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The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the...

PNC Financial Group decided against bidding on Silicon Valley Bank as regulators struggled to find a buyer for the failed bank’s assets over the weekend, according to a source familiar with the matter. The Pittsburgh, Penn.-based bank sent an initial notice of interest to the Federal Deposit Insurance Corp for a deal for SVB and held brief and preliminary discussions with the agency, the source said. However, after conducting initial due diligence, PNC informed the FDIC on Saturday that it decided not to move forward, the source said. The FDIC was conducting an auction for SVB this weekend, with final...

The US Federal Deposit Insurance Corporation offered Silicon Valley Bank employees 45 days of employment and 1.5 times their salary, reports say. An FDIC official did not comment on the details to CNN, but said it is standard practice and one of the first steps the independent government agency takes after being named receiver. US workers also received their annual bonuses on Friday, just hours before FDIC took over the collapsed lender, Axios reported.

-snip- SVB would reopen on Monday morning, under the control of the newly created Deposit Insurance National Bank of Santa Clara. Once that happens, insured depositors with up to $250,000 in their accounts will be able to access their money. But the majority of deposits at SVB were not insured, and it is unclear when those customers will be able to access their money -snip- One potential option could be to use the FDIC’s systemic risk exception tool to backstop the uninsured deposits at SVB. Under the Dodd-Frank Act, that move would need to be made in concert with the...

Home Depot co-founder Bernie Marcus issued a strong warning for everyday Americans. During an appearance on "Cavuto Live," Marcus discussed the devastating collapse of Silicon Valley Bank, urging Americans to "wake up" and understand that the U.S. economy is in "tough times."

Silicon Valley Bank was closed by the FDIC due to the bank losing over 60% of its value after the company disclosed major losses from security sales. Many political pundits and investors have called for lawmakers to bailout out the failed bank. Those advocating for bailouts have shied away from telling the public that SVB employees and affiliates voted in the leaders responsible for the current economic crisis. Open Secret’s data reveals in the 2020 election cycle Silicon Valley Bank employees and affiliates donated over $188,000 dollars to political candidates. Over 90% of the donations which amounted to $173,434 went...

Fortunately, bail-ins do not apply to deposits under $250,000, which are protected by FDIC insurance. That is true in theory, but as of September 2021, the FDIC had only $122 billion in its insurance fund, enough to cover just 1.27% percent of the $9.6 trillion in deposits that it insures. The FDIC also has a credit line with the Treasury for up to $100 billion, but that still brings the total to just over 2% of insured deposits. If just one or a few banks become insolvent, the FDIC fund should be sufficient to cover the insured deposits (those under...

At the end of 2022, SVB had uninsured deposits in its US offices of $151.5 billion, versus total deposits of $173 billion. That's 88% of all SVB deposits that didn't have FDIC insurance.

The CEO of a Boston-based health and wellness company said she has been unable to log into her Silicon Valley Bank account, where she has at least $10 million in deposits. Ashley Tyrner, the founder of FarmboxRx, told The Post on Friday that she has been frantically trying to reach her banker at SVB, the California-based lender that is teetering on the brink of collapse. She told The Post that she’s been experiencing “the worst 18 hours of my life.” On Friday, the Federal Deposit Insurance Corp. said regulators have shut the bank down to protect insured deposits after the...

Silicon Valley Bank has been closed by regulators, which have taken control of the bank’s deposits, the Federal Deposit Insurance Corporation announced Friday.The California Department of Financial protection and Innovation closed SVB, and named the Federal Deoposit Insurace Corporation as the receiver.The FDIC has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.

Federal Reserve System, FDIC, and the Office of the Comptroller of the Currency (OCC) [joint statement] ... [The Money Quote]: Based on the agencies’ current understanding and experience to date, the agencies believe that issuing or holding as principal crypto-assets that are issued, stored, or transferred on an open, public, and/or decentralized network, or similar system is highly likely to be inconsistent with safe and sound banking practices. ... Banking organizations should be aware of, including: • Risk of fraud and scams among crypto-asset sector participants. • Legal uncertainties related to custody practices, redemptions, and ownership rights, some of which...

President Joe Biden’s political capital is deteriorating with every negative balance sheet, which could affect whether he is another one-term president. The Federal Deposit Insurance Corporation’s (FDIC) board of directors allegedly warned about the impending “financial crisis and their lack of faith in our banking system and how to keep the public from freaking out,” according to a popular Twitter account specializing in banking, claiming to have footage of a private November FDIC meeting. In the two videos posted by WallStreetSilver, the FDIC warned that economic conditions in the U.S. will worsen to the point where there could be a...

