(PatriotHQ) What part of helping suffering citizens does the Federal Reserve not get?
ALL OF IT!
Get this! Yellen says the government won't rescue Silicon Valley bank.
The false rumors the U.S. government would take "substantive measures" to preserve Silicon Valley Bank (SVB) deposits and mitigate the bank's collapse's financial impact was all it was!
No help for the families who lost their life saving! (But hundreds of Billions to Ukraine)
After SVB became the largest bank failure since the 2008 financial crisis, Treasury Secretary Janet Yellen stated she was working with banking authorities on a solution and protecting depositors but would not bail out the regional banking sector.
In other words: Putting out a forest fire can’t help those who are not yet burned!
"During the financial crisis, investors and owners of systemically significant major banks were bailed out," but the Federal Reserve no longer is interested in helping failures.
The U.S. Federal Reserve took steps to keep credit flowing in March 2020 after the coronavirus epidemic and lockdowns triggered financial panic. They included decreasing borrowing costs and extending direct loan periods.
The problem grows!
One source indicated many smaller firms were at risk of not being able to pay their employees since SVB deposits beyond $250,000 are not insured by the FDIC. While other regional banks are losing money, U.S. regulators are watching closely, but are they preparing to offer a helping hand? Bigshots didn’t to answer this!
The Santa Clara-based SVB was the 16th largest U.S. bank with $209 billion in assets. Banking executives said authorities would likely require special guarantees and other adjustments to authorize such a deal.
Analysts and prominent investors warned if a solution wasn't found by Monday, it may squeeze other institutions, but the news is it is unlikely big banks would go bankrupt like SVB.
On Saturday, hedge fund billionaire Bill Ackman tweeted if all depositors aren't safeguarded, consumers may withdraw their money from uninsured institutions. "These withdrawals will deplete liquidity from community, regional, and other banks," said Ackman, who has no direct exposure to SVB.
Signature Bank dropped 23%, while First Republic Bank in San Francisco declined 15%. Schwab plummeted about 11%. Signature Bank, First Republic Bank, PacWest Bank, and Charles Schwab did not immediately respond to inquiries. Western Alliance Bank declined comment.
Once IndyMac and Washington Mutual went insolvent in 2008, the FDIC found firms to take over their assets and protect depositors. Uninsured depositors may get some of the FDIC's asset sale proceeds if SVB can't sell or if the Federal Reserve decides to let them eat cake!
But is there an assurance people have enough cash flow to pay their employees? What are the odds of that?
Two sources told Reuters on Saturday Rothschild & Co is exploring possibilities for Silicon Valley Bank UK Ltd.
So, what happens to the people who are getting screwed?
In conclusion. Many saw this bank failure coming. The Fed prides themselves on watching and analyzing trends but is seems the Federal Reserve is taking the low road!
Don’t worry! Depend on this famous phrase and relax:
"I'm from the government and I'm here to help"
Relax, it really works!
Just as the people in Palestine, Ohio!
This is the Obama administration not the Biden administration! We know Obama is behind the collapse of the U.S.A.
This is what happens when Capital is not managed using sound moral precepts... when maximized profits are driving the train... look out as shortcuts end up derailing the entire system. We need to ensure that the major stockholders in this bank lose all their assets not just those invested in the Bank... the board had to be criminally malfeasant in their management of the Bank. Holding them financially accountable thru asset forfeiture or criminal prosecution... is in line.
This horrible corruption makes me so very sad and sick at heart
It appears the government is deaf to the crys of the citizens, but have open ears to Illegal Aliens and foriegn wars. Why is that?
Good point! What about the families who trusted the bank because it was FDIC insured!? Maybe they will get their 250K but when and how fast? ....then maybe not!
So where should a family park their money for a few days after they sell their home and are waiting for to buy their new home? Wall Street?
Park it in your local bank... just be sure to keep it under 250K per account... a husband and wife can have two accounts at a minimum and retain their insurance. FDIC insurance is never going to go BK... as long as the Federal Government can print money.
In the alternative one can put it in soda bottles... 5 cent return in MI... or put it in a sock and bury it next to your Doberman's dog house. LOL