flexghost.Federal authorities are seriously considering protecting all uninsured deposits at Silicon Valley Bank
With your tax dollars
Here’s my proposal: fuck you, no.
Claw back the bonuses SVB gave staff HOURS before the collapse. Then we can talk.
ChrisU@flexghost
Yes Ma’am 👍👍👍
Yes Ma’am 👍👍👍
JohnW@chrisU @flexghost If they keep this shit up it may not be "with my tax dollars" for long.
Millions of others would also probably go on a tax strike.
@the_Effekt @chrisU we should have had a reckoning in 2008. People are apathetic
Mia@miarosa758 @flexghost @chrisU I would probably have to write a novel for this, but, in a sentence, I'd put it down to the way people view our financial institutions and corporations, as a necessity for the economy no matter how terrible. (ok 2 sentences). I think it is an instilled fear in regards to how they marketed themselves.
@the_Effekt @flexghost @chrisU
My mind understand this but my gut does not. How about the land of the brave?
My mind understand this but my gut does not. How about the land of the brave?
@miarosa758 @flexghost @chrisU
Brave you say??
@miarosa758 maybe something on kazoo
The Evil Microwizard@the_Effekt @miarosa758 @flexghost @chrisU Bravery and its penalties are socialized; profits and benefits are privatized.
@flexghost @chrisU Yes we should have. This time around feels a bit different though. More overall anger and less willing to let both corporate and government maneuvering slide.
bouriquet@the_Effekt @chrisU @flexghost And they’re freaking out about bailing out a bunch of college graduates who are debt from loans which should all be Zero interest?
Statmonkey 🙊@flexghost This is so fucking ridiculous. Here's the pattern. They fail due to greed. We bail them out and say "that is the last time we do this". We pass regs to stop them from failing. They lobby and elect "free market deregulation people". The laws loosen. They fail. We bail them out .... NO. The problem with Banks is none of them want to work anymore. See https://i.imgur.com/G8wC9Kl.jpg
@statmonkey socialism for the rich and …
@flexghost
Just more proof of Wilhoit's Law. Everyone should read the full comment, it's particularly salient in America today https://crookedtimber.org/2018/03/21/liberals-against-progressives/#comment-729288
Just more proof of Wilhoit's Law. Everyone should read the full comment, it's particularly salient in America today https://crookedtimber.org/2018/03/21/liberals-against-progressives/#comment-729288
kflanagan@flexghost Yes on the clawing back, also I hear that the CEO sold $3Mil in stock recently, grab that too. Deposits should be something to work on, investors, nope.
@kflanagan I wonder if that guillotine store is still open…
@flexghost Maybe it was converted to a gallows museum, saving the one from 1/6?
EmergencyJoe@flexghost No bank bailout consideration until AFTER student loans are forgiven.
It took me over 25 years to pay off my student loans. I wouldn't wish that on anyone.
@EmergencyJoe I love that attitude. Has there ever been a republican who showed empathy without having gone through something themselves? Seems like only one side is for the betterment of society
@flexghost Something about repubs, they are born on 3rd base and think they hit a homer. No. Repubs had every advantage or if they did not, like Paul Ryan, they insist on pulling up the ladder so no one but the rich can advance.
For the uninitiated, Paul Ryan's family was on welfare when he was young. He spent his entire time in Congress trying to destroy the social safety net. Hypocritical! And now he's on the board of Faux Nooz.
Agreed, only one side understands that oligarchy isn't the answer.
@EmergencyJoe well said. To that end, when they don’t get what they want, they truly feel disenfranchised from their perspective. For them to be on second base to start, instead of third is, in fact, a travesty to a Republican.
Martha Howell@EmergencyJoe @flexghost
Paul Ryan's father was an alcoholic and an uncertain provider, but his grandfather was a large builder in the Janesville, WI area and Ryan inherited considerable money. His wife inherited even more. https://www.wsj.com/articleshttps://www.latimes.com/politics/la-xpm-2012-aug-12-la-pn-ryan-millionaire-20120811-story.html/BL-WB-35578
Paul Ryan's father was an alcoholic and an uncertain provider, but his grandfather was a large builder in the Janesville, WI area and Ryan inherited considerable money. His wife inherited even more. https://www.wsj.com/articleshttps://www.latimes.com/politics/la-xpm-2012-aug-12-la-pn-ryan-millionaire-20120811-story.html/BL-WB-35578
Ertain@flexghost Those idiots in Washington are trying to give bails outs again, I see.
@Ertain every year is a new one
Ed Voncken@flexghost @stux Another fine example of “Privatize the profits, socialize the losses” ;-(
David M Reiss MDPerhaps we need a new definition for what "insurance" means for those politically connected.
When I was screwed over by Countrywide in 2008, I was not in any manner "bailed out", AND when BofA took them over, they were given immunity - I had to drop my "slam dunk" legal suits being prepared vs Countrywide (I had massive documentation of their fraud) AND I had to eat the legal fees I paid to that point.
To those uninsured re: SVB, I politely offer, with appropraite Ts&Ps - GFY!
