“No taxpayer cost”, except they’re fully funding deposits beyond the $250,000 cap.
I guess that’s FDIC money, not taxpayer money.🤡🌎
It’s all “Funny Money” anyway...
Investor Kevin O’Leary breaks down the Silicon Valley Bank collapse
https://www.foxnews.com/video/6322321979112
SVB execs sell stock ahead of collapse as part of a pre-planned program
https://www.youtube.com/watch?v=9pQqZG8sJAc
From CNBC reporting:
Sun. 11am:
Former FDIC Chair Sheila Bair said Sunday that finding a buyer for SVB is “the best outcome.”
Bair said the FDIC could help companies with payroll in the case that there’s a systemic risk exception, which would be “an extraordinary procedure.” -——She said she thinks it is going to be “hard to say that this is systemic in any way.”-——
Sun. 6pm:
-——The Treasury Department designated both SVB and Signature as systemic risks,-—— giving it authority to unwind both institutions in a way that it said “fully protects all depositors.” The FDIC’s deposit insurance fund will be used to cover depositors, many of whom were uninsured due to the $250,000 cap on guaranteed deposits.
Along with that move, the Federal Reserve also said it is creating a new Bank Term Funding Program aimed at safeguarding institutions affected by the market instability of the SVB failure.
A joint statement from the various regulators involved said there would be no bailouts and no taxpayer costs associated with any of the new plans. Shareholders and some unsecured creditors will not be protected and will lose all of their investments.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” said a joint statement from Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen and FDIC Chair Martin Gruenberg.