re: Midsize Bank Coalition ($15B-$115B In Assets) Officially ask FDIC to insure all depositors

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And the whole thing smacks of 2008

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Not similar at all.

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exactly why Lehman did NOT get a bailout.

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Lehman should not have been bailed out. It was insolvent had over leveraged junk assets. SVB has high quality assets. Completely different.

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These depositors were just bailed out by the US government, to protect the system, and no those depositors are free to take their money out of the system by going off shore or into decentralized products.

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Wait. So you believe the government should have claim to money you deposit in a bank?

Yeah, screwing over depositors and making claims on their deposits is NOT how capital is attracted. What you want will do nothing but cause massive capital flight.

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Regardless of their assets,

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Ypu can’t simply dismiss this. It would be like saying someone should be able to go bankrupt, keep their Ferrari collection, but not pay their creditors.

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Letting them fail was better than blowing money to bail them out only to have another bank fail.

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For Lehman? You still would have had more failures, but those banks were way insolvent. They should have failed.

But that’sdoeant address what one should do with SVB’s assets. Who should get those?

We should give them all a one-time $600 check

Well what I don’t understand is with most of the issue being regulatory and balance sheet issues (short term security vs long term and small bank vs large bank) and how securities are recognized and marked to market or not - why not ease the regulations a bit.

It really isn’t a cash issue per se as much as the banks bet on LT treasuries that nosed dived in price when rates went up. That killed the banks balance sheet. Yes, if they sold those treasuries now they would take a loss but if held to maturity they will get the face value out of them.

And this will be how they pay 30 trillion in owed money

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If the FDIC agrees you could expect QE to kickback in which would in turn bring us to hyperinflation.

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How would the FDIC covering all deposits to be insured cause QE to be reinstated? How are those related?

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$250k might be too low but if you are business you need to take accountability for uninsured deposit

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How do you figure a depositor is “accountable” for what assets the bank purchases? They have NO control over that. Zip. Nada. Zilch.

And keep in mind… SVB bought mostly US treasury bonds. Considered so low in risk, they are considered cash-equivalent in most cases (including the SS “trust fund”).

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You control where you put your money

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So what do you consider “safer” than US treasuries? What is the asset portfolio of your bank look like?

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and you can get products to ensure you over $250k

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Sure. A small business could have like 20 accounts across 20 banks.

You’re making the case that everyone should really only do business with Citi, Chase, Bank of America or Wells Fargo. Sofa king “conservative”.