Banks?

[lunkerslayer]

SVB situation in a nutshell

 

[Sum1]

Doesnt sound like they are gonna be bailed out.

 

[snow]

pretty sure this is trumps fault too.

Lol,ofcourse...poor fucker Trump will be taking heat for years to come with idiots like this in our government.

 

[snow]

It’s not the second largest bank in the country but the second largest to have collapsed. Also it’s not all corporations that lost their money, think of all the 60+ retirees that had 1 million plus in the bank only to lose it and get 250,000 back in insurance. I couldn’t imagine. Hopefully this isn’t a start of the domino effect

This^^ is the scary reality.

 

[Fester]

This^^ is the scary reality.

Isn't that why your supposed to have multiple bank accounts with assest over 250k?

 

[CatDaddy]

Doesnt sound like they are gonna be bailed out.

Bailed out.....
https://www.cnn.com/2023/03/12/investing/svb-customer-bailout/index.html

 

[Allen]

Well, the bank isn't going to be around after this since it doesn't seem like it is getting bailed out, but the depositors are going to be bailed out.

Am I the only one that wonders why the FDIC limits aren't indexed to inflation?

 

[snow]

Isn't that why your supposed to have multiple bank accounts with assest over 250k?

Dunno know?,personally I only trust my credit union affiliated with my family since the 60's through their employment, state of Minnesota employment...

But now this,sounds like this bank will get bailed out,alot of squabbling going on,we'll see what happens

 

[Bfishn]

It sounds like just the depositors are being protected by the FDIC program which I believe is funded by premiums paid by banks. It doesn't sound like the bank itself or any shareholders are being bailed out with taxpayer money.

 

[snow]

This morning, mumbles tried to speak,and his old treasury lady yellen.. another worthless dinosaur in his administration said no plans for federal bail out,sounds like svb executives will be held accountable, possible fraud....so much corruption in our country and government these days.

 

[Allen]

It sounds like just the depositors are being protected by the FDIC program which I believe is funded by premiums paid by banks. It doesn't sound like the bank itself or any shareholders are being bailed out with taxpayer money.

Right, but since I would have to assume the premiums paid into FDIC by SVB (or any bank for that matter) are based on the $250k limit, it would seem the depositors at SVB are going to get paid out more by the insurance claim than they signed up for.

When's the last time an insurance company has given the rest of us a higher payment than we signed up for outside of FDIC?

 

[Bfishn]

Right, but since I would have to assume the premiums paid into FDIC by SVB (or any bank for that matter) are based on the $250k limit, it would seem the depositors at SVB are going to get paid out more by the insurance claim than they signed up for.

When's the last time an insurance company has given the rest of us a higher payment than we signed up for outside of FDIC?

I don't think FDIC is comparable to your personal insurance. It also exists to keep confidence in the banking system as nobody has ever lost a penny in an FDIC insured institution. That's what we are seeing here, depositor funds guaranteed to stop more bank runs and a further crisis.

 

[Ruttin]

I think this is only the beginning unfortunately. I still can not believe the amount of people who think the Federal Reserve is a "government" entity. We need a total reboot of our economic system. Going back to the gold standard would be a fine start imo.

 

[Allen]

I don't think FDIC is comparable to your personal insurance. It also exists to keep confidence in the banking system as nobody has ever lost a penny in an FDIC insured institution. That's what we are seeing here, depositor funds guaranteed to stop more bank runs and a further crisis.

I think I can safely say that whenever we are talking about comparing Govt use/implementation of terms that also apply to the private sector, differences pop up that leave a person scratching their heads. At the same time, I am of the opinion they shouldn't be. FDIC is indeed funded through premiums paid by member institutions, which is why the actuarial stuff makes me wonder why things are they way they are...

"The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country."

https://www.fdic.gov/about/what-we-do/index.html

 

[Fester]

Dunno know?,personally I only trust my credit union affiliated with my family since the 60's through their employment, state of Minnesota employment...

But now this,sounds like this bank will get bailed out,alot of squabbling going on,we'll see what happens

FDIC insures up to 250k. From my understanding if you have multiple accounts with 250k in each account it’s all insured and no need to worry about losing money. It would be a pain to keep track of accounts if your let’s say mark cuban and have 150mill into different banks but i would say most of us are no where near that category and could keep track of a few bank accounts. If anything is bailed out with this bank it’s more than likely for the multi millionaires or billionaires such as Mark Cuban, which is also why he is screaming for a bailout.

 

[johnr]

I think I can safely say that whenever we are talking about comparing Govt use/implementation of terms that also apply to the private sector that there are differences that leave a person scratching their heads. At the same time, I am of the opinion they shouldn't be. FDIC is indeed funded through premiums paid by member institutions, which is why the actuarial stuff makes me wonder why things are they way they are...

"The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country."

https://www.fdic.gov/about/what-we-do/index.html

The tricky part is they have been collecting for a long time, and rarely payout, so a big payout like this, could be more than they actually have held for such an instance.

The military years ago was paying $180 for $3 hammers, and it was just the tip the fraud that is our government, and the FDIC while privately run, is likely buying $180 hammers

 

[db-2]

go to bank tracker investigate on the computer to see the shape your bank is in.

Will tell you their total deposits, loans, profits for the last few years, reserves, non-accruing loans. loans over 90 days past due, other real estate own (repo) and their capital along with a rating.
Banks do well for the most part in ND but there are a few with not the best rating.

The ones i have funds in appear to be well capitalize at over 10% of deposits with a decent rating in regard to problem loans on the books. db

 

[Captain Ahab]

They made the depositors whole despite the FDIC limits to avoid further "Bank Runs". Just about any bank can be rendered insolvent by a "Bank Run" as they are only required to keep a percentage of deposits on hand. SVB dealt in providing money to risky, startup tech companies. Rising interest rates and slowdown in tech was a recipe for disaster. You add a "bank run" and poof, it's toast. This may slow down the fed's rate increases a little.

 

[Fester]

They made the depositors whole despite the FDIC limits to avoid further "Bank Runs". Just about any bank can be rendered insolvent by a "Bank Run" as they are only required to keep a percentage of deposits on hand. SVB dealt in providing money to risky, startup tech companies. Rising interest rates and slowdown in tech was a recipe for disaster. You add a "bank run" and poof, it's toast. This may slow down the fed's rate increases a little.

Just curious how this would slow the rate increases?

 

[Captain Ahab]

Just curious how this would slow the rate increases?

It shows their rate increases are starting to have a serious impact. Also, they my pause in order to help add more confidence in the system near term.