Kayleigh McEnany's coronavirus prediction comes back to haunt her after she tests positive
‘This president will always put America first, he will always protect American citizens’
www.independent.co.uk
carry on
Silicon Valley Bank Collapses
- Thread starter GunsOfFrankEaton
- Start date
www.independent.co.uk
carry on
I did. All of them. What losses?
Edit: you deserve something more. When I get a few mins I'll expand on my understanding of the situation.
Purposely obtuse? The fact you leftist do not understand every penny the government lays it's greedy paws on comes from the American people is astonishing. The FDIC is using the Deposit Insurance Fund to bail out the wealthy, who have more the 250K in these banks. That's a loss no matter how you want to spin it.
Banks pay a fee quarterly to fund the Deposit Insurance fund. Banks in turn charge fees to consumers (American Taxpayers). With the Deposit Insurance Fund paying out billons to these banks there is a loss in the fund. Now the FDIC will raise fees on banks, which in turn will raise fees on consumers. Meaning, yes the tax payers are paying to bail out the politically connected wealthy once again.
Then add in the Federal government will buy current assets from banks at higher values than the open market and the tax payers are taking a double whammy. SMFH you leftist are either completely dishonest are the dumbest people in the planet, neither of which is a good.
Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
The funds to reimburse depositors will be paid out of the Deposit Insurance Fund, which is made up of quarterly fees assessed on financial institutions.
David is not particularly dumb so I will go with the "completely dishonest" thesis.Purposely obtuse? The fact you leftist do not understand every penny the government lays it's greedy paws on comes from the American people is astonishing. The FDIC is using the Deposit Insurance Fund to bail out the wealthy, who have more the 250K in these banks. That's a loss no matter how you want to spin it.
Banks pay a fee quarterly to fund the Deposit Insurance fund. Banks in turn charge fees to consumers (American Taxpayers). With the Deposit Insurance Fund paying out billons to these banks there is a loss in the fund. Now the FDIC will raise fees on banks, which in turn will raise fees on consumers. Meaning, yes the tax payers are paying to bail out the politically connected wealthy once again.
Then add in the Federal government will buy current assets from banks at higher values than the open market and the tax payers are taking a double whammy. SMFH you leftist are either completely dishonest are the dumbest people in the planet, neither of which is a good.
Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
The funds to reimburse depositors will be paid out of the Deposit Insurance Fund, which is made up of quarterly fees assessed on financial institutions.www.cnbc.com
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Any losses incurred by the Deposit Insurance Fund to make all SVB and now SBNY depositers whole. The law stipulates how any losses are recovered. That information is in several statements the Feds have put out.
Another question for you, what is the dollar amount of the uninsured deposits at SVB (and now SBNY) vs. how much money is in the Deposit Insurance Fund?
Kayleigh McEnany's coronavirus prediction comes back to haunt her after she tests positive
‘This president will always put America first, he will always protect American citizens’
carry on
Carrion
Carrion
You can’t talk about worst press secretaries without that king whopper.
WhatAbOutIsm
carry on
SVB had approximately 40,000 depositors. The initial total potential liability of the FDIC would have been $10 bln. Of course, the bank will be liquidating the assets of SVB to cover those insured depositors and would only hit the risk pool if the liquidation was below that $10 bln amount. With the announcement that the FDIC would cover all deposits the total risk exposure increased to about $175 billion. Silicon Valley Bank had about $209 billion in assets. IMO, very few dollars will have to come from the risk pool assets of the FDIC to make depositors whole once all the assets are liquidated.
The FDIC collects premiums which are managed as a risk pool. The only "losses" that could occur would be when total payouts exceeded the risk pool assets. That is not the case at SVB.
Oh, look! David got his talking points! The bailout is definately not going to be a bailout, and there will be no harm to the general public. It's all good, nothing to see here, the initial panic was for naught, move along.
Do you have homeowners insurance?Purposely obtuse? The fact you leftist do not understand every penny the government lays it's greedy paws on comes from the American people is astonishing. The FDIC is using the Deposit Insurance Fund to bail out the wealthy, who have more the 250K in these banks. That's a loss no matter how you want to spin it.
Banks pay a fee quarterly to fund the Deposit Insurance fund. Banks in turn charge fees to consumers (American Taxpayers). With the Deposit Insurance Fund paying out billons to these banks there is a loss in the fund. Now the FDIC will raise fees on banks, which in turn will raise fees on consumers. Meaning, yes the tax payers are paying to bail out the politically connected wealthy once again.
Then add in the Federal government will buy current assets from banks at higher values than the open market and the tax payers are taking a double whammy. SMFH you leftist are either completely dishonest are the dumbest people in the planet, neither of which is a good.
Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
The funds to reimburse depositors will be paid out of the Deposit Insurance Fund, which is made up of quarterly fees assessed on financial institutions.
Yea, I also spent over a decade in the Insurance business. Is this where you try to tell me claims aren't losses? LMAO OK Kramer
December FDIC filings from SVB showed it had $151.6 billion in uninsured deposits.
