#BREAKING: Depositors of Signature and Silicon Valley Bank will now have access to all of their money on Monday. No losses will be borne by the taxpayer
Shareholders/certain unsecured deb tholders will not be protected
Additional funding will also be made available for banks.
The Fed has stepped in. Futures spiked, crypto spiked. Is this the beginning of a market reversal?
The Federal Reserve will implement the Bank Term Funding Program (BTFP) which will give loans of up to one year to banks, savings associations, credit unions, agency debt and mortgage-backed securities.
The BTFP will be a source of liquidity against high-quality securities.
US government through Treasure Secretary Yellen said regulators are working on the collapse of SVB and reassured Americans the banking system is “safe”.
This is in the midst of the FDIC takeover and the concern this will have a cascading impact on other banks. /1
Whilst acknowledging concerns of small business who are unable to access funds, Yellen did not provide any information as to the steps that will be taken to alleviate concerns.
Although she did say that an acquisition of Silicon Valley Bank is a possibility. /2
#BREAKING: US Banks Collapsing - Global Financial Crisis 2.0
Silvergate has shutdown and SVB in meltdown.
Californian lenders used by major Silicon Valley companies are facing significant problems.
(a thread)
What made the situation worse was that a large number of people removed their funds from these banks.
This happened within a short period of time, causing the bank serious problems. /1
Rising interest rates have caused banks, who have been left with low interest bonds, with a situation where they are unable to sell them quickly without a loss. /2
⚠️#BREAKING: Matt Tiabbi and Michael Shellenberger currently testifying to congress on the #TwitterFiles, the biggest release of social media censorship data to the public.
We get a deep look into social media censorship and governmental agency involvement.