Politics And Current Events

[Willie Kool]

Regulators close New York’s Signature Bank, citing systemic risk

https://www.cnbc.com/2023/03/12/regulat ... -risk.html

[meow]

Explain to me what is going on like I'm 5 years old.

[willeyeam]

We usually do that anyway so no need to specify

[crusherstasiak]

We usually do that anyway so no need to specify

i laughed

[meow]

[nocera]

I just saw that Signature is a crypto bank. That’s a thing?

[faftorial]

A firestorm coming tomorrow:

The decision by Treasury to backstop all of SVB’s deposits — not just those up to $250,000 that are automatically insured under federal law — will likely ignite a political firestorm over the decision to protect the assets of tech firms, venture capitalists, and other rich people in California.

https://www.washingtonpost.com/us-polic ... -deposits/

[shafnutz05]

Explain to me what is going on like I'm 5 years old.

The 16th largest bank in America hired a queer radical into a leadership role and they collapsed a few months later.

[dodint]

A firestorm coming tomorrow:

The decision by Treasury to backstop all of SVB’s deposits — not just those up to $250,000 that are automatically insured under federal law — will likely ignite a political firestorm over the decision to protect the assets of tech firms, venture capitalists, and other rich people in California.

https://www.washingtonpost.com/us-polic ... -deposits/

As long as students don't get relief we're okay.

[willeyeam]

Lold at the last two posts

[Troy Loney]

https://www.cnbc.com/2023/03/12/pnc-dec ... uyers.html

However, after conducting initial due diligence, PNC informed the FDIC on Saturday that it decided not to move forward, the source said.

FDD was to determine the level of SVB wokeness.

Too woke, even for PNC.

[mikey]

So...unlimited FDIC insurance if you make a whoopsie doopsie...? No harm, no foul...?

[mac5155]

Explain to me what is going on like I'm 5 years old.

Someone can probably do better but, basically
SVB had a ton of deposits happen in the past 3 years
SVB bought a lot of treasuries and MBS in that time but went long on the term
Since the depositors are by nature big money ones (not subject to FDIC insurance until today) they will pull money at the drop of a hat.
The hat started to drop the other day and people panicked. SVB couldn't fulfill its obligations and went belly up.

[mac5155]

So...unlimited FDIC insurance if you make a whoopsie doopsie...? No harm, no foul...?

But but, it's for the greater good...

[faftorial]

So...unlimited FDIC insurance if you make a whoopsie doopsie...? No harm, no foul...?

But but, it's for the greater good...

I think it's anyone's guess what dominoes will fall without intervention.

[faftorial]

Either way, another case of needing more regulations to keep banks in check (ha ha).

[mikey]

Yeah, blah blah blah regulations blah blah blah...it doesn't matter, the regulators (or in the case of The Fed, a random assortment of not voted in, lawless old men) will swoop and save you at their convenience...write it down, don't write it down...whatever...

[MrKennethTKangaroo]

We live in a word of ppp round 1 round 2 Biden bucks Trump bucks extended unemployment benefits tarp and so forth. Is anyone really surprised that depositors will be made whole?

[MrKennethTKangaroo]

Either way, another case of needing more regulations to keep banks in check (ha ha).

No

[tifosi77]

It doesn't matter how many regulations you put in place, so long as there's no fear for the consequences of this s**t. Send those responsible to federal PMITA prison for a change. There's some consequences for ya.

[MrKennethTKangaroo]

Based on the facts we know so far there is a zero percent chance of anyone getting charged with any crime

[Ad@m]

[mac5155]

So HSBC protects the deposits or the FDIC does?

[willeyeam]

Gonna guess that the FDIC isn't protecting British deposits

[Troy Loney]

So HSBC protects the deposits or the FDIC does?

Well, the FDIC doesn't do anything here cause it's a UK subsidiary. And HSBC now owns those assets and liabilities.