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Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC
US Department of the Treasury / Federal Reserve Board / FDIC ^ | March 12, 2023

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.


TOPICS: Breaking News; Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: bankingsystem; bidenomics; fdic; fed; jointstatement; siliconvalleybank; svb; treasury
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This sounds like 100% of deposits will be paid in full and that the FDIC won't get reimbursed from any assets from SVB. Instead, the private insurance fund will take it on the chin for all insured deposits up to $250,000 and they will just have to charge all the rest of the banks, meaning us, to claw back the lost dollars.

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.

1 posted on 03/12/2023 4:17:39 PM PDT by ConservativeMind
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To: ConservativeMind

Somehow the statement “backed by the full faith and credit of the U.S. Treasury” rings hollow with this flock of jaybirds running things.


2 posted on 03/12/2023 4:20:23 PM PDT by donozark (Colonel Tom Parker was a Democrat.)
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To: ConservativeMind

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.


3 posted on 03/12/2023 4:21:54 PM PDT by devane617 (Discipline Is Reliable, Motivation Is Fleeting..)
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To: ConservativeMind

So are they going to protect their banks at our, the depositors expense?


4 posted on 03/12/2023 4:23:06 PM PDT by mountainlion (Live well those that did not make it back.)
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To: All

Lookner live covering
https://rumble.com/v2ctw5w-silicon-valley-bank-collapse-government-action-today-live-breaking-news-cov.html


5 posted on 03/12/2023 4:23:31 PM PDT by janetjanet998
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To: ConservativeMind

So the FDIC’s purpose is to protect VC’s and Crypto’s.

Or simply, donors.


6 posted on 03/12/2023 4:23:46 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money)
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To: ConservativeMind
...will be recovered by a special assessment on banks, as required by law...

Riiiiight....

7 posted on 03/12/2023 4:24:56 PM PDT by mewzilla (We will never restore the republic if we don't first secure the ballot box.)
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To: ConservativeMind

US stock index futures are up between 1 and 2 pct right now ...


8 posted on 03/12/2023 4:26:07 PM PDT by bankwalker (Repeal the 19th ...)
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To: mewzilla

“Riiiiight....”

Money magic. All deposits will be covered?


9 posted on 03/12/2023 4:27:30 PM PDT by Dennis M.
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To: ConservativeMind

“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?


10 posted on 03/12/2023 4:29:30 PM PDT by T. P. Pole
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To: ConservativeMind
For anyone else curious...

FDIC Law, Regulations, and Related Acts

Restrictions on Sale of Assets of a Failed Institution by the Federal Deposit Insurance Corporation

11 posted on 03/12/2023 4:29:31 PM PDT by mewzilla (We will never restore the republic if we don't first secure the ballot box.)
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To: Dennis M.

Looks like it.

The question is by whom.


12 posted on 03/12/2023 4:30:01 PM PDT by mewzilla (We will never restore the republic if we don't first secure the ballot box.)
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To: bankwalker
US stock index futures are up between 1 and 2 pct right now

I’ve been watching ES, up 1.25% in typical light Sunday evening trading.

13 posted on 03/12/2023 4:33:25 PM PDT by ConservativeInPA ("How did you go bankrupt?" Bill asked. "Two ways," Mike said. "Gradually and then suddenly." )
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To: T. P. Pole

Comp time. They will get two days off later in the year.


14 posted on 03/12/2023 4:33:39 PM PDT by Vermont Lt
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To: ConservativeMind

“ 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


15 posted on 03/12/2023 4:34:03 PM PDT by Lurker (Peaceful coexistence with the Left is not possible. Stop pretending that it is.)
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To: ConservativeMind
"Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law."

This law better not be referring to Patriot Act provisions, if so, they got away with it again.
16 posted on 03/12/2023 4:35:40 PM PDT by rollo tomasi
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To: T. P. Pole

You just have to believe.

17 posted on 03/12/2023 4:37:32 PM PDT by billorites (freepo ergo sum)
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To: ConservativeMind

It must have been looking REAL bad...


18 posted on 03/12/2023 4:41:07 PM PDT by kiryandil (China Joe and Paycheck Hunter - the Chink in America's defenses)
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To: ConservativeMind

They’re trying to hold back a collapse of the MBS market.

In other news the plan to stop the tide looks optimistic.


19 posted on 03/12/2023 4:42:14 PM PDT by MeganC (There is nothing feminine about feminism. )
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To: ConservativeMind

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.


20 posted on 03/12/2023 4:42:19 PM PDT by JustaTech (My mind is the weapon. Everything else is tools.)
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