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Message
Who is paying for the uninsured deposits for SVB?
Posted on 3/12/23 at 9:37 pm
Posted on 3/12/23 at 9:37 pm
If the money isn't coming from the taxpayers then who is paying for the amounts over $250k that weren't insured?
Who was forced to use this bank to house their money?
Who was forced to use this bank to house their money?
13
Posted on 3/12/23 at 9:43 pm to tiggerthetooth
quote:
the money isn't coming from the taxpayers
Lol
Posted on 3/12/23 at 9:46 pm to thelawnwranglers
Posted on 3/12/23 at 9:46 pm to tiggerthetooth
Right now the FDIC fund which is funded by fees charged to covered banks. FDIC has never in its history needed tax payer money to acquire and sell off a failed bank. Once SVB is sold the FDIC will recoup the majority of the funds money.
Bond and equity holders are not bailed out.
Bond and equity holders are not bailed out.
This post was edited on 3/12/23 at 9:47 pm
Posted on 3/12/23 at 10:00 pm to tiggerthetooth
Either they got bought and the acquiring bank resolves the uninsured portion based on their balance sheet, or the Fed bails them out and passed the cost onto banks who will inevitable pass it along to consumers by way of products
Posted on 3/12/23 at 10:18 pm to Skervix
quote:
Skervix
Guess taking narrow view
There is no money us government has that is somehow not derived from taxpayers
Even if truckle down fees or less roi on investment in financial institutions
Posted on 3/12/23 at 10:22 pm to schexyoung
quote:
Bond and equity holders are not bailed out.
Struggling to see difference between bond holder and depositor greater than $250k
Posted on 3/12/23 at 10:26 pm to tiggerthetooth
If FDIC ends up covering ALL deposits, the next logical step is for the Federal Reserve offer checking and savings accounts….
The road to hell, etc.
The road to hell, etc.
Posted on 3/12/23 at 11:06 pm to thelawnwranglers
Bond holders in the back of the line.
It’s doubtful the sale will generate proceeds that reaches bond and equity holders.
It’s doubtful the sale will generate proceeds that reaches bond and equity holders.
Posted on 3/12/23 at 11:35 pm to schexyoung
quote:
Bond holders in the back of the line.
It’s doubtful the sale will generate proceeds that reaches bond and equity holders.
Why are they any different then depositors who lent the bank money
I agree you are right but depositors should have known better
Posted on 3/13/23 at 12:01 am to tiggerthetooth
Me the taxpayer.
Posted on 3/13/23 at 1:33 am to tiggerthetooth
quote:
the money isn't coming from the taxpayers
Not directly, we are only a step and a half removed from paying.
Truth is, we even pay for the insured deposits through the FDIC. Bank failures are expensive.
Posted on 3/13/23 at 7:19 am to tiggerthetooth
Got a mirror?
Posted on 3/13/23 at 8:03 am to tiggerthetooth
If the Fed swaps SVPs long term assets for short term assets it’ll be close to a wash eventually.
Posted on 3/13/23 at 8:58 am to tiggerthetooth
quote:
If the money isn't coming from the taxpayers then who is paying for the amounts over $250k that weren't insured?
Taxpayers do, but not through paying taxes. Assessments charged to other banks will cover anything else beyond insured amounts. The other banks will trickle the cost of those assessments down to their customers.
As others have said, the Fed will also liquidate SVB’s assets and sell them off to other banks. That’ll recoup a lot of the losses.
This post was edited on 3/13/23 at 12:00 pm
Posted on 3/13/23 at 9:03 am to Roll Tide Ravens
quote:
sale them off
sell
Posted on 3/13/23 at 11:59 am to cable
quote:
sell
I’m embarrassed. I know better. I was typing that while sitting in the misery waiting room at jury duty.
Posted on 3/13/23 at 12:11 pm to tiggerthetooth
common shareholders will pay for it via dilution
Posted on 3/13/23 at 12:48 pm to Roll Tide Ravens
quote:
Taxpayers do, but not through paying taxes
Framing customers as "taxpayers", though, is a bit disingenuous because it implies that their taxes are being used to cover losses.
Posted on 3/13/23 at 1:45 pm to thelawnwranglers
quote:
I agree you are right but depositors should have known better
When you buy bonds, you (should) be studying the financials and making a studied investment decision.
No one, and I mean no one, decides to open up a checking and savings account based on the financials of the bank.
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