Tag: Interest Rates

US government bailout of Silicon Valley and banks is $300B gift to rich oligarchs

Tina Marie (Ms. Cat)

The US Federal Reserve printed $300 billion in a week to save collapsing banks and bail out Silicon Valley oligarchs. 93% of Silicon Valley Bank’s deposits were uninsured, over the FDIC limit of $250,000, but the government still paid them. 56% of SVB’s loans went to venture capitalist and private equity firms.

US government bailout of Silicon Valley and banks is $300B gift to rich oligarchs

Two Fed-Supervised Banks Blew Up Last Week; Two More Dropped Over 40 Percent Yesterday; and the Fed Wants to Investigate Itself — Again

Tina Marie (Ms. Cat)

Two Fed-Supervised Banks Blew Up Last Week; Two More Dropped Over 40 Percent Yesterday; and the Fed Wants to Investigate Itself — Again

Last Friday, California state regulators closed Silicon Valley Bank and the Federal Deposit Insurance Corporation (FDIC) became the receiver. Its stock price had lost over 80 percent of its market value over the prior year; $150 billion of its $175 billion in deposits were uninsured, either because they exceeded the $250,000 FDIC cap and/or they were foreign deposits. The bank was effectively operating as a Wall Street IPO pipeline in drag as a federally-insured bank. The Federal Home Loan Bank of San Francisco had quietly been bailing it out – to the tune of $15 billion. Oh – and by the way – its primary regulator was the Federal Reserve Bank of San Francisco. And while all of this hubris was occurring, the CEO of Silicon Valley Bank, Gregory Becker, was sitting on the Board of Directors of his regulator, the Federal Reserve Bank of San Francisco.

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Oh, and by the way, the Fed member banks in each of the 12 Federal Reserve Districts that can choose to be regulated by the Fed, literally own their regulator. That’s right, they own the stock in their regional Fed bank, which is a private institution, unlike the Federal Reserve in Washington, D.C. which is an “independent” federal agency. (See, for example, These Are the Banks that Own the New York Fed and Its Money Button.)

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Adding to the ongoing arrogance of the Fed, its Chairman, Jerome Powell, released a statement two minutes after the market closed yesterday, stating that “The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review…” So, once again, it’s decided to investigate itself. The Fed’s Vice Chairman for Supervision, Michael Barr, will oversee the investigation.

Taxpayers ARE on hook for bank bailout – and could even fund bankers’ bonuses

Tina Marie (Ms. Cat)

As regulators rush through emergency measures to prevent further chaos following the disastrous collapse of Silicon Valley Bank, there’s a point they’re very keen to emphasize: this is not a bailout.

Taxpayers ARE on hook for bank bailout – and could even fund bankers’ bonuses

Related:

Joe Biden stuck around just long enough to lie about who’s on the hook for SVB bailout

China meets American hegemony head-on

Tina Marie (Ms. Cat)

In a rare scathing essay, Beijing’s foreign ministry has blasted Washington’s continued attempts at world domination

China meets American hegemony head-on

Related:

No holds barred as China launches frontal assault on American dollar hegemony

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Millions of seniors on Social Security are at risk of losing benefits this summer if the GOP doesn’t raise the debt ceiling

Tina Marie (Ms. Cat)

Millions of seniors on Social Security are at risk of losing benefits this summer if the GOP doesn’t raise the debt ceiling

As Insider previously reported, Biden could get around Congress through a process known as minting the coin, in which Biden could deposit a $1 trillion platinum coin in the Federal Reserve thanks to a loophole in the types of coins the Treasury can mint. But Yellen has dismissed that idea on numerous occasions and remains committed to Congress lifting the debt limit once again.