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

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

#261

Post by ummonk »

refulgentis wrote: post #11
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

Signature Bank going under is proof that contagion was indeed happening, contra what some people (e.g. Paul Krugman) were saying.

This decisive action by the government (both ensuring depositors will be made whole immediately, and the Federal Reserve giving out extra liquidity) should ensure that the contagion doesn't spread any further though, an banks like First Republic will avoid going under as well.

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

#263

Post by LatteLazy »

bradleyjg wrote: post #160

So depositors at banks taking on big risks get elevated interest rates or other perks for years, and when the shit hits the fan depositors that put their money in prudent banks get to bail them out through higher fees. And people wonder why turnout is low. There’s no way to vote for non captured politicians.

Which banks were offering elevated interest rates in the last decade?! I must have missed that memo...

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

#264

Post by thefounder »

mgraczyk wrote: post #61
hn_throwaway_99 wrote: post #40

Yellen and the FDIC is in a tough spot. This is the important line, "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law." Thus, on one hand, I'm glad they're doing this, as it should help prevent wider bank runs, and it ensures that banks are the ones that are actually paying for it. At the same time, this is yet another exam…

In cases where you can't predict the future appropriately, sometimes it's better to make prudent decisions that help everyone instead of attempting to punish the sinful. Keep in mind that bank shareholders and senior management are going to get wiped out and fired.

>> and senior management are going to get wiped out and fired.

Yeah, let's punish the management like we did in 2008...

"SVB executive was Lehman Brothers CFO prior to 2008 collapse"

https://m.economictimes.com/news/international/business/svb-...

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

#265

Post by Uvix »

unethical_ban wrote: post #117
beebmam wrote: post #93

Earlier quoted context omitted.

How do you square this statement of yours: > Yellen has just broadcast that FDIC insurance is essentially unlimited, as long as you can threaten wider disruption to the economy. with this quote from the Treasury Dept statement? > "No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."

"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 fungibility of money aside, my personal taxes will not pay for this.

If you have any money in any other bank, you're paying for this.

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

#266

Post by moose_is_loose »

bradleyjg wrote: post #160

So depositors at banks taking on big risks get elevated interest rates or other perks for years, and when the shit hits the fan depositors that put their money in prudent banks get to bail them out through higher fees. And people wonder why turnout is low. There’s no way to vote for non captured politicians.

Yeah, shit is gonna hit the fan over this in terms of domestic turmoil. All those people who took PPP loans and Silicon Valley VCs getting bailed out who railed against student debt relief, it's just mind boggling. Just wait until student borrowers start getting squeezed and the Supreme Court nixes the debt relief. This is not good for long term political stability.

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

#267

Post by raphaelj »

askl56 wrote: post #97
ecommerceguy wrote: post #62

I'm just curious, who was running the investment / risk team at SVB and why should they get a pass for doing such a terrible job?

From the UK branch which also is in severe trouble[0] Jay Ersapah, the boss of Financial Risk Management at SVB’s UK branch, launched initiatives such as the company’s first month-long Pride campaign and a new blog emphasizing mental health awareness for LGBTQ+ youth. “The phrase ‘you can’t be what you can’t see’ resonates with me,’” Ersapah was quoted as saying on the company website. “As a queer person of color and…

This is part of why the bank appealed to funders and startups. These positions are just marketing to better reach their target customer base, as far as I see them.

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

#268

Post by cragfar »

AviationAtom wrote: post #103

I'm surprised the top comment wasn't focusing on this bit of the statement: "We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority."

This is probably why they had to make this announcement. Regional banks were going to be a bloodbath tomorrow morning.

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

#269

Post by hypothesis »

bradleyjg wrote: post #160

So depositors at banks taking on big risks get elevated interest rates or other perks for years, and when the shit hits the fan depositors that put their money in prudent banks get to bail them out through higher fees. And people wonder why turnout is low. There’s no way to vote for non captured politicians.

Are you saying that “no losses will be borne by the taxpayer” is worded specifically to avoid saying anything about costs to said taxpayers? /s

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

#270

Post by Octokiddie »

Translation: the Fed is done raising interest rates. Period. Forget all of the tough talk by the team over the last few months. We raise until we break something. Now that we broke it, that's that.

As for that inflation problem... It will require another solution...

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