Heather discusses this in her usual exemplary manner
...Secretary Yellen has signed off on measures to
enable the FDIC to fully protect everyone who had money in Silicon Valley Bank, Santa Clara, California, and Signature Bank, New York. They will have access to all of their money starting Monday, March 13.
None of the losses associated with this resolution, the statement said, “will be borne by the taxpayer...”
Over the weekend, the crisis at SVB became a larger argument over the role of government in the protection of the economy.
Tech leaders took to social media to insist that the government must cover all the deposits in the failed bank, not just the ones covered under FDIC. They warned that the companies whose deposits were uninsured would fail, taking down the rest of the economy with them.
Others noted that
the very men who were arguing the government should protect all the depositors’ money, not just that protected under the FDIC, have been vocal in opposing both government regulation of their industry and government relief for student loan debt, suggesting that they hate government action…except for themselves. They also pointed out that in 2018, under Trump, Congress weakened government regulations for banks like SVB and that SVB’s president had been a leading advocate for weakening those regulations. Had those regulations been in place, they argue, SVB would have remained solvent...
And, perhaps even more important, the weekend of panic and fear over the collapse of just one major bank
should make it clear that the Republicans’ threat to default on the U.S. debt, thus pulling the rug out from under the entire U.S. economy unless they get their way, is simply unthinkable.
https://heathercoxrichardson.substack.com/p/march-12-2023
She does not, however, point out what I see as the smokescreen statement that no taxpayer dollars will go to the bailout, as the losses will be covered by an assessment on all banks.
Banks have no money of their own.
Banks have only Other People's Money. Thus, whilst the money paid to these thieves will not come directly from taxes, it will none-the-less come from the rest of us.
= new reply since forum marked as read