US weighs new fund to backstop deposits if more banks fail, Bloomberg News says

Reuters ^ | 3/11/23 | jason reed

[C210N]

March 11 (Reuters) - The U.S. Federal Reserve and the Federal Deposit Insurance Corp are weighing the creation of a fund that would allow regulators to backstop more deposits at banks that run into trouble in the wake of Silicon Valley Bank's collapse...

[C210N]

I'm reading this as there not might be, but THERE WILL BE, more bank fails soon (next week?).

Of note, the FED has called an emergency closed meeting for Monday at 11:30:

Closed Board Meeting on March 13, 2023 Government in the Sunshine Meeting Notice

Advanced Notice of a Meeting under Expedited Procedures

It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 11:30 a.m. on Monday, March 13, 2023, will be held under expedited procedures, as set forth in section 261b.7 of the Board's Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th and C Streets, N.W., Washington, D.C. and by audio/video conference call. The following items of official Board business are tentatively scheduled to be considered at that meeting.

Meeting Date: Monday, March 13, 2023

Sure would shake things a bit more serious if one or more of the top 4 were to go.

[C210N]

This would be an excellent time for the FED, from the FED's evil perspective, to now put in place what has been talked about for months - a CBDC.

The stated reason for the FED's closed meeting on Monday is: "Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.".

If they limit their discussions to that, if they discuss it at all, would be quite a stretch...

[mware]

So if you have a credit card with a bank that goes under what happen to the debt.

[KC Burke]

The FDIC, their appointee to manage and the successor bank, makes damn sure you pay it.

[DEPcom]

“I’m reading this as there not might be, but THERE WILL BE, more bank fails soon (next week?).”

Not only bank fails but layoffs will start next week. I see a stock market crash soon too.

[DEPcom]

“So if you have a credit card with a bank that goes under what happen to the debt.”

Somebody will buy the debt, just like the mortgages.

[C210N]

I’ve heard this talked about for the last 2 years.

Mostly associated with a Jubilee!

[E. Pluribus Unum]

This is a planned implosion by the WEF NWO totalitarian globalists.

Everything is blowing up in their faces and they are in danger of prosecution.

They have to overturn the table somehow.

It’s no coincidence that Brandon announced a central bank digital currency on Wednesday and on Friday the second largest retail bank in the country collapses.

Notice it wasn’t JP Morgan Chase or Bank of America.

[C210N]

The FDIC will quickly be out of the equation.

The FDIC has capital of about $2 billion (as of about a year ago). If one of the “Top 4” goes, you can forgeddabout FDIC. We’ll be looking at a systemic failure the likes of which the FDIC is a grain of sand in the Sahara.

[PeterPrinciple]

The FDIC has capital of about $2 billion

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Where does FDIC park their capital?

[C210N]

Speaking of BOA, I noticed first hand today the near impossibility of seeing a BOA teller. Typcially, BOA’s all over have Saturday hours. Not today... all the banks near me are listed as closed today, and not to reopen till Monday.

ATMs are still open for biz....

[C210N]

Great question. I dunno.

If you find out, please share...

[HYPOCRACY]

At SVB.

[Freest Republican]

The good thing is we have 8-10 federal agencies, the fed reserve and state banking regulators overseeing all of two dozen or so consequential banks. /s

[MinorityRepublican]

I guess we’ll find out on Monday how exposed the banks are.

[SteveH]

https://www.investopedia.com/ask/answers/04/021204.asp#:~:text=Unrealized%20gains%20and%20losses%20(aka,realize%E2%80%9D%20the%20gain%2Floss.

[A]n unrealized loss [...] occurs when the price of a current investment declines below its purchase price. The loss remains unrealized until the investment is sold, at which point it becomes realized.

just judging by the graph, this looks like a very big problem with no easy (non-painful) answers.

i also note in passing that the trump years seem to have been relatively healthy for the big 4 banks.

[Angelino97]

Will this affect insurance companies?

[PeterPrinciple]

https://seekingalpha.com/article/136368-where-does-the-fdic-get-its-money

FDIC – The substitute increases the borrowing authority of the Federal Deposit Insurance Corporation (FDIC) from $30 billion to $100 billion, provides temporary authority to exceed the $100 billion threshold (up to $500 billion) for necessary circumstances, and makes permanent the increase in federal guarantee for bank accounts from $100,000 to $250,000 per account.

You can see that this is not a joke. FDIC can now ‘borrow’ (as if it is sitting in cash someplace, perhaps next to the Social Security surplus) up to $500 billion to shore up the system. Everyone understand that this money is not actually sitting in a bank account under the name FDIC? You just create more debt and hope the Chinese will keep buying it. I am not trying to be difficult here, but people need to understand what is in the sausage. We are clearly not done yet with the bogus stress tests or with continued bank weakness. The government is doing the best they can: just try to convince the public we will be fine. What other option would you propose? Most of us don’t even understand the problems let alone how to solve it.

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Well we should feel better, they don’t actually have the money but they can borrow it if needed......................

[mware]

Sounds like a real mess to me. I’m wondering about direct deposits, and the car I just began to lease three weeks ago.

[mware]

Brandon better stop sending money to Ukraine. Looks like we may be needing it here.