To everyone talking about bailout and money printing:
> No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
(from the other article, currently top of HN, about Signature Bank)
> No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
(from the other article, currently top of HN, about Signature Bank)
> Any losses to the [FDIC’s] Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
This whole operation is just a short term backstop to prevent a bank panic. By promising 100% with no delay everyone can calm down.
And the cost of 100% immediately vs 96% within 5 years isn't that high.
We should have bank collapses more often. Seems like a great deal for the tax payer, with enough maybe we could even pay off the national debt.
It's a bailout because the govt is stepping in to ensure the liabilities of a business that's insolvent.