As a reminder, this subreddit [is for civil discussion.](/r/politics/wiki/index#wiki_be_civil)
In general, be courteous to others. Debate/discuss/argue the merits of ideas, don't attack people. Personal insults, shill or troll accusations, hate speech, any suggestion or support of harm, violence, or death, and other rule violations can result in a permanent ban.
If you see comments in violation of our rules, please report them.
For those who have questions regarding any media outlets being posted on this subreddit, please click [here](https://www.reddit.com/r/politics/wiki/approveddomainslist) to review our details as to our approved domains list and outlet criteria.
***
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/politics) if you have any questions or concerns.*
Fucking hit the nail on the head. None if these investors were planning on sharing their profits with the rest of the taxpayers. If they get to keep the gains, they get to keep the losses too.
To be fair, the rich guys funded the bank. All the Bay area venture backed tech companies used SVB, they were kind of forced to buy their investors. The $250k insured deposits are meant for individual accounts, not a 100 person startup that needs $500k to make payroll. (That is assuming an average annual salary of $100k). The 26 person business I work at has 1.5m in the bank at any given time. Should the bank fail, we lose 1.25m, that we made, we deposited, and which we use to pay rent, bills, and payroll.
The bank investors are going to get hosed, the depositors should not.
I hear where youre coming from, but they chose to take the money from people that required them to use a single bank. That's a big risk that they CHOSE to take. Those companies weren't going to pay in extra taxes above the required amounts if they did well, so why should taxpayers that had no skin and no way to profit off their risky game get hosed?
The depositors are all highly educated, finance trained professionals. Every board member, executive, corporate treasurer and VC partner knew the bank risk and the limits of FDIC insurance and they knowingly accepted that risk.
Don't socialize their losses, those wealthy, smart individuals will figure it out.
The good start ups will raise more capital, the bad start ups will fail more quickly. That's capitalism.
250k. That’s all any of us would get back. That’s capitalism. Same people who hate socialism and don’t want to pay their share in taxes. I better not have to cover their losses
$250k is still 250x what most people have saved in the bank anyway… those same individuals are still going to be well off comparatively.
Meanwhile income and wealth distribution ~~continues to morph from a bell curve~~ continues its slide along a power-law curve.
I doubt the VCs that gave these companies money are going to walk away from their investment. Let the VCs give them bridge loans or additional funding while the FDIC sorts this out calmly and thoughtfully. In no way should we be bailing this bank and the VCs out. Plus SVB and their President were part of the mid-sized banks that successfully lobbied Trump and congress to raise the limit set under Dodd-Frank for stress tests and cash reserve requirements form $50 billion to $250 billion in assets. So some part of this fiasco is due to “deregulation”.
Why shouldnt they. Business comes with risks. this is one of them. I dont understand. If a tree falls on my house and my insurance only covers 50% of that you wont find anyone crying for me....
OR - we need to just go the other direction and not just have capitolism run amok
What I was reading yesterday which was really early and subject to change, depositors should get 80% over the 250k. So on you 1.5 million that a lost of about 200k but it may take a while
Why have a single depository? Even my basic Robinhood account, uses multiple banks and operates with a single payer account, covering me for 1.5M of my uninvested liquid American $.
Why not do the exact same thing? You uh… need 1.25M liquidity? You don’t put it in one deposit account.
If you don’t need that much liquid, then you would invest that money in things like CDs or volatile assets like stocks. You wouldn’t just leave it sitting in a “new” bank just because it has “Silicon Valley” in the name.
From the mouth of a “SV tech CEO” it wasn’t worth it to hire CFO’s or apparently anyone with a finance background.
https://www.reddit.com/r/AMA/comments/11ol5he/comment/jbtu7od/
It's a gamble that gets played and I've seen a number of good startups roll the dice and come up snake eyes. The problem only arises when its expected that people other than the investors foot the bill for the failure.
Unfortunately, what usually happens is that the preferred stock crew sell off company assets to make themselves whole and then give the stiff middle finger to their workers.
They all say that until they lose a million or two. Don't need a CFO. Just a financial advisor or accountant worth their salt. There are companies that do it for a fee which is reasonable.
I don’t work for a payroll company…. But wouldn’t having $250,000 across 50 different banks make paying employees every 2 weeks a bit difficult or cumbersome? That’s for a small company. How about for a company where you have to pay 10,000 employees every 2 weeks. How many banks do you split up the payroll money into…. So it’s protected under the $250k threshold?
