BREAKING: Federal Government To Bailout Failing Bank With Billions Of Taxpayer Dollars

[Malcolmxxx_23]

Too big to fail
You know how many ppl Won’t get their bi weekly pay if they didn’t bail them

 

[Godless Socialist CEO]

OP with a sensationalist thread title. They’re letting the bank fail and just making the people who had money deposited there whole.

Mind you I’m not someone who’s even in favor of this. If you’re too stupid to diversify your money then you deserve to be fukked if you don’t meet the insurance threshold, but thread title and OP are full of shyt

Honestly this is what the federal government should’ve done in 2008. Let all those banks fail and make the people whole

 

[Payday23]

At the end of last year SVB had uninsured deposits in its US offices of $151.5 billion, equal to 88% of its total deposits of $173 billion, per its annual report filed with the SEC on February 24.

Silicon Valley Bank's collapse means startups and VCs face billions in losses

Moody's said up to a fifth of SVB's uninsured deposits may not be recovered if the bank is wound up.

www.businessinsider.com

even if losses are covered up to 100 billion, there's 51.5 billion or MORE to be covered. who do you think will pay for that?

keep in mind, americans have already paid over 20 billion in aid to Ukraine so far.

how much do you think 71.5 billion would do for americans?

Most of the "aid" to Ukraine isn't money it's military equipment and to help the US government function over there. It also allows the US to export Natural gas to Europe at a better rate and to more markets where Russia used to run things and we've already doubled the numbers from the year before.

Aid to Ukraine Explained in Six Charts

Six charts show where the $68 billion of U.S. aid to Ukraine goes, how much of it buys weapons, how long it will take to spend the money, and what other countries are doing. With no settlement in sight, the war will go on for many months, as will U.S. aid to support it.

www.csis.org

Bloomberg - Are you a robot?

 

[Cakebatter]

1. ‘Bailout’ usually implies that the taxpayers bear the brunt of the financial ‘safety net’. That isn’t happening here. Shareholders of SVB, and some of the holders of unsecured loans, won’t get anything back. People who deposited money into SVB will. So when all shareholders and leadership of the bank get told ‘sorry your money isn’t coming back’ that isn’t a bailout. So your entire premise isn’t correct to start with.



Or in short, this


2. I’m in favor of student loan forgiveness, but things like that require a voting throughout government. They haven’t gotten a large enough portion of the government to be in favor of student loan forgiveness. Student Loan Debt represents almost 2 Trillion Dollars. If we just woke up one day and erased all of that, so many banks would take such massive losses that we’d have a real bank collapse, way bigger than what we just saw happen.

And while we’re here, student loans have been paused for almost 3 years now. People act like that’s nothing, but it’s pretty significant. The money you woulda used to pay down your loans, what have you done with it since the pause? Share with the class how you’ve flipped it?

You’re taking two topics completely separate of each other and trying to make a comparison. One of the many reasons that the SVB / Signature Bank discussion isn’t one that will be productive on this website.

Every depositor signed a doc disclosing deposits were insured for only $250k by the FDIC. "Its the deal you signed up for". This makes the SIVB depositor bailout quite comparable to Student loan borrowers.

Regarding the President's authority, If the US President has the power to halt loans, or forgive loans or reconfigure them, then they have the power to forgive $10k of all government backed student loans. There simply arent any limits to stop a President from eternally halting payments. SCOTUS is only arguing over the method Biden used (HEROES Act). Its obvious Biden didnt want to forgive student loans, and intentionally used a method that would get struck down.

 

[JetFueledThoughts]

Every depositor signed a doc disclosing deposits were insured for only $250k by the FDIC. "Its the deal you signed up for". This makes the SIVB depositor bailout quite comparable to Student loan borrowers.

Regarding the President's authority, If the US President has the power to halt loans, or forgive loans or reconfigure them, then they have the power to forgive $10k of all government backed student loans. There simply arent any limits to stop a President from eternally halting payments. SCOTUS is only arguing over the method Biden used (HEROES Act). Its obvious Biden didnt want to forgive student loans, and intentionally used a method that would get struck down.

The FDIC is leveraging the Deposit Insurance Fund to essentially cover this.

Deposit Insurance Fund | FDIC.gov

www.fdic.gov

This type of bank failure is more or less what the DIF (and the FDIC) are for.

FDIC covers up to 250k as you said, and the DIF is in place for extraordinary circumstances like this where additional coverage is required.

SVB has assets that will likely cover the delta in coverage, over time. They don’t have the money today, or next month or the next to cover it all. FDIC is basically saying ok we’ll tap the insurance fund to cover this and we’ll pick over SVB’s carcass after the fact to make ourselves whole. This shyt has nothing to do with taxpayers funding almost 2 trillion dollars in student loan forgiveness.

Again, you’re taking two situations that are totally different. Just say you don’t want to pay down your student loans and be done with it, it has very little to do with this situation.

 

[OperationNumbNutts]

Moral of the story. If you fyck up, do it on a large scale.

 

[NaijaProdigy Redux]

The thread title is just wrong

 

[Cakebatter]

The FDIC is leveraging the Deposit Insurance Fund to essentially cover this.

Deposit Insurance Fund | FDIC.gov

www.fdic.gov

This type of bank failure is more or less what the DIF (and the FDIC) are for.

FDIC covers up to 250k as you said, and the DIF is in place for extraordinary circumstances like this where additional coverage is required.

