Officials at the Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation discussed the idea this weekend, the people said, with only hours to go before financial markets opened in Asia. White House officials have also studied the idea, per two separate people familiar with those discussionsThe plan would be among the potential policy responses if the government is unable to find a buyer for the failed bank.
Officials have grown increasingly alarmed by the prospect that SVB’s collapse could lead depositors to move their money out of similarly situated banks and into the safer Wall Street firms. The U.S. banking system is highly concentrated, with the top five institutions holding almost $13 trillion in assets. Even if other banks that are comparable in size to SVB suffered depositor runs, the overall financial system would continue to function, he said.Bob Hockett, a Cornell University professor who worked at the central bank, said the FDIC has the legal means under the “systemic risk exception” of the Federal Deposit Insurance Corporation Improvement Act to intervene.
Good the federal government needs to protect these people money
Man dont trust these politicans
One day before bankruptcy, SVB and SIGNATURE payed the bonuses to their managers. This is criminal. When does finally Someone of this criminals go behind bars?
🤦♂️
The US government has shown over and over again to only work for rich people.
Let us witness again the crisis from the capitalist
Bailing out the 1% while allowing scores of businesses to go bankrupt during the COVID lockdowns. The USA in 2023 🤡
Elon musk
Safeguarding = Bailout What horse hockey
Only protecting the silicon valley billionaires and millionaires who are the biggest Democrat donors. Bailout for the poor students and bailout for the billionaires. Just not ordinary taxpaying Americans.
At tax-payer expense? Can they be claimed as a dependent on taxes? Asking for a friend! 🤷🏽♂️
But how will we pay for it?
Uninsured depositors should be wiped out just like stock and bond holders. Otherwise, it's a bailout by taxpayers. The middle class pays most of the taxes, so essentially the tech bros would be getting bailed out by the middle class.
So we can afford to back the failed bank but not student debt? Will we back the next bank that fails too?
More money laundering
Total mismanagement must have consequences.
Fuck that.
Encouraging US financial sector to keep gambling.
Build back better
EAT THE RICH
Just think, the residents of East Palestine Ohio couldn't get squat from their government. Nothing. For an accident they had nothing to do with. But Silicon Valley depositers, overwhelmingly Democratic voters, who ignored FDIC guidelines, will be made whole. Truly sick and sad.
DNC and the Left gotta protect their voters!
🤬this is ridiculous. So basically the tech bros are threatening the government. And the government doesn’t have much of a choice. Infuriating.
darioperkins WTF? Does Nancy Pelosi have assets $250K there? No way should uninsured get post insurance on the back of middle class responsible taxpayers.
So, there's a $250,000 insured limit unless unless unless unless unless. Gotcha.
We have got to stop bailing out private businesses at taxpayers expense! 'Too big to fail' was a disaster!
WHY WOULD RON DeSANTIS DO THIS?
The opposite of Robin Hood.
So…a bailout
That’s a BAILOUT
disgusting
Got to bail out those big democrat donors
A bailout but now named a loan 'secured' by assets no one else in the market was willing to pay anything for!
Which are the 'insider' banks that i should use; get higher rates but still get unlimited federal protection?
It’s time to stop paying our bills. When the government stops taking our money to bailout the rich, we resume paying them. I sure as shot am not paying another dime of my predatory student loans if another bailout happens.
Yawn.
I can live with this if they claw back any proceeds from stock sales by insiders that occurred once they knew the bank was likely going down. Reverse those sales immediately.
So bailing out the rich is good now?
Nevertheles Black Monday is present
This is bullshit. SVB, with help from VC panicking, ran themselves into the ground. Let them take the haircut.
Where's my fucking money?
This would be a mistake.
We have to beg the lizard people for our deposits? !?! They have no issue giving it to Zalensky….
just say no to bailing out the bank just protect the depositors
Arrest corrupt bankers!
Up to $250,000. That’s the law.
What utter bullshit.
JonLemire Gee, I thought the Right doesn't like welfare. GOPSeditiousTraitors Hypocrites
No
can you 'safeguard' something that doesn't exist?
Only if there is a full investigation and people held crimi ally liable where possible
The Oligarchy takes care of its own. The rest of us 🤷♀️
Fuck that shit.
