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 ...
LOL! Great movie!
"And term limits for Representatives and Senators!"
I'm not going to stop anybody from amending Constitution for term limits. But my problem with term limits is effectiveness when considering all the unconstitutional, unaccountable federal spending that Democrats and RINOs can do in 2 months lame duck period after losing election.
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States." —Justice John Marshall, Gibbons v. Ogden, 1824.
“If the tax be not proposed for the common defence, or general welfare, but for other objects, wholly extraneous, (as for instance, for propagating Mahometanism among the Turks, or giving aids and subsidies to a foreign nation, to build palaces for its kings, or erect monuments to its heroes,) it would be wholly indefensible upon constitutional principles [emphases added].” — Justice Joseph Story, Commentaries on the Constitution 2 (1833).
”Simply this, that the care of the property, the liberty, and the life of the citizen, under the solemn sanction of an oath imposed by your Constitution, is in the States and not in the federal government [emphases added]. I have sought to effect no change in that respect in the Constitution of the country.” —John Bingham, Congressional. Globe. 1866, page 1292 (see top half of third column)
Pelosi: "We have to pass the bill so that you can find out what is in it." (non-FR; 6 sec.)
“Cherish, therefore, the spirit of our people, and keep alive their attention. If once they become inattentive to the public affairs, you and I, and Congress and Assemblies, judges and governors, shall all become wolves [emphasis added]. It seems to be the law of our general nature.” - Thomas Jefferson (Letter to Edward Carrington January 16, 1787)
Identically illegal to the student loan bailouts. McCarthyshould announce he’ll file for an injunction as soon as they announce it. All of these rich, allegedly elite depositors surely knew only 250k was insured, yet chose to put their stash there anyway. Why should poorer folks bail them out?
SVB was heavily invested in US treasuries held from a few years ago, and because of rising interest rates sold them at a huge loss. At least that was the message on Friday.
“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.”
Gas and food prices up ? % overnight? Suddenly the dollars in my wallet feel lighter.
4:30pm ET Update: It’s getting to the point where every new “proposal” or “idea” being thrown about is worse than the previous one (or maybe this is just how the clueless LGBTQ equity-focused Fed is doing trial balloons on a Sunday afternoon. Shortly after the WaPo reported that the Fed is “seriously considering safeguarding all uninsured deposits at Silicon Valley Bank”, BBG is out with a report that the Federal Reserve is also “considering easing the terms of banks’ access to its discount window, giving firms a way to turn assets that have lost value into cash without the kind of losses that toppled SVB Financial Group.”
Such a move would increase the ability of banks to keep up with demands from depositors to withdraw, without having to book losses by selling bonds and other assets that have deteriorated in value amid interest-rate increases — the dynamic that caused SVB to collapse on Friday.
The report goes on to note that as many had expected, some banks began drawing on the discount window Friday, seeking to shore up liquidity after authorities seized SVB’s Silicon Valley Bank, which is precisely why it is bizarre that this is even news: after all, the Discount Window has always been opened, and the fact that banks hate to use it has nothing to do with “ease of access” and all to do with the stigma of being associated with the discount window. Just recall how banks that were revealed to have used the discount window around Lehman’s failure saw accelerating bank runs.
Or maybe the Fed’s thinking goes that while it would be too late to save SIVB, other banks would somehow boost confidence of their depositors by yelling from the rooftops: “Hey, look at us, we are well capitalized: we just borrowed $X billion from the Fed’s Discount Window.”
Needless to say, the mere rumor that regional bank XYZ has been forced to access this “last ditch” funding facility will result in all its depositors fleeing, which is why we once again ask: after “fixing” Ukraine’s Burisma, is that polymath genius Hunter Biden now in charge of US bank bailout policy?
I’m still passed at McConnell and enough Senate Republicans passing the continuing resolution through the rest of the year instead of a couple months, giving Biden everything.
Let the woke, left-wing libtards in Silly Con valley go broke. Too bad, so sad!
Oprah, Harry and Meghan can have a yard sale in Montecito, Calif. to raise some extra cash.
It is.
Anything the left says isn’t. Is. You can take it to the bank. Well. If it’s still open
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