Posted on 03/12/2023 9:09:03 PM PDT by SeekAndFind
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” said a joint statement from Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen and FDIC Chair Martin Gruenberg.
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.
The feds print and hand out billions with no thought about what they’re doing to the value of our dollar. It’s as though they want to ruin our economy.
They’re scared of having bank 🏦 runs under the disaster of Joe
It would reveal, even more so, this charade.
~~~~~~~~~~~~~
well let's face it. I am sure a " bank run" is on a lot of our minds right now!!
Power to Print unlimited money is more addictive than heroin.
Funny money.
Bill Ackman, American billionaire investor and hedge fund manager and the founder and CEO of Pershing Square Capital Management, Tweeted this:
https://twitter.com/BillAckman/status/1635109889302315008
This was not a bailout. During the GFC, the gov’t injected taxpayer money in the form of preferred stock into banks. Bondholders were protected and shareholders were diluted to varying degrees. Taxpayer money was put at great risk. Many people who screwed up suffered minimal to no consequences. Those were bailouts.
Here, shareholders and bond holders have been wiped out. The
@FDICgov
insurance fund capitalized by premiums paid by banks will absorb any losses. The fund will recoup any losses by assessing more premiums on the banks.
Had the
@FDICgov
@USTreasury
and
@federalreserve
not intervened today, we would have had a 1930s bank run continuing first thing Monday causing enormous economic damage and hardship to millions.
More banks will likely fail despite the intervention, but we now have a clear roadmap for how the gov’t will manage them.
Bank boards and managements have received a massive wake up call. Being a director or CEO of a bank that fails is no fun: years of litigation, regulatory investigations, personal liability, potential civil and criminal charges, and enormous reputational damage.
Our gov’t did the right thing. This was not a bailout in any form. The people who screwed up will bear the consequences. The investors who didn’t adequately oversee their banks will be zeroed out and the bondholders will suffer a similar fate.
Importantly, our gov’t has sent a message that depositors can trust the banking system. Without this confidence, we are left with three or possibly four too-big-to-fail banks where the taxpayer is explicitly on the hook, and our national system of community and regional banks is toast.
Our government did the right thing for the country. We are very fortunate it did so.
Privatize the profits, socialize the losses.
Harry and Meghan are saved! /s
Absolutely
(1930s bank run)
1929?
“No taxpayer cost”, except they’re fully funding deposits beyond the $250,000 cap.
I guess that’s FDIC money, not taxpayer money.🤡🌎
Another bail out of the elite which turns a mess into a full scale disaster down the road.
It’s all “Funny Money” anyway...
Investor Kevin O’Leary breaks down the Silicon Valley Bank collapse
https://www.foxnews.com/video/6322321979112
SVB execs sell stock ahead of collapse as part of a pre-planned program
https://www.youtube.com/watch?v=9pQqZG8sJAc
From CNBC reporting:
Sun. 11am:
Former FDIC Chair Sheila Bair said Sunday that finding a buyer for SVB is “the best outcome.”
Bair said the FDIC could help companies with payroll in the case that there’s a systemic risk exception, which would be “an extraordinary procedure.” -——She said she thinks it is going to be “hard to say that this is systemic in any way.”-——
Sun. 6pm:
-——The Treasury Department designated both SVB and Signature as systemic risks,-—— giving it authority to unwind both institutions in a way that it said “fully protects all depositors.” The FDIC’s deposit insurance fund will be used to cover depositors, many of whom were uninsured due to the $250,000 cap on guaranteed deposits.
Along with that move, the Federal Reserve also said it is creating a new Bank Term Funding Program aimed at safeguarding institutions affected by the market instability of the SVB failure.
A joint statement from the various regulators involved said there would be no bailouts and no taxpayer costs associated with any of the new plans. Shareholders and some unsecured creditors will not be protected and will lose all of their investments.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” said a joint statement from Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen and FDIC Chair Martin Gruenberg.
“The feds print and hand out billions with no thought about what they’re doing to the value of our dollar.”
Well, down .75% right now. No big deal. But I don’t condone the bailouts.
I used to feel outrage at the fraud of our financial system and the bought-off regulatory agencies. I wanted honesty and transparency. But I’ve changed my mind. Don’t get me wrong. I’d really like to get back to honest money at some point. But it’s going to be a real pain in the neck to get there. It will happen (crash) when it happens. But for now, and for as long as they can continue to kick the can, I much prefer artificial prosperity over very real hardship.
The longer they kick the can, the harder the crash.
Congress has to step in. Right?
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