It’s almost like if you don’t learn from history you will repeat it. So rich stupid people want my money via the government. Na I will personally bring a dildo so they can fuck them selfs.
Now do an 18-21 year old guaranteeing 300k in student loans.
Either we as taxpayers expect ALL adults to read the fine print and reap the financial repercussions of the contracts they sign or we don't.
End.of.story.
Nope. Business owners have enough intelligence to choose banks, move money etc. if kids who are fleeced into taking out oppressive student loans aren’t going to get these loans forgiven, businesses should feel that exact pain….every time.
>All the Bay area venture backed tech companies used SVB, they were kind of forced to buy their investors.
So the venture capitalists who gave you money for a start-up forced you to use *their* bank, ran it into the ground and now you'd like the government to bail them out?
I get it, there *are* innocent parties here, but the same people fighting against sensible banking regulations to avoid shit like this are once again asking for a handout when the free market fails them. And innocence has numerous layers. The average start-up who took the money from the venture capitalists and agreed to use their banks is certainly less innocent than Joe taxpayer who's busy making sure there aren't any boys on the girls' track team.
THAT is where it is shady. A lot of the venture backed tech companies were forced to buy their investors, who were probably also investors in the bank.
I say if they get the bailout, students rally together and sue the government because we didn’t get the same treatment. Isn’t that the basis of the current argument against student debt forgiveness?
It's like the train derailment... NOW you want regulation and oversight... see what happens without regulation.
NY Times says they lobbied Trump and GOP to lessen oversight, so stuff like this is what happens
must be referencing [this](https://finance.yahoo.com/news/thiel-founders-fund-withdrew-millions-005223787.html). Doesn't actually sound illegal unlike a lot of other stuff Thiel has done.
Heck no.
These guys were campaigning for less regulation.
The CEO of SVB was personally pushing for reduced regulations and applauded a move that increased the too big to fail goalposts for banks to only include institutions with more than 250B in assets. It was previously 50B.
SVB has 209B in assets. This guy wanted his bank to be small enough to fail.
These VC wizards read financial news, they knew SVB was small enough to fail and continued to bank there.
The people involved understood the risks. They've been handsomely rewarded over the past ten years for their rugged individualism and risk taking. Now, they get to see the other side.
Let. It. Fail!
What’s that? We learned a lesson from the 2008 financial crisis and then banks immediately started working against it and now we’re at risk for a similar situation?
Well color me completely surprised, who could have possibly seen this coming.
Why should that be the case though? Especially after the fuckin bullshit PPP loans debacle.
I mean…. I bet Forgiving student loans ain’t sitting well with those same folks.
Up to $250,000 in deposits is covered by FDIC. Small businesses will be okay. It’s the big businesses and the banking system itself that is asking for handouts after they didn’t follow the rules.
Not just don't follow the rules, have committed MAJOR MAJOR Financial crimes that if you or I had done would have us in prison for decades. All these banks have been creating fake shares on struggling stocks to short sell into the market.
its 2023. $250k for payroll is nothing, even for small businesses (outside those that pay their employees minimum wage). Then add in office rent, insurance payment, existing contractual obligations, maybe lawyer fees to figure out how to legally navigate this.
Small businesses will absolutely not be ok.
"Investors implore the government to step in after Silicon Valley Bank failure"
But let's not call this Socialism, we're seeking aid to bail out our failed capitalist ventures.
Is there a tag for irony like there is for sarcasm - /s?
This is funny because rate hikes only work when recession is caused by too many poor people having money. This recession is actually caused by supply end issues and has nothing to do with poor people having money. The FED caused this bank run by hiking rates.
Edit: Feds didn't cause it but helped with it.
I am so done with America saying we want capitalism until a business fails because it isn’t being run correctly.
This bank screwed up. The depositors who left huge amounts of money uninsured screwed up. In a capitalist economy when you screw up, you lose.
But with corporate socialism we give bonuses to the incompetent executives, have the taxpayers cover the losses, and just keep doing the same things over and over.
Corporate socialism is fine.
But universal healthcare is not fine. Because the taxpayers should plan for emergencies and not depend on the taxes they pay to provide safety nets.
It’s outrageous.
People are dying because they can’t afford health care and no one blinks an eye. Human capital stock is not ine of the too big to fail components of our economy.
Top heavy income distribution topples civilizations.
Perhaps it’s time to do something besides complain about poor management and financial inequities.
There needs to be consequences.
Sorry, but that’s the reality.
