...vivek wrote an OPED bashing TRUMPS anti trust policies for gods sakes. Seriously?!?1 How can you be to the right of trump on antitrust? https://www.wsj.com/articles/antitrust-cant-bust-a-monopoly-of-ideas-11596643591 What happened to the Teddy rosservelt republicans?
this is the smartest thing youve ever posted in this section. The reason why they didnt hedge their portfolio with shorter term bonds was because they didnt meet the threshold for advanced regulation...... They were gambling with treasury bonds trying to match the fed rate hikes. Ridiculous money management and now the same hedge fund scumbags are asking for a bailout. Let them all burn If biden bails them out it will be one of the lowest points of his presidency. Period.
Who said I am? Conceptually, I agree with Vivek. (Selfishly, I want a bailout - we had some money with SVB - likely got it out in time anyway).
I don't understand half of what you're saying, but I'll stick to what I do understand. SVB was exploring options, including finding a buyer to take over, which might have prevented what happened. However, it could not be avoided due to a bank run, and the partial repeal of Dodd-Frank also played a key role. Biden typically proposes feasible solutions, but the partial repeal of Dodd-Frank had the support of Republicans and some key Democratic supporters. Given the 60-vote threshold, there was virtually no way for Biden to reverse the partial repeal. Therefore, the blame lies primarily with the Republicans and the few Democrats who supported the repeal. Silicon Valley Bank Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC (theintercept.com) “This was a 100 percent avoidable problem,” economist Dean Baker told The Intercept in an email, pointing to the Dodd-Frank repeal bill. “That bill raised the asset threshold above which banks have to undergo stress tests from $50 billion to $250 billion. SVB would have been required to undergo regular stress tests before the revision; among the stresses you look at are sharp rises in interest rates, which is apparently what did in SVB. Presumably, if its books had been subject to this test, the risk would have been detected and they would have been required to raise more capital and/or shed deposits.”
I'm happy we're not using a dollar to payout wall street scum? What does Biden have to do? Yellen use to be a fed chair. She knows all the CEOs and I'm sure she pulled a few strings. If biden had used a single dollar to bailout big banks I wouldn't donate to his 24 campaign. Sipping for big corporations and big banks is disgusting. Period.
I guess we will get the details tomorrow. Federal Reserve Board - Joint Statement by Treasury, Federal Reserve, and FDIC March 12, 2023 Joint Statement by Treasury, Federal Reserve, and FDIC Department of the Treasury Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation For release at 6:15 p.m. EDT Washington, DC -- The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. 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. 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. Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today's actions demonstrate our commitment to take the necessary steps to ensure that depositors' savings remain safe.
Yeah remember they can't announce any mergers until trading opens at 8:30 tomorrow. Looks like they'll make everyone whole and then charge bigger premiums to the new bank.
Gonna be interesting to watch the Asian stock markets. But I think they wanted to get this out before they open.
Looks like the system took care of itself, as designed, thank god for competent beauracrats. Not sure if accurate yet, but the terrible Republican policy of rolling back Dodd Frank seems to be the blame for this one. We hope this will be the one where people finally begin to understand how the Republican party simply isn't up the task of leadership, but probably not. As Fox would say behind close doors, the lemmings on the right are akin to "dumb terrorists, the cousin ****ing types". So I am sure they will try and pin the blame on wokeness or immigrants.
