Posted on 03/12/2023 8:18:29 AM PDT by E. Pluribus Unum
WILMINGTON, Del. (AP) — Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money.
The Federal Deposit Insurance Corporation insures deposits up to $250,000, but many of the companies and wealthy people who used the bank — known for its relationships with technology startups and venture capital — had more than that amount in their account. There are fears that some workers across the country won’t receive their paychecks.
Yellen, in an interview with CBS’ “Face the Nation,” provided few details on the government’s next steps. But she emphasized that the situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry.
“We’re not going to do that again,” she said. “But we are concerned about depositors, and we’re focused on trying to meet their needs.”
With Wall Street rattled, Yellen tried to reassure Americans that there will be no domino effect after the collapse of Silicon Valley Bank.
(Excerpt) Read more at breitbart.com ...
“Meet the needs of depositors” = “bailout for depositors with more than $250k in their account”
Cut Inflation now or the funds in the banks will become worthless anyway.
And you can take her assurance to the bank...Silicon Valley Bank.
“...fears that some workers across the country won’t receive their paychecks.”
Is Captain Obvious lurking about?
Raising rates to stop inflation is precisely what caused this bank run.
How large are Paul Pelosi’s deposits at SVB?
Parsing words... she will do what she is told and they will lie about what it is.
Which only means Biden is sending money to Newsome...and he’ll take care of the “reparations” for the bank.
She can travel to Kiev and wright a two billion dollar check to little Hitler, but no soup for Americans!
Keeping real bank rates below zer0 is not right.
It’s revolting to the common man.
Long lines here in LA yesterday at First Republic Bank in Brentwood and Studio City(those banks are open from 9am til noon) people taking their dough out so yeah tomorrow should be interesting. Im surprised she does not want to bail out SVB considering they are Dem donors who are affected
Absolutely right. Those zero rates were an outcome of the 2008 real estate collapse. Keeping rates at zero for over a decade was a disaster.
If it’s not one thing the government has fouled up, it’s another.
She is reassuring the Democrat billionaire donors that they will be made whole by the taxpayers. Those taxpayers are yet to be born.
I can't wait to see what Pension Funds, Mutual Funds and "Institutional Investors" had major holdings in the bank.
“Raising rates to stop inflation is precisely what caused this bank run.”
Precisely correct. And they had no choice.
Folks, bonds look like this:
Prevailing rates = Coupon amount / price of the bond
A bond paying $10/year on the coupon, in an environment of 1% prevailing rates, will cost you $1000. You buy the bond for $1000 and you get 1% on it, $10. That bond can be traded. You don’t have to hold to maturity.
Well sports fans, what happens is that price varies in trading in response to prevailing rates. They went up. When they went up, the price went down. Banks hold huge quantities of govt bonds in their portfolio and as rates have increased, those portfolios have crashed.
The “special vehicle” that will be provided to backstop . . . whoever . . . ask yourself where the money comes from for that special vehicle.
Yup, nothingness. The Fed will create it from thin air.
But ohhhhh nooooo this won’t be a bailout like in 2009. Noooo not that. (btw why is Yellen talking about what the Fed will do. She’s no longer at the Fed)
Exactly… that in itself is the longest continual bailout in the history of the world.
Fatal Distraction? Senior SVB Risk Manager Oversaw Woke LGBT Programs
While Silicon Valley Bank careened toward its spectacular collapse, the bank’s head of risk management for Europe, Africa and the Middle East devoted a chunk of her time to various LGBTQ+ programs.
Meanwhile, SVB went without a chief risk officer (CRO) from April 2022 to January 2023, the Daily Mail reports, as the bank apparently had little urgency to replace Laura Izurieta before finally tapping Kim Olson earlier this year.
On the other hand, a few months before that long CRO vacancy began, SVB boasted, “We have a Chief Diversity, Equity and Inclusion Officer, an executive-led DEI Steering Committee and Employee Resource Groups with executive sponsors focused on these objectives.”
As SVB’s CRO office stood vacant in Santa Clara, Jay Ersapah — a self-described “queer person of color from a working-class background” — was splitting her time between risk management and an assortment of woke programs, as she co-chaired SVB’s “European LGBTQIA+ Employee Resource Group.”
For example, at the same time she was responsible for managing risks associated with SVB’s European, African and Middle Eastern portfolios, Ersapah oversaw a month-long Pride campaign.
According to her bio on a professional networking site, Ersapah also “was instrumental in initiating the [SVB’s] first ever global ‘safe space catch-up,’ supporting employees in sharing their experiences of coming out” as something other than heterosexual.
Ersapah, whose job history on LinkedIn lists roles at Citi, Barclays and Deloitte, also devoted some of her SVB time to writing articles promoting “Lesbian Visibility Day” and “Trans Awareness Week,” the Daily Mail reports.
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