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re: Who is paying for the uninsured deposits for SVB?
Posted on 3/13/23 at 1:48 pm to SquatchDawg
Posted on 3/13/23 at 1:48 pm to SquatchDawg
quote:
If the Fed swaps SVPs long term assets for short term assets it’ll be close to a wash eventually.
SVB has a bunch of fed securities that are basically trading at 60% of stated value.
The fed reserve can buy them at 100% of value, make everyone whole, and then hang on to redeem the security until it matures, making the 40% current haircut essentially meaningless.
Now, that might take 10-20 years. Ultimately, the fed has the ability to hang on that long.
0
Posted on 3/13/23 at 1:49 pm to tiggerthetooth
quote:
Who was forced to use this bank to house their money?
VC Fund: "Hey startup, we will give you $50M in cash, but you have to house it with our "partners" at SVB"
Start-up: OK...
Posted on 3/13/23 at 1:50 pm to Ronaldo Burgundiaz
quote:
If FDIC ends up covering ALL deposits, the next logical step is for the Federal Reserve offer checking and savings account
Lots of dems already want federal provided banking.
I don't think this will result... but I DO think we just got unlimited FDIC guarantees. That's gonna be hard to pull back.
Posted on 3/13/23 at 2:16 pm to schexyoung
quote:
Once SVB is sold the FDIC will recoup the majority of the funds money.
Not so fast.
Ultimately the FDIC is funded by banks, which means you and I pay for it as clients of banks. The FDIC stepping in to cover everyone means premiums are going up, so actual tax payers are effectively on the hook.
Posted on 3/13/23 at 3:27 pm to tiggerthetooth
It’s amazing the deals this clown govt will make to keep billionaires afloat
Posted on 3/13/23 at 5:31 pm to tiggerthetooth
quote:They have enough collateral in treasuries to pay everyone off eventually, it just could take awhile. All that's really happening is that the fedgov (i.e. the issuer of these treasuries in the first place) is just saying - OK, you can get the capital now.
Who is paying for the uninsured deposits for SVB?
Posted on 3/13/23 at 5:39 pm to thelawnwranglers
quote:a bond is a security which comes with risk. When people make deposits they are not taking on the same risk as someone who invests in or purchases bonds to fund a bank.
Struggling to see difference between bond holder and depositor greater than $250k
This post was edited on 3/13/23 at 5:42 pm
Posted on 3/13/23 at 6:25 pm to LSUFanHouston
quote:
No one, and I mean no one, decides to open up a checking and savings account based on the financials of the bank
I would agree with you about depositors who do not exceed the $250K FDIC insurance limitation. They really shouldn’t have to worry. But for those who choose to exceed it, they should definitely do a risk assessment. As investors and/or savers, I just believe we should all be mindful of what the insurance limits are (FDIC and SIPC).
Posted on 3/13/23 at 6:27 pm to LSUFanHouston
Yep, pretty much how it went down.
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