Post ATe8hCBg55pX4tefrM by publius@mastodon.sdf.org
 (DIR) More posts by publius@mastodon.sdf.org
 (DIR) Post #ATe8UznmIvVjBqeueG by alberto_cottica@mastodon.green
       2023-03-15T16:07:58Z
       
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       "There is infinite political will and bottomless appetite for money creation when VC-backed companies face distress, but when the death of your parents is followed by years of brutal debt-collector armbreakers chasing you from phone number to phone number, it's just crickets." On the bailout of #SVB. And guillotines, by a @pluralistic  unusually  on edge. https://pluralistic.net/2023/03/15/mon-dieu-les-guillotines/#ceci-nes-pas-une-bailout
       
 (DIR) Post #ATe8V0ZdQzn9aH38F6 by publius@mastodon.sdf.org
       2023-03-15T17:17:22Z
       
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       @alberto_cottica @pluralistic Sheesh. The FDIC hasn't bailed out anybody. That's not what it does. The FDIC protects the depositors, that is, the public ― NOT the bankers, and NOT the shareholders.When the assets of Silicon Valley Bank are liquidated, ALL that money will go to repay the FDIC. The shareholders will get NOTHING. And if there's a shortfall? Banks across the country will be assessed to pay for it.This is what the bank inspectors weren't allowed to do in 2008.
       
 (DIR) Post #ATe8hCBg55pX4tefrM by publius@mastodon.sdf.org
       2023-03-15T17:19:35Z
       
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       @alberto_cottica @pluralistic The Federal Reserve was created to protect banks and bankers, in the aftermath of the Panic of 1907. The FDIC, created during the Great Depression, has a totally different mission, and its inspectors have no problem at all looking at a bank president across a table and telling him "you're done."
       
 (DIR) Post #ATeJWTrX7lamCsKGlU by wizzwizz4@fosstodon.org
       2023-03-15T17:49:14Z
       
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       @publius @alberto_cottica I think @pluralistic knows this.> There are a lot of totally normal people who would suffer if not for this bailout […]. They're totally normal working people who took no risks and bear no responsibility for the failure of SVB.>> But *come on*. Does anyone seriously believe that the absolute fucking *ghouls* […] are advocating for endless billions for SVB's depositors because of the *janitors*?
       
 (DIR) Post #ATeJypclo8M7oAwIpE by publius@mastodon.sdf.org
       2023-03-15T19:26:01Z
       
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       @wizzwizz4 @alberto_cottica @pluralistic Unfortunately, among SVB depositors was at least one payroll processing company. A number of companies had already transferred the money for their mid-March payments to the processor, who was then going to pay it out to the employees. But during the 48 hours or so it spent with the processor, there was a run on the bank.Again, whatever is paid out to depositors here will be repaid, either from selling SVB assets, or by the banking industry as a whole.