Treasury Secretary Janet Yellen, after consulting with the president and regulators, has authorized the plan that “fully protects all depositors.”
Currently, the maximum amount of protection provided by the FDIC to any one depositor is $250,000. However, under the new plan, all deposits, both insured and uninsured, will be protected.
“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,” according to the statement.
“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.”
Show of hands…who believes that? At best the “special assessment” on banks will be passed on to depositors via higher fees but I imagine there will be some chicanery behind the scenes that results in the losses very much being borne by the taxpayers. Got to make those billionaire venture capital types whole.
This is just more evidence that the fiat currency monetary system no longer represents stored value of labor but instead is just a social marker to designate who is and who is not in the preferred class in America.
I need to steal a bulldozer and I need to learn how to weld.
Killdozer! Making bulldozers great again.
My wife is a certified welder, I just need the bulldozer
Marvin Heemeyer used Laminate Armor – Steel, Concrete, Steel on his Komatsu. This is similar to the “Chobham” Ceramic Laminate Armor on U.S. Tanks, and somewhat like the “Sandbox” Reactive Armor on Russian Tanks. What it does is help Break Up a Shaped-Charge Anti-Armor Rocket, reducing its chance of Penetrating the Armor. Another common Field Up-Armor is Fences of closely-spaced Flat Bars (on edge) that are no more than 6 inches apart. These also Break Up a Shaped-Charge Warhead, before it properly Detonates against the Hull.
As a Jet Mechanic (if I were Rich) I’d be using 6T-74 Titanium Hardplate, 2 Inches Thick. Weighs about the same as Aluminum, .50 BMG A/P just leaves Scratches…
Always always losses are public to be born by us serfs. Profits are private only to be shared among “shareholders ”
Fuck this country. I am an honorbly discharged veteran, but if Wagner group invaded DC, I’d be wearing my Wagner T-shirt loud and proud.
I’m a bit old for Wagner but I share the sentiment
One of the takeaways of this is how these sweeping actions cull their power from the ether with a simple rubbing of hands. Conjuring power to “authorize the plan” with a simple nod to some supposed legal precedent that has been lying dormant in some other massive entanglement of quasi-legal and extra-legal administrative fiat is part of the new normal.
This is what so many continue to miss with their “this makes no sense, why are they brining such ruin” and calls for action within the confines of the system; using the system to fix the system – or the flawed premise that the system simply needs better administrators to replace these bad ones.
The entire thing is manufactured reality. A game of dungeons and dragons where rules can be invented and broken such that the imaginary world never comes to an end from a bad roll of the die.
There can be no sliver of reality, for it so quickly cascades into a chasm in which reality pours in faster than new rules defining the magic universe can be conjured.
This is where we are, when even the dungeon masters have run out of their bag of tricks, their imagination is tapped after decades of doubling down further into the abyss.
The real collateral, the only real collateral in this Ponzi of the paperwork empire, are the people believing in the alt-reality.
Our labor and goodwill and that of our children’s children – our birthright and posterity alike, have all been hypothecated into derivatives, refracted into a trillion 1’s and 0’s lighting up some ticker that always must go up all while it is counting down to some point when reality can no longer be kept upstairs, out of the dungeon where the hand rubbing and dice rolling procrastinates taking out the trash.
But alas, the stink is real.
The Federal code is so complex and at the same time so vague that almost anything can be supported if you obfuscate enough and no one bothers to push back
Both banks are heavily infested with lefty clients – hence the bailout. Barney Frank is on the board of Signature, which went tits-up over the weekend. There you have it.
Ugh please never use Barney Frank and tits up in the same comment.
Old Jewess Yellen to the rescue.
SVB = Too woke to croak.
SVB was a pillar of the fake part of the economy. Look at a list of its big depositors and you don’t see anything critical, irreplaceable, unique, or systemically important: Roku, Tiktok, DoorDash, Airbnb, Plaid, Snapchat…. it goes on like that…..
Any of these individual entities go under and it doesn’t matter. Who cares. But it turns out that a huge part of our economy is based on such entities that do not matter, that produce nothing especially necessary or valuable. And the regime can’t let all that go down at once, because then it exposes how much “real” economy we actually have. Which isn’t actually all that much relative to what silly numbers like GDP tell us it is.
GDP would be a more honest number if it dropped the P for product and replaced it with an A for activity. Because a lot of the stuff getting counted as product doesn’t produce anything at all. It’s just money changing hands.
Not a one of those companies produces anything real, it is all just pixels, but people who work for a living will once again get shafted so teenage girls can make videos of themselves butchering a song
The bail out garentees the deposits at the 2 banks that crashed this wekend that specialize in very high value depositors. Both banks had shifted to making loans based on lgtbqrxyz initiates in the last few years. Who would have guessed that choosing who to loan money too based on how sexually deviant they are would be a recipe for disaster….
The other issue is banks having too little cash on hand for withdrawls, people are tired of getting 0.5% interest and ate movibg to t-bills at 4% and the banks could not cover the moves.
Wells fargo had a ‘computer glitch’ friday that temporarily reset customers account balances to zero just long enough to stop the withdrawl run… which is very convient for the bank.
Additionally the new fed bailout has a clause to loan $$ to banks having liquidity issues and so far First Republic Bank has recieved money under that program.
We are all going to see inflation unseen in my life by years end at latest.
of all the days Wells Fargo could have had a glitch
It is all make believe at this point, there is no connection between “money” and reality.
Like A Clockwork Orange the Long March fellow traveler quisling traitors can see the former USA in flames from coast to coast, a former republic lit only by fire.
This is feature and not a bug to them.
I think we pretty much knew this yesterday. They have quite a bit in terms of assets, but will have to sell at a steep discount. Should be enough to cover all deposits, even stuff over FDIC “limit”, none of the shareholders, and some of the bondholders. The screwy thing is that instead of all bondholders taking a haircut, I almost guarantee that this “plan” moves government and union holdings to the front of the bondholder line, leaving everyone else holding bonds to pretty much lose everything.
Profits, personalized. Losses, nationalized.