> 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?
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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
#32Oh, surprising re Signature, but 100% backstop should calm things down.
Any fiat crypto rails left in the US, after the FDIC buries SEN on, I dunno, Tuesday?
Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC
#33So without Signet, does Circle have any means to satisfy USDC redemptions?
Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC
#34It was announced as a footnote in this Treasury announcement , which also guarantees 100% deposits for both SVB and Signature Bank above 250k
How?! Who is funding this and if they sell the bank assets who is covering the losses?
Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC
#35All depositors will be made whole. Good news. Wonder how many more will still fail this week.
Given that the reasoning for dipping into the insurance fund is to prevent anything else from failing, if any more do this is just SV getting into the grift on the ground floor again.
Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC
#36How 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 assets will take a few years to fully wind down but are likely to payoff anywhere from 80-98% so the actual haircut won't be that large. The insurance fund will float the money until final resolution, then increase insurance premiums if needed to makeup the difference.
Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC
#37“Depositors will have access to all of their money starting Monday, March 13.”
So, they can all go tomorrow morning and withdraw/transfer their money out of SVB?
Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC
#38All depositors will be made whole. Good news. Wonder how many more will still fail this week.
9 more are on the edge.
Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC
#39Sort of burying the lede - also states that all SVB depositors will be made whole along with Signature depositors.
I'm not quite sure of that interpretation of the text. Here's the quote:
> 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. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.
To me, that last sentence about SVB is distinct and separate and not implying that the previous sentence about Signature depositors applies to SVB. But you could be right as well, I don't think it's clear.
Re: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC
#40Yellen 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 example of changing the rules in the middle of the game. Yellen has just broadcast that FDIC insurance is essentially unlimited, as long as you can threaten wider disruption to the economy.
I understand part of this is human nature but I really wish we could plan for these entirely foreseeable events ahead of time so that it's not just cases of "selective justice" with regards to who gets bailed out.