Any of you angry that you are bailing out SVB?

Of course but we don't control anything. Our vote means nothing. Get used to it.

I’m not angry because I expected it.

The elites will always win at the expense of the middle class.

This country’s government is a joke.

It's not a 100% bailout per se.

Their "money" was tied up in mostly treasury bonds and other assets (like mortgages). It's my understanding that the money tied up in treasuries were put under a designation of "hold until maturity". Form Investopedia:

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HTM securities are typically reported as a noncurrent asset; they have an amortized cost on a company's financial statements. Amortization is an accounting practice that adjusts the cost of the asset incrementally throughout its life. Earned interest income appears on the company's income statement, but changes in the market price of the investment do not change on the firm's accounting statements.

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That amortization ate SVB's lunch.

Pros:

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HTM investments allow for future planning with the assurance of their principal return on maturity.

Considered “safe” investments, with little to no risk.

Interest rate of earnings is locked in and will not change.

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Cons:

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The fixed return is pre-determined, so there's no benefiting from a favorable change in market conditions.

The risk of default, while slight, still must be considered.

Held-to-maturity securities are not short term investments but meant to be held to term.

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LINK

Bottom line:

the depositors are being made whole by the existing assets on SVB's books that includes the treasuries and other loans. They will sell the treasuries and sell the mortgages to get the cash needed to make the depositors whole.

There will likely be a loss and IDK who will make up that loss. IDK who the buyer is of SVB's assets either. Probably the Federal Reserve.

It's not a total bailout. SVB had assets on the books, they were just illiquid. I would estimate that if there is any bailout the most exposure the tax payer has is about 5%. The tax payer should not have any exposure but this is Washington DC we are talking about.

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What are the chances this perpetuates more failures?

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Signature Bank has collapsed too. Big accounts spent Friday afternoon and Saturday morning GTFO of Signature and transferring their money to one of the big banks, WF, Chase, BoA.

Others to follow:

FRC
ZION
KEY
TFC

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Why didn't the people at Enron get this special treatment?

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Enron CEO did not sit on the San Francisco Federal Reserve board.

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Enron CEO did not sit on the San Francisco Federal Reserve board.

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Kenny boy was pretty tight with the Bushes.

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the depositors are being made whole by the existing assets on SVB's books that includes the treasuries and other loans.

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Exactly right. Anyone calling this a bailout has a misunderstanding about the meaning of that word. The company is being liquidated and returned to the depositors.

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Their risky, stupid decisions has no downside.

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The depositors are getting their money back. The owners and investors of the bank are getting wiped out.

Or do you consider putting your money in a heavily regulate, federally chartered bank a “risky, stupid decision”?

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The liquidated value of the company is adequate to make all depositors whole?

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Pretty much. Had there not been a run, this would have been fine and virtually no one would have even heard of this bank.

I hate everything about Joe Biden, Big Tech and the Uniparty. This is a perfect metaphor.

frick Silicon Valley.

frick Banks.

frick California.

And most especially- frick Joe Biden