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| | FDIC, Fed, and Treasury are considering a plan to backstop all SVB depositors | |
4 points by gsibble on March 12, 2023 | hide | past | favorite | 5 comments
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| According to the Washington Post, the FDIC, Fed, and Treasury are considering a plan to backstop all SVB depositors if a buyer for the whole bank can’t be found in the coming hours (The Information says gov’t officials want to sell SVB to a regional bank, not an existing giant G-SIB institution, and the ideal bidder is someone like PNC, USB, or COF). The FDIC has the authority to guarantee all deposits at an institution if it concludes that a systemic risk is posed by the firm’s failure (although to do so would require the approval of 2/3 of the Fed and FDIC boards along with support from the Treasury Sec). A Reuters report says the US gov’t is preparing “material action” to stabilize deposits at SVB and prevent contagion from spreading. |
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"What we would hope to see by tomorrow morning is for some other bank to buy the bank."
https://twitter.com/JohnGHendy/status/1634934773113290753?s=...