TProphetYour periodic reminder that bailing out Silicon Valley Bank cost more than the entire US food stamp program, and happened overnight with zero debate.
Tim Y.C 🌐🌍@tprophet but the bank wasnt bailed out, no?
mark@clsytim @tprophet if you want to break down each word like a lawyer, no. If you want to describe the action of covering and restoring uninsured funds that were lost, then yes.
It's impossible to deny that a very large (to me) amount of money was conjured out of thin air, which is very surprising as we are always told that it would be an irresponsible amount of money to conjure up when normal people need it
Peter Butler@clsytim @tprophet @ATLeagle I don’t think we know the full breakdown yet.
"At the end of 2022, the FDIC reported that its deposit insurance fund had a balance of $128bn, or about 1.27% of the total insured deposits, and far less than may be needed.”
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"Funding for the non-bailout bailout will also come from selling off SVB and Signature assets, pegged at $212bn and $110bn respectively. "
….
"make no mistake – it does have an expected cost to taxpayers.”
https://www.theguardian.com/business/2023/mar/13/silicon-valley-bank-collapse-biden-bailout-question
Cykonot@peterbutler @clsytim @tprophet @ATLeagle wow sounds like those banks might have failed to do a simple routine hedge.
Why is there no public banking option when we keep bailing them out and they're necessary? Why don't they get nationalized instead of bailed out when they fail?
vy@cykonot @peterbutler @clsytim @tprophet @ATLeagle they were nationalized. Fdic seizes the bank and then tries to sell it
@vy @peterbutler @clsytim @tprophet @ATLeagle selling off all the assets of a failed company is not the same as nationalizing it
@cykonot @peterbutler @clsytim @tprophet @ATLeagle It's currently under management of the FDIC and was taken from the bank shareholders.
@vy @peterbutler @clsytim @tprophet @ATLeagle ya it's being sold off not nationalized. There isn't a public bank run by the us federal government for people to use.
Breaking up a failed company and selling off the assets to others in the industry (many of whom you bailed out before) does not give us a public banking option. Why are you pretending it does
@cykonot @peterbutler @clsytim @tprophet @ATLeagle Did I say it gives us a public bank option? No. I just pointed out that SVB successor company, a totally government/FDIC owned company is operating the bank and its shareholders were zeroed out. I think we need a real Postal bank or public bank, but SVB was not bailed out, it was taken over by the government. Call it what you want.
@vy @peterbutler @clsytim @tprophet @ATLeagle depositors were bailed out. The former head of the FDIC literally called it a bail out.
The government winding down a company and selling off the assets to private industry (letting the private banks profit) IS NOT NATIONALIZATION. Words have meanings.
If California shut down PG&E and sold its assets to random companies they would not have nationalized their energy infrastructure. They would have just sold off a bunch of discounted assets
@cykonot @peterbutler @clsytim @tprophet @ATLeagle i don’t particularly like that the vcs got no haircut and biggest corporate customers same but i imagine that within federal law and time limits it would have been hard for fdic to make funds rapidly available to everyone but the vc account holders