Could the treasury, on it’s own....offer a dollar-for-a-dollar rate? Or would this require House/Senate consent?
I would agree...some deal like that, and a quick sale of the bank...might lessen total market disturbances. Biden though...isn’t the guy to really clear up the mess and give confidence.
A lot of this is attached to SVB strategy for stock-holders. I’m wondering what other banks went down this bond path and bought the same investment strategy. Are there more like them?
See my post above but that was kind of my point and/or question.
Is this about the “stock value” or the actual value of assets?
Did they sell deposits at a loss to try and shore up stock value? If so, that is not my problem or yours and people should have paid more attention. I am having a hard time figuring out how this bank was the first to pop given that they had so much cash flow in and out in comparison to smaller banks. It sounds like the people running it were woke morons.
While I am not usually a fan of “new laws or regulations” I would not mind seeing a law or regulation that EVERY SINGLE EXECUTIVE in a financial institution that goes broke requiring government intervention should have to return every single penny of any bonus that they accrued to depositors.
Perhaps that would create a reverse incentive for sound behavior versus poor decisions and bad promises so that you can get big bonuses.
This happened on a much bigger scale in the 2008 housing bubble crash with Freddie and Fannie where the Clintonistas running the scams walked away with over 100 million in bonuses based on lying about the health of their mortgage portfolio and not only were they not prosecuted - they kept the bonus money even as taxpayers foot the bill for that insanity (for the “too big to fail people”)