Posted on 03/12/2023 4:34:10 PM PDT by Angelino97
The Federal Reserve on Sunday night announced that all those with money in collapsed Silicon Valley Bank will get their money back, as a second bank was revealed to have closed.
The Federal Deposit Insurance Cooperation on Sunday held an auction of Silicon Valley Bank's assets, hoping to secure the bank before the market opened on Monday. CNN reported that no buyer was found.
Shortly after, the Federal Reserve issued a statement saying they would step in.
'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, in a manner that fully protects all depositors,' the statement said.
'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.'
The statement - which was jointly issued by Janet Yellen, the Treasury Secretary; Jerome Powell, chair of the Federal Reserve; and Martin Gruenberg, chair of the FDIC - revealed for the first time that Signature Bank was also teetering.
Signature Bank had 38 private client offices throughout New York, Connecticut, California, and North Carolina.
It was founded in 2001 for wealthy clients, with more than $250,000 in assets.
'We are going after the guy who started his business in Brooklyn and is now worth $20 million,' said founder and chief executive Joseph DePaolo in an interview with Crain's New York Business.
'We are also announcing a similar systemic risk exception for Signature Bank, 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.'
(Excerpt) Read more at dailymail.co.uk ...
How is that possible?
The invention of the printing press largely boosted Western Civilization some centuries ago....
It’s not.
And gm paid us all back too
smoke and mirrors...
People lie.
*sigh* the rich always get bailed out, it sickens me.
Too big to fail is BS
anyone stupid enough to have more than the insured $250,000 in that bank deserves to lose it, and since I know there is like a nearly 99% chance they are all liberal techies, I have zero sympathy for them.
They write it, they say it, the media repeats it, it IS.
Obama’s staash?
Gotta keep their donors happy. I hate these crooks and the ill informed scum who support them.
“How is that possible?”
Easy, there are 2 protection levels for banks:
1: $1.00 to $250,000 - FDIC Basic Insurance
2: $250,001 plus - DNC Insurance at taxpayer expense (if DNC donations are sufficient).
It became clear today that SVB qualified for both.
Such a creative NON bailout.
The Fed can create money with the click of a mouse. Perhaps that’s the Sugar Daddy protecting the taxpayer.
The scenario I envisioned involves the Fed purchasing the low-interest bonds — which had lost a lot of value as interest rates have risen — at face value. This would give SVB’s custodians more than enough cash to cover all the bank’s deposits.
> How is that possible? <
I’m just making a wild guess here. SVB held a lot of bonds that are now worth much less than face value (when interest rates rise, older bond prices fall).
Maybe the Fed will be buying those bonds at face value. Hey, we bought a $1000 bond for $1000. The taxpayers have lost nothing!
No matter that this $1000 bond is only worth $500 today.
Shareholders get screwed...That is ESG in a nutshell. Have no investments left as businesses fail and everybody gets paid BUT SHAREHOLDERS.....
DNCI is very cheap at the moment. SVB’s policy premium was much lower than FTX. But maybe SBF is a real stupid shite, and didn’t know the going rate.
If I were to guess, I’d say FR is filled with people who are government employees (or retired government employees) and don’t have a clue about how business works.
Banks will probably skim it back with something approaching negative interest rates on Joe Average’s (aka Joe Taxpayer’s) accounts.
Orca Winfrey and Prince Waaaagh are protected....
“SVB’s policy premium was much lower than FTX.”
Not just the bank, but also its depositors, are a factor, at least according to Angelo Corleone, Director of the DNC Insurance Department.
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