Biden bails out Silicon Valley Bank..

GURPS

INGSOC
PREMO Member




SVB caught accusations of mismanagement, too; specially, the lender was apparently hyper-focused on so-called diversity, equity, and inclusion (DEI) initiatives and LGBT activism.

SVB reportedly failed to have someone in charge of risk assessment for some eight months, until January of this year, while the person in charge of risk assessment in the U.K. allegedly prioritized “pro-diversity initiatives” while neglecting her actual role, according to a Daily Mail report.

Moreover, Jay Ersapah, Chief Risk Officer for the SVB in Europe, Africa and the Middle East, describes herself as a “queer person of color from a working-class background” and organized LGBTQ initiatives, including a month-long Pride campaign, the Daily Mail report outlined. Ersapah also implemented so-called safe space catch-ups for staffers and boasted of serving “underrepresented entrepreneurs.”

“This bank, they’re so concerned with DEI and politics and all kinds of stuff, I think that really diverted from them focusing on their core mission,” Florida Republican Gov. Ron DeSantis told Fox News on Sunday.



 

GURPS

INGSOC
PREMO Member

‘Too Woke To Fail’: The Perfect Leftist Storm Preceding Silicon Valley Bank ‘Bailout’




The president and his team were quick to jump in to rescue customers of SVB, the 16th largest bank that caters to the leftist techno-class in California and around the country. Many of its clients have far more than the quarter million in deposits that would be covered by the Federal Deposit Insurance Corporation.

The bank, however, used that money in arguably risky investments and promoted things such as diversity, equity, inclusion, and climate change hysteria. At the same time, CBS News reported that the sharp raise hikes enacted by the Federal Reserve to curb Bidenflation — in part caused by the president’s gigantic spending in 2021 and 2022 — weakened the bank’s overall investment portfolio. Similarly, the media outlet noted that depositors in the bank had to withdraw more and more cash due to high prices. In short, SVB could no longer meet its obligations.

Some, including the president, blame the failure of de-regulation that occurred in the Trump era. That is true to a certain extent, but it overlooks the fact that Biden’s economy created the perfect storm for this bank to go under, causing a semi-moral hazard.
 

HemiHauler

Well-Known Member

‘Too Woke To Fail’: The Perfect Leftist Storm Preceding Silicon Valley Bank ‘Bailout’




The president and his team were quick to jump in to rescue customers of SVB, the 16th largest bank that caters to the leftist techno-class in California and around the country. Many of its clients have far more than the quarter million in deposits that would be covered by the Federal Deposit Insurance Corporation.

The bank, however, used that money in arguably risky investments and promoted things such as diversity, equity, inclusion, and climate change hysteria. At the same time, CBS News reported that the sharp raise hikes enacted by the Federal Reserve to curb Bidenflation — in part caused by the president’s gigantic spending in 2021 and 2022 — weakened the bank’s overall investment portfolio. Similarly, the media outlet noted that depositors in the bank had to withdraw more and more cash due to high prices. In short, SVB could no longer meet its obligations.

Some, including the president, blame the failure of de-regulation that occurred in the Trump era. That is true to a certain extent, but it overlooks the fact that Biden’s economy created the perfect storm for this bank to go under, causing a semi-moral hazard.

SHEW!

They must've fed SLURPS two extra handfuls of Power Cheerios to shove down his gullet this morning!
 

HemiHauler

Well-Known Member
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.




You're seriously as dumb as a box of Boeberts.
 

GURPS

INGSOC
PREMO Member
ah yes ... all insults provides NO information

but please go on looking ignorant .. you are an expert at it
 
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stgislander

Well-Known Member
PREMO Member
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.
Charles Payne on FNB was basically saying the exact same thing yesterday. Riling actually. It sounds like SVB is/was not your "standard" bank.
 

HemiHauler

Well-Known Member
Charles Payne on FNB was basically saying the exact same thing yesterday. Riling actually. It sounds like SVB is/was not your "standard" bank.