Criminals taking care of criminals with money they stole from the wage earners
Gave up on the US after Trump passed the tax burden onto the backs of middle class families like mine. There's people who say they 'won't make excuses for the terror' I'm not going to make excuses for them. Or what they do to you people.
Save the shareholders and the tech bros! They’d help out the 90% if the shoe was on the other foot. Just read their DEI statement…
Why? They took risk. Socialism for the rich, f the poor would be the message.
They should receive a one time, $600 stimulus check to help them get through these difficult times.
How about a means tested $10k?
Fuck no
Socialism for the rich, rugged individualism for the poor. We need a revolution
NO BAILOUTS
Superintendent of Financial Institutions takes temporary control of Silicon Valley Bank’s Canadian branch
$10,000 relief your college loan- Yes. Saving the deposit of a company so that it can pay you $120,000 per year - No. This is how socialists think.
Build the guillotines
I’m not an a money or banking exepert, just a taxpayer who obviously will be responsible for bailing millionaires out that I don’t know. My question is where did all the money go, who got it & why aren’t they being held responsible.
Aren't these the bootstrap fellas that are against student loan forgiveness. Must be nice to be in the protected class
Fuck that
If they do it they will be in direct violation of the law and congress will come down upon them like a hammer.FDIC $SIVX $XLF $SPX $VIX Contagion SenWarren
Hell no! These folks need to lift themselves up by their own bootstraps and stop relying on the US government for “welfare and other entitlements.” Just as the vast majority of these people are against reparations for ADOS, I am against their receiving a taxpayer-funded bailout!
Well done liar’s
They better not bail out this debacle. It was idiotic to put so much into a woke bank that wasn't working to keep up their fiduciary duty. Yes they had a chief inclusion officer. Yes they had 3 women leading their investment team. I'm sure 'climate change' was important too. 🙄
Privatize profit and socialize loss. Venture capitalists and libertarians are all of a sudden socialists (again).
Now do student loan forgiveness
lookner Maybe they were sending PPP loans to those … who took advantage
jchervinsky One would think that I would get tired of beating a dead horse but if the federalreserve SecYellen continues down this road, the J6 insurrection was only a rehearsal to what’s to come. The dollar is toast. What do you think the masses will do when they figure this shit out?
Only if the CEO and all top managers return their bonuses from last year and give up those from this Year!
So the tax payer will be on the hook? Again? Everyone knows the fdic limit.
With what (whose) money? Gonna start up ye old printers again?
Someone ask Mr Potter from it’s a wonderful life - lookner
Should have said that on Friday!
Two things: 1) How does this fall within the Fed’s mandate? 2) How does this not require legislation for funding?
The Smartest Guys in the Room, part 2.
Pay the employees. The employers take the risk, right? That’s why they “deserve” to make money off the backs of others? Well this is the risk they assume. Pay the employees and let the employers figure the rest out.
We can bail out private investors, but people with student loans have to repay back every red cent borrowed.
The usual sequence: 1). Republicans remove adult supervision 2). Something bad happens 3). Dems clean up the mess 4). Republicans capitalize on PR opportunity caused by '3' to make Dems look bad while not being accountable ever in any situation for their responsibility in '1'
Why can’t this be put to a vote
Poor rich pricks can’t get their money? So sad
How are we gonna pay for it?
Fvck banks, fvck hedge funds, fvck investment companies, fvck executives and boards of directors. They’re lucky we don’t have guillotines.
Surely this won’t add to preexisting inflation issues
Breaking bull shit
Why have an FDIC cap at all, then? If you do this, everyone will behave as though it doesn’t exist.
First wipe out all student loan debt.
Here comes the socialism for capitalists again
lookner lookner Look up Regulation E - it is a law that day, and make sure have to dispute the transaction - suggest that
You spend billions on war. And you are still thinking about saving the Banks. You don't think about the population, you think how to destroy us all!
Government regulators should check first SVB’s non-performing assets, grade it’s loan portfolio, examine the DOSRI accounts, evaluate its investing accounts vis-a-vis appropriated resources, to name a few. centralbankexaminer
Corruption of officials is pushing for such a step. If the citizens of the United States really controlled the actions of the authorities, then all this would not have happened. Corruption and an artificial crisis, chaos is needed by the United States.
