after her transition:
before her transition:
Posted on 03/13/2023 5:16:57 AM PDT by EBH
A second bank was shut down by the US government on Sunday. This time it was Signature Bank.
What does this financial institution have in common with Silicon Valley Bank? They both had huge amounts of customer deposits that were not insured by the FDIC.
The FDIC insures US bank deposits up to $250,000 per account to prevent bank runs and failures. The demise of SVB, and now the collapse of Signature Bank, have stretched this system to a breaking point.
On Sunday, the US Treasury, Federal Reserve, and FDIC said in a joint statement that all depositors of SVB will be made whole on Monday. The authorities are completely ignoring the $250,000 insurance limit. SVB had $173 billion in total deposits and roughly 88% of that was not covered.
That's more than $150 billion in extra deposits that the FDIC has suddenly decided to insure.
The authorities are giving the same special exemption to Signature Bank, so all depositors will be made whole there too. Signature had $89 billion in total deposits, and 90% of those were not insured by the FDIC. That's another $79 billion that this agency is taking on its shoulders.
"By insuring all deposits at SVB and Signature, regulators judged the risk of cascading effects to other regional banks and the broader economy to be more significant than the moral hazard of increasing FDIC limits," said Rich Falk-Wallace, CEO of data analytics firm Arcana and a former portfolio manager at hedge fund Citadel.
(Excerpt) Read more at msn.com ...
If the banks are failing, you wanted to be in the first few that do. You will be covered. But, a few more banks over the next month? You won't be so lucky as to get a thin dime. Notice this move is only a bandaid, it fixes nothing in the system!
It is time to have a little mattress money to cover 3-6 months of core expenses for your family. If you are considering starting to stock up on food you are a little late, but every little bit you can put back is a day salvaged. Take care of food and the mattress first. Then deal with the other 'stuff' if it is in your budget.
WHAT could possibly go wrong?
BidenDepression 2023.
Followed by World War III.
Well, prepare for hard times and be in better shape if it’s not as bad as I predict, LOL.
after her transition:
before her transition:
Summary: Two banks failed, there really is not enough FDIC funds to cover it, but don’t worry. All depositors will be covered. (By whom, no one knows.) Nothing to see here, move along, move along.
Pay no attention to the government printing press noises drowning out all sounds of sanity.
Lookner about to go live again
LIVE COVERAGE: Bank Stocks Price Crash
https://rumble.com/v2cxb72-bank-stocks-price-crash-live-breaking-news-coverage-first-republic-bank-wes.html
Given the recent Iran/Saudi rapprochement, I wouldn’t stay in dollars.
The Euro is in every way doomed to collapse first, and this will buy time I guess. It’s still not too late to prep and to move out of fiat currencies.
They were never stress tested?
Definitely doesn’t sound like good times ahead. We are old and live frugal. Spend less then we take in. Making an Aldi’s run for extra canned goods today.
Everyone keep track of Yellen’s address.
That incompetent ***** deserves what she hopefully will get.
I watch with eager anticipation with popcorn in hand.
“They were never stress tested?”
Do you even know what that means? Didn’t think so.
I don’t think these banks are “failing” as the term is commonly used. SVB had more than enough assets to cover every penny of its deposits. It just could not function as a bank anymore if it had to liquidate its assets to meet the demands of all the depositors looking to close out their accounts at one time.
With the FED bailing out the entire baking system by giving Unlimited Insurance to Banks, they have effectively become government institutions that will be subject to the First Amendment. I think that is going to be the next challenge for challenging ESG in all this political shenanigans that have been going on with people’s bank accounts.
Your money will be made available immediately...at 50 cents on the dollar...
“SVB had more than enough assets to cover every penny of its deposits.”
Sorta.
It would be like saying somebody could pay all their bills if they sold their house and became homeless.
Me too. Adding a few case stacks of my favorites this morning.
Then a side trip to Wally’s to look at Keystone.
After that, another withdraw from the bank ATM.
Then it is time to sit tight, go to work, and wait.
Who knows how long the transition period will be? I hear the CBDC will be coming online in July? In order for it to work they need to get rid of a lot of the smaller banks.
Clock is a ticking.
Hah, they probably were ‘stress-tested’.
As you know, stress-tests are for public consumption only and do not - MUST NOT - in fact actually probe the major vulnerabilities of the banking system
Which vulnerabilities I shall attempt to summarise as “Too much debt to asset ratio AND the bulk of the bank’s assets can’t be marked to market because the assets have in fact almost no value, and no-one must know this”.
Better-informed FReepers may have a more succinct/correct precis of the situation.
Yes, I believe you are correct
Which is exactly what they need to happen.
We will no longer be a republic or even a democracy by the end of the year.
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