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HariSeldon

(540 posts)

3. There might be a bit of a bailout for depositors

Reply to RandySF (Original post)

Sun Mar 12, 2023, 10:09 PM

Mar 2023

Secretary Yellen said that the depositors would all be made whole. The reason the bank collapsed is that it couldn't fulfill all the withdrawals being made. My recollection is that the balance sheet at seizure was about $980,000,000 in the hole, so that (less than 1% of the bank's assets) is what taxpayers might absorb. The bank's investors, however, made their bed and Yellen intends to let them lie in it.

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Silicon Valley Bank is NOT getting bailed out. [View all] RandySF Mar 2023 OP

Kicked for edit. RandySF Mar 2023 #1

Kick. Rec. sheshe2 Mar 2023 #2

There might be a bit of a bailout for depositors HariSeldon Mar 2023 #3

The taxpayers are not paying for this. euphorb Mar 2023 #4

It's not a bailout Demobrat Mar 2023 #5

So, the Federal Reserve is regurgitating the Aldrich-Vreeland Act from the Panic of 1907. roamer65 Mar 2023 #6

K&R betsuni Mar 2023 #7

Confusing AZSunDevil Mar 2023 #8

Welcome to DU! Delphinus Mar 2023 #9

LOL yes they are, the Federal Govt is covering their asses, taxpayer funds or not! Shanti Shanti Shanti Mar 2023 #10

This is just wrong Johnny2X2X Mar 2023 #11

Right, its a Hail Mary from the FED to avert a complete shitshow panic...still a bailout Shanti Shanti Shanti Mar 2023 #12

Also not true Johnny2X2X Mar 2023 #13

Semantics, hundreds of millions in corporate cash is being rescued, I better buy more peanut butter Shanti Shanti Shanti Mar 2023 #14

Not semantics at all Johnny2X2X Mar 2023 #16

Not my point, bang! First Republic Bank down 65%, expect it to fail, Regional banks tanking all over Shanti Shanti Shanti Mar 2023 #18

You are correct. The Bank is NOT being bailed out. It is done. It will not re-open this year or ever DFW Mar 2023 #15

+1000 Johnny2X2X Mar 2023 #17