Posted on 03/12/2023 7:25:20 AM PDT by DoodleBob
The best outcome for the failed Silicon Valley Bank would be for U.S. officials to find a buyer for it on Sunday, Sen. Mark Warner (D-Va.) said, after its collapse last week.
“The best outcome will be can they find a buyer for this SVB bank today before the markets open in Asia later in the day,” Warner said on ABC’s “This Week.” “The depositors can be taken care of and the best outcome will be an acquisition of SVB.”
The fall of the bank last week sent shockwaves throughout the tech industry, which relied heavily on the bank for financing. Federal regulators took the bank under control last week, as fears of widespread banking difficulties rose.
Warner onSunday was hesitant to say whether the U.S. government should consider a federal bailout of the bank to ensure depositors receive all of their money if regulators are unable to find a buyer.
“Let’s see what happens today first,” Warner said. “There’s generally been a feeling that the people responsible, the shareholders of the bank, ought to lose their money.”
Treasury Secretary Janet Yellen, meanwhile, said Sunday that federal regulators were considering a wide range of options with the bank, including the possibility of an acquisition.
While Warner said the government needs to be monitoring other banks that have been flagged by the White House as being potentially vulnerable following the SVB collapse, he also said he is confident that the state of the U.S. banking system is strong.
(Excerpt) Read more at msn.com ...
SVB collapsed to due poor asset-liability management. Banks run a zillion liquidity scenarios. They clearly didn't run the balance sheet using a severely adverse scenario. This isn't the end of the world as Dem drama queen hedge fund guys are fearporning.
America does corporate finance and deals better than any nation on the planet.
Yup and most banks the assets are largely fdic insured. Not so for SVB
He could incorporate it into Twitter and expose all the bank's contributions to Biden and all its officers' stock sales just before the collapse.
Well....let’s be clear. SVB’s depositors are insured by the FDIC up to $250k. But I read that most of the dollar deposit quantum is above that cap. That’s not SVB’s fault.
FWIW...
https://thehill.com/homenews/ap/ap-business/yellen-says-no-federal-bailout-for-silicon-valley-bank/
Find A Buyer = disguised bailout of rich investors who assumed the wrong risks. Nothing capitalist about that.
I agree. The FDIC, after the FED and OCC contacted it with the data, immediately started calling stronger banks to sell the assets.
The investors will be out much or all of their money, and it’s possible deposit accounts over $250,000 could be hit, but another bank will buy everything at a discount.
It happened quite a lot around 2008.
I suggest Billionaire hedge fund manager Bill Ackman buy it. He is the one demanding a bailout. Okay Billy, use YOUR MONEY, you greedy entitled prick. It’s about time YOU get some skin in the game. STOP STEALING MY TAX MONEY! Hell, drag Billy Gates and “Penis Rocket” Bezos along with you. You three pricks have enough money. PUT UP OR SHUT UP!!;
If they find another bank to buy it, the SVB investors will still be screwed, which is fitting.
Sell it to one of these big mouthed left wing, capitalism hating billionaire turd rollers. I’m pretty sure BLM would like to buy it.
Taxpayers.
I really wouldn’t mind a bit seeing the Woke Techsters take it right in the shorts.
I expect CCP may want to do this.
Based on this and other articles it seems like some dem VIPs got caught in SVB and now want a bailout.
What will LIKELY happen, using 2008 as a blueprint, is stockholders get wiped out, subordinated debt holders get a haircut, depositors are made whole, other creditors will see puts and takes, and the govt likely sweetens the deal.
Well kind of is but my point is other banks have less of a bank run concern since most depositors are fully covered
No, shareholders are wiped here and bond holders may be fully wiped, even with a buyer
If the Feds are involved, all investors should run for the hills.
There was an excellent S&L called “Community Federal Savings and Loan” in Missouri that the feds came to and asked to acquire a failing bank during the S&L crisis of the ‘eighties.
A couple of years later the Feds came back and shut them down for it.
They aren’t stealing our tax money. They just print all they want regardless of income.
Of course, that causes inflation, so we all pay in the end. Higher taxes AND inflation.
We are so screwed by this century-long ship of fools.
Yeah, especially those idiot shareholders that Jim Cramer roped in last month.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.