RoKhanna needs his investment protected
digitalassetbuy Really?
The U.S. is literally the worst at capitalism, it's not even close.
lookner Protecting banks and not allowing people to get breaks off college spending. Hypocrisy.
It’s 4pm ET. Any updates?
peterxing
This is 100% what will happen. Taxpayers will cover everyones deposits. Your 401ks are diligently working to shuffle assets to maximize your exposure to SVB stock while removing it from their large wealthy clients.
Not surprising but the gov is sure taking their time getting to the right action, risking a spillover wave of second order effects starting basically now. Interesting that WaPo was selected for this trial balloon.
joelpollak Of course they will. Otherwise people are likely to blame biden.
Oh good, my tax dollars go to another bail out of the wealthy.
No bailouts!!
Can't cancel student debt. Can bail out a bank that failed due to Trump's deregulation. We are so fucked.
We as tax payers should not bail out anyone who put more into this bank than what was federally insured.
Sorry that would cause inflation and not be fair
Lol
yashar for everyo who is determined not to read, the bank has funds so all depositers will be made almost entirely whole WITHOUT using any tax payer funds. During the process they need funds to stay afloat. They are not getting free or forgiven money
It's the white thing to do.
if they do this I would say a week and most of the bullshit problems of elites will be found out and the streets will be filled. this is a backdoor bailout scum absolute scum tech industry and gov together gutted this country
OphirGottlieb Unfortunately it is always the taxpayers that pay for others’ negligence. No banker ever goes to jail!! Just like 2008!!
Oprah and Meghan will be delighted their millions are safe. I'm sure taxpayers will be equally delighted to be ensuring they stay mega rich and avoid the consequences of their actions. Again.
JonLemire sounds like if they don’t, the economy goes to hell and there’s nothing they can do to stop it
So many stupid comments. How many people would think differently if it was their life savings or all the deposits their business had to pay its bills that was lost. You should not loose your money in a bank period
Terrible idea. All of the rest of the banks will take extra risk knowing that the Feds will bail them out if they get in trouble.
Another cover up. Course Biden fits the leftist mold of wall street and bank bailouts. They are some of his biggest donors.
Socialists!
With what authority? Last time I checked, spending had to be appropriated by Congress. What changed?
And down goes the pawns cumulative value
So we all have unlimited FDIC accounts now right?
Narrator: sorry plebes the rules only apply to you 🤷🏼♀️
So, another bailout. yellen: 'No bailout'.
why couldnt they budget better and eat no breakfast or avocado with toast or something.
I know a bailout when I see it
Oh those 3 anonymous people again. Their names are click, bait and likes!
So, Treasury going to bail out the Hedge-Fund Bank SVB but, bailing out people student loans is bad it's personal responsibility. The companies that deposited money in SVB knew it was Hedge-Fund Bank, gambling is a personal responsibility. Not a penny.
They're gonna bail out the ultra wealthy for the 6th time in my relatively short life and we still won't get student debt relief.
According to 3 people who know.... ba ha ha ha ya ha ha
Then it has to be retroactive to all the failed banks for the past, right? Unless this one’s more “important” Go ahead, unleash fintech with zero consequences
Rugged individualists during profit. Staunch socialists during failure.
RedwoodGirl House the homeless No bail for fast movers breaking things
joelpollak This is a handout to the wealthy Biden donors.
Hellen said they wouldn’t bail out the bank
Good news. That is what needs to happen! If you put your money in a Bank it’s should be 100% safe or what is the point?
this is pathetic capitulation and not in your purview SecYellen
They just love to bail out the rich
I guess our government is fated to be the bank industry’s bitch
Too Connected Politically to Fail?
darioperkins Would this be a different story for a Red State Bank ?
pdacosta 🙄
“Safeguarding uninsured deposits” = bailout
darioperkins The poor bailing out the rich again. Congrats POTUS
This is a no-brainer. Wipe out shareholders, bond holders, clawback executive pay, and make depositors whole. It’s not feasible to do DD on all your banks given their condition can change daily.
At the same time, they’re trying to make unemployment rise to slow inflation……this is a broken system.
