Posted on 03/12/2023 4:17:39 PM PDT by ConservativeMind
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.
Meanwhile, the depositors with money above $250,000 will be recovered via sale of the loans and investments and dissolution of all ownership of the bank via stock and bonds.
The same will be true of Signature Bank.
This will seemingly stop any further runs on banks and save the FDIC the hassle of closing the previously expected next three to seven banks.
In my humble informed opinion, that is.
Somehow the statement “backed by the full faith and credit of the U.S. Treasury” rings hollow with this flock of jaybirds running things.
I said it on another thread today...GET READY! Be prepared for an economic collapse that is about to happen and happen very fast. Instead of running to the bank I will be running to the local food source.
So are they going to protect their banks at our, the depositors expense?
Lookner live covering
https://rumble.com/v2ctw5w-silicon-valley-bank-collapse-government-action-today-live-breaking-news-cov.html
So the FDIC’s purpose is to protect VC’s and Crypto’s.
Or simply, donors.
Riiiiight....
US stock index futures are up between 1 and 2 pct right now ...
“Riiiiight....”
Money magic. All deposits will be covered?
“No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
Explain that to me. You already have folks being paid by the taxpayer working overtime on a Sunday on this. Are they working for free?
FDIC Law, Regulations, and Related Acts
Restrictions on Sale of Assets of a Failed Institution by the Federal Deposit Insurance Corporation
Looks like it.
The question is by whom.
I’ve been watching ES, up 1.25% in typical light Sunday evening trading.
Comp time. They will get two days off later in the year.
“ 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…”
Let’s see if they can pull this off.
L
It must have been looking REAL bad...
They’re trying to hold back a collapse of the MBS market.
In other news the plan to stop the tide looks optimistic.
The magic FED printer fixes all by debasing its dollar.
This better sets the stage for the proximate rise of the BRICS currency to reserve status.
The dollar won’t simply linger about until it finally collapses of its own inflated excess.
It will be trampled.
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