One of the great ironies of the Sam Bankman-Fried debacle is that while SBF was a generous donor to Democrats (and a few RINOs) and President Biden, it was Biden’s green energy policies that were part of the nail in SBF’s crypto empire. As inflation exploded upon Biden taking office (and massive overspending by Congress), The Federal Reserve jumped in to cool inflation leading to the downfall of cryptos in terms of price. M2 Money YoY (green line) shows the massive growth money with the Covid economic shutdowns in 2020. Cryptos skyrocketed after that much money was printed by The...

They insure funds at bank 'A' for up to $500,000 for a husband and wife. I assume that's for $500k total funds the couple have at that bank? $200k money market. $200k CDs. $100k other. Or, is it $500k per account? Also, do they insure different banks for the same couple? 500k bank 'A.' Another 500k bank 'B.' Etc. Thanks.

FDIC Chairman Jelena McWilliams announced her resignation Friday in an open letter addressed to President Biden, just weeks 'after' she warned of a "hostile takeover" of the agency by Democrats. McWilliams was appointed to the position in 2018 under former President Trump. Her resignation will be effective Feb. 4. McWilliams wrote in her op-ed. "Never before has a majority of the board attempted to circumvent the chairman to pursue their own agenda.".."This conflict isn’t about bank mergers. If it were, board members would have been willing to work with me and the FDIC staff rather than attempt a hostile takeover...

Federal Deposit Insurance Corp. (FDIC) Chairman Jelena McWilliams, a Trump appointee, resigned Friday amid a power struggle with Democratic members of the agency’s board. In a letter to President Biden released Friday, McWilliams announced she would step down from the FDIC on Feb. 4, less than four years after she was confirmed by the Senate to lead the bank regulator. McWilliams’ unexpected resignation came weeks after Democratic directors on the FDIC board attempted to launch a review of bank merger standards without her approval. While McWilliams ostensibly controlled the FDIC board, she was the sole Republican countering three Democratic directors......

https://thefederalist.com/wp-content/uploads/2020/03/Trump-Mnuchin-And-Cabinet-Meet-With-China.-White-House.-Shealah-Craighead.-e1584750455621-998x649.jpg> Just beyond -- and in the midst of -- the public health and financial liquidity crises is the expansive and potentially devastating solvency crisis. The U.S. economy is in trouble, and if you can believe it, that trouble isn’t simply the closure of Main Street, the massive number of nationwide layoffs, and the danger of financial crisis we’ve all heard about. As companies run out of cash, pushing them toward insolvency, our country’s business-to-business trust is at risk of coming apart — tearing and ultimately collapsing the delicate system that keeps industries as diverse as farming, chemicals, and aluminum...

A former President George W. Bush administration official blasted Democratic presidential candidate Pete Buttigieg over his lack of experience in national politics, which she argues makes him underqualified for the Oval Office. Sheila Bair, the former chairwoman of the Federal Deposit Insurance Corp. (FDIC), said Democrats are “almost maniacal in their eagerness to oust” President Trump and in doing so are less focussed on the qualifications of their candidates. “Enter Pete Buttigieg, whose primary asset seems to be a thin résumé,”Bair wrote in an op-ed published Wednesday in The Washington Post.

Last week we saw bitcoin, the great hope of cryptocurrency, skyrocket to over $13,000. It was in the vicinity of $3,200 as recently as December. Why? Maybe it was Facebook’s new venture into creating its own digital currency, Libra — although, if that were to be successful, how it would offer any type of validation of bitcoin is beyond me, and a whole lot of smart people on Wall Street. In fact, it might spell the beginning of the end for bitcoin. There are almost no major Wall Street investors of substance with meaningful track records who have invested in...

Bank of America will end its association with companies that provide prisoner and immigrant detention services at both the state and federal levels. The move comes amid growing public concern about the nation's border policies. A spokesperson said Wednesday that Bank of America (BAC) has discussed the issue with its clients that provide those services. While the bank appreciates "steps they have taken to properly execute their contractual and humanitarian responsibilities," it ultimately decided to "exit the relationships." "Lacking further legal and policy clarity, and in recognition of the concerns of our employees and stakeholders in the communities we serve,...