This is Bs as Yellen already stated not bailing bank out
I’m convinced they set this up because they knew they would get a bailout. What’s the point of insured deposits at this point? This administration is a joke.
CEOs, bankers and the U.S. government RN...
This is only acceptable if every svb board member is summarily executed
This is why Risk Management is no longer necessary in finance ... It's 'All in' on each 🃏hand and they know the Fed will bail them out if they lose
The moral of the story is if your racket gets big enough, the US government can’t afford you to fail. It's happened many times before.
Claw it back from Peter Thiel.
Beezer232
Suhail Buy bitcoin and stop all this... it will end up like this anyway
Anne57209109 Yellen and members of the Treasury Dept and Fed bank of corruption must have some of their own assets tied up in the Leftist money laundering haven of SVB. Watch what they do and see how many uni-party Republicans support it because their money is caught up in it.
Wait, are you saying SBF didn't donate to a political fund to cover all this?
Could we get some of that safeguarding in East Palestine and Flint?
This won’t stop the contagion
cameronhardesty +1
Lol I see that our government is only good for protecting the Rich’s money from financial collapse but zero interest for the poor who are suffering the worst. Sad.
the value of your investment may go down as well as up
PacAnalytica Look who's suddenly 'too big to fail'
Great idea...
It's a big club and you arent in it, kulak.
Bitcoin
What sort of accountability will SVB executives face? What new regulations will be put in place to prevent this from happening again so that the public doesn't pay for the bad decisions of wealthy financial executives?
But Medicaid expansion, student loan relief, etc is a step too far
Insured yes 👍 uninsured no. Also those ceos should be in prison.
Oh no, the Bank of Highly Speculative Investments is having trouble. Time for everybody to pay their debts!
Socialism for we, not for thee
More bailouts and moral hazard 👎🏻
Re-enact Glass-Steagall
NO!
That would set a catastrophically bad precedent. Every depositor knew the deal when they used the bank. This is a play by the Fed to mask their culpability in the root cause of the failure.
if it's 'uninsured' it shouldnt be safe guarded, i wish all VCs a very nice bankruptcy
Protect the depositors, not the shareholders and senior management. The CEO apparently sold $3,6m stocks on Thursday, the day before the collapse. Insider trading?
This is absurdity. They can suffer from the same capitalism they inflict on the rest of us.
pdacosta Rewarding complacency
Libertarians are going to be disgusted.
Lock up the CEO and we will think about it.
Once again average Americans get fu*ked by the capitalistic system & those who play Russian roulette with the economy get off unscathed.
get your pitchforks out NO BAILOUTS FOR BILLIONAIRES
No student loan forgiveness, but considering another bank bailout
lookner No tonstudent loan forgiveness but lord forbid companies that made bad decisions feel the pain of them. 🙄
This would probably not even be a topic of discussion today had tfg not deregulated Dodd-Franklin
They don’t deserve shit
bijans Nope SecYellen was on MSNBC this morning and ruled that out. BUT no depositors are at risk - you can still sell off the assets.. The FEDS aren't reassuring people fast enough and letting Theil and his anti-bank mob own the space
yashar Something something ‘fairness’ principals being discussed in the Supreme Court over student debt. But something something privatize profits and socialize the losses I guess.
Paywall removed
Officials at the Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation discussed the idea this weekend, the people said, with only hours to go before financial markets opened in Asia.
Fuck this
Aka Bailout.
0 chance they leave their donors out to dry.
Why have rules at all?
sorry everyone we need to cancel student loan forgiveness the banks need a bailout again
What is the point of limiting insurance on deposits if they safeguard all SBV deposits? Only limiting insurance for the poor? Only bailing out when it suits them? When they are personal friends with bank owners? Very dodgy.
250k to all depositors (and wipe off Student Loan while you are at it.
yashar Clock is ticking…
Don't all banks in the US have insurance for deposits?
If all deposit holders are not protected, further bank runs are all but guaranteed; money now moves too quickly. Illiquidity is NOT Insolvency.
No more bailouts.
nope, sorry!
I thought everyone knew to use a bank that was FDIC insured…
They should pull themselves up by their bootstraps, right?