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US regulators bail out SVB customers, who can access all their money Monday
- rftyuikdjhgvcf 4y agoHahahah!
- hnthrowaway0315 4y agoJust curious what's so funny?
- salawat 4y agoPrivatized profits socialized losses strikes again. You don't think that the banks aren't going to be passing along the burden of the FDIC special assessment to customers, do you? That's not at all how finance tends to work.
- Sakos 4y agoMy god, the comments on these SVB articles keep getting worse. I'd delete 95% of the comments I see, including yours.
- easyeven009 4y ago[flagged]
- throwaway81523 4y agoYellen announces "no bailout" and a few hours later, there is a bailout.
- hnthrowaway0315 4y agoFrom my understanding this is not a bailout. Equity is wiped out?
- throwaway81523 4y agoA private party's debts are getting paid with public funds. That is a bailout.
- nine_zeros 4y agoI don't get it. What are people crying about? In the 08 crisis, everyone complained that the execs and investors were bailed out to save the system but the homeowners were wiped. This is the exact opposite. Execs and investors are wiped but the average depositor is saved. I can understand the anger at the bank run orchestrated by "sophisticated" VC group-think. But given that it happened, this is the BEST OUTCOME that the government could have come up with.
- pylua 4y agoThe average depositor does not feel like someone with over 250k in the bank. No one will save those people if they hit a difficult situation like this. That said, I personally do not have an opinion on the svb matter, just stating what I feel the sentiment to be.
- nine_zeros 4y ago> The average depositor does not feel like someone with over 250k in the bank. The average depositor might not have $250k in the bank but the average small business does? These small businesses pay their employees from those deposits. Where do people think payroll comes from?
- pylua 4y agoIt should be spread out in order to mitigate risks like this.
- nine_zeros 4y ago> It should be spread out in order to mitigate risks like this. Even after that, companies could still need the money to make payroll literally on March 15. How would they know which of their spread out accounts will fail tomorrow? Think about your own accounts. You are paying for your own car loan from one account. Imagine it gets frozen tomorrow. There are 2 scenarios: First, you miss the first few payments and your car gets repossessed. Isn't it rather unfair that you had the money but your bank fucked up so your car got repossessed? Second, you switch your bank for loan payments but that you were already using the other account for mortgage payments. Now your deposits are leaving faster than your savings are building. Why should you, the depositor, be put in this precarious situation - if the failure was from the bank management? A bank failure cannot be prepared for in the best of times, for a simple individual. And you are asking large companies with accounts payables and payrolls to switch asap before market opens on Monday and these companies get crushed - for not fault of their own? Imo, the outcome of saving no-fault depositors but not saving the bad management is more than fair.
- easyeven009 4y ago[flagged]
- rcme 4y agoIf SVB didn’t get bailed out, there would be a run on small banks. Unfortunately, the government can’t bail out every small bank, so there may still be a run on the banks. Time will tell.
- dragonwriter 4y ago> Unfortunately, the government can’t bail out every small bank Well, they could adopt a new program providing cash loans against a variety of term investments to deal with liquidity crunches of the type SVB faced for all banks. That would be equivalent to a bailout (at negative expected cost) of all small and large banks with similar issues to SVB. Oh, yeah, they did that today. https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm https://www.federalreserve.gov/newsevents/pressreleases/mone...