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Fed and FDIC discussing backstop to make SVB depositors whole and stem contagion fears: Source
CNBC ^ | 3/12/2023 | Kayla Tausche

Posted on 03/12/2023 11:51:28 AM PDT by marcusmaximus

Financial regulators are discussing two different facilities to manage the fallout from the closure of Silicon Valley Bank if no buyer materializes, according to a source close to the situation.

One way that the regulators would step in would be to create a backstop for uninsured deposits at Silicon Valley Bank, using an authority from the Federal Deposit Insurance Act

-snip-

Another option would be a “general banking facility” from the Federal Reserve that would support other financials with exposure to SVB.

(Excerpt) Read more at cnbc.com ...


TOPICS: News/Current Events
KEYWORDS: backstop; bailout; itsnotabailout; notabailout; siliconvallybank; svb
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To: Vermont Lt
I just read that SVB did not have a Chief Risk Officer from April 2022 to January 2023. And it shows.

Yup. And the CFO of Lehman Brothers responsible for that collapse, became a CEO or such at SVB. Now responsible for two big collapses.

21 posted on 03/12/2023 12:48:19 PM PDT by roadcat
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To: marcusmaximus

Backstop ..is that what they are calling financial rape of taxpayers now ?

The 2008 champion grifters back , taking their bonus and dumping their stock

Just
In
Time

How coincidental .


22 posted on 03/12/2023 12:56:23 PM PDT by cuz1961 (USCGR Veteran )
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To: marcusmaximus

23 posted on 03/12/2023 12:59:27 PM PDT by Chode (there is no fall back position, there's no rally point, there is no LZ... we're on our own. #FJB)
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To: cuz1961

“ The 2008 champion grifters back , taking their bonus and dumping their stock”
***********************************************************

Aren’t all bank annual bonuses paid in March? /SARC


24 posted on 03/12/2023 1:00:30 PM PDT by House Atreides (I’m now ULTRA-MAGA. -PRO-MAX)
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To: FlyingFish

Just rename it BoU, Bank of Ukraine. That will quickly solve their liquidity crisis!


I chuckled but this bank also had close ties with crypto so it could already be the bank of Ukraine.


25 posted on 03/12/2023 1:02:32 PM PDT by volunbeer (We are living 2nd Thessalonians)
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To: marcusmaximus

Why should a bank that was ‘TOO BIG TO ACT RESPONSIBLY’ be bailed out for their actions?

Why should DEPOSITORS at that bank who failed to act responsibly be bailed out for their actions?

I do not believe for a second that a collapse of SVB and its MEGA-depositors would have that much of an impact on the multi-trillion dollar banking industry.


26 posted on 03/12/2023 1:06:08 PM PDT by Presbyterian Reporter (emoc)
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To: FlyingEagle

Don’t think that’s true.


27 posted on 03/12/2023 1:07:31 PM PDT by John W (W)
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To: Vermont Lt
I just read that SVB did not have a Chief Risk Officer from April 2022 to January 2023. And it shows.

My guess is the former risk officer knew something was up and pulled the rip-cord a year ago..

28 posted on 03/12/2023 1:09:16 PM PDT by EVO X ( )
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To: marcusmaximus

Can Meghan and Harry be excluded from any bailout?


29 posted on 03/12/2023 1:09:45 PM PDT by HereInTheHeartland (Have you seen Joe Biden's picture on a milk carton?)
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To: FlyingFish

Yep. As an aside, I had to laugh at your screen name in light of post# 12.


30 posted on 03/12/2023 1:09:52 PM PDT by Right Brother
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To: marcusmaximus

I got an idea.

Print more money.

The Republic is doomed.

5.56mm


31 posted on 03/12/2023 1:10:57 PM PDT by M Kehoe (Quid Pro Joe and the Ho have got to go)
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To: John W

I double checked. State Charter, but FDIC member, so deposits up to $250 K insured. Above that,, no.


32 posted on 03/12/2023 1:15:18 PM PDT by FlyingEagle
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To: OHPatriot

I think you misread my comment . They aren’t going to save SVB. But they will make sure the depositors will be able to make their payroll in the near term.

SVB is dead and gone. No one is trying to “save” them.


33 posted on 03/12/2023 1:19:42 PM PDT by Vermont Lt
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To: marcusmaximus

Haven’t found a buyer yet.

3:00pm ET Update: In a reversal of what Janet Yellen said just hours ago, WaPo reports that federal authorities are “seriously considering safeguarding all uninsured deposits at Silicon Valley Bank” - and by extension any other bank on the verge of failure - and are weighing an extraordinary intervention to prevent what they fear would be a panic in the U.S. financial system. Translation: bailout of all depositors, not just those guaranteed by the the FDIC (<$250K).

Officials at the Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation discussed the idea this weekend, the people said, with only hours to go before financial markets opened in Asia. White House officials have also studied the idea, per two separate people familiar with those discussions. The plan would be among the potential policy responses if the government is unable to find a buyer for the failed bank.

https://www.zerohedge.com/markets/svb-latest-developments-live-blog-fdic-auction-failed-svb-assets-underway


34 posted on 03/12/2023 1:21:27 PM PDT by Rusty0604 (Desperately looking for new conspiracy theories as all the old ones have come true)
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To: marcusmaximus

This is moral hazard writ large. There is no reason to backstop the firms that failed to diversify or insure their banking relationships. George warned us that “The last official act of any government is to loot the treasury.” We have arrived!


35 posted on 03/12/2023 1:26:34 PM PDT by BirdHunter24 (Restore the 10th Amendment)
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To: Rusty0604; All

Update: Fed now discussing buying banks’ distressed debt and eating the losses to save other banks.


36 posted on 03/12/2023 1:34:15 PM PDT by marcusmaximus
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To: Rusty0604; All

Update: Bailout would be FED loans to all banks at below market interest rates so banks can retire their distressed debt. Taxpayers eat the loss, of course.


37 posted on 03/12/2023 1:38:09 PM PDT by marcusmaximus
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To: Amendment10
" ... effectively "secede" ALL the states from the
unconstitutionally big federal government by amending
the Constitution to repeal the 16th (direct taxes)
and 17th (popular voting for federal senators) ..."

And term limits for Representatives and Senators!
I can think of more but these three should suffice
for a start.

38 posted on 03/12/2023 1:48:10 PM PDT by StormEye
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To: marcusmaximus

I identify as a SVB depositor.


39 posted on 03/12/2023 1:53:07 PM PDT by OSHA (The Constitution is a small box carefully crafted to keep government in. We let it escape.)
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To: All

Time to cancel my auto and homeowners insurance as the feds will surely backstop my uninsured property.


40 posted on 03/12/2023 1:54:47 PM PDT by thegagline (Sic semper tyrannis! Goldwater 2024)
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