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The key line says it all about how the US (in agreement with tech tycoons) does things: "Just like many of the banking titans after the global financial crisis
by smugma 4y ago
The key line says it all about how the US (in agreement with tech tycoons) does things:
"Just like many of the banking titans after the global financial crisis of 2008, tech tycoons appear to favour the privatisation of profits and the socialisation of losses. There are few libertarians in a financial foxhole."
- beezle 4y agoIndeed. This entire Fed action has been a bailout of uninsured depositors who really should have known better. So now "uninsured by FDIC" has the implicit meaning "insured by the Federal Reserve". I'm not suggesting that corps should have managed every last penny to prevent an uninsured balance but the vast majority of their free cash should have been and sadly easily could have been insured and still readily available.
- vxNsr 4y agoDidn’t they announce HSBC is buying SVB. And they specifically said that no tax payer funds would be used here. The only loses here are for the shareholders of SVB. Did the gov broker the deal, sure, but it sounds like most of that brokering happened on the other side of the ocean. Basically it sounds like exactly the sort of thing a libertarian would support.
- s1artibartfast 4y agoAn actual libertarian I would point out that HSBC is only buying the UK branch of SV Bank and the line about no taxpayer funds is evasive language and a borderline lie. No tax revenue is being used to bail out the depositors, but every American with a bank account is paying for it. They're just applying a new fee to every Bank in the country to cover the losses It is still socialized losses.
- vxNsr 4y agoHmmm… I guess I didn’t read those article closely enough. Re: the fee, where do you see that?
- s1artibartfast 4y agoIt is straight from the FDIC statement: https://home.treasury.gov/news/press-releases/jy1337 https://home.treasury.gov/news/press-releases/jy1337