Are You Ready? Banks Postitioned For A Bail-in As Silicon Valley Bank Fails (FDIC, Fed Weigh Special

[Wingnut]

Are you ready?

Despite cries from Summers, Yellen and other the DC illuminati (Biden is oddly silent), US banks are NOT fine. In fact, banks in general are suffering from Fed rates increases due to holding of long-term Treasuries and MBS.


In fact, The Federal Reserve’s fight against inflation is causing serious problems, as exemplified by AOC. No, not THAT AOC. but bank Accumulated Other Comprehensive Income.

Accumulated Other Comprehensive Income (AOCI) are special gains and losses that are listed as special items in the shareholder equity section of a company’s balance sheet. The AOCI account is the designated space for unrealized profits or losses on items that are placed in the other comprehensive income category.

https://confoundedinterest.net/2023/03/12/are-you-ready-banks-postitioned-for-a-bail-in-as-silicon-valley-bank-fails-fdic-fed-weigh-special-vehicle-after-svb-collapses-aoc-alert/

[Cyber Liberty]

I agree with the bottom line of this story:  Other banks will move in to bail SVB.  As painful and risky as that would be, they have to backstop a chain reaction that will spread to other banks.  We should see rumblings of that today, now that Yellen is suddenly against a bail-out.

I have a very sour attitude about the banking system these days, with all the woke bullshit going on.  I'm glad it turns out SVB was the canary in the coal mine.

[catfish1957]

Are you ready?

Despite cries from Summers, Yellen and other the DC illuminati (Biden is oddly silent), US banks are NOT fine. In fact, banks in general are suffering from Fed rates increases due to holding of long-term Treasuries and MBS.


In fact, The Federal Reserve’s fight against inflation is causing serious problems, as exemplified by AOC. No, not THAT AOC. but bank Accumulated Other Comprehensive Income.

Accumulated Other Comprehensive Income (AOCI) are special gains and losses that are listed as special items in the shareholder equity section of a company’s balance sheet. The AOCI account is the designated space for unrealized profits or losses on items that are placed in the other comprehensive income category.

https://confoundedinterest.net/2023/03/12/are-you-ready-banks-postitioned-for-a-bail-in-as-silicon-valley-bank-fails-fdic-fed-weigh-special-vehicle-after-svb-collapses-aoc-alert/

Spot on brother.....

Additionally...

Doesn't take a rocket scientist to understand and run the numbers that  financial institution covering 3% mortgage rates while paying 4% CD's and notes isn't a good business model.

[mystery-ak]

Fed and FDIC discussing backstop to make SVB depositors whole and stem contagion fears: Source
Published Sun, Mar 12 20232:34 PM EDTUpdated 1 Min Ago


Kayla Tausche

Jesse Pound

    One way that the regulators would step in would be to create a backstop for uninsured deposits at Silicon Valley Bank, using an authority from the Federal Deposit Insurance Act, according to the source.

    Such a move could also spur confidence at similar institutions to SVB.

    An additional step would be a “general banking facility” from the Federal Reserve that would support other financials with exposure to SVB.

Financial regulators are discussing two different facilities to manage the fallout from the closure of Silicon Valley Bank if no buyer materializes, according to a source close to the situation.

One way that the regulators would step in would be to create a backstop for uninsured deposits at Silicon Valley Bank, using an authority from the Federal Deposit Insurance Act, according to the source. The move would also touch the systemic risk exception that allows the Fed to take extraordinary action to stem contagion fears.

more
https://www.cnbc.com/2023/03/12/fed-fdic-discussing-backstop-to-make-svb-depositors-whole-and-stem-contagion-fears-source.html

[mystery-ak]

Auction process is reportedly underway to find a buyer for Silicon Valley Bank
Published Sun, Mar 12 202312:44 PM EDT

    Silicon Valley Bank was taken over by regulators on Friday after massive withdrawals a day earlier created a bank run.

    The Federal Deposit Insurance Corporation took control of the bank on Friday, and started an auction process on Saturday night, according to a report from Bloomberg News.

    It is still possible that no deal is reached, the report said.

more
https://www.cnbc.com/2023/03/12/auction-process-is-reportedly-underway-to-find-a-buyer-for-silicon-valley-bank.html

[sneakypete]

Despite cries from Summers, Yellen and other the DC illuminati (Biden is oddly silent), US banks are NOT fine.]

Why would they care when all THEIR "REAL money" is in offshore banks?