BREAKING NEWS – The U.S. Treasury, Federal Reserve Board, FDIC and Joe Biden collectively announce that *all* depositors with Silicon Valley Bank (SVB) will have access to their funds – regardless of amount deposited. Also, all senior bank management has been terminated.
This announced action appears to cover those under FDIC protection ($250k or less) and those above FDIC protection (deposits greater than $250k). The only vulnerability is that SVB “shareholders and certain unsecured debtholders will not be protected.”
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. (LINK)
Will this action help stop any contagion related to California’s largest bank?
…The odds are, yes.
Despite Friday’s action to stop trading of FRB, with this action, I doubt First Republic Bank (FRB) is now at risk.
The response was we will get back to you on that.
The Organic Prepper has an interesting article today about different banks which may be at risk.
No need to look at this.
I’m glued to CNBC and waiting for Jim Cramer to come on.
Jim Cramer, the great financial reverse barometer, as consistently wrong as Biden, and that’s saying something!
More money printing, more inflation, more effective inflation tax to all Americans. Biden is full of his usual pile of bullshit!!
I keep reading here that Yellen and Powell are on the same page regarding bailouts. Is there evidence for that? Because that’s not what I’m seeing. Looks like this was an effort by the globalists and Yellen to open up the Treasury coffers to flood the zone and make Powell stop raising rates — which is killing the globalist income stream. If the Fed is on board here, color me very surprised. Evidence?
Meaning, I’m not seeing the Fed on board with anything other than doing what Jimmy Stewart did in It’s a Wonderful Life.
Jimmy Stewart had an Angel sitting on his shoulder.
I don’t think Powell has a lot of divine guidance.
Powell cant stop raising rates. The FED is tasked with keeping inflation under control. It is between a rock and a hard place. It can keep raising rates to catch up with our runaway inflation. This will eventually crash the markets, and cause a recession. Which if not handled right will lead to depression.
Or It can lower rates, restart QE and put the printing presses on turbo power. Which will cause Hyper inflation, destroy the dollar and crash the entire economy. Which leads to total collapse.
I am pretty sure Powell will chose the Economy over the stock market. No mater how much pressure he gets.
But if he goes the other way. It might be wise to make preparations to leave the country.
The more Powell and the Fed raise interest rates the more tech stocks crash and the banks crash!
Inflation is just the cover story. Powell knows that he only has influence over the demand side of the equation, and everyone is aware that this is a cost push inflation, not the result of a runaway economy with explosive demand. Luongo is right and has been supported by events and an increasing number of pundits. The Fed is most likely raising rates to drain liquidity from the offshore dollar markets and rob the globalists of their ponzi scheme funding source. Whether intentional or not, that’s what’s happening.
People here need to wrap their heads around the obvious fact that the NY banks are in survival mode. They are not about to destroy the system that they run and, accordingly, are not on board with handing over their keys to Davos. Why on earth would they be? Why would the most powerful people on earth want to obviate themselves and make everyone eat bugs?
Who do you think is supporting the gradual release of damaging material by Musk, Carlson, McCarthy? Two years ago, none of these things would be happening. Try thinking of the Fed as being kind of like Russia during WWII. They don’t have to be good guys to be our allies in this fight.
And go,….WHERE?
Thanks to the Globalists and globalism, everything is so interconnected that we all hang.
It’s like that genius move prior to WW1, having treaties to prevent war, only insured that any war would inevitably bring in all of the countries of Europe.
Build Back Shittier in full swing
Thank God.
I spent all weekend worried about the VC and hedge funds.
If the government insures all deposits, why bother with the $250,000 limit that we waste our breath talking about.
The $250k limit is for us little people, not for big, woke, Dem investors.
I see headlines this a.m., that the bank failure situation is metastisising.
Biden admin, jumped in to reassure depositors, AND THE GENERAL PUBLIC that deposits would be covered, AND that it was an isolated instance.
The problem is obvious and forseeable; NO ONE believes them.
THIS is the predictable consequence of THEM thru conscious acts, TRASHING their credibility, promulgating false narrative after false narrative, going for a short term gain of a headline, at the expense of their credibility.
And so now, when the only thing that prevents a bank run on ALL banks, is the credibility of those reassuring us the other banks are sound, etc…
THEIR “Credibility acct.” is OVERDRAWN.
Some have pointed out, if a “REAL” pandemic occurred, the effect would probably be much worse, as no one would pay attention to, or believe anything “they” said.
The inevitable long term consequence of trashing your own credibility is obvious, to those familiar with biblical teachings, …
But THEY have nothing but contempt for biblical teachings,…and so it’s entirely POSSIBLE the financial system collapses due to a lack of confidence, because nobody believes THEM when they say it’s sound.
And the boy cries wolf.
Full faith and credit of the USA is in the crapper, thanks swamp rats…burn in hell.
Just a trial run on woke ran business to show how it works in their goal to be woke at minimal cost.
They are covered by Biden administration for all future training in the future of the goal.
BS to them.
Taxpayers not going to pay a dime in bailing out these banks!!
No, they just gonna make the banks while on their investments until the markets correct, if they do.
So if you get a margin call on your investment account because your bonds are worth 70% of their original value, is the Fed going to backstop you?
Taxpayers, citizens, are paying big time!!
“Also, all senior bank management has been terminated” Well, they have all had their bonuses and skiing trips.
Does this also mean that Aunt Janet will bailout anyone who lose money in the stock market? It really is the same thing.
Repeal of the Glass-Seagal Act in 1999 did not help anything
Last Autumn ( 2022)
several couples discussed many topics at a social setting, with a banker employee.
The banker employee spouse was speechless when discussing ‘ fear ‘.
fear of virus
fear of jab
fear of non stop illegal immigration
..drum roll…
fear of a run on banks
ala
The movie
” it’s a wonderful life ”
That ‘run’ was hard for some others to imagine could happen – but considering the other fears having happened…
[ it’s just a movie…
uh, huh… ]
p.s.
But when fear gave way to earned ‘trust’
( not words of endless money being somewhere )
…indeed, it became a “wonderful life”
The full faith and trust of the U.S.
…has been (conspicuously) waning as ( untold ) the c c p gains leverages, via corruptions in the u.s. operations and people.
There is an honest way to earn trust
( wonderful life, has the clue …it was not words… ).
It has happened before… : )
Did we learn, or forget, or…?
Do we also bailout everyone who lost money in the housing market in 2008? This is pure fascism.
SVB hired a Biden megadonor – got bailed out.
‘Because of the actions that our regulators have already taken, every American should feel confident that their deposits will be there if and when they need them’ Biden lied.
The deposits of ordinary Americans were already protected up to $250,000; unlike banks that serve ordinary customers, the vast majority of SVB’s clients held over $250,000 and were not protected by FDIC insurance.
SVB spent billions on green energy millions on Black Lives Matter and other leftist causes until it finally ran out of ‘other people’s money’ – SVB hired a Biden megadonor – got bailed out. Biden administration illegally bailed them out while unilaterally transforming FDIC insurance into a protection plan for its political allies.