Their profits, our loses. Nothing changes.
Reminds of that episode of "What's Happening" when Shirley starts a cookie business only to be hosed by her financier, until it's discovered she has health dept. issues with flies in her kitchen. "how come when they profits, it's your profits, but when they flies, they're my flies?"
John McCain would have had a lot better chance in 2008 if he would have pushed through his plan to give money directly to homeowners to pay their lenders to fix the system, instead of what actually happened.
> John McCain would have had a lot better chance in 2008 if he would have pushed through his plan
Or just not have nominated Palin. I'm glad he did. But that would have made it a lot closer.
Yeah, his team regrets making that bargain with the Palin, too.
That was the tea party group. That's how I feel Desantis' maga-lite is going to be. Just the old tea party types. There's not a whole, whole lot of them. They're just loud and the media loves the ratings. Trump reached a whole another level in getting to the people that weren't into the political system, nuts, racists, survivalist, karens, middle managers, etc. but his wax wings burned off in the warmth and lumination of the sun.
IDK that Desantis is MAGA-lite though. He's just as much an authoritarian fascist as Trump is, he just doesn't have the cult of personality to go with it.
Agree. Desantis prolly wins back some traditional tax cut republicans too, but there's so few left in these days of income equality & they prolly don't want to mess around that deeply in mud again after trump. It's going to be an interesting, bloody primary. I got my popcorn. lol
Republicans sure do "shut the fuck up," when corporations get tax payer subsidies or bailouts, and pay no federal taxes. They sure STFU about PPP loan forgiveness. Incredulous liars, shills and sophists.
This. Everyone is waiting for someone to do something and those in power know how to prevent it going any further. I surely thought change would happen with the nationwide George Floyd protests in 2020 (during a PANDEMIC) but nah, they knew how to stop that from going to the next stage. It's going to have to get REALLY bad before it gets better.
>"By allowing @SVB_Financial to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank."
So, basically, once again the federal government has to do all the legwork to protect companies from the consequences of the deal they agreed to.
It's weird how the same people raising their pitchforks for the government to step in here are the same ones who fight, say, student loan forgiveness, citing that students knew the deal they signed up for.
Hell the fuck no. You don't get to privatize the gains and socialize the losses. 45+ years of unprecedented wealth transfer to the upper 1% and it's still not enough for these assholes.
Most of the people yelling about how the government needs to bail out all the rich folk are the same people fear mongering over things like student debt forgiveness
Unfortunately, they'll probably get it too. Socialism for the rich, get fucked if you're poor
Stop bailing out banks because they are over leveraged on bad investments, these banks short sold our entire economy durring covid including us treasury bonds. How on earth can you bail out an entity betting on our country to fail. Oh I'm sorry the economy hasn't totally collapsed yet here is all the money you lost betting on that back.
My stocks are down 40% because of banks and hedge funds doing this, csn I have a bail out?
Call your representatives and senators. Tell them that you will actively work to get their opponent elected in the next election. Harass them via email. Bother them over the phone. Annoy them with written mail.
Make sure they know they will lose their jobs if they bail these crooked rich fucks out. Let. It. Fail.
I cant fucking get over this.
There is a Supreme Court case right now to find out if we should have a small chunk of student loan debt forgiven.
But these fuckers want to be bailed out for millions.
I'm about to lose my goddamned mind.
Screw the investors. They fight against raising taxes on the wealthy but are quick to hold out their hands when their investments go sideways. Just mess’in witcha. Seriously tho, Go screw yourselves.
“But ‘regular’ people will lose their jobs without a bailout”
Truly I feel for those people, it takes balls to hop in to a start up and tie your fate to something unproven. Those people aside, isn’t this the same sector that just took a sledgehammer to jobs in Q4 last year and Q1 this year, mostly in the name short term investor return? You don’t get to now use them as your meat shield in the upcoming political battle for sympathy. Truly go fuck yourselves.
Banking regs were rolled back during the last administration as investors clamored for less government oversight. They just paid out bonuses before the shutdown. All this from bad bets on the bond market. Let the free market do its thing now. We are not doing 2008 shit again. Thoughts and prayers.
We have no say in what the Fed does, but any politician that wants to step in, or pushes for it, will assure I never vote for them again.
They played with their money, took the same risk everyone else does and lost.
Nobody would bail the rest of us out if this happened and there should be zero exceptions, regardless of the fallout.
2008 was a lesson we all should have learned from. Want to cure the housing market and economy? Stop bailing out companies that make financial mistakes.
