I am told (not confirmed) that approximately 50% of SVB assets have been sold as of Saturday. I believe the depositors will get the $250k FDIC insured amount Monday and another approximately 50% by mid-week given the asset sales if the color I got proves true. The remainder is likely to take months and I am not convinced they get 100% back. Additionally, I was told (not confirmed) that your borrowings are allowed to offset your deposits. If you borrowed $10mm from SVB and had $15mm in deposits, you are now only owed $5mm. I am hearing some SVB deposit claims may have traded in the 70s for perspective. Need to confirm.
Venture is under pressure and getting funding is extremely challenging in the start-up world. One of SVB’s businesses was to fund start -ups through loans partially based on the amount of equity raised. With funding for start-ups harder to come by today and SVBs troubles, it will be even more challenging to get funding. See “Mass Extinction” story. 50% of US Venture bank Tech or Health Science start ups bank with SVB according to the website. The ramifications of this are major. There will be many companies unable to make payroll due to the SVB collapse as deposits and undrawn loans were with the bank. There is a story going around on Harry & Meghan having a lot of money in SVB as well.
I mean, it begs the question - should all deposits at FDIC/NCUA insured institutions be backed by the full faith and credit of the feds, with no limit? Why do the feds get to pick and choose which banks are “too big to fail”?
I suspect that those average people may be too ignorant about FDIC insurance and how efficient the FDIC takeovers are. It’s a Wonderful Life needs to come with a big flashing FDIC update on the screen during the bank run scene.
will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.
The Federal Reserve is prepared to address any liquidity pressures that may arise.
The financing will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par.
Has there been any data regarding how many customers actually lost their deposited funds when a bank failed during the financial crisis? Or even how much the FDIC actually paid out in insurance claims?
So we should be expecting a string of strategic defaults next winter? It’s not like mortgages 15 years ago, which was an immediate problem with performance; unless rates drop significantly, these pledged assets are going to remain depressed indefinitely.
US FEDERAL RESERVE AND TREASURY: WE ARE TAKING DECISIVE STEPS TO PROTECT THE US ECONOMY BY INCREASING PUBLIC TRUST IN OUR BANKING SYSTEM.
FED: READY TO ADDRESS ANY LIQUIDITY PRESSURES THAT MAY ARISE
US FEDERAL RESERVE AND TREASURY: THE BOARDS OF THE FDIC AND THE FEDERAL RESERVE, AFTER CONSULTING WITH BIDEN AND US TREASURY SECRETARY YELLEN, APPROVED ACTIONS THAT WOULD ALLOW THE FDIC TO COMPLETE ITS SILICON VALLEY BANK RESOLUTION.
US FEDERAL RESERVE AND TREASURY: THE TAXPAYER WILL BEAR NO LOSSES ASSOCIATED WITH THE RESOLUTION OF SILICON VALLEY BANK.
US FEDERAL RESERVE AND TREASURY: WE ARE ALSO ANNOUNCING A SIMILAR SYSTEMIC RISK EXCEPTION FOR NEW YORK’S SIGNATURE BANK, WHICH WAS CLOSED TODAY BY ITS STATE CHARTERING AUTHORITY.
US FEDERAL RESERVE AND TREASURY: WHILE ALL DEPOSITORS OF THIS INSTITUTION WILL BE COMPENSATED, SIGNATURE SHAREHOLDERS AND CERTAIN UNSECURED DEBT HOLDERS WILL NOT BE.
FDIC: NO LOSSES FOR SVB WILL BE BORNE BY THE TAXPAYER
FED: TREASURY TO BACKSTOP EMERGENCY LOANS WITH $25BFED: NEW PROGRAM TO OFFER EMERGENCY LOANS OF UP TO ONE YEAR
FED ANNOUNCES NEW EMERGENCY BANK TERM FUNDING PROGRAM
SAYS SVB DEPOSITORS WILL HAVE ACCESS TO ALL MONEY MONDAY
FED TO MAKE ADDITIONAL FUNDING AVAILABLE TO BANKS
TREASURY, FED, FDIC ANNOUNCE ACTIONS IN WAKE OF SVB
FED WILL USE FULL RANGE OF TOOLS TO SUPPORT H/HOLDS, BUSINESSES
US FEDERAL RESERVE AND TREASURY: THE SIGNATURE SENIOR MANAGEMENT HAS BEEN REMOVED.
BREAKING: FED: ALL DEPOSITORS OF THIS INSTITUTION WILL BE MADE WHOLE.
US SAYS SIGNATURE BANK CLOSED TODAY BY STATE AUTHORITY
US FEDERAL RESERVE AND TREASURY: THE FEDERAL RESERVE BOARD ANNOUNCED ON SUNDAY THAT IT WILL PROVIDE ADDITIONAL FUNDING TO ELIGIBLE DEPOSITORY INSTITUTIONS TO HELP ENSURE THAT BANKS CAN MEET THE NEEDS OF ALL THEIR DEPOSITORS.
