SoCal Deek Posted March 12, 2023 Posted March 12, 2023 On 3/12/2023 at 9:46 PM, redtail hawk said: I've given up on edumacating them. I thought some actual smart people would like more info on the outlook for the economy from a perspective of knowledge Expand Hey! Who you calling smart? 😉 Mostly what you’ll find on here are Hatfields and McCoys.
Precision Posted March 12, 2023 Posted March 12, 2023 SVB is just the start, there will be other bank failures soon. It's all just the early inning of the looming recession. Don't tell me about the unemployment rate or jobs, they are lagging indicators. 1
BillStime Posted March 12, 2023 Posted March 12, 2023 On 3/12/2023 at 9:54 PM, Precision said: SVB is just the start, there will be other bank failures soon. It's all just the early inning of the looming recession. Don't tell me about the unemployment rate or jobs, they are lagging indicators. Expand Cool story DR
dpberr Posted March 12, 2023 Posted March 12, 2023 I feel .gov was just as surprised as everyone else. That's not an encouraging sign.
ChiGoose Posted March 12, 2023 Posted March 12, 2023 Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC “WASHINGTON, DC -- The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer. Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.” 1 1
Joe Ferguson forever Posted March 12, 2023 Posted March 12, 2023 (edited) On 3/12/2023 at 10:42 PM, ChiGoose said: Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC “WASHINGTON, DC -- The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer. Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.” Expand Seems very decisive and very likely to stop the bleeding. And rapid. Not sure what NC finds funny? Kinda like he wanted a collapse. Guess it would make trying to start a revolution easier Edited March 12, 2023 by redtail hawk
ChiGoose Posted March 12, 2023 Posted March 12, 2023 On 3/12/2023 at 10:54 PM, redtail hawk said: Seems very decisive and very likely to stop the bleeding. And rapid. Not sure what NC finds funny? Kinda like he wanted a collapse. Guess it would make trying to start a revolution easier Expand I’m not sure if it will stop the bleeding, but it’s a necessary move if that’s your goal.
ChiGoose Posted March 12, 2023 Posted March 12, 2023 Just a quick reminder that the FDIC does not receive taxpayer money. It is funded through premiums assessed on member institutions. 2
Gene Frenkle Posted March 13, 2023 Posted March 13, 2023 On 3/12/2023 at 11:47 PM, ChiGoose said: Just a quick reminder that the FDIC does not receive taxpayer money. It is funded through premiums assessed on member institutions. Expand And only guarantees deposits up to $250K per account. With both SVB and Signature Bank, that covers less than 10% of all deposits.
ChiGoose Posted March 13, 2023 Posted March 13, 2023 On 3/13/2023 at 12:01 AM, Gene Frenkle said: And only guarantees deposits up to $250K per account. With both SVB and Signature Bank, that covers less than 10% of all deposits. Expand That is correct, though their statement seems to say that they will cover all deposits for those two banks, not just covered deposits.
Precision Posted March 13, 2023 Posted March 13, 2023 Not sure how I feel about the FDIC protecting all depositors. Certainly, those under $250K in assets must be insured and I have a hard time seeing viable companies having to close down because they are unable to make payroll. I'm feeling that individuals with more than $250K of assets in a single institution should be responsible for their poor choices. Moving money around in separate institutions/investments to ensure that they are in amounts that are insurable is a PITA. That is part and parcel of having/managing that much money. If individuals are unable to manage that, they need to have a financial advisor take care of it for them.
Gene Frenkle Posted March 13, 2023 Posted March 13, 2023 On 3/13/2023 at 12:04 AM, ChiGoose said: That is correct, though their statement seems to say that they will cover all deposits for those two banks, not just covered deposits. Expand I don't think FDIC has enough to cover it, even with its borrowing ability. Like not even close. I'm sure the taxpayers won't be stuck with the bill again. /s On 3/13/2023 at 12:05 AM, Precision said: Not sure how I feel about the FDIC protecting all depositors. Certainly, those under $250K in assets must be insured and I have a hard time seeing viable companies having to close down because they are unable to make payroll. I'm feeling that individuals with more than $250K of assets in a single institution should be responsible for their poor choices. Moving money around in separate institutions/investments to ensure that they are in amounts that are insurable is a PITA. That is part and parcel of having/managing that much money. If individuals are unable to manage that, they need to have a financial advisor take care of it for them. Expand A lot of them will be business accounts. SVB was big into financing startups.
Precision Posted March 13, 2023 Posted March 13, 2023 On 3/13/2023 at 12:08 AM, Gene Frenkle said: I don't think FDIC has enough to cover it, even with its borrowing ability. Like not even close. I'm sure the taxpayers won't be stuck with the bill again. /s A lot of them will be business accounts. SVB was big into financing startups. Expand Agreed, many are businesses. I don't have a problem with insuring businesses as it would be impossible for any company to operate with assets spread across different institutions. There will be individuals though that are over the $250K threshold and I don't have as much sympathy for them.
Gene Frenkle Posted March 13, 2023 Posted March 13, 2023 On 3/13/2023 at 12:17 AM, Precision said: Agreed, many are businesses. I don't have a problem with insuring businesses as it would be impossible for any company to operate with assets spread across different institutions. There will be individuals though that are over the $250K threshold and I don't have as much sympathy for them. Expand I mean, they weren't very smart with their money, I guess. Still, Forbes just named SVB the best bank in the country for 2023, so how does one safely navigate this mess? This is 100% on our overleveraged banking system and they deserve to fail and likely see prison time for some of it. People/companies banking with them are mostly just collateral damage.
Joe Ferguson forever Posted March 13, 2023 Posted March 13, 2023 You'd think once inflation started ramping up and the fed signaled prolonged and repeated rate increases they'd have adjusted their strategy. Greedy bastards fell in love with cheap credit and screwed their customers. They should pay with their homes and boats and porsches but they won't. 1
Wacka Posted March 13, 2023 Posted March 13, 2023 Stanford was mentioned above. My opinion of Stanford University was a ruined when I worked there in the 90s. I was a post-doc here for 95-97. The graduate school isgreta but undergrad, Bleeh. It has been changed, but back then, you could fail a classed take it over and over and only the highest marks showed on your GPA. You could drop a class in the last week of the semester and it wouldn't show on your transcript.
Joe Ferguson forever Posted March 13, 2023 Posted March 13, 2023 On 3/13/2023 at 12:39 AM, Wacka said: Stanford was mentioned above. My opinion of Stanford University was a ruined when I worked there in the 90s. I was a post-doc here for 95-97. The graduate school isgreta but undergrad, Bleeh. It has been changed, but back then, you could fail a classed take it over and over and only the highest marks showed on your GPA. You could drop a class in the last week of the semester and it wouldn't show on your transcript. Expand In economics?
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