight and he declined to comment
washingtonpost.com
A lot of people heard what Barney Frank said about the new banking law. Few knew he works for a...
8:26 PM · Mar 12, 2023
... no taxpayer costs ...
And, the Mercedes is paid for.
On a Sunday evening. Someone is panicked that there will be a bloodbath this morning when the bell sounds, and is trying to help soften the blow.
“What are they going to do about all the other ones sitting on piles of sub 2.5% yielding mid to long term bonds as assets???”
What do they care? The Dems just took care of their Silicon Valley big tech woke donors.
So the money there to protect other banks also up to 250k is being used to give svb depositors their UNINSURED portions?
Can someone clarify if I interpreted that correctly?
...and other banks gets its money from where?
As long as the SVB borrowers are not defaulting, and as long as the SVB bond reserves are all investment grade, I do not understand where the panic is coming from.
The $21 billion bond portfolio that SVB sold for a $1.8 billion loss was only 8.5% under water, and only because of inflation and Federal Reserve rate increases.
What motivated thousands of SVB depositors to line up on the same day and withdraw all their money?
That is crazy. Exactly the same thing can happen at the next bank they put their money in.
You can read up on her career, a past (Clinton Appointed) Federal Reserve Chairman herself...
Janet Yellen - Wikipedia
https://en.wikipedia.org/wiki/Janet_Yellen
Supposed to be VERY SMART people running the Fed.
“Unintended Consequences” . . . :<<<
Time for a New Crash Movie....
Yeah, but can Janet make a good sandwich?
That is the same way I understand it.
They are trying to confine the entire bail out to the FDIC.
The FDIC, I believe, is 100% funded by member banks.
Therefore - no politically inconvenient deficit spending assigned to the Biden budget.
Bailouts are back !!!
Feds bail out tech bros
Federal authorities bailed out depositors in Silicon Valley Bank (NASDAQ:SIVB) and Signature Bank (NASDAQ:SBNY), aiming to head off a run on the country’s second-tier regional banks.
The Federal Reserve, Federal Deposit Insurance Corporation and the Treasury said they will make sure the two banks honor all of their deposits, the vast majority of which are above the $250,000 federally-insured threshold.
They also set up a new instrument, named the Bank Term Funding Plan (BTFP), which will allow banks to sell Treasury bonds and other high-quality liquid assets to the Fed at par if they need to raise liquidity. The program will be back-stopped by $25B of taxpayers’ money.
The move means that the banks’ clients, many of them venture capitalists and crypto platforms, will not have to carry the can for what appears to have been startlingly elementary risk management failures at the two banks.
It might have been an error for the California Bank regulators to put SVB into receivership. Apparently the bank was illiquid but not insolvent. ANY bank can become illiquid due to a run on the bank.
Biden wasted no time this morning blaming DJT for these bank failures.
It’s scary that SVB went belly up because it invested in Mortgage Backed Securities. The Fed has been one of the largest buyers of MBS over the past ten years.
In January they started thinking they might want to start selling them.
If they had to “mark to market” it would be a very bad thing.
So who will pay the price for losses at the banks?
Where did govt get the money to do anything?
You got it. It is always taxpayers at end of day
That fugly national debt is liability for future taxpayers.
Government does not produce anything to sell in the economy and make profits. Govt has only 2 sources for funds
1. Taxes
2. Borrow by printing
Welcome back, President Trump.
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