Are you confident that SVB's assets will make enough to cover the uninsured deposits? Seems at this point that nobody is very interested in their large portfolio of long term bonds.
Let's say you're wrong and the Deposit Insurance Fund has to pay out $50 billion. Who does the FDIC collect the premiums from and how do those people make the money to pay the premiums to make up that payout?
Majority of bonds are sold already. If the liquidation is short $50 bln the existing risk pool is more than ready to cover that gap. I am not at my desk but will post the estimated FDIC risk pool figures if I can find them. Banks pay the insurance premiums to the FDIC.
Honest question: are the estimated $209 billion in assets pre-bank collapse or post? I seem to remember reading when the bank management realized the bank was in trouble and might fail it tried to sell off enough of its assets to cover the shortfall only to realize they didn’t have enough assets. What changed between then and now? Also, what are the assets that are estimated to be worth $209 billion? Why couldn’t the bank just do what the government is proposing without involving the government?
The Deposit Insurance Fund had approx $128 billion at the end of 2022.
And how do banks make the money to pay the insurance premiums?
The same way they pay their cloud computing bills. They derive income from providing products and services to their customers.
C- for effort.Yea, I also spent over a decade in the Insurance business. Is this where you try to tell me claims aren't losses? LMAO OK Kramer
Exactly. So people who participate in the US banking system will be bailing out uninsured deposits if that amount exceeds the sale of assets. Have you seen any predictions on how much cash the sale of assets will raise?
Edit: And we've only been discussing SVB. How does SBNY's failure and their uninsured deposits add to the total?
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Other than the normal politically connect wealthy Democrats, Dave. Didn't he say he was working several companies that were involved with SVB?
That is a very large if.
I haven't spent cycles on SBNY - I'd defer to someone who has more direct knowledge on that closure.
Dominoes are starting to fall under sleepy's watch. Tomorrow will bring us more embarrassement rest assured. 👍
Companies we were invested in had roughly $67 mln on deposit with SVB at closure. They moved all their deposits to other institutions as of Tuesday.
Who pocketed all that cash? Expert? Newtons third law. Think about it. 😂
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Lay, Madoff and Stanford all deserved to be shot in the head. Oh wait, two of the three are supposedly dead already. 🤣
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Peter Thiel says he had $50M in Silicon Valley Bank when it shut down
PayPal co-founder Peter Thiel claims he had $50 million of his own money in Silicon Valley Bank when it collapsed, despite warnings from his own Founders Fund.
carry on
Be willing to bet thiel won more than he lost. Only 50 million? Only 50? 🤣Peter Thiel says he had $50M in Silicon Valley Bank when it shut down
PayPal co-founder Peter Thiel claims he had $50 million of his own money in Silicon Valley Bank when it collapsed, despite warnings from his own Founders Fund.www.foxbusiness.com
carry on
We shall soon see. If you hear any updates, please share.
And here's the biggest issue of all...
The FDIC is set up with the $250k limit for a reason. The FDIC is required to keep the DIF at 1.35% of all deposits. It currently sits at 1.27% thanks to the loose monetary policy during covid. Deposits in excess of $250k either need to be divided across different institutions or the depositor should have a private policy to cover the amount over $250k.
The precedent has now been set that the FDIC limit isn't really a limit at all which is dangerous to the entire deposit insurance program. Sure, it has the backstop of the Fed, but if money has to be "borrowed" to cover DIF losses, taxpayers themselves will be bearing the cost through higher taxes and/or yet more inflation. At some point the wealthy folks who have more than $250k in one bank need to have consequences for their failure to buy private deposit insurance.
What impact will SVB have on the DIF balance? No law has been changed, the precedent set is one of procedure. When assets exceed liabilities (or reasonably can be estimated to be so) deposits in excess of insured limits will be released. In the past it was only after final reconciliation that funds were released. This new precedent marginally increases risks to the FDIC, to the benefit of consumers and the banking system.
I agree on your point about treasury management. Our two exposed companies had covenants with SVB related to equity investments and lines of credit that created an exclusive banking relationship. No bueno without additional insurance.
I'm a complete noob to this. @Marshal Jim Duncan will at some point educate us all!
New Fed facility to shore up deposits could be tapped to tune of $2 trillion: analysts
The Federal Reserve’s new facility set up after the collapse of two U.S. banks last week could see up to $2 trillion of use, according to a new analysis. The Fed last weekend set up a lending program called the Bank Term Funding Program. What’s unique about it is that banks are allowed to pledge co
Seems like this might be important to add into the discussion.
I wanna believe Dave.
But he’s repeating the same stuff as the TV.
And that bastard has a real tenuous relationship with the whole story.
But he’s repeating the same stuff as the TV.
And that bastard has a real tenuous relationship with the whole story.
If we've learned anything over the last few years, the media is untrustworthy and purposely distorts information to keep the people ignorant to the corruption of government.
Until it involves multiple large banks and devalued assets...
