Well any shorts on some of these regionals probably will be covered on Monday…part of why it’s good idea to close positions heading into a weekend because you don’t know what can happen.
OT: Stock and Investment Talk
- Thread starter RU-05
- Start date
I called the President and his advisors out, not people in this thread. Sorry if I ruffled feathers snowflake. Pretty clear who you cast that ill fated vote for. Just keep in mind who attacked who first.
In the last week, the US gov't completely destroyed crypto banking.
BTC and ETH pumping hard today! Crypto market is happy.
It's not a bailout. It's a loan that the institutions have to pay back. Riiiight....
I'll take one of the "loans" as well. :)
This solution seems too good to be true. So now there is no FDIC limit? That seems risky.
Not sure about unlimited, but the $250k limit should be raised. No reason to make people and companies split up their cash.
Would really really really like to see the compensation packages of all the insiders at these Fed-assisted financial institutions....
Whatever share price you sold it at minus the price you have to buy it back at. So, sell at $50/share and buy it back at $1, you made $49/share.
Why not borrow at the fed window at par now and put it in short term paper at a higher rate for a better return.
Depositors made whole which I think many average joes would support because they could picture themselves in a similar position. Equity is wiped out and debt holders probably to a degree as well.
Unless CNBC misreported, they said the FDIC confirmed that ALL depositors affected by the current crisis at any of the currently affected banks or any future affected banks would be “made whole” regardless of deposit size.
Went on to say First Republic Bank has been “shored up” by the Fed and JPMC. Lots of vague terms being thrown around but it seems like this is over for now, everything is backstopped in totality.
Oh, I understand what is happening. Just was saying that I support raising the limit for everyone.
It should be increased to around a million IMO since the money supply has increased 4x since it was last raised.
Sure. My concern is that the management of these "banks" need to be held accountable and pay a price for their mismanagement. As is, there's no apparent downside. It's good to be the king....
Is that ever the case at any type or corporation? Golden parachutes aren’t exclusive to the financials.
yes the window was available and would have helped but they hired the wrong people
go woke, go broke
I'd wager their financial management team doesn't even know how the Fed window works
My understanding is that you are market to market at a fraction of a penny and get closed out once chapter 7 is approved, which can take a while.
no wrong
your money in the bank is credit based decision. If you want more than 250k covered by the taxpayer, buy insurance
Sounds pretty straightforward:
Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
The funds to reimburse depositors will be paid out of the Deposit Insurance Fund, which is made up of quarterly fees assessed on financial institutions.
WASHINGTON — Plans announced Sunday to fully reimburse deposits made in the collapsed Silicon Valley Bank and the shuttered Signature Bank will rely on Wall Street and large financial institutions — not taxpayers — to foot the bill, Treasury officials said.
“For the banks that were put into receivership, the FDIC will use funds from the Deposit Insurance Fund to ensure that all of its depositors are made whole,” said a senior Treasury Department official, who spoke to reporters Sunday about the plan on the condition of anonymity.
“The Deposit Insurance Fund is bearing the risk,” the official emphasized. “This is not funds from the taxpayer.”
The Deposit Insurance Fund is part of the FDIC and funded by quarterly fees assessed on FDIC-insured financial institutions, as well as interest on funds invested in government bonds.
The DIF currently has over $100 billion in it, a sum the Treasury official said was “more than fully sufficient” to cover SVB and Signature depositors.
The Biden administration is deeply aware of the public anger sparked by taxpayer-funded bailouts of major Wall Street banks during the 2008 financial crisis, and using the DIF to shore up depositors is seen as a way to avoid repeating the same process.
To that end, federal officials strongly pushed back on the idea that the plans for SVB and Signature constituted a “bailout.”
“The banks’ equity and bond holders are being wiped out,” said the official at Treasury. “They took a risk as owners of the securities, they will take the losses.”
no they didn't as evidenced by the sale of afs securities which was the worst thing they could do. In no way has their actions demonstrated knowledgeable and prudent financial risk management nor any understanding of liquidity operations (I happen to be an industry expert here).
so stfu and stop acting like you have a clue.