US FEDERAL RESERVE AND TREASURY: THE BANKING SYSTEM REMAINS RESILIENT AND STABLE.
US FEDERAL RESERVE AND TREASURY: ANY SIGNATURE BANK LOSSES TO THE DEPOSIT INSURANCE FUND TO SUPPORT UNINSURED DEPOSITORS WILL BE REPAID THROUGH A SPECIAL ASSESSMENT LEVIED ON BANKS.
US FEDERAL RESERVE AND TREASURY: TO ENSURE THAT BANKS CAN MEET DEPOSITORS’ NEEDS, THE FED WILL MAKE ADDITIONAL FUNDING AVAILABLE TO ELIGIBLE DEPOSITORY INSTITUTIONS.
FED: COLLATERAL PLEDGED AT NEW FACILITY WILL BE VALUED AT PAR
US FEDERAL RESERVE: TO PROVIDE LIQUIDITY TO US DEPOSITORY INSTITUTIONS, EACH FEDERAL RESERVE BANK WOULD MAKE ADVANCES TO QUALIFIED BORROWERS, USING CERTAIN TYPES OF SECURITIES AS COLLATERAL.
US FEDERAL RESERVE: USING THE EXCHANGE STABILISATION FUND, THE TREASURY DEPARTMENT WOULD PROVIDE $25BLN IN CREDIT PROTECTION TO THE FEDERAL RESERVE BANKS IN CONNECTION WITH THE BANK TERM FUNDING PROGRAMME.
US FEDERAL RESERVE AND TREASURY: TODAY’S ACTIONS DEMONSTRATE THE UNITED STATES’ COMMITMENT TO TAKING NECESSARY STEPS TO PROTECT DEPOSITORS’ SAVINGS.
US FEDERAL RESERVE: ANY COLLATERAL THAT IS ELIGIBLE FOR PURCHASE BY THE FEDERAL RESERVE BANKS IN OPEN MARKET OPERATIONS IS CONSIDERED ELIGIBLE COLLATERAL.
US FEDERAL RESERVE: THE RATE FOR TERM ADVANCES WILL BE THE ONE-YEAR OVERNIGHT INDEX SWAP RATE PLUS 10 BASIS POINTS; THE RATE WILL BE FIXED ON THE DAY THE ADVANCE IS MADE FOR THE TERM OF THE ADVANCE.
US FEDERAL RESERVE: THE COLLATERAL WILL BE VALUED AT PAR, AND THE MARGIN WILL BE 100% OF THE PAR VALUE.
US FEDERAL RESERVE: ADVANCES UNDER THE PROGRAMME CAN BE REQUESTED UNTIL AT LEAST MARCH 11, 2024.
BANK REGULATORS: US BANKS REMAIN RESILIENT, ON SOUND FOOTING
US FEDERAL RESERVE: ADVANCES MADE UNDER THE PROGRAMME ARE MADE TO ELIGIBLE BORROWERS WITH RECOURSE BEYOND THE PLEDGED COLLATERAL USING THE EXCHANGE STABILISATION FUND, THE TREASURY DEPARTMENT WOULD PROVIDE $25BLN IN CREDIT
NEW YORK DEPARTMENT OF FINANCIAL SERVICES: WE NOW HAVE POSSESSION OF $SBNY
FED SAYS DISCOUNT WINDOW FOR BANKS IS OPEN AND AVAILABLE
FED: DISCOUNT WINDOW TO APPLY SAME MARGINS AS NEW FACILITY
SENIOR US TREASURY OFFICIAL: MEASURES REGARDING SVB WERE TAKEN TO STABILISE THE FINANCIAL SYSTEM AND PROTECT DEPOSITORS.
SENIOR US TREASURY OFFICIAL: US TREASURY SECRETARY YELLEN DECIDED ON SVB AFTER RECEIVING RECOMMENDATIONS FROM THE FED, THE FDIC, AND AFTER CONSULTING WITH BIDEN.
SENIOR US TREASURY OFFICIAL: US TREASURY SECRETARY YELLEN AND OTHER OFFICIALS ARE CLOSELY MONITORING THE SITUATION, AS WELL AS THE OVERALL HEALTH OF THE BANKING SYSTEM.
SENIOR US TREASURY OFFICIAL: WE WILL CONTINUE TO TAKE STEPS TO ENSURE THE FINANCIAL SYSTEM’S STRENGTH.
US TREASURY OFFICIAL BRIEFS ON REGULATORS’ ACTIONS SUNDAY
SAYS ACTIONS WILL ENSURE DEPOSITORS NEED NOT WORRY
TO KEEP TAKING STEPS TO ENSURE SYSTEM STAYS STRONG SIGNATURE BANK DEPOSITORS WILL BE MADE WHOLE
TREASURY OFFICIAL BANK SECTOR MORE RESILIENT THAN PRE-CRISIS
SENIOR US TREASURY OFFICIAL: WE WILL COLLABORATE WITH CONGRESS AND FINANCIAL REGULATORS TO CONSIDER ADDITIONAL STEPS TO STRENGTHEN THE FINANCIAL SYSTEM.
