Banking ??

[Steelhorse]

Banking and high finance is not My thing, so SVB collapses, the President says relax all deposits will be covered and it won't cost the taxpayers a cent. So where is the money going to come from if the bank ends "short"? Or Who funds the FDIC? Thanks

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[Newbie]

So where is the money going to come from if the bank ends "short"? Or Who funds the FDIC? Thanks

 

[Felix808]

the President says relax all deposits will be covered and it won't cost the taxpayers a cent.

Yet another lie. Government produces nothing, only takes. Joe Tax payer will be on the hook through a creative tax & fee system. No other way around it. The same with all the nonsense of trying to tax business to " Pay their fair share" It all gets passed down to the consumer, because only the government does not look at a profit and loss statement

 

[AZ_Liberty]

The money comes from the FDIC payments banks make to the FDIC. The banks of course pass this expense on to their customers in the form of higher fees.

So, indirect taxation, rather than direct. But I guess only people who use banks are paying for it.

 

[1975U15]

Whole thing is a complete scam top to bottom. Most of the accounts at SVB were uninsured with FDIC because it was venture capital and tech startup money well above the $250k FDIC will cover.

Of course, the gubment and president are incredibly short on the details with how these depositors are being made whole. Is it the FDIC reserves from across all banks? That’s a screw job if so. The fed is the backstop and where does the Feds money come from. Or does Fed just print money. They aren’t giving specifics. Convenient. Either way taxpayer gets screwed.

Here’s the best part. These uninsured accounts are a whole lot of rich people in tech start ups and venture cap money. So yep…the little guy ends up bailing out the super rich yet again. That’s what this smells like to me.

If I were in charge(mwwwwhhhaaa) those uninsured accounts(>$250k) get nothing. As Gene Wilder in Charlie and the chocolate factory said “You lose!! Good day Sir!” That’s business. Bank made bad bet in 10yr treasuries and unfortunately got squeezed. They could’ve used private market, but easier just to have Feds step in. And cheaper.

What’s the point of FDIC insurance limits if there is no limit when the shit hits the fan?? And furthermore, what’s the point of banks? Let’s just all send our money to the Fed if all they do is bailout mis-managed banks like SVB? And where we’re the regulators? Right under the SF Feds noses and easy to identify there was a long bond duration problem with no hedge. So now we end up with “more regulation” as the corpse in charge states when they weren’t monitoring or enforcing oversight to begin with.

It’s an effin bailout even if the corrupt politicians won’t call it that. Of course, same people refuse to call a recession a recession and are constantly rewording our understanding of a term in the post truth world. We should erect the Orwell statue right away.

 

[Hossfire]

All depositors pay for FDIC indirectly. The banks pass along these costs through fees and lower interest rates on your deposits.

While very few individuals will lose their deposits, businesses may get burned. It would be better if the Biden administration talked a big bank into acquiring SVB.

The whole situation with the bank’s insolvency stinks. There had to be insiders working for the bank telling their venture capital buddies to bail. Which is illegal.

 

[ytuvbnhgyrv]

The way it works is that banks pay insurance premiums to the FDIC to protect their depositors' funds. These premiums are based on the amount of deposits held by the bank, and are ultimately passed on to the bank's customers in the form of fees and other charges.

While this may seem like a downside to the FDIC's deposit insurance program, it's important to remember that the alternative would be far worse. Without the FDIC, depositors would be at a much greater risk of losing their money in the event that their bank failed. And in a worst-case scenario, a bank failure could trigger a wider financial crisis that would affect the entire economy.

 

[da_jokker]

How long before this thread gets locked

 

[Bronc-Itus]

How long before this thread gets locked

Apparently >6 months

 

[NatureMan]

How long before this thread gets locked

Until someone posts something political.

 

[j_marinelli]

Until someone posts something political.

 

[da_jokker]

Apparently >6 months

Lol...i didn't even catch that. It came up for "what's new" so didn't even look at the dates.

 

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