SVB - second largest FDIC insured bank failure since WaMU

[SilverPalm]

https://finance.yahoo.com/news/regul...231404695.html

Signature bank just went down in flames too. It's not just SVB.

[everything1]

I guess the guys who said the feds were going to bail out crypto were right. Crypto gods keep finding ways to get free money out of the ponzi system they created for themselves. Create banks to service the crypto exchanges, best idea yet.

[shades]

All of this bailout just exacerbates the underlying fundamental problem. Zero accountability will continue to reward unsustainable actions, until it explodes uncontrollably into sudden systemic failure. The feds answer, seems to be currency dilution(to cover bank funding needs), which will continue to accelerate inflation.

It will only get worse from here on. Free money always devalues said money.

[LongDonSilver]

Looks like the government decided companies banking with zombie banks were going to fail and so FDIC will now cover all customer accounts. Fees charged to all banks to cover over the losses. HSBC will take over the UK side of SVB and the fed's pulled the plug on Signature bank on Sunday too. One more zombie goes in the crap can. Who's next?

[t00nces2]

We are now seeing the banking industry we always knew was going to collapse, fall apart.

[redraspberry]

Paging Mr Greenspan, Paging Mr. Alan Greenspan your bill has come due!

[SilverPalm]

https://youtu.be/dLVbVqqsXF8?t=948

Biden speaks -
Nothing to worry about, my guys have it covered.
All bank customers will have access to their money on Monday (today).
Tax payers will not be on the hook for the bailouts, bank fees will pay for that.
Bank bosses will be fired.
Bank investors will loose out.
We will figure out who to blame.
Trump rolled back bank regulations, we will fix that. 18:31
Everything is great

[SilverPalm]

https://www.zerohedge.com/markets/uk...ancellor-warns

A Chinese bank has purchased the UK branch of SVB for the princely sum of 1 pound.

[PM Bug]

Bold emphasis is mine:

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


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.

https://www.federalreserve.gov/newse...y20230312b.htm

The Fed has essentially announced that they are going to backstop 100% of depositors across the entire banking system. This is how fragile the banking confidence game has become.

[redraspberry]

^^^^^

So is that just up to the $250k limit? It says ALL THEIR Money.

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.