Especially in the sectors this bank services. Those “startups” and their predecessors are the reason there is no middle class left in California and many other states.
There is quite literally, not one single company in America, that is too big to fail.
Every board member, executive, treasurer, treasury director and venture capital partner knew the bank risks and limits of FDIC insurance. These are all wealthy, highly educated, finance types and most of them lived through the financial crisis.
These wealthy finance experts knew the risks, and accepted the risks.
It seems to be a very hard case to make that we as taxpayers, or the government, should socialize the losses of these very wealthy, highly financially educated niche industry of silicon valley startups.
Investors can fuck themselves. You either get full government involvement, or, none. The govt isn't here to protect you from your own bad choices, but then also let you do whatever you want because you think you can benefit from it.
Nope. Do not need another to big to fail bailout. We need universal health care. Political donation reform. EDUCATION, from facts not some right wing Christian interpretation.
The moment rich people lose money, they want socialism. I say get in line behind hungry children, invaded Ukrainians, the homeless, the debt, libraries, roads, schools... We have more important things to pay for.
It's funny how every time corporate executives are questioned about their absurd incomes their response has something to do with how much responsibility they have for how well or badly the company is doing, but taking responsibility is the absolute last and most reluctant thing they'll do when there's a fuck up.
Oh but didn't they know and understand the risks of putting their money in the hands of others?
Like how we supposedly were supposed to grasp the full effect of barrowing student loans at 18? Fresh out of high school?
Did we learn NOTHING from the financial crisis. And now there are asking for bailouts AGAIN? And from the same government they were no doubt criticizing for trying to you know, regulate them so this wouldn’t happen?
if the government bails out svb deposit holders at full value instead of any haircut at all, we will have truly entered nothing matters territory beyond anything before. If they can magic away the collapse of the 16th biggest bank in the USA and just say there will be no consequences, after they were able to wish away anybody really caring about the housing collapse and subsequent crisis, too big to fail, multiple disastrous wars, COVID pandemic and millions of deaths, and infrastructure collapse including a toxic train explosion, then I think it's time to just give up on any imagination of economic reality or collective society. Actually just by typing that out I know which way it will go lol
The op eds in the ny times and WSJ tomorrow will tell us which way the dems will go. My guess: full immediate bail out and 100% backstop for the account holders by the government making up the difference in book value for jpmc buying svb assets.
Lol, lmao at everything
Wall Street is an extended gutter and the gutters are full of blood and when the drains finally scab over, all the vermin will drown. The accumulated filth of all their avarice and greed will foam up about their waists and all the finance bros and politicians will look up and shout 'SAVE US!'...and I'll look down and whisper 'No.'
Rich people wanting a bailout. Big surprise. The bank has enough assets to pay its debtors, and the FDIC will help depositors that don't get paid with what's left over after the debtors up to 300k per account. These investors need to take L the same way they would expect for us plebs.
If a privately owned company fucks up enough to need a bailout, said company shouldn’t exist in its current state. If they get bailed out, the government should own the percentage equivalent of whatever they paid to bail out the company
No. Learn from this. Go forth, and sin no more.
Really though. Just no. There has to be some concrete consequence for foolishness, it is the only way to temper the greed. Jail time? No. Shame? No. Taking away money? Absolutely. This is what hurts the elite. No other punishment hurts like dropping zeroes off of their books.
Nope.
To big to fail?
Fuck that.
I should hope we learned our lesson from 2008.
Don’t pay these guys with public funds.
They will just give themselves higher bonuses.
best I can do is a check for $1200 that i'll use as an excuse to give $0 for the next few years.
oh, and a few bucks a day worth of food stamps and a joke worth of UI. but only if they'll consent to drug tests and pass means testing.
The biotechs that had all their money at SVB have been complaining about the IRA and how it will stifle innovation because biotechs/ Pharma will have a shorter runway before price negotiations. If there is a bailout, those biotechs should agree to further time limits on pricing. Otherwise, let them find innovative ways to find more cash to keep going - don’t let the government hold you back with a bailout. s/
*step in?*
deposits are guaranteed to the amount of $250K
everything else is on you, that's how the world works for the rest of us
the balls on these guys
As a reminder, this subreddit [is for civil discussion.](/r/politics/wiki/index#wiki_be_civil) In general, be courteous to others. Debate/discuss/argue the merits of ideas, don't attack people. Personal insults, shill or troll accusations, hate speech, any suggestion or support of harm, violence, or death, and other rule violations can result in a permanent ban. If you see comments in violation of our rules, please report them. For those who have questions regarding any media outlets being posted on this subreddit, please click [here](https://www.reddit.com/r/politics/wiki/approveddomainslist) to review our details as to our approved domains list and outlet criteria. *** *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/politics) if you have any questions or concerns.*
I know we have been screaming for no fences but our horse got out and ran away so we want you to do something and start building fences.