SENIOR US TREASURY OFFICIAL: THE SYSTEMIC RISK EXCEPTION WAS USED FOR SVB AND A SIMILAR ONE USED FOR SIGNATURE BANK
SENIOR US TREASURY OFFICIAL: THE COSTS OF THE SIGNATURE BANK RESOLUTION WILL NOT BE BORNE BY TAXPAYERS.
SENIOR US TREASURY OFFICIAL: THE DEPOSIT INSURANCE FUND’S FUNDS ARE FULLY SUFFICIENT.
SENIOR US TREASURY OFFICIAL: IN TIME, WE MAY LOOK BACK AND DETERMINE WHETHER CHANGES TO THE DEPOSIT INSURANCE FUND ARE REQUIRED.
SENIOR US TREASURY OFFICIAL: THE ACTIONS TAKEN BY THE UNITED STATES WERE FOR SILICON VALLEY BANK, NOT THE ENTIRE HOLDING COMPANY.
US TREASURY OFFICIAL SAYS 'THERE ARE CONCERNS ABOUT DEPOSITORS
'TREASURY: PERHAPS SEE SOME INSTITUTIONS SIMILAR TO SIGNATURE
FDIC’S DEPOSIT INSURANCE FUND HAS MORE THAN $100 BILLION
TREASURY SEES SOME INSTITUTIONS WITH ISSUES SIMILAR TO SVB
SENIOR US TREASURY OFFICIAL: THE FIRMS ARE NOT BEING BAILED OUT, INSTEAD THE DEPOSITORS ARE BEING PROTECTED
US TREASURY OFFICIAL SAYS THIS SITUATION `IS NOT 2008’
US TREASURY SAYS WILL LOOK BACK TO SEE WHETHER NEW RULES ARE NEEDED
NY GOV HOCHUL ISSUES STATEMENT ON SIGNATURE BANK
HOCHUL: WORKING W/ DFS, FED TO STABILIZE BANKING SECTOR $SBNY
BIDEN ADMIN TO BRIEF CONGRESS TONIGHT ON SVB RESOLUTION: WAPO
terms / details on the bank bailout/stabilization fund
FED OFFICIALS BRIEF MEDIA ON NEW BANK TERM FUNDING PROGRAM
ACTING AS LENDER OF LAST RESORT, NO ONE GETTING BAILED OUT
NEW FACILITY DESIGNED TO PREVENT TREASURY FIRE SALES
SAYS EMERGENCY FACILITY WAS APPROVED UNANIMOUSLY BY BOARD
BTFP IS BIG ENOUGH TO COVER ALL US UNINSURED…
FEDERAL RESERVE OFFICIALS: THE PRIMARY GOAL OF THE NEW PROGRAMME IS TO REASSURE BANK DEPOSITORS THAT THEIR FUNDS ARE SECURE.
FEDERAL RESERVE OFFICIALS: THE NEW FACILITY TO ALLEVIATE THE TYPE OF NEAR-TERM PRESSURE THAT BANKS FACE AS A RESULT OF RUN DYNAMICS.
FEDERAL RESERVE OFFICIALS: THE TWO FAILED BANKS’ OWNERS WILL LOSE THEIR INVESTMENTS.
FEDERAL RESERVE OFFICIALS: THE PROGRAMME WILL SIGNIFICANTLY REDUCE ANY INCENTIVE FOR DEPOSITORS TO WITHDRAW THEIR FUNDS.
FEDERAL RESERVE OFFICIALS: THERE IS NO DEFINITIVE FIGURE FOR WHAT WILL BE AVAILABLE IN FACILITY LENDING; THE GOAL IS TO MEET BANK LIQUIDITY DEMAND AS IT ARISES.
FEDERAL RESERVE OFFICIALS: SYSTEMIC RISK WAS PERCEIVED AS A THREAT IN TODAY’S FRAGILE FINANCIAL MARKETS.
FEDERAL RESERVE OFFICIALS: THE FACILITY IS INTENDED TO KEEP BANKS FROM HAVING TO SELL SECURITIES AT A LOSS IN ORDER TO MEET WITHDRAWAL DEMANDS.
FEDERAL RESERVE OFFICIALS: THE FACILITY DOES NOT COMPENSATE FOR UNREALIZED LOSSES. SECURITIES WILL CONTINUE TO APPEAR ON BANK BALANCE SHEETS.
FEDERAL RESERVE OFFICIALS: BANKS INTEND TO HOLD THE MAJORITY OF THE SECURITIES IN QUESTION UNTIL MATURITY.