Posted on 03/12/2023 3:21:17 PM PDT by janetjanet998
Bloomberg reports Signature Bank has been closed by state authority
Momma says, "Stupid is as stupid does."
Winner winner.. wait.. no chicken (bird flu and all).. empty plate dinner!
Maybe they should have required collateral, rather than signatures? *<]:-)
That’s #2. The Fed and criminal enterprise called the FedGov are going to bail out their buddies again & our descendants who are already bankrupt will have a very hard life.
I’m seeing a repeat of 2008 when Bush effed up our country with TARP and massive bank bailouts.
Is it any surprise that Pedo Joe will repeat the same mistakes?
Just like the original bailouts, the Fed is printing the rescue.
Out of thin air.
Some much for tightening.
A weak central bank will destroy an entire civilization.
It will be interesting to see what happens to Japan’s Nikkei index later this evening as well as the European markets tomorrow morning. I just checked Yahoo Finance at 7:00 pm Dow futures are up 300 points.
It looks like the decisions of the FED, FDIC, and the Treasury have calmed the markets for now at least.
Remember that Powell just finished telling Congress he was going to continue with aggressive rate increases to fight inflation.
He couldn’t even remain on message for more than a few days.
Market movement terrifies governments much more than foreign military power.
Wholely Krap, Batman!!!
“New York-based Signature Bank, which has a number of crypto clients, was shut down Sunday by state regulators, the Federal Reserve announced.
In a statement, New York Department of Financial Services Superintendent Adrianne Harris said the Federal Depository Insurance Corporation (FDIC) had taken receivership of the bank. This marks the third bank collapse in under a week, following Silvergate Bank’s voluntary liquidation and Silicon Valley Bank’s shutdown on Wednesday and Friday, respectively.
Harris said the action was taken “to protect depositors.”
A joint statement from the Federal Reserve, FDIC and U.S. Treasury Department said all depositors who used Signature would be made whole, in a joint statement outlining actions the federal regulators would take to protect depositors in SVB.
“Signature Bank is a New York state-chartered commercial bank and is FDIC-insured, with total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of December 31, 2022,” Harris’ statement said. “DFS is close contact with all regulated entities in light of market events, monitoring market trends, and collaborating closely with other state and federal regulators to protect consumers, ensure the health of the entities we regulate, and preserve the stability of the global financial system.”
“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, 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,” the joint Fed/FDIC/Treasury statement said.
The move came mere months after Signature announced it would be reducing its exposure to the crypto sector.”
UPDATE (March 12, 2023, 23:35 UTC): Adds additional information.”
So the Feds force a relatively healthy large bank to take over the failed mid-sized banks, they claim XYZ bank is willfully buying the corpse, but the ultimate backstop is the US taxpayer. Déjà vu.
Another one bites the dust!
I’ve read some speculation that the thinking is with silicon valley funding hit it will blunt tech innovation and ripple thru the economy. So the expectation is the Fed will react by cutting the prime rate 1% to spur investment.
If you have any IRAs …. and if you think this is going to resolve over the next five years +/- ….. this could be getting into a good time for Roth conversions.
Ultimately, we are all at God’s mercy. But there could be some things to do in terms of good stewardship.
Actually, Signature Bank’s common share valuation peaked at $345 in February 2022.
You would be buying new format fake money with old format fake money. All currencies ultimately end up at zero.
"Gold is money - everything else is credit." -- J.P. Morgan
So the bank had the money the whole time? If not, where exactly is the money coming from? This statement just sounds like, “we took care of it, no one will be inconvenienced”
So the Fed is bailing out VC’s and Crypto’s.
“the Fed is bailing out VC’s and Crypto’s.”
Correct.
Money is fungible—I keep telling folks.
Every crypto and venture capital loss must be settled somewhere.
The Fed is the settlement window of last resort.
I think this points to investment in the country starting to dry up. Where do the investments usually come from and where is that capital being reallocate to? I have my theories but I guess time will tell. This seems a bit like geo politics to me
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