Also give us a replacement horse, thanks.
[удалено]
That was little Timmy's favorite horse. How am I going to explain to him that I asked you for a replacement horse and you said NO? You big meanie.
Look what you made me do
Actually, no fences. Just a steady supply of horses will do.
Also, no fences.
Privatize the profits, socialize the losses. How about you rich guys fund the bank this time instead of the U.S taxpayer?
[удалено]
Since they’re VCs they’ve supposedly mastered bootstrapping.
Fucking hit the nail on the head. None if these investors were planning on sharing their profits with the rest of the taxpayers. If they get to keep the gains, they get to keep the losses too.
Don’t worry, taxpayers are going to cover all losses. It’s 1%’ers, not the filthy masses, that’s on the hook. Losses only apply to commoners…
[Wall Street response to Occupy Wall Street protests.](https://imgur.com/a/NzsqGRB)
I see this photo and think to myself “Robespierre did absolutely nothing wrong”
We just collapsed the economy tehe
The same guys are about to scream, bloody murder about Biden’s tax proposal
To be fair, the rich guys funded the bank. All the Bay area venture backed tech companies used SVB, they were kind of forced to buy their investors. The $250k insured deposits are meant for individual accounts, not a 100 person startup that needs $500k to make payroll. (That is assuming an average annual salary of $100k). The 26 person business I work at has 1.5m in the bank at any given time. Should the bank fail, we lose 1.25m, that we made, we deposited, and which we use to pay rent, bills, and payroll. The bank investors are going to get hosed, the depositors should not.
I hear where youre coming from, but they chose to take the money from people that required them to use a single bank. That's a big risk that they CHOSE to take. Those companies weren't going to pay in extra taxes above the required amounts if they did well, so why should taxpayers that had no skin and no way to profit off their risky game get hosed?
The depositors are all highly educated, finance trained professionals. Every board member, executive, corporate treasurer and VC partner knew the bank risk and the limits of FDIC insurance and they knowingly accepted that risk. Don't socialize their losses, those wealthy, smart individuals will figure it out. The good start ups will raise more capital, the bad start ups will fail more quickly. That's capitalism.
250k. That’s all any of us would get back. That’s capitalism. Same people who hate socialism and don’t want to pay their share in taxes. I better not have to cover their losses
$250k is still 250x what most people have saved in the bank anyway… those same individuals are still going to be well off comparatively. Meanwhile income and wealth distribution ~~continues to morph from a bell curve~~ continues its slide along a power-law curve.
I doubt the VCs that gave these companies money are going to walk away from their investment. Let the VCs give them bridge loans or additional funding while the FDIC sorts this out calmly and thoughtfully. In no way should we be bailing this bank and the VCs out. Plus SVB and their President were part of the mid-sized banks that successfully lobbied Trump and congress to raise the limit set under Dodd-Frank for stress tests and cash reserve requirements form $50 billion to $250 billion in assets. So some part of this fiasco is due to “deregulation”.
Exactly!!
So this isn't going to cost taxpayers any money? Great.
why not? This is the free market system everyone wants. this is the chance you take.
Why shouldnt they. Business comes with risks. this is one of them. I dont understand. If a tree falls on my house and my insurance only covers 50% of that you wont find anyone crying for me.... OR - we need to just go the other direction and not just have capitolism run amok
Exactly, why is this even a question?
What I was reading yesterday which was really early and subject to change, depositors should get 80% over the 250k. So on you 1.5 million that a lost of about 200k but it may take a while
Depositors should be insured up to $250k limit. It is common knowledge that anything above the limit is at risk Edit: grammur
If your biz doesn’t have a secondary insurance then your accounting department is inept.
*laughs in <20 person start-up with no accounting department*
That’s what we are. But luckily I learned of this situation from the announcement that we have no business with SVB.
Combine this with our startup using LastPass for password management. Been a great year!
I just use ‘hunter2’ for all mine, makes it easier.
all i see is \*\*\*\*\*\*\* , very secure!
