Doc67 wrote: ↑Sun Mar 19, 2023 11:31 am

Kenr wrote: ↑Sun Mar 19, 2023 11:01 am

armchairlawyer wrote: ↑Sun Mar 19, 2023 10:57 am

Kenr wrote: ↑Sun Mar 19, 2023 10:46 am But that’s not how it works. The FDIC is funded by the banks, it has nothing to do with printing more money.,

I said "At the end of the day". SVB drained the FDIC pot on its own. All the other banks are having to cough up. In the event of multiple failures, the US Treasury would have to pay.

I’m not sure if that’s correct that SVB drained the FDIC on its own.

I want to know how the FDIC has any legal authority to pay anyone over the $250,000 level?

It is supposedly an independent agency with its own constitution/charter and rules etc. So at what point did this agency decide to pay everyone 100% of their deposit and blow the lid on the $250k cap and thereby bail out some very serious investors that maybe should have known better?

I am happy that they did, as without such a bailout depositor flight over many more banks would have ensued last week (I bet it is happening anyway to some degree). However, the FED and the major New York banks can't bail everyone out. Goldmans lost $200m recently on their own account (so far), so losses from Treasuries are affecting them all. To what degree, and the damage being done, is still under wraps - for now.

The volatile markets have hurt even banks that are seen as stronger, with some affected by the yield on the two-year Treasury note falling at its fastest pace since 1987. Goldman lost about $200mn at its trading desk that deals in interest rate products, according to people familiar with the matter. Goldman declined to comment.

https://www.ft.com/content/608cd08d-97f ... 1d57ec3471

armchairlawyer wrote: ↑Sun Mar 19, 2023 12:07 pm Anyone wanting to keep up to date with all this stuff, follow @DiMartinoBooth on twitter.

Kammekor wrote: ↑Mon May 01, 2023 8:59 pm

Kenr wrote: ↑Mon May 01, 2023 8:46 pm What is something the last three banks that went under had in common? Cryptocurrency.

I thought it was bonds, long and medium term bonds, which were worth less than they were bought for because of the interest hike of the last 12 months.

Kenr wrote: ↑Mon May 01, 2023 8:46 pm What is something the last three banks that went under had in common? Cryptocurrency.