Biden bails out Silicon Valley Bank..
- Thread starter Bird Dog
- Start date
Best part is, no loss will be borne by the taxpayer!
This bank collapse if Trump's fault. Just like the border invasion, runaway fuel costs and inflation are Trump's fault. Just about anything negative in the current administration is the fault of the previous administration. Just like when obama was president, everything was Bush's fault.
LightRoasted
If I may ...
For your consideration ...
You so funny. Except when it comes to more inflation which is the theft of purchasing power of dollars people hold because of this "backstop" instead of allowing those banks to fail.
You so funny. Except when it comes to more inflation which is the theft of purchasing power of dollars people hold because of this "backstop" instead of allowing those banks to fail.
Uncle Joe has some big, albeit low hanging, balls doesn't he.
HemiHauler
Well-Known Member
I guess you dummies missed that fact that fees collected by FDIC are funding this. No Monopoly Buxx will be created.
Which will make the FDIC charge banks more and the the banks charge us more and when the FDIC becomes insolvent (which it now is Genius) the Gubmit will bail out the FDIC with Monopoly Buxx.
It always does.
If you like your doctor......
Average family will save $2,500.........
I did indeed have a relationship that was inappropriate..........
HemiHauler
Well-Known Member
LOL, insolvent. Show me your data demonstrating insolvency.
Sorry Genius.......out of money. Anything else ?
They have 125B. Now insolvent....Genius
Only the Federal government can bail them out. Broke...dead broke...
Bring on the the Monopoly Buxxs...
I think Biden has more Crayons
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PeoplesElbow
Well-Known Member
Wonder if 10% had to go to the big guy?
HemiHauler
Well-Known Member
LOL, fool. I'd reckon that if you're smart enough to ask the google machine for the latest financial report for FDIC, you'd be equally savvy enough to ask how this "bailout" actually works. But I s'pose that's asking far, far too much.
SVB wasn't broke.They had liquidity issues because they made grave mistakes managing duration risk.
Any chance you can ask your google machine how much in T-debt they held? To put it in simple terms even your feeble mind can understand (ostensibly, anyway, but I doubt you'll even try): the government owes the bank most of the money that will cover the vast majority of the deposits.
WingsOfGold
Well-Known Member
Who funds them idiot?
You must enjoy being wrong ......
But the money to reimburse those depositors — above the standard $250,000 per account — will come from the Deposit Insurance Fund of the FDIC:
This morning, MIT economist Simon Johnson told the Washington Post’s Jeff Stein: “Disingenuous: that’s the right word to describe anyone (Treasury official or not) who claims the DIF is not ultimately backed by the taxpayer.“
The Deposit Insurance Fund balance was $128.2 billion on December 31, 2022. Silicon Valley Bank said it had $212 billion in assets as of the end of last year; as mentioned above, Signature had $114 billion in assets. Not every asset is a deposit that must be reimbursed by the FDIC, but making the clients of SVB and Signature whole is going to eat up a huge chunk of that Deposit Insurance Fund. The fund will need to be built back up, by charging more for those assessments/insurance premiums on FDIC-insured institutions. When your bank gets a bigger bill from the FDIC, it’s going to look for ways to hike fees on customers — maintenance and service fees, overdraft fees, ATM fees, insufficient-fund fees, etc. So as a taxpayer, no, you’re not paying to help make the SVB and Signature customers whole. But as a person who uses a bank, you’re going to be paying to help make the SVB and Signature customers whole.
President Biden is going to speak about the banking crisis today, and he will insist to high heaven that this is not a bailout of these banks. But it is: The government set up clear rules that the FDIC would only protect the first $250,000 in a deposit. Every depositor, every business, every Silicon Valley venture-capital investor knew the risks, or should have known them. (You could even have $500,000 in a bank and still be protected; the FDIC covers savings accounts and checking accounts separately.) If you have more than $250,000 in an account, you are accepting a small but real risk and might want to think about opening another account in another bank.
And then, once the management of Silicon Valley Bank and Signature screwed up badly enough, the federal government decided, “Never mind. We’re going to protect every amount for every bank customer.” The Biden administration may not like people calling that a bailout, but that is indeed a bailout.
As our Phil Klein writes, “In practice, it has created a huge moral hazard by signaling that the $250,000 FDIC limit on deposit insurance does not exist in practice. The clear signal it sends is that when financial institutions make poor decisions, the government will swoop in to clean up the mess.”
As the editors of the Wall Street Journal conclude, “This is a de facto bailout of the banking system, even as regulators and Biden officials have been telling us that the economy is great and there was nothing to worry about.”
ADDENDUM: I know Treasury Secretary Janet Yellen didn’t have a lot of clear answers when she appeared on Face the Nation yesterday, but that raises the question of what the point is of sending the Treasury secretary out in front of the television cameras to insist everything will turn out fine, while also insisting that she can’t talk about the banking crisis in any detail.
Biden’s Big Bank Bailout | National Review
Suddenly, no one is all that certain about the financial health of regional banks in the United States.
www.nationalreview.com
US Rep. Lauren Boebert (R-Colo.) accused Biden of bending over backward for SVB due to its client base of liberal-leaning tech startups.
“If First Bank of Midland Texas Oil and Gas failed, you can be sure Biden would not be helping bail them out,” she tweeted. “This bailout is 100% about protecting the donor base of the Democrats and ensuring if you invest in DEI [diversity, equity and inclusion] and ESG [environmental, social, and governance investing] you’ll be just fine!”
A spokesman for Sen. Tim Scott (R-SC) accused Biden of sending “a signal to the market that any risk is acceptable and you’re not responsible.”
“The government is providing a full backstop here. The most sophisticated investors are now going to have the insulation and protection of the federal government,” Scott’s spokesman said.
“These were not everyday investors. They were highly sophisticated entities looking to take risks and make a profit.”
US Rep. Marjorie Taylor Greene (R-Ga.) also questioned Biden’s priorities.
“They give money to Silicon Valley Bank. They give money to Ukraine. But no money for East Palestine,” she posted on Twitter.
nypost.com
“If First Bank of Midland Texas Oil and Gas failed, you can be sure Biden would not be helping bail them out,” she tweeted. “This bailout is 100% about protecting the donor base of the Democrats and ensuring if you invest in DEI [diversity, equity and inclusion] and ESG [environmental, social, and governance investing] you’ll be just fine!”
A spokesman for Sen. Tim Scott (R-SC) accused Biden of sending “a signal to the market that any risk is acceptable and you’re not responsible.”
“The government is providing a full backstop here. The most sophisticated investors are now going to have the insulation and protection of the federal government,” Scott’s spokesman said.
“These were not everyday investors. They were highly sophisticated entities looking to take risks and make a profit.”
US Rep. Marjorie Taylor Greene (R-Ga.) also questioned Biden’s priorities.
“They give money to Silicon Valley Bank. They give money to Ukraine. But no money for East Palestine,” she posted on Twitter.
Nikki Haley, GOP pols say taxpayers will foot the bill for Biden bank ‘bailout’
Nikki Haley and GOP lawmakers blasted President Biden on Monday over his decision to rescue deep-pocketed customers of failed Silicon Valley Bank.
nypost.com
So Janet Yellen’s protege, Mary Daly, was too busy playing politics and pushing woke agendas to regulate rogue banks like SVB.
How very interesting.
Gosh, we feel SHOCKED. Ok, not really, we figured as much but still.
No wonder they’re pushing the TRUMP DID IT, BLAME TRUMP, TRUMP BAD narrative. We imagine if they thought they could find a way to blame DeSantis they would as well.
