stock market was up today...

[NorthDallas40]

Yes to the extent of not losing over 250K

No to the USG guaranteeing "all"investments. Like was posted

Incorrect. The correct answer is no you are not an investor in the bank merely by being a depositor.

 

[Orangeburst]

Smart move to soothe fears and the buying bank will assume all deposits anyway.

This is akin to announcing that the post office will deliver mail tomorrow.

Poor choise.
Nobody would miss even more unnecessary inefficient gov

 

[Orangeburst]

Incorrect. The correct answer is no you are not an investor in the bank merely by being a depositor.

Fair..it doesn't work that way though in reality

 

[NorthDallas40]

Smart move to soothe fears and the buying bank will assume all deposits anyway.

This is akin to announcing that the post office will deliver mail tomorrow.

Banks don’t want to see depositors lose a penny. Because then that calls into question their ability to provide secure deposits and we have to find another way to secure large amounts of money.

The investors are straight up toast. Blame the board at SVB for not doing their oversight duty on the bank officers.

 

[Orangeburst]

Banks don’t want to see depositors lose a penny. Because then that calls into question their ability to provide secure deposits.

The investors are straight up toast. Blake the board at SVB for not doing their oversight duty on the bank officers.

Deflecting

You fail to answer my points.

Why is the gov bailing out "all" deposits?

Answer.

 

[NorthDallas40]

Fair..it doesn't work that way though in reality

No man that’s exactly how it works. The only exception I can think of is if mutual depositor S&L’s are still around. Back again to what happened when the Butchers got taken down

 

[NorthDallas40]

Deflecting

You fail to answer my points.

Why is the gov bailing out "all" deposits?

Answer.

I did. No deflection. Your premise is bunk.

 

[Orangeburst]

Banks don’t want to see depositors lose a penny. Because then that calls into question their ability to provide secure deposits.

The investors are straight up toast. Blake the board at SVB for not doing their oversight duty on the bank officers.

That sounds like something others would say

Investors are toast but the bank is ok. They are the freaking same..which makes one realize that depositing anything beyond $250k an "investment firm" that could win or lose

 

[NorthDallas40]

That sounds like something others would say

Investors are toast but the bank is ok. They are the freaking same..which makes one realize that depositing anything beyond $250k an "investment firm" that could win or lose

No the bank is gone. The assets persist. And they are being auctioned off to whichever bank will service them going forward. That’s it.

 

[Fun coupon VOL]

Treasury Secretary Janet L. Yellen stressed in a statement that taxpayers would bear none of the burden of protecting the depositors. Their funds will be backstopped by a pool of money that is regularly paid into by U.S. banks, which has more than $100 billion in it.

The assertions that the decisions do not amount to a “bailout,” however, are likely to be challenged by critics of the move. While the fund going to the depositors is paid into by U.S. banks, it is ultimately backstopped by the Treasury Department — and therefore U.S. taxpayers.

150 billion was uninsured with SBV.

 

[Orangeburst]

No the bank is gone. The assets persist. And they are being auctioned off to whichever bank will service them going forward. That’s it.

Then why is the gov guaranteeing "all" investments?

 

[NorthDallas40]

Then why is the gov guaranteeing "all" investments?

For ****s sake for like the fifth damn time they aren’t guaranteeing any INVESTMENTS your word game of equating deposits and investments is factually false!

 

[Orangeburst]

For ****s sake for like the fifth damn time they aren’t guaranteeing any INVESTMENTS your word game of equating deposits and investments is factually false!

Then blame the Wapo dipshit

They said deposits..

 

[NorthDallas40]

Then blame the Wapo dipshit

I don’t need to I understood what the hell was being communicated.

 

[Orangeburst]

That is beyond the $250K..DEPOSITS

 

[NorthDallas40]

That is beyond the $250K..DEPOSITS

Which aren’t INVESTMENTS.

 

[Fun coupon VOL]

U.S. government guarantees all Silicon Valley Bank deposits, money available Monday

Except the money isn’t available.

 

[85SugarVol]

U.S. government guarantees all Silicon Valley Bank deposits, money available Monday

Except the money isn’t available.

They are going to make loans from a fund already in place.
A fund that is backstopped by the US Treasury.

It’s a bailout for the depositors.

 

[Fun coupon VOL]

They are going to make loans from a fund already in place.
A fund that is backstopped by the US Treasury.

It’s a bailout for the depositors.

The money is still there, you just don’t have access to it right now. No one has defaulted on the loan the deposits are held in. YET

 

[Fun coupon VOL]

They are going to make loans from a fund already in place.
A fund that is backstopped by the US Treasury.

It’s a bailout for the depositors.

The treasury is already upside down on it’s investments. They don’t adjust for face value changes.

 

[NorthDallas40]

They are going to make loans from a fund already in place.
A fund that is backstopped by the US Treasury.

It’s a bailout for the depositors.

One more comment and then I’m off to XBox. If the Fed Reserve flat out assumes the burden of guaranteeing all deposits in the long term that is outside of what the law and insurance allows and is categorically a “bailout”. But everything reads that they are just trying to bridge this time period until all of the two banks assets are transferred to their new owners.

I found an article referencing a third bank, First Republic Bank I think, that has acted on the Fed Reserve’s offer of the favorable collateralizec loans up to a line if credit of $70B if needed. This is again a loan. This bank has the same model as SVP in that they largely catered to high dollar depositors.

 

[Rasputin_Vol]

How true is this?

It could happen at any time. This weekend or next weekend or whenever.

Banks are your enemy.

 

[Rasputin_Vol]

Can’t just bail out SVB
Can’t simply allow contagion

What do you do?

20-30% haircut for everyone with .gov covering the rest? I don’t know what you do here.

In a fair, capitalistic world, you would let the banks die.

 

[Rasputin_Vol]

That is ambiguous. When you say premium..just like our car insurance. Is the FDIC sitting on a mountain of cash that can cover every US despositor in the nation up to $250K each. That would be trillions.

No, of course not. I posted something about this several years ago.

There's only $25-30 billion in the FDIC trust fund to insure about $10.8 trillion in FDIC insured acounts.

Several large banks? All you would need is for one of the Too Big Too Fails to plow through that.

 

[Wireless1]

In a fair, capitalistic world, you would let the banks die.

When your risk managers are more interested in diversity than safety, you deserve to fail.