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Since people still can’t wrap their minds around the fact the Gaza death toll hasn’t changed
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Meta E6 offer.
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Israelies and Jews are great people
https://home.treasury.gov/news/press-releases/jy1337 Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. #svb #news
So now can we please stop seeing LinkedIn posts from vc’s writing about how they stand with svb after telling everyone to pull their money and causing a run? And
Good news. I’m very curious why the bank collapsed if there are enough funds to make all depositors whole. Are the regulators selling off non financial assets?
The money 🖨️ printers were under service. They worked over the weekend to expedite the servicing and now they are ready to go.
The regulator will take whatever assets they need to from the bank to cover the depositors. But unsecured creditors and shareholders are SOL as they should be. They chose the risk, depositors didn't.
The fed will provide liquidity for banks to take out loans against collateral (such as longterm treasuries). Does anyone know what happens if the loans cannot be paid back? Will the bank be auto liquidated if their collateral drops below a certain % threshold or will the tax payer take the loss?
Rich people alway find their way. 😂. We are going to print all of that and the. Squeeze it out of middle class by increasing the rates. Lay off all the folks… 👿☠️👿
Its not taxpayer money but federal Reserve balance sheet probably. One way or other impacts tax payer
Not the right approach. People were irresponsible and face no consequences?
No tax dollar used, but the money comes from treasury, so where does treasury get that money? Either is tax dollars, or fed directly gives money to treasury, equivalently QE. If it’s the form of QE, fed is raising interest rate on one hand, and release money through QE the other hand, inflation is going to be worse and stay forever
Ur righ another qe gimmic? They say its insurance fund but that will run out quickly
This is a game of semantics. Fdic insurance funds come from depositors who are…wait for it…tax payers! And where do you think money for the liquidity facility comes from? I’m not saying that this shouldn’t have been done. Clearly it would have been a disaster if we had 9,000+ banks have a run like in the early 20th century. But these kinds of bailouts also distort risk perception going forward. If you’re an auto manufacturer you don’t have to worry about labor costs because govt will cover you. After 2008, a lot of banks felt the same. And if you are a bank today that knows deposits are always backstopped by the fed why would you not take a lot of risk? Why even pay much interest to depositors if they don’t ever lose a dime?
Wait, so did taxdollars get used to support uninsured deposits?
Yes
Nope. Not a single dollar.