8 ms·
So, is this a bailout, that we are definitely absolutely not calling a bailout?
by balozi 4y ago
So, is this a bailout, that we are definitely absolutely not calling a bailout?
- baal80spam 4y agoYup, and we can expect a movie in a few years.
- loeg 4y ago> 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.
- nostromo 4y agoIt’s a bailout with the costs borne by other banks. And those costs will be paid by anyone with a bank account.
- loeg 4y agoThe typical bailout doesn't zero shareholders. Here, shareholders were zeroed. You can call it a bailout of depositors, but the association with bailouts that didn't zero shareholders is bogus.
- avalys 4y agoIt's not a bailout. Silicon Valley Bank will cease operating, the shareholders get zero, anyone who loaned them money likely gets zero, the executives have been fired, the employees will all be laid off within two months. The point of this action is to ensure that Silicon Valley Bank's customers, however, will not be harmed by doing business with a regulated major bank.
- dathinab 4y agoNo it's not because it only covering deposits. If you want to call it a bailout it would be an bailout of investment/company money parked in SVB but _not of SVB itself_. Furthermore SVB might still have enough assets to cover that (or most likely a very huge part of it), they just don't have enough cash/liquidity to continue on as a company.