SVB has assets that will likely cover the delta in coverage, over time. They don’t have the money today, or next month or the next to cover it all. FDIC is basically saying ok we’ll tap the insurance fund to cover this and we’ll pick over SVB’s carcass after the fact to make ourselves whole. This shyt has nothing to do with taxpayers funding almost 2 trillion dollars in student loan forgiveness.

Again, you’re taking two situations that are totally different. Just say you don’t want to pay down your student loans and be done with it, it has very little to do with this situation.

I don't have student loans. I exited college when your mom was still swallowing your should-have-been siblings. The DIF only has $500 million in assets. Roku is reported to have nearly that much in SVB before the collapse. So where is the other money coming from? Biden's student loan forgiveness is only worth $400 Billion.

 

[Payday23]

Moral of the story. If you fyck up, do it on a large scale.

Exactly

 

[JetFueledThoughts]

I don't have student loans. I exited college when your mom was still swallowing your should-have-been siblings. The DIF only has $500 million in assets. Roku is reported to have nearly that much in SVB before the collapse. So where is the other money coming from? Biden's student loan forgiveness is only worth $400 Billion.

Lmaooo awww man so you’re old as shyt and you still speak so confidently on topics that you don’t know a fukkin thing about?

The DIF has over $100 Billion in it smart guy. You coulda read up on the article I posted earlier in this thread.

MSN

www.msn.com

“The officials stressed that the funds used to pay depositors of Silicon Valley Bank and Signature Bank will come from the FDIC's Deposit Insurance Fund (DIF). The DIF is funded by fees on banks, and then from earnings on their investments such as Treasury securities, and currently has more than $100 billion in it, according to officials.”


And as I mentioned earlier, if anything else is needed after the DIF funds are tapped, then the FDIC will be made while after picking at SVB’s carcass. The whole issue here is that SVB doesn’t have cash today. There are still plenty of assets under their management that will be worth plenty once they reach maturity (ie. bonds)

 

[Tres Leches]

ponzi

 

[IIVI]

Sounds like folks aren't getting off as easy as people think:

This was not a bailout. During the GFC, the gov’t injected taxpayer money in the form of preferred stock into banks. Bondholders were protected and shareholders were diluted to varying degrees. Taxpayer money was put at great risk. Many people who screwed up suffered minimal to no consequences. Those were bailouts. Here, shareholders and bond holders have been wiped out.

The @FDICgov insurance fund capitalized by premiums paid by banks will absorb any losses. The fund will recoup any losses by assessing more premiums on the banks. Had the @FDICgov @USTreasury and @federalreserve not intervened today, we would have had a 1930s bank run continuing first thing Monday causing enormous economic damage and hardship to millions.
More banks will likely fail despite the intervention, but we now have a clear roadmap for how the gov’t will manage them.

Bank boards and managements have received a massive wake up call. Being a director or CEO of a bank that fails is no fun: years of litigation, regulatory investigations, personal liability, potential civil and criminal charges, and enormous reputational damage.

Our gov’t did the right thing. This was not a bailout in any form. The people who screwed up will bear the consequences. The investors who didn’t adequately oversee their banks will be zeroed out and the bondholders will suffer a similar fate.

Importantly, our gov’t has sent a message that depositors can trust the banking system. Without this confidence, we are left with three or possibly four too-big-to-fail banks where the taxpayer is explicitly on the hook, and our national system of community and regional banks is toast.

Our government did the right thing for the country. We are very fortunate it did so.

 

[Lexington Steele]

I don't have student loans. I exited college when your mom was still swallowing your should-have-been siblings. The DIF only has $500 million in assets. Roku is reported to have nearly that much in SVB before the collapse. So where is the other money coming from? Biden's student loan forgiveness is only worth $400 Billion.

Decades leading up to the student debt crisis: "Well, technically, due to the fiscal obligations placed on puts by the NASDAQ, the government cannot simply come in and..."

One weekend of rich kids' Bitcoin bank blowing up: "YES SIR, WE'LL BAIL THAT OUT RIGHT AWAY, SIR!"

 

[Cakebatter]

Lmaooo awww man so you’re old as shyt and you still speak so confidently on topics that you don’t know a fukkin thing about?

The DIF has over $100 Billion in it smart guy. You coulda read up on the article I posted earlier in this thread.

MSN

www.msn.com

“The officials stressed that the funds used to pay depositors of Silicon Valley Bank and Signature Bank will come from the FDIC's Deposit Insurance Fund (DIF). The DIF is funded by fees on banks, and then from earnings on their investments such as Treasury securities, and currently has more than $100 billion in it, according to officials.”


And as I mentioned earlier, if anything else is needed after the DIF funds are tapped, then the FDIC will be made while after picking at SVB’s carcass. The whole issue here is that SVB doesn’t have cash today. There are still plenty of assets under their management that will be worth plenty once they reach maturity (ie. bonds)

My $500 Million quote comes straight from the DIF's FAQ page LINK

 

[Seoul Gleou]

Svb has securities that will cover all coats after they mature.

this argument has been posted here numerous times like its some sort of panacea.

SVB invested in mortgage securities with 10 year maturities. suppose we forget that these securities declined in value, forget about time value, extrinsic value, interest rates, and other depreciative impacts... this is something we expect to be resolved a decade from now when these incompetent fukks have made billions more in a deregulated financial market.

in the year 2023, the here and now, we the tax payers will foot the bill for millionaires and billionaires who refuse to take the same L's as people with student loan debt and credit card debt. they knew and understood the risk of all their assets exceeding FDIC insurance.

the fact that there are actually people here who think it's okay to bail out the rich but not the poor is insane