Well there goes the pension fund...
The FDIC is going to be more undercapitalized going forward.
The FDIC premiums should be set to fund a systemic 10% asset shortage once every fifty years (or about .2% of deposits annually).
Yes it WILL cost the taxpayers. It always does.
What lies they tell with total audacity.
All this money comes from Americans, to bail out the woke connected scum who fund our politicians.
Sure, if Yellen says so.
What kind of connections do these depositors have?
Are they Chinese?
It seems that BoA and JP Morgan have to transfer AFS assets and probably cash to secure SVB. The question is how weak does that make BoA and JP Morgan? I’m not a customer of either, but if I were, I would be looking for a new bank tomorrow morning. I’m not waiting for the answer.
So they’re using the money that grows on trees.
How does the FDIC just ignore it’s $250,000 limit? Isn’t that set by law?
The FED & Yellen said no taxpayer money would be used...yet the FED would make funds availble to banks to make sure they can meet depositor requests.(bank runs)
Where does the FED get the dough ?
Yea.
My State Street fund will drop quite a bit.
The FDIC probably added up the numbers and realized that the gap between the sellable assets and the deposits was very small. The other creditors may be out of luck.
“Financial institutions — not taxpayers — to foot the bill, Treasury officials said.”
OHHHHH I get it! So the Banks will pay for it! And they will never pass those losses to their customers in dozens of ways.... right? Customers also known as “”taxpayers”.
So let me understand this, accounts that the bank has not been paying premiums on for the FDIC insurance are now going to be covered by the insurance? That is one way to drive the program into the ground.
LOL! The banks pass the cost on to the consumer. The consumers all pay.
Also, the bond holders and stock investors just got wiped out. I suspect the bank was withholding pertinent information from investors. 90% of their deposits were not FDIC insured. In addition, with all the financial gurus recommending this stock over the past few weeks, I suspect a classic pump and dump was in the works as they were trying to pump the stock price up before the corporate board sold stock and bailed. Bonuses were provided to employees last week (up to $150,000), and they should be clawed back.
Heads should role. The SVB Board failed in their fiduciary duty to investors. However, they will get away with it.
The fact that the Chief Administrative officer, Joseph Gentile, was previously the Chief Financial Officer at Lehman Global Investment should have been a clue.
Bank Corporate Boards know now that they aren’t at any risk. Bail-outs are the “new norm”.
What entity is buying the loans and investments? That must still not be know .
That money must go to the FDIC insurance fund, because the FDIC never had money set aside for anything beyond $250,000 per account.
The FDIC is getting screwed, here, to help uninsured depositors.
This is wrong. The government sees private monies and it takes them, whenever it can.