Sounds pretty straightforward:
Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
The funds to reimburse depositors will be paid out of the Deposit Insurance Fund, which is made up of quarterly fees assessed on financial institutions.www.cnbc.com
WASHINGTON — Plans announced Sunday to fully reimburse deposits made in the collapsed Silicon Valley Bank and the shuttered Signature Bank will rely on Wall Street and large financial institutions — not taxpayers — to foot the bill, Treasury officials said.
“For the banks that were put into receivership, the FDIC will use funds from the Deposit Insurance Fund to ensure that all of its depositors are made whole,” said a senior Treasury Department official, who spoke to reporters Sunday about the plan on the condition of anonymity.
“The Deposit Insurance Fund is bearing the risk,” the official emphasized. “This is not funds from the taxpayer.”
The Deposit Insurance Fund is part of the FDIC and funded by quarterly fees assessed on FDIC-insured financial institutions, as well as interest on funds invested in government bonds.
The DIF currently has over $100 billion in it, a sum the Treasury official said was “more than fully sufficient” to cover SVB and Signature depositors.
The Biden administration is deeply aware of the public anger sparked by taxpayer-funded bailouts of major Wall Street banks during the 2008 financial crisis, and using the DIF to shore up depositors is seen as a way to avoid repeating the same process.
To that end, federal officials strongly pushed back on the idea that the plans for SVB and Signature constituted a “bailout.”
“The banks’ equity and bond holders are being wiped out,” said the official at Treasury. “They took a risk as owners of the securities, they will take the losses.”
It's a lot of things but I wouldn't call it straight forward. They changed the rules in the middle of the game, no telling where this leads us.
I think Powell is trying to have his cake and eat it too. Will be an impressive trick if he pulls it off.
Mostly because I just don’t know how SOFI has hedged its deposits. They could be The next bank to do the same stupid stuff.
No it isn’t. If anything, if this was contained to Silicon Valley start up industry, then the fed should continue to raise rates especially if the CPI next week is moving up. I would be more worried if the fed didn’t raise interest rates with hotter than expected CPI. If there is a pause, then the fed will have lost the only tool it has to curb inflation.
It’s not a bailout or a loan. The bank is gone. The shareholders and bond holders lost all their money. The c-suite is out of jobs. The fed will just buy out all the bonds from the company and pay the account holders money. The fed will end up making money on this deal.
Thing is, do you really want to blow the DIF on 2-4 banks? Then again I’m sure some other facility would be ginned up if needed.Sounds pretty straightforward:
Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
The funds to reimburse depositors will be paid out of the Deposit Insurance Fund, which is made up of quarterly fees assessed on financial institutions.
WASHINGTON — Plans announced Sunday to fully reimburse deposits made in the collapsed Silicon Valley Bank and the shuttered Signature Bank will rely on Wall Street and large financial institutions — not taxpayers — to foot the bill, Treasury officials said.
“For the banks that were put into receivership, the FDIC will use funds from the Deposit Insurance Fund to ensure that all of its depositors are made whole,” said a senior Treasury Department official, who spoke to reporters Sunday about the plan on the condition of anonymity.
“The Deposit Insurance Fund is bearing the risk,” the official emphasized. “This is not funds from the taxpayer.”
The Deposit Insurance Fund is part of the FDIC and funded by quarterly fees assessed on FDIC-insured financial institutions, as well as interest on funds invested in government bonds.
The DIF currently has over $100 billion in it, a sum the Treasury official said was “more than fully sufficient” to cover SVB and Signature depositors.
The Biden administration is deeply aware of the public anger sparked by taxpayer-funded bailouts of major Wall Street banks during the 2008 financial crisis, and using the DIF to shore up depositors is seen as a way to avoid repeating the same process.
To that end, federal officials strongly pushed back on the idea that the plans for SVB and Signature constituted a “bailout.”
“The banks’ equity and bond holders are being wiped out,” said the official at Treasury. “They took a risk as owners of the securities, they will take the losses.”
#1 - CPI will go down on Tuesday
#2 - Fed can't do anything about the workforce imbalance
#3 - More rate increases = more bank failures
It's over for the Fed.
