Traintrack
Active member
In a joint statement, the heads of the Federal Reserve, Treasury Department, and FDIC said: "After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors."
"Depositors will have access to all of their money starting Monday, March 13," the statement added. "No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."
The Federal Reserve also said it will offer funding to banks through a new facility to help ensure banks can meet all depositor withdrawals, essentially backstopping all deposits — both those insured and uninsured — across the U.S. financial system.
The Fed's financing will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year to banks, savings associations, and credit unions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral.
According to the Fed, the BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress.
The Fed is not purchasing securities at banks only lending against their book value. Fed officials stressed no bank is being bailed out, but banks are instead receiving longer-term liquidity at a higher valuation and lower risk.
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In short, a bank has assets that they paid a dollar for, but today they are worth 75 cents. The bank can borrow using the original one dollar price that they paid for it.
Bailing out the Banks again. They can take all the stupid risks that they want, make a ton for the "Club" and when the boat sinks, they Fed is there to dry them off.
Taxpayers will cover losses... Again. Did anything get fixed? This is done without an act of congress? A new Federal Agency Funding Program without a single vote in Congress.
"Depositors will have access to all of their money starting Monday, March 13," the statement added. "No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."
The Federal Reserve also said it will offer funding to banks through a new facility to help ensure banks can meet all depositor withdrawals, essentially backstopping all deposits — both those insured and uninsured — across the U.S. financial system.
The Fed's financing will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year to banks, savings associations, and credit unions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral.
According to the Fed, the BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress.
The Fed is not purchasing securities at banks only lending against their book value. Fed officials stressed no bank is being bailed out, but banks are instead receiving longer-term liquidity at a higher valuation and lower risk.
----------------------------------------------------------------------------------------------------------------------
In short, a bank has assets that they paid a dollar for, but today they are worth 75 cents. The bank can borrow using the original one dollar price that they paid for it.
Bailing out the Banks again. They can take all the stupid risks that they want, make a ton for the "Club" and when the boat sinks, they Fed is there to dry them off.
Taxpayers will cover losses... Again. Did anything get fixed? This is done without an act of congress? A new Federal Agency Funding Program without a single vote in Congress.
