A bailout is different than making sure depositors are made whole. They're arranging for another bank to take it over - final bids to the FDIC are due this afternoon. https://www.bloomberg.com/news/articles/2023-03-12/fdic-auction-for-svb-said-to-be-underway-final-bids-due-sunday |
Maybe we need a collapse. Some people are stupid and stubborn and want to keep printing and spending. Many right on this forum. Well F them. On the positive side, I see a lot of entertainment in my future from idiotic terms like "risk corridors" from progressive Washington DC. |
World is losing confidence, buddy. National debt is around 95K for every person in the country. You seem unphased. You deserve what's coming. |
Extending the three card monty. Good. |
You, personally may not fear a collapse, but Sandy Spring bank in Maryland has now been flagged as having a similar risk as SVB, if you didn't know. How many local businesses have their money in Sandy Springs? It's not easy to diversify your bank accounts when you have several million dollars or more for your company and you don't have an army of accountants at your small company to keep track of all of the finances. It also makes financial reporting exponentially harder. Also, it's not just business owners in CA harmed by the failure of SVB. Many companies across the country had used SVB for starting their companies. Small time biotechs, for example, used SVB a ton for financing and banking. They're all over from Boston, to Research Triangle, to even this area. |
+1 I’m glad Yellen and not DCUM posters are in charge. I’m confident that Treasury and the FDIC will contain this responsibly. |
Can't read - paywall. Are they selling the assets to pay the depositors? Or are they selling the bank, including its risk, and potentially creating another bank at risk of a run/collapse? And what dumb bank would buy that? |
Do you know what a "bail in" for a bank is? |
Then why didn't they obtain insurance for deposits over $250k? People who were fully aware that the FDIC limit was $250k shouldn't suddenly be acting surprised that the payout will be $250k. |
Hellen helicopter money and nationalized banking so we can redistribute wealth equitably? Yeah, she doesn't fill me with confidence. |
Because it's too big to fail. Until it isn't. |
Right, because your average small business owner running a landscaping business has the financial knowledge to understand the systemic risks of rising interest rates on banks' holdings of bonds that could make them collapse. You seriously overestimate how much thinking business owners use when they use banking. People out their money into a bank and expect it to be there and for the system to be stable. They don't give a single crap about the gritty details of banking regulations, reserve requirements, etc. Once common people see banks starting to fail, they're going to panic and pull their money out. |