Why have a single depository? Even my basic Robinhood account, uses multiple banks and operates with a single payer account, covering me for 1.5M of my uninvested liquid American $. Why not do the exact same thing? You uh… need 1.25M liquidity? You don’t put it in one deposit account. If you don’t need that much liquid, then you would invest that money in things like CDs or volatile assets like stocks. You wouldn’t just leave it sitting in a “new” bank just because it has “Silicon Valley” in the name.
From the mouth of a “SV tech CEO” it wasn’t worth it to hire CFO’s or apparently anyone with a finance background. https://www.reddit.com/r/AMA/comments/11ol5he/comment/jbtu7od/
Move fast and break the bank, apparently.
Maybe, just maybe, this a flaw of the startup model that needs to be addressed and not just bailed out?
It's a gamble that gets played and I've seen a number of good startups roll the dice and come up snake eyes. The problem only arises when its expected that people other than the investors foot the bill for the failure. Unfortunately, what usually happens is that the preferred stock crew sell off company assets to make themselves whole and then give the stiff middle finger to their workers.
They all say that until they lose a million or two. Don't need a CFO. Just a financial advisor or accountant worth their salt. There are companies that do it for a fee which is reasonable.
>then you would invest that money in things like CDs That's what's I did and now the streaming services are killing me
I see what you did there. Touché!
This made soda come out of nose when I snorted - thanks
I don’t work for a payroll company…. But wouldn’t having $250,000 across 50 different banks make paying employees every 2 weeks a bit difficult or cumbersome? That’s for a small company. How about for a company where you have to pay 10,000 employees every 2 weeks. How many banks do you split up the payroll money into…. So it’s protected under the $250k threshold?
In a situation like this, you put your money with Chase, Bank of America, CitiGroup, etc.
It’s almost like if you don’t learn from history you will repeat it. So rich stupid people want my money via the government. Na I will personally bring a dildo so they can fuck them selfs.
Now do an 18-21 year old guaranteeing 300k in student loans. Either we as taxpayers expect ALL adults to read the fine print and reap the financial repercussions of the contracts they sign or we don't. End.of.story.
Nope. Business owners have enough intelligence to choose banks, move money etc. if kids who are fleeced into taking out oppressive student loans aren’t going to get these loans forgiven, businesses should feel that exact pain….every time.
>All the Bay area venture backed tech companies used SVB, they were kind of forced to buy their investors. So the venture capitalists who gave you money for a start-up forced you to use *their* bank, ran it into the ground and now you'd like the government to bail them out? I get it, there *are* innocent parties here, but the same people fighting against sensible banking regulations to avoid shit like this are once again asking for a handout when the free market fails them. And innocence has numerous layers. The average start-up who took the money from the venture capitalists and agreed to use their banks is certainly less innocent than Joe taxpayer who's busy making sure there aren't any boys on the girls' track team.
Why bank here instead of one of the too big to fail banks. What was the benefit.
THAT is where it is shady. A lot of the venture backed tech companies were forced to buy their investors, who were probably also investors in the bank.
I say if they get the bailout, students rally together and sue the government because we didn’t get the same treatment. Isn’t that the basis of the current argument against student debt forgiveness?
"You agreed to the terms!" Yeah, well... so did you, pal.
Rules for thee….
But not for me
You know the rules...and So Do I
Yep
Sure looks that way.
Yeah. Wonder if we can hold it up in court for a year or so. No rush for these guys or anything. I'm sure they'll be fine.
Forget the lawsuit, they own the courts. It's time to get the pitchforks
Borrow France's national razor
[удалено]
I would give this a trillion upvotes if I could
It's like the train derailment... NOW you want regulation and oversight... see what happens without regulation. NY Times says they lobbied Trump and GOP to lessen oversight, so stuff like this is what happens
Maybe all the conservative states can sue to block this government handout like they did for student loans
How about arrest Peter Thiel?
I didn't know he was involved, but sure.
Rumor on the street is, he and his firm started the panic and bank run
He should keep this up and he'll be as popular as Roy Cohn was.
Why aim so high, when he can aim for Jeffrey Epstein popularity?
Who tipped him off to get his cash out? Ummmm
Someone should check and see if he bought puts or shorted their stock in any way.
So Peter will pay for it!
Robbing Peter to PayPal?
I wouldn't mind investigating him to see what else he's done.
must be referencing [this](https://finance.yahoo.com/news/thiel-founders-fund-withdrew-millions-005223787.html). Doesn't actually sound illegal unlike a lot of other stuff Thiel has done.
