BIDEN’S BANKING CRISIS: At the 11th Hour, Regulators Will Protect All Silicon Valley Bank Depositors
The Feds were shamed into it at the last minute. Badly handled. Badly done. It’s a mess.
After SVB failure, regulators close crypto-friendly bank Signature Bank
Banking stocks plummet:Banking stocks plummet in premarket trade:
– First Republic Bank: -65%
– Western Alliance Bancorp: -64%
– PacWest Bancorp: -42%
– Charles Schwab: -7%
The Fed may or may not realize it but it has created a two-tier banking system:
1. Tier 1: Systemically Important Banks. These are the “too big to fail” biggest banks. If you have money there, it’s a true deposit. You can’t lose it.
2. Tier 2: Everyone Else. If you have money… https://t.co/RFTF9kjeUS
— David Sacks (@DavidSacks) March 12, 2023
Bank Panic! Is this Donald Trump prediction about to come true?
SVB, First Republic Bank, Signature Bank, JPMorgan, Wells Fargo, Bank of America & Citigroup all losing HUGE. It was the worst day for bank stocks since 2020 which fell over 4% Per FBN. pic.twitter.com/CogDtMf9GP
— SweetPeaBelle (@SweetPeaBell326) March 10, 2023
U.S. regulators will protect all Silicon Valley Bank depositors to stem fallout
By: American Greatness, March 13, 2023:
Federal banking regulators took aggressive new actions aimed at preventing depositors in failed Silicon Valley Bank from losing money — and at trying to prevent its downfall from unleashing a nationwide run across the banking system.
Why it matters: The extraordinary actions, using tools last deployed in the early days of the pandemic and in the 2008 global financial crisis, are an attempt to avert a broad banking crisis triggered by a run on the bank.
If unchecked, that would lead to cascading bank failures and potentially a broad financial crisis.
Driving the news: The Treasury Department, Federal Deposit Insurance Corp. and the Federal Reserve, citing “systemic risk” under which the agencies can take extraordinary actions, said that the FDIC’s insurance funds will be used to prevent depositors from losing money.
The action prevents a situation in which those who had more than the $250,000 per-saver cap on deposit insurance at SVB face potential losses.
The Fed also announced a new “Bank Term Funding Program,” invoking emergency authority, that enables other banks to obtain quick cash in exchange for collateral.Meanwhile, President Biden said in a statement Sunday evening he’s “firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”
The president said he would detail Monday on how his administration plans to “maintain a resilient banking system” to protect the U.S. economic recovery.
What they’re saying: “Depositors will have access to all of their money starting Monday, March 13,” said a joint statement from the Treasury, Fed, and FDIC. “No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” saying the bank-funded FDIC insurance fund will absorb any costs.
“These actions will reduce stress across the financial system, support financial stability and minimize any impact on businesses, households, taxpayers, and the broader economy,” the Fed said in a statement.
Details: The Fed’s facility, implemented using section 13(3) of the Federal Reserve Act which authorizes emergency actions, allows banks nationwide to obtain immediate cash on highly favorable terms in the event they face a surge of withdrawals.
Notably, they can pledge long-term securities like Treasury bonds and mortgage-backed securities to the Fed and get access to immediate cash equivalent to their original value — even if the value of the bonds has fallen.
That should prevent other banks from getting into the jam that faced Silicon Valley Bank, where on-paper losses on such securities triggered a bank run.
Source: https://gellerreport.com/2023/03/bidens-banking-crisis-at-the-11th-hour-regulators-will-protect-all-silicon-valley-bank-depositors.html/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).