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Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

home.treasury.gov

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Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

#11

Post by refulgentis »

azundo wrote: post #3

Sort of burying the lede - also states that all SVB depositors will be made whole along with Signature depositors.

Oddly, that's whats happening on Twitter too: the haute couture space ppl ran to start a space and frame it as "the contagion beginning"

I find this to be an odd moment in internet history, a lot of its senior elders seem to have forgotten the odd effects it has on discourse and are unintentionally leaning into it

Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

#14

Post by morelisp »

serf wrote: post #8

> No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. i'm out of touch with how much of this works, can someone explain how this is paid without burden to the taxpayer?

It's coming out of the insurance fund, which is paid into by banks. So the cost is still ultimately borne across a wider sphere, but not the government per se. (This is what's meant by "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.")

The costs aren't borne by "the taxpayer", but an awful lot of taxpayers who had nothing to do with this or even purposely avoided it may be paying higher banking fees as a result.

Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

#15

Post by noelsusman »

It's a bit embarrassing to have to invoke the systemic risk exception when regulations on these banks were relaxed in 2018 on the theory that they wouldn't pose a systemic risk if they got into trouble. This should spark some serious soul searching from everyone involved in that effort, but I'm not holding my breath.

Anyway, I'm happy for all the depositors.

Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

#16

Post by FormerBandmate »

azundo wrote: post #3

Sort of burying the lede - also states that all SVB depositors will be made whole along with Signature depositors.

I could have sworn that was already posted here, my bad. Can mods change the thread title?

Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

#17

Post by ZachPruckowski »

> "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law."

Very curious to see who ends up paying this special assessment. Are we all going to pay in lower deposit/investment interest from banks? Are bank shareholders/profits gonna eat it?

Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

#18

Post by pcl »

shippintoboston wrote: post #9

How exactly are they guaranteeing all deposits? They claim to not be bailing them out and they haven't found a seller. I'm smelling bullshit.

“Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.”

Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

#19

Post by scatters »

shippintoboston wrote: post #9

How exactly are they guaranteeing all deposits? They claim to not be bailing them out and they haven't found a seller. I'm smelling bullshit.

The rest of the industry is paying. "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.". RIP the $250k FDIC limit, I guess.
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