Posted on 03/13/2023 5:57:15 AM PDT by Red Badger
Washington, DC -- The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg:
Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.
After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.
Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today's actions demonstrate our commitment to take the necessary steps to ensure that depositors' savings remain safe.
Last Update: March 12, 2023
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Heh. How, exactly, does the Federal government do this without taxpayer money?
Computer keyboard..................Printing presses are too slow..............
Clearly not going to be isolated incidents.
Dominoes.....................and I don’t mean PIZZA!.............
No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
ROFLOL.. Sure....it won’t get passed onto the American people. Yea, that’s the ticket, not passed on to hard working Americans....
Lies.
This is Lehman Bros on steroids......................
This people are delusional. We are so F'ed.
LOL -- you're right. Magic money.
Add that to the Demonicrat dung heap, e.g.
"We have to vote for it before we can know what's in it."
"If you like your doctor, you can keep your doctor."
Perhaps take over banks will assume the liabilities but be quietly compensated by the Fed after the public attention passes. Perhaps it will be done by a consortium of banks.
But money is not created out of thin air, either the stockholders of the takeover banks will be damaged or they will be compensated somehow. My bet is that the government will ultimately step in to avert this moral hazard.
81 Million votes....................
I love Jeremy Irons. He makes really great movies!...................
Two bailouts to flatten the curve.
SVB is one of the Biden money laundering banks.
Should have won an Oscar for that role.
I am watching faux news and listening to Charles Payne. He always explains in terms I undertand.
I hope everybody here now understands just how fragile the great ponzi scheme known as US Banking really is. One little chink in the Ponzi Scheme Armor and the entire system can and would collapse without massive Government intervention at TAXPAYERS expense.
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