Michael Ramirez for March 15, 2023

Taxpayers are on the hook for this bailout. They are going to use fees paid by banks to the FDIC… Now think for a moment.

Where do banks get the money to pay those fees…

And this will deplete the funds available to backstop any future problems. Then what? You cannot base fees on a $250,000 limit then expect to pay out $400 million or more for a depositor.

Nationalize it. If we’re going to bail it out, we should own it.

Banks are necessarily central to the economic system. Unlike other businesses, a “going out of business” sign can cause catastrophe. Hmmm…. What can society do to make sure banks function properly, honestly, and efficiently?

And yet the MAGAs continue to think their deity can do no wrong.

Just come out and say it, Michael. De-regulation is behind this debacle.

A lot of banking information in the above posts. Some of it is actually accurate.

In 2018, Congress passed bipartisan legislation signed into law by President Donald Trump weakening regulations on mid-sized financial institutions like Silicon Valley Bank, whose collapse last week set off fears of another 2008-like financial crisis. The measure was supported by 33 House Democrats and 17 Democratic senators, delivering Trump and the banking industry a key bipartisan victory. But lawmakers had been explicitly told that the bill increased the risk of a financial crisis because it relaxed rules designed to strengthen banks in case of an unexpected shock — like the run on deposits last week that resulted in Silicon Valley Bank’s failure.

Journalist Aaron Rupar pointed out the falseness of Donald Trump Jr’s statement, tweeting: “There were actually 16 bank failures between 2017 and 2020. SVB Bank is the first to collapse since Biden took office.” He sourced data from the Federal Deposit Insurance Corporation (FDIC), which reports that eight banks failed in 2017, four in 2019 and four in 2020.

The eight banks that failed in 2017 were: the Washington Federal Bank for Savings, Chicago, Illinois; The Farmers and Merchants State Bank of Argonia, Argonia, Kansas; Fayette County Bank, Saint Elmo, Illinois; Guaranty Bank, Milwaukee, Wisconsin; First NBC Bank, New Orleans, Louisiana; Proficio Bank, Cottonwood Heights, Utah; Seaway Bank and Trust Company, Chicago, Illinois; and Harvest Community Bank, Pennsville, New Jersey.

In 2019, the four banks that collapsed were: City National Bank of New Jersey, Newark, New Jersey; Resolute Bank, Maumee, Ohio; Louisa Community Bank, Louisa, Kentucky; and the Enloe State Bank, Cooper, Texas.

The quartet of banks that failed in 2020 were: Almena State Bank, Almena, Kansas; First City Bank of Florida, Fort Walton Beach, Florida; The First State Bank, Barboursville, West Virginia; and Ericson State Bank, Ericson, Nebraska.

In 2018, 2021 and 2022, there were no bank failures.

Sweet!

This was a bank that catered solely to tech companies and venture capitalists. Peter Thiel and other tech gurus started the run on the bank, which in turn caused the bank to have insufficient cash on hand to pay every depositor their full account.

The SVB’s reliance on this single industry and not a variety of industries has been identified as one reason for its failure. It was distinctly susceptibility to a panicked reaction from depositors.

Tech and VC transactions involve very large deposits and withdrawals. If everyone demands all of their money, there could be a shortage of cash on hand because the banks invest a portion of depositors’ money.

That results in sudden demands for lots of money while when their depositors invest in start-ups created. They may take years to repay VC investors, resulting in tremendous peaks and valleys in deposits and demands for withdrawals.

These tech depositors will have no problem finding another bank even though their groupthink and industry gossip among CEOs who think they are smarter than nearly everyone created the problem.

Ordinary individuals were not affected by this failure. They weren’t depositors or even clients. In addition, individual banks pay FDIC fees based on a percentage of their deposits. That’s how FDIC has always been set up.

Reports indicate the Fed is considering setting up a fund that depositors with slow-return investments, like bonds, from which depositors can take out short-term loans to cover cash flow and ensure there’s no break in service to depositors or insufficient funds to cover the regular withdrawals by businesses, like payroll.

Big surprise. Privatization of profit, socialization of loss. Has Mr. Ramirez finally realized that capitalism doesn’t care about Americans or respect government.

It’s Trump’s fault.

Roosevelt (D) 1933: “Your Government does not intend that the history of the past few years shall be repeated. We do not want and will not have another epidemic of bank failures.”

Biden (D) 2023, “Watch this.”

History repeats because people keep electing Democrats.

Anyone saying “taxpayers are on the hook” for SVB doesn’t know what they’re talking about. Depositors will be covered by FDIC insurance, which is paid for by the banks, not government.

But I’m glad they are so “woke”!

How did we get here? 3 easy to understand steps…Biden’s massive spending caused inflation.The fed was forced to raise interest rates to try and tamp down inflation.The banks held billions of dollars’ worth of Treasuries and other bonds, which is typical for most banks as they are considered safe investments. However, the value of previously issued bonds has begun to fall because they pay lower interest rates than comparable bonds issued in today’s higher interest rate environment.So once again, it all leads back to Biden and his terrible policies.Thanks Joe. You loser.

Wow @Ramireztoons…more Likes than Comments, rare for you!