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 ...
they seem to run on emotion here lately ... too much yin, not enough yang ...
Does anyone else think Janet Yellen looks like Buddy Hackett in drag?
The money did not evaporate (like SBF crypto debacle). They have over-invested in low return bonds and instruments to the point they did not have or maintain enough cash on hand.
They were forced to sell some of those investments, which went to crap thanks to Bidenflation, prior to the maturity so they sold at a loss. This in turn started to drive down their stock price and then the bank run began and here we are because they were already cash poor. This creates panic and drives the stock price into the dirt.
I am skeptical about the taxpayers being spared the expense (and insult) of bailing them out because this would only be true if they had not been selling instruments at a big loss for very long. We don’t know. The sell-off prior to all of this by the executives tells me that they knew it was going to crash after they could not find “new investors”.
We will see and if I got something wrong above with what I understand about it I welcome any corrections.
They're sending Janet Yellen to "Keev" to ask Zelensky for a refund.
How is that possible?
**************
Through lies and legerdemain.
If there was run on money, doesn’t that mean that folks withdrew their money?
If so, who needs protection from any losses if they already got their money out?
Things were much more efficient when Vito ran things. There were strict rules for qualifying policy holders. Now there are mixed assets from dubious origins paid by the syndicates based in Mexico and Central America.
As usual, they win we lose. Liberals run the system.
“I am skeptical about the taxpayers being spared the expense (and insult) of bailing them out”
************
We should be used to this insult by now. Situation normal in this country.
The FEDERAL RESERVE OWNS THE PRINTING PRESS!! OUR money will be worth WAY less after this PAYOFF to all the LEFTISSTS at these “banks”! Wait till CRYPTO CRASHES!
only the early birds get their money ... there isn’t enough to go around ...
Yep. And many businesses have multiple accounts with a lot of cash in them for various recurring expenses.
Yep. The Govt will print the Billions needed.
But Citizens will pay, with higher inflation.
Higher than it already is.
Sure, and Covid came from a wet market, the border is closed, we won’t raise taxes, the economy is great, etc.
The shit is about to hit the fan and they know it.
Is this all? Are we going to hear about more banks failing this week?
The Federal Reserve is printing $25 billion more to cover it. No worries!!!
The Fed facility will offer loans of up to one year to banks, saving associations, credit unions and other institutions. Those taking advantage of the facility will be asked to pledge high-quality collateral such as Treasurys, agency debt and mortgage-backed securities.
“This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy,” the Fed said in a statement. “The Federal Reserve is prepared to address any liquidity pressures that may arise.”
The Treasury Department is providing up to $25 billion from its Exchange Stabilization Fund as a backstop for any potential losses from the funding program. A senior Fed official said the Treasury program likely won’t be needed and will exist as a safeguard.
All our problems began with the stolen election of the despicable Biden. Trump gave us hope and everything was markedly better. Then the full catastrophe.
Move ‘em on, head ‘em up, bail ‘em out!
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