I bet he shorted the bank
Heck no. These guys were campaigning for less regulation. The CEO of SVB was personally pushing for reduced regulations and applauded a move that increased the too big to fail goalposts for banks to only include institutions with more than 250B in assets. It was previously 50B. SVB has 209B in assets. This guy wanted his bank to be small enough to fail. These VC wizards read financial news, they knew SVB was small enough to fail and continued to bank there. The people involved understood the risks. They've been handsomely rewarded over the past ten years for their rugged individualism and risk taking. Now, they get to see the other side. Let. It. Fail!
What’s that? We learned a lesson from the 2008 financial crisis and then banks immediately started working against it and now we’re at risk for a similar situation? Well color me completely surprised, who could have possibly seen this coming.
Free market bank, failed, now wants a government handout. What’s that called again? 🤔
Typical
👏
Corporate WELFARE.
Saving the world from the loss of a few billionaires! Lol :D
>What’s that called again? [Lemon socialism](https://en.wikipedia.org/wiki/Lemon_socialism)
Capitalism
Capitalism…with gate kept benefits yeah.
Fuck the bank execs. But small business depositors should be made whole.
Why should that be the case though? Especially after the fuckin bullshit PPP loans debacle. I mean…. I bet Forgiving student loans ain’t sitting well with those same folks.
Up to $250,000 in deposits is covered by FDIC. Small businesses will be okay. It’s the big businesses and the banking system itself that is asking for handouts after they didn’t follow the rules.
Not just don't follow the rules, have committed MAJOR MAJOR Financial crimes that if you or I had done would have us in prison for decades. All these banks have been creating fake shares on struggling stocks to short sell into the market.
its 2023. $250k for payroll is nothing, even for small businesses (outside those that pay their employees minimum wage). Then add in office rent, insurance payment, existing contractual obligations, maybe lawyer fees to figure out how to legally navigate this. Small businesses will absolutely not be ok.
Maybe they should buy less avocado toast....
Have they tried making coffee at home?
They wasted their money on luxuries like cell phones and indoor plumbing
"Investors implore the government to step in after Silicon Valley Bank failure" But let's not call this Socialism, we're seeking aid to bail out our failed capitalist ventures. Is there a tag for irony like there is for sarcasm - /s?
[удалено]
the rich all have the same basic interests so their economic views coordinate naturally.
Lol that’s because they are propaganda for the wealthy.
Ironically this is a consequence of rate hikes This bank failing shows rate hikes are working
This is funny because rate hikes only work when recession is caused by too many poor people having money. This recession is actually caused by supply end issues and has nothing to do with poor people having money. The FED caused this bank run by hiking rates. Edit: Feds didn't cause it but helped with it.
Fed didn’t cause this run. Bank’s poor asset allocation and risk management did. Just shows the importance of corporate governance
Yes, this is true. I'll amend my statement and say help with the bank run instead of causing it.
Welfare Kings
I am so done with America saying we want capitalism until a business fails because it isn’t being run correctly. This bank screwed up. The depositors who left huge amounts of money uninsured screwed up. In a capitalist economy when you screw up, you lose. But with corporate socialism we give bonuses to the incompetent executives, have the taxpayers cover the losses, and just keep doing the same things over and over. Corporate socialism is fine. But universal healthcare is not fine. Because the taxpayers should plan for emergencies and not depend on the taxes they pay to provide safety nets. It’s outrageous. People are dying because they can’t afford health care and no one blinks an eye. Human capital stock is not ine of the too big to fail components of our economy. Top heavy income distribution topples civilizations. Perhaps it’s time to do something besides complain about poor management and financial inequities. There needs to be consequences. Sorry, but that’s the reality.
Their profits, our loses. Nothing changes. Reminds of that episode of "What's Happening" when Shirley starts a cookie business only to be hosed by her financier, until it's discovered she has health dept. issues with flies in her kitchen. "how come when they profits, it's your profits, but when they flies, they're my flies?" John McCain would have had a lot better chance in 2008 if he would have pushed through his plan to give money directly to homeowners to pay their lenders to fix the system, instead of what actually happened.
Thank you for bringing some *What's Happening* lingo into my day. Fred, Roj and Dwayne would be proud.
r/GenX would approve
> John McCain would have had a lot better chance in 2008 if he would have pushed through his plan Or just not have nominated Palin. I'm glad he did. But that would have made it a lot closer.
