Even collapsed banks have lots of assets that the FDIC sells to cover the costs to the Fund. Signature Bank collapse costs the Fund only $2.5 billion
In 2011, I published an essay on the need for multiple banking relationships that hits the SVB coffin nail on the head.
The Fed is structurally too conflicted to regulate banks. The FDIC is not, but it needs tiger teeth to bite CEOs’ heads off.
Treasury/Fed/FDIC issue joint statement with Tough Love for investors in failed banks.
Not learned a thing since the Financial Crisis. Relying on ratings, preferred stock holders found themselves bailed in, bondholders got crushed.
The bank survived the Dotcom Bust. But this bust is far bigger because the Free-Money bubble was far bigger. FDIC may not have a loss on this deal.
Oh dearie, those bonds.
SVB is massively involved in all segments of the startup scene that is now facing a mass extinction event.
Only a couple of smaller banks have significant exposure to cryptos, and their shares have collapsed.
As the FTX collapse shows, the shenanigans guarantee smooth and efficient contagion inside the crypto zone. But beyond it?