Better not let GULPS find out. She'll pen a sternly worded "tweet" to let him know how wrong he is, and that it's in fact "woke" policies that caused the liquidity squeeze :lmao:
 

GURPS

INGSOC
PREMO Member

Silicon Valley Bank Spent $74 Million on Black Lives Matter and Social Justice Causes



Many in the financial punditry class believe the move is necessary to prevent a chain reaction that could take down other big investment banks. There is plenty to be debated about the merits of that action, but it certainly does make it harder to accept that Americans are being forced to bail out millionaires when SVB has been grossly irresponsible with their own funds.

As it turns out, SVB was a massive donor to Black Lives Matter and other social justice causes, to the tune of nearly $74 million dollars. $73,450,000 to be more exact.

The figure comes from an extensive report dropped by the Claremont Institute on Tuesday. The report details $82 billion dollars in social justice/BLM investments by major American companies. SVB stands out as one of the larger donors, next to big donors like Apple ($100 million) and Comcast ($165 million). While at the top of the donation pool, those contributors do pale in comparison to donors like Blackrock ($810 million) and Citigroup ($1.1 billion). However, the group did pledge on their website to provide in total up to $11 billion dollars by 2026 for Diversity, Equity and Inclusion (DEI) programs and racial justice causes.
 

GURPS

INGSOC
PREMO Member
I guess you dummies missed that fact that fees collected by FDIC are funding this. No Monopoly Buxx will be created.



FDIC has only about half the cash needed to cover roughly $264B in deposits at failed banks, report




The Federal Deposit Insurance Corporation has $128 billion of cash on hand while deposits at failed banks are $264 billion, according to the latest data available.

Signature Bank has $88.6 billion of deposits and Silicon Valley Bank has $175.4 billion of deposits. According to the FDIC’s most recent quarterly report, the agency has a balance of $128 billion.
 

BOP

Well-Known Member
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.
Let me think...where have we heard that before...oh, yeah! The Won basically spent most of 8 years blaming Bush for everything negative, and claiming anything positive Bush did - okay, I can't think of a single thing, but still - was his doing.

There seems to be a pattern.
 

BOP

Well-Known Member

No wonder the demonic rats are calling for increased censorship on the part of Big Tech. They are no longer even attempting to hide it.

Except now, both the White House and Congress are putting pressure on Big Tech to put the hammer on nasty deplorable people who trot out literal facts for no other reason than to damage The Narrative. Oh, and to destroy "democracy." Can't forget that.

Quick question: can one put pressure on an entity to do something they're already predisposed to doing?
 

GURPS

INGSOC
PREMO Member
Except now, both the White House and Congress are putting pressure on Big Tech to put the hammer on nasty deplorable people who trot out literal facts for no other reason than to damage The Narrative. Oh, and to destroy "democracy." Can't forget that.


Yes, this has been going on since Bill C was in office, democrats DESPISED Rush because he broke the narrative about left wing policies and actions, then INFORMED citizens could object to the Democratic Policies

This is why any opposition is shouted down and vilified ....

you are racist, hate gays, want granny to die, hate mother earth
 
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HemiHauler

Well-Known Member

FDIC has only about half the cash needed to cover roughly $264B in deposits at failed banks, report




The Federal Deposit Insurance Corporation has $128 billion of cash on hand while deposits at failed banks are $264 billion, according to the latest data available.

Signature Bank has $88.6 billion of deposits and Silicon Valley Bank has $175.4 billion of deposits. According to the FDIC’s most recent quarterly report, the agency has a balance of $128 billion.

I realizing seeing truth beyond the propaganda your handlers shove down your gullet isn't your forte, but you should try harder.

I realize it's a huge ask, but there's no glamor in being this f*cking stupid. Maybe your classmates give you a hearty chortle, but have a bit of self-respect.
 
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