Palum
what Suineg set it to
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Investing General Discussion
- Thread starter Furious
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All I see in that pic is a massive capital risk exposure via a rapidly depreciating asset.
And a floatplane
And a floatplane
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Mist
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Because it's done the exact same thing for 53 banks in the past 10 years.
Also, because the bank had the underlying assets to sell (at a loss, which sucks for shareholders but doesn't matter at all once they've been seized.)
It's such a non-story.
Sanrith Descartes
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Mist
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Depositors are first in line when a failed bank is fire-sold. They would still get their deposits. The FDIC insurance is to cover losses beyond which can be recouped by selling off the assets of the bank, which would be basically nothing in this case.
Your argument is basically "people should lose money because I *feel* like they should."
There was no bailout here, there was temporary liquidity so depositors could continue to operate their businesses while the assets were sold.
Again, it's a non-story. If the bank had a name other than "Silicon Valley Bank" no one would have even paid attention.
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You just said the same thing twice... I'm confused.... Of course you can pay monopoly money debts with monopoly money.....
>>insert theyrethesamepicture.jpg here<<
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Sanrith Descartes
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No 'tard. People should not be reimbursed above $250k because that is what the Act says. Crazy I know that I think laws still matter.
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Mist
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You're missing the point. Regardless of insurance, the laws still state that depositors are first in line when the bank's assets are sold to cover the losses.
Nothing in the laws state that depositors can only receive $250k. That's just what is insured if there's no assets to sell. But there are always assets to sell, especially after the government raised reserve requirements and implemented other stress tests to ensure there would always be assets to sell.
Literally from the FDIC regulations FAQ:
So in this case, where SVB had enough assets to cover >100% of deposits, every depositor would have been issued a Receiver's Certificate for the full amount of their deposits. They all would have gotten their money regardless, per FDIC regulations.FDIC said:
All that the government did is speed up the process in which claimants would have had access to their deposits by providing temporary liquidity.
Non-story.
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Asshat wormie
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I dont see anything that says that the receiver's certificates get first lien priority.
A Flotilla of Frisbee Fleshlights. All three in one!
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Sanrith Descartes
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Jim Cramer and the Art of Being Wrong
Financial Twitter’s favorite joke is that the CNBC host is an inverse indicator. Is anyone making money betting against him?
nymag.com
Hateyou
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Mist
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In the case of a failed bank, the FDIC itself is the receiver of the liquidated bank and all of its assets. It then distributes the assets according to its rules, and its rules state that depositors are first in line up to the full amount of their deposits.
None of this has ever previously been controversial. The media made this one controversial to generate clicks, because of the name of the bank.
Asshat wormie
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I have found it
FDIC: When a Bank Fails - Facts for Depositors, Creditors, and Borrowers
"How quickly will the Receiver make payments on Receiver's Certificates?
By law, after insured depositors are paid, uninsured depositors are paid next"
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Mist
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So you're agreeing with me.
Depositors, insured and uninsured, are first and second in line before creditors and shareholders. SVB had enough assets, even once sold at less than face value, to cover all insured and uninsured deposits.
Insured and uninsured depositors would have always gotten all their money in this situation, by the wording of the laws and regulations, because they are both in line before creditors and shareholders.
Asshat wormie
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I didn't say I disagreed. Just that there was nothing provided to support the claim that certificate holders had lien priority over everyone else. Now we have it
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nu_11
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Jysin
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Blazin
Sanrith Descartes
Volatility gauges have been pretty fucked since 0DTE popularity. But can either of you explain wtf is happening with VXX today vs VIX?
As of writing, VIX is up 5% and VXX is down 2% on the day.