Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

General Discussion

pnwmom

(110,275 posts)

19. The major banks are, but a run on small and medium banks could still have terrible consequences.

Reply to videohead5 (Reply #18)

Mon Mar 13, 2023, 03:48 AM

Mar 2023

And mortgages weren't the problem with SVP. They had actually over-invested in US treasuries, which are supposed to be a super-safe investment. So what happened? The Feds repeated rate hikes had lowered the value of the long-term treasuries the bank was holding.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

24 replies

= new reply since forum marked as read

Highlight:

Check in thread to say thanks to President Biden for saving the American economy (again!) tonight! [View all] NewsCenter28 Mar 2023 OP

It wouldn't surprise me that Thiel hatched this plan lapfog_1 Mar 2023 #1

This is the fault of Fed chair Powell. roamer65 Mar 2023 #2

Forgive my ignorance, but I haven't been following developments today wackadoo wabbit Mar 2023 #3

Too big to fail is alive and well. walkingman Mar 2023 #4

Wait! Is this another bailout? wackadoo wabbit Mar 2023 #5

Yep, looks like a bailout. I'm so sick of it too. n/t liberal_mama Mar 2023 #10

No taxpayer money will be involved, so it's not a taxpayer bailout. nt pnwmom Mar 2023 #13

No taxpayer funds will be involved, if that's what you're concerned about. pnwmom Mar 2023 #17

F that! We have 250K FDIC insurance per bank for a reason. No changing the rules kelly1mm Mar 2023 #6

Yes! No more socialism for financial institutions! wackadoo wabbit Mar 2023 #7

Bingo. +1000 roamer65 Mar 2023 #9

They didn't change the rules. Taxpayers won't be bailing out the banks BUT pnwmom Mar 2023 #12

This is not your grandfather's America walkingman Mar 2023 #23

I am writing in my diary: "Fed fails again to tank the economy and Biden" usonian Mar 2023 #8

I am very relieved. From the reaction here (with many insisting that nothing should be done pnwmom Mar 2023 #11

The banks are in much better shape videohead5 Mar 2023 #14

No, they don't all do that anymore. In 2018 Trump signed a law that gutted parts pnwmom Mar 2023 #16

But the major banks are videohead5 Mar 2023 #18

The major banks are, but a run on small and medium banks could still have terrible consequences. pnwmom Mar 2023 #19

My mistake videohead5 Mar 2023 #20

I hope the Fed thinks all this through before they decide to raise rates again. pnwmom Mar 2023 #21

Thank you President Biden! (Nt) LostOne4Ever Mar 2023 #15

As usual, thank you President Biden! betsuni Mar 2023 #22

"Dow futures are soaring" LOL former9thward Mar 2023 #24