Posted on 03/14/2023 4:00:47 AM PDT by EBH
Many people have described the emergency measures as a bailout and say that they mark a major shift in how the federal government deals with banking crises. Until now, only deposits up to $250,000 were insured under federal law. But the Sunday decision by regulators will protect all deposits made at SVB and crypto-heavy Signature Bank, which regulators wound down on Sunday, to avoid “system risk.”
“We’ve changed the system,” economist Mohamed El-Erian, president of Queens’ College at the University of Cambridge, told CNBC’s Squawk Box on Monday. He also echoed Roger Altman, founder of investment bank advisory firm Evercore, that “we are now in a different world.”
(Excerpt) Read more at msn.com ...
It proves that the discretionary “systemic importance” tag will be applied whenever the FDIC chooses to.
More picking winners and losers.
The failure of SVB was not existential threat to the financial system. Its failure would have delayed access to deposits with some manageable loss to 10-20% to deposits. It would have been a learning experience for all. Instead the government pulls 1%-ers out of the fire.
It probably would have gone somewhat differently if it was a Ag Bank in Ohio or Idaho.
True
-PJ
Our banking system has now been federalized.
Did anyone, here, get a say in this?
Beuller?
Thanks for the info, although not much comfort - those bureaucrats sure have a lot of leeway to double or more the size and expense of a program. Just like that they can tack on $100 billion. Sickening
Best advice I’ve heard is to invest in 1 month Treasuries for security if you’re over the limit.
“This won’t be a burden on taxpayers exactly, but on everyone who uses the dollar.”
And now every single big company knows they can take huge risks and simply get a bail out no matter how much they lose.
- - - - - - -
Banks now know they can take more risks because they will be bailed out. So, expect banks to take more risks, more failures, and more bailouts. They’re accelerating the end of the dollar.
What does Nouriel Roubini think? (Gotta get all the usual suspects chimed in)🙄
I am going to start a bank that will leverage my cash 10 million to one only lending to “green” companies, electric air taxis, windmills, carbon neutral solar panels, and only those that hire unqualified trannies, queers, and fat black lesbians to run the HR department.
Sign right up and gimme dat money!
It definitely is.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.