Its unreal that the Fed is offering a bail out of SVB deposit holders above the 250K limit. Risk taking VC's and Crypto nut jobs and their cr------d banker want to take on a ton of risk and now everyone else has to pay for it with higher rates and higher FDIC insurance costs. In effect what the Fed is saying is all the banks that are careful with their books have to pay for all the bad banks and their poor decision making. Yellen just F'ed up.
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Banks fail every year.
Markets crash every 8 years.
The same PSYOP(s) are always stuck on repeat.
THE WORLD ISN'T ENDING.
lolz, you haven't read much Rand have you? It's the collectivists calling for bailouts. I say "let it burn".
Yellen is a lying mo--n. If deposits are met beyond FDIC limits that’s a nail out.
Talk about alternative facts. It is a bailout of the Venture Capitalist that caused the run. Good work. For those that say that the taxpayers wont pay we wont pay from taxes but when banks have to make up for the fees charged them where do they get the money from? Their customers. They charge higher rates, more fees and pay lower rates. Is it sad that companies like Roku kept their money there and could have lost it, yes. Say what you want about the poor management of WF at least we don't have a liquidity issue. Now instead of too big to fail it is too rich to fail.
The FED isn't bailing out anyone... WE ARE!!!!! The tax payers.... the FED, DC, Govt is not some entity with a bank account, try to remember that this is OUR money they're transferring to those who took bad risks... next they'll be offering us way more money than they're worth for our gas guzzler cars... oh wait... they'd never do something like that...... again.
Hate if you want, I'm glad it failed. The orgs and people that kept $ there seem to be pretty despicable. Like another posted said, it's not granny and her nest egg.
It's been fun watching all the Ayn Rand leg humpers begging for a bailout.
And it is a bailout, no matter where the money is coming from, and it's a government bailout because we're paying the government to do the bailing.
What's not fun is knowing most people are going to forget this ever happened, just like 2008, because no one is ever held accountable.
Degregulate, fail, beg government for free money, continue being an incompetent frat boy loser, repeat.
For the folks in the cheap seats:
Taxpayers are not on the hook for this. For Gods sake.
Like others said, it's not about bailing out the SVB, but protecting depositors and the economy as a whole. Cause it's not just start-ups and VCs that had money there, a lot of other businesses are impacted. For instance, Roku itself had a half of billion dollars deposited there, like a quarter of their cash. That's not something one can just write off easily. Losing that amount of money would have a huge impact not just on Roku, but to the other banks they work with as well. And that's just one of SVB's depositors.
SVB is not the bank where grandma keeps her life savings. A lot of the depositors there are startups who will not be able to make their payrolls if they can’t access their money. Ripple effect, anyone?
Note that this isn't being funded by taxpayers, it's being funded by the Deposit Insurance Fund, which is funded by quarterly assessed fees on FDIC-insured financial institutions and interest received from investments in government bonds.
Technically speaking, this isn't a bailout, it is protecting depositors. Yes, it is a bunch of rich people who shouldn't be getting back more than we normal peasants would. I don't really think the government on either side of the political aisle is interested in seeing a bunch of depositors lose their life savings while heading into a potentially significant recession.
So rich people get the benefit of being fdic insured without having to pay for it. Nice.
there's nothing related to crypto here.
And the Fed isn't bailing them out. The FDIC is making depositors whole, which is within their charter when a bank failure is determined to pose significant risk to the financial system. SVB is a SIFI and that's what the designation means.
It's like a super sh sandwich - tech disrupting finance, finance investing in risky tech and then some idealist unregulated crypto smashed inbetween.
There's more to the story than that, like interest rate changes, but that is boring and doesn't taste good in a sandwich.
Rich Venture Capitalists, bailed out - check
Rich individuals with more than 250k in an deposit account, bailed out - check
Executives paid out bonuses and comp, even though they were so greedy they were taking short term deposits and buying 30 years treasuries for an extra 125bps pure greed and also a basic ALCO 101 match maturity error - check
Gov't regulators getting to wash their hands, and get to play hero - check
Taxpayers paying for all of the above - check
They are bailing out customers but not owners/investors. At least so far. So there’s that.
This will just embolden risk taking and bad management at all banks. Maybe so much so that someone will buy Wells Fargo mortgage servicing.
This will just embolden risk taking and bad management at little players.