“No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the regulators said.
Posted on 03/12/2023 5:44:55 PM PDT by E. Pluribus Unum
The Biden administration said Sunday that it would guarantee all deposits at the now-shuttered Silicon Valley Bank but insisted the move was not a taxpayer-funded bailout, while regulators closed a second institution, New York City’s Signature Bank, amid fears of an unfolding economic crisis.
Some business leaders warned that it might be just the beginning of a national reckoning with institutions that value left-wing politics over sound investing.
Treasury Secretary Janet Yellen seemed earlier Sunday to rule out a bailout of the California-based bank but said the government would work around the clock to find solutions ahead of Monday morning’s opening bell on Wall Street. Customers include household brands such as Roku and Etsy.
Later Sunday, Ms. Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corp. Chairman Martin J. Gruenberg released a joint statement saying they had reached a “resolution” that would allow all depositors at SVB to access all their money Monday morning.
“No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the regulators said.
Officials said they were taking similar actions to protect depositors at New York City’s Signature Bank, which was closed by its chartering authority Sunday. The closing of a second major bank in just 48 hours will add to fears of broader, systemic issues across the U.S. economy.
The dramatic developments unfolded after regulators effectively shuttered the bank Friday and took control of its deposits, marking the second-biggest bank failure in U.S. history and a seismic event that immediately raised the specter of the 2008 economic crisis that hit its climax with the rapid collapse of leading financial institutions such as Lehman Bros.
The 2008 crisis led directly to a massive and wildly controversial $700 billion federal bailout program...
(Excerpt) Read more at washingtontimes.com ...
If the Biden puppetmasters say its not a taxpayer funded bailout...
Its a taxpayer funded bailout.
We are on the verge of a total collapse of the financial industry and we have the stupid f*cks in charge.
No, not necessarily. The Fed had 4 options.
One should be asking, which one they chose and is the Fed taking the loss. And can the Fed, which is not a government entity, can they actually absorb said loss?
24 hour window
“No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the regulators said.
The other question, of course, is by what legal authority is this being done and with what lawful appropriations or funding? But I guess since we live in a post-Constitutional America, such questions are old-fashioned.
I will check back in 48 hours.
Where does joe get the money to do this?
and ... Where in the Constitution is this allowed?
Is that grandfatherly guy Biden a hero or what? 🤪
You know when someone gets an expensive gift and smiles and say “oh, you shouldn’t have”?
Well, Biden, grabbing our taxpayer money to give to wealthy woke pals is something you shouldn’t have done.🤬
Just got home to find the regime has been stupid again.
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.
Translation: the Fed’s hiking cycle is dead and buried, and here comes the next round of massive liquidity injections. It also means that the Fed, Treasury and FDIC have just experienced the most devastating humiliation in recent history - just 4 days ago Powell was telling Congress he could hike 50bps and here we are now using taxpayer funds to bail out banks that have collapsed because they couldn’t even handle 4.75% and somehow the Fed has no idea!
To summarize:
Signature Bank has been closed
All depositors of Silicon Valley Bank and Signature Bank will be fully protected
Shareholders and certain unsecured debtholders will not be protected
New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits
As we said earlier on twitter, “this is a regulatory failure of historic proportions by both the Fed and Treasury. Instead of preventing billions in losses, the Fed was worrying about board diversity and Yellen was flying to Ukraine. Everyone should be sacked immediately.”
"Never believe anything in politics until it has been officially denied." - Otto von Bismarck
Why not? biden bailed out he Union pensions illegally too. Only 100 million taxpayer dollars.
No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the regulators said.
So, it’s coming out of their pockets?
“Too Big To Fail”
(too big a democrat donor to not be bailed out by the taxpayers, that is.)
After a large thud and tilt of the ship to the left, when I hear something such as this which is basically the captain saying “no need to panic, all is well”, that’s when I put on my life jacket and scope out the location of the lifeboats.
“SVB was being run by woke idiots, depositors demanded their money back, leading to a bank collapse. As Zero Hedge reports, “the bank’s head of risk management for Europe, Africa and the Middle East devoted a chunk of her time to various LGBTQ+ programs.”
(Natural News) “WOKE” Silicon Valley Bank was far more interested in running LGBT programs than working to minimize exposure risk, and when word began to circulate that SVB was being run by woke idiots, depositors demanded their money back, leading to a bank collapse. As Zero Hedge reports, “the bank’s head of risk management for Europe, Africa and the Middle East devoted a chunk of her time to various LGBTQ+ programs.”
While risk warning signs should have been obvious, the left-leaning bank was apparently far more interested in appeasing gays, lesbians and transgenders than in actually running a bank that wouldn’t collapse. The bank brags in its own documents, “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.”
Get woke. Go broke.
In the long run, woke idiocy is incompatible with financial solvency. It turns out that woke idiots aren’t very good at operating in reality, where the laws of economic cause and effect can’t be overwritten by “gender identity” nonsense from woke leftists. You can pretend that a man is a woman — for a while — but you can’t pretend that your deposits aren’t being wiped out when every last client is demanding their money back.
Thus, SVB has collapsed due to a combination of risky bond bets, bad money management, “woke” internal politics and a stunning lack of attention to risk management.
Note that this is exactly where America is headed, too, since it’s also being run by the same oblivious woke idiots who don’t understand much of anything about economics, finance, debt, energy, infrastructure, transportation or logistics.
The collapse of SVB is just a small taste of things to come if woke idiots stay in charge of everything.
And
As the UK Daily Mail writes:
Meanwhile, Jay Ersapah, who acts as CRO for the bank in Europe, Africa and the Middle East and who describes herself as a ‘queer person of color from a working-class background’ – organized a host of LGBTQ initiatives including a month-long Pride campaign and implemented ‘safe space’ catch-ups for staff.
It adds that she is ‘allies’ with gay rights charity Stonewall and had authored numerous articles to promote LGBTQ awareness. These included ‘Lesbian Visibility Day and Trans Awareness week.’
It’s fascinating how the bank’s executives were running “trans awareness” programs but apparently not risk awareness programs.”
How many OTHER banks will be allowed to go under?
People should be asking which other banks have done the same thing with their reserves. People should ask who the largest purchaser of Mortgage Backed Securities has been over the past ten years or so.
(Hint: It’s the Federal Reserve Bank.)
It doesn’t mean the mortgages are going to default. It means the mark to market value of those securities has tanked.
Deja vu all over again.
***Biden Administration guarantees*** all Silicon Valley Bank deposits in bid to head off banking crisis.
Because over the weekend England’s largest bank HSBC bought Silicon Valley Bank and said they will honor their debts.
Never let a crisis go to waste
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