@DMRDynamics look how fast the USA forgot 2008
Daniel Freysinger@flexghost Any cost to taxpayers should be recovered through increases in FDIC premiums.
@flexghost @stux Student Loans first.
Tim Ward ⭐🇪🇺🔶 #FBPE@flexghost But ... isn't this the USA? The Land Of Free Enterprise? Where private businesses are perfectly free to go bust if that's what they want to do? Where bailing out a failed private business is regarded as "nanny state socialism" (or, even worse, "European")? Is anyone seriously suggesting a bail-out?
Gareth Kitchen
@gruff @flexghost With gov.uk there's the £85k rule. Which everybody knows about, so can't be a surprise to anyone who's got more than £85k. But of course as that's an EU leftover it's being abolished soon.
Kieran Kelly@flexghost These bonuses were paid out hours before the collapse, but they were scheduled payroll bonuses that were already in motion days or even weeks before the collapse.
There's nothing nefarious there. Clawing them back would just punish the employees, not the actual executives and outside stakeholders who orchestrated the run on SVB.
@kk found the neoliberal
Craig Askings@flexghost @kcarruthers if the USA federal government can make a profit on doing this. I’m not against it.
Alan Martello@flexghost Keep in mind that their assets (as indicated in their Call report which can be viewed here https://cdr.ffiec.gov/public/ManageFacsimiles.aspx ) are fairly low risk assets. It should be possible to quickly liquidate them all for substantial face value.
Rich people and VC backed companies will take a haircut; painful but most companies will be able to survive - and learn to do better due diligence on who is holding their money.
This is the same lesson Bernie Madoff’s investors learned.
Assumes asset sales fully cover deposits +shareholders are wiped out. That money comes from somewhere. The neoliberal take is the state is benevolent and this doesn’t effect the little guy. It does.
Investors taking 0 loss on a failed company would defeat the purpose of the stock market. Eliminating losses for owners creates incentives for capital allocation. If we decide we should socialize losses then we may as well socialize gains as well and why have a private sector?
@flexghost Looks like the Fed statement indicates shareholders and bond holders (near as I can tell from 10K a few single digit billions in bonds) will be wiped out. Any additional shortfall in making depositors whole will come from a special assessment on banks. https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm
Doctor of Electricity@flexghost yet they won’t bail out student loans. Why? Because student loans are taken by poor people, and this bank serves rich people. When will the peasants realize that this country only works for the rich?
Carl Gold, PhD@flexghost those deposits you are talking about are the payroll for like every startup in Silicon Valley (full disclosure: including the one I work for!) Protecting deposits means the customers don’t have to pay for the execs mistakes. I get the desire to make the execs pay, but don’t sacrifice the customers!
@carl24k I’m sorry to hear about your subscription service, Internet of things toothbrush of the month business
Start ups are so wonderful and should be protected at all costs
Especially the ones that are basically event planners for the ultra wealthy
AT-AT Assault 🏳️⚧️If the FDIC doesn't step in to cover the accounts of the bank's clients, up to the $250k limit, that would NOT look good for liquidity in US banking in general.
Our current system is VERY precarious, all it takes is one big shock and suddenly people aren't getting food anymore (because if trust in banking in general were to fail, the entire economy would suddenly go illiquid).
Bailing out the Banks' Clients is good, bailing out the banks themselves is bad. Same reason why the pandemic stimulus funding was TERRIBLE. Most of the funding went straight to banks, etc. If all of the funding went to the people, it would have ended up in the banks anyway, and it would have helped out the average person too.
ideaPDish@flexghost
Right,
If their system selects for failure, then I say, let it fail.. As an example, everyone else gets to get better, so it doesn't happen to them, instead of cutting corners and doing it again.
Efficiency can be bitter and cruel.
IMO,
The current PE and VC models are inhumane to anyone who touches them and that they touch.
@flexghost Flex, I work my ass off for a company that has all its savings at SVB. We're a healthcare company. 200+ employees. We didn't do anything to deserve getting stiffed.
@flexghost Completely in agreement with you. To whom can we communicate this sentiment?
Jamie@flexghost yeah. I think I've seen this before somewhere? mmmm you would think it's only been 15 years that we would have learned.
AndyHJanet Yellin said no tax $$ will be used.
@AndyHarrison lol! “No tax dollars will be used we’re not bailing them out”
A week later “tax dollars are bailing out Wells Fargo”
Kk
I trust Yellen over Paulson -who was CEO of Goldman Sachs and nominated by Dumya Bush.
I love being fucked over.
Article from 2011.
Bailed-out banks paid no income tax in some years, according to study
https://publicintegrity.org/inequality-poverty-opportunity/bailed-out-banks-paid-no-income-tax-in-some-years-according-to-study/
Bailed-out banks paid no income tax in some years, according to study
Five banks that received federal bailout funds during the financial crisis didn’t pay income taxes for one or more years between 2008 and 2010, according to an iWatch News analysis of a new study of tax dodgers. Wells Fargo & Co., Goldman Sachs Group, PNC Financial Services Group, Capital One Financial Inc. and State Street […]
@AndyHarrison my point wasn’t to give you a choice it was to call attention to a myopic argument in a vastly corrupt system