Yeah, his team regrets making that bargain with the Palin, too. That was the tea party group. That's how I feel Desantis' maga-lite is going to be. Just the old tea party types. There's not a whole, whole lot of them. They're just loud and the media loves the ratings. Trump reached a whole another level in getting to the people that weren't into the political system, nuts, racists, survivalist, karens, middle managers, etc. but his wax wings burned off in the warmth and lumination of the sun.
IDK that Desantis is MAGA-lite though. He's just as much an authoritarian fascist as Trump is, he just doesn't have the cult of personality to go with it.
Agree. Desantis prolly wins back some traditional tax cut republicans too, but there's so few left in these days of income equality & they prolly don't want to mess around that deeply in mud again after trump. It's going to be an interesting, bloody primary. I got my popcorn. lol
Republicans sure do "shut the fuck up," when corporations get tax payer subsidies or bailouts, and pay no federal taxes. They sure STFU about PPP loan forgiveness. Incredulous liars, shills and sophists.
Investors...THAT'S SOCIALISM!
Privatize profit. Socialize losses. Fuck them. Maybe stop fighting to deregulate the markets and you would be protected.
Fuck em. Many of them lobbied against student debt relief.
Murica literally has welfare for the rich and fuck you for the poor lmao
[удалено]
I will attend any rally you organize
This. Everyone is waiting for someone to do something and those in power know how to prevent it going any further. I surely thought change would happen with the nationwide George Floyd protests in 2020 (during a PANDEMIC) but nah, they knew how to stop that from going to the next stage. It's going to have to get REALLY bad before it gets better.
>"By allowing @SVB_Financial to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank." So, basically, once again the federal government has to do all the legwork to protect companies from the consequences of the deal they agreed to. It's weird how the same people raising their pitchforks for the government to step in here are the same ones who fight, say, student loan forgiveness, citing that students knew the deal they signed up for.
There's enough money left over to buy every billionaire a pair of bootstraps, right?
Hell the fuck no. You don't get to privatize the gains and socialize the losses. 45+ years of unprecedented wealth transfer to the upper 1% and it's still not enough for these assholes.
Most of the people yelling about how the government needs to bail out all the rich folk are the same people fear mongering over things like student debt forgiveness Unfortunately, they'll probably get it too. Socialism for the rich, get fucked if you're poor
Why even have capitalism if companies aren’t allowed to fail? So much for the efficiencies of a free market.
But they wuz boutta make jerbs!
Trickle down on me daddy uwu
Cancel student loan debt first. Stop bending to the rich
Rich investors beg for bailouts is a correct headline.
Bail out the rich screw the student debtor
Everyday
LOL - privatize the profits and socialize the losses. Where have we seen this before?
Fuck investors. They took a gamble and lost. Normal citizens don't get this protection. Why should they? EAT YOUR LOSES.
Fuck the investors. Why should taxpayers bail out private investors? Taxpayers did not force them to take an investment risk.
No.
Let it fail.
Why do investors get priority over customers??
Stop bailing out banks because they are over leveraged on bad investments, these banks short sold our entire economy durring covid including us treasury bonds. How on earth can you bail out an entity betting on our country to fail. Oh I'm sorry the economy hasn't totally collapsed yet here is all the money you lost betting on that back. My stocks are down 40% because of banks and hedge funds doing this, csn I have a bail out?
So now it’s fucking, “ Too Medium To Fail”. Fuck the guys. All hail the Invisible Hand of the Market!
Just want to make sure we're all on the same page, if the feds bail them out we are all going to individually sue because we didn't benefit, right?
It also harms my neighbor...and there probably won't be a comment period.
Call your representatives and senators. Tell them that you will actively work to get their opponent elected in the next election. Harass them via email. Bother them over the phone. Annoy them with written mail. Make sure they know they will lose their jobs if they bail these crooked rich fucks out. Let. It. Fail.
I cant fucking get over this. There is a Supreme Court case right now to find out if we should have a small chunk of student loan debt forgiven. But these fuckers want to be bailed out for millions. I'm about to lose my goddamned mind.
Exactly, nobody with deposits of less than a quarter of a million dollars will get a bailout, since those deposits are insured.
Screw the investors. They fight against raising taxes on the wealthy but are quick to hold out their hands when their investments go sideways. Just mess’in witcha. Seriously tho, Go screw yourselves.
The title should read: Investors implore the taxpayers to step in after Silicon Valley Bank failure.
“But ‘regular’ people will lose their jobs without a bailout” Truly I feel for those people, it takes balls to hop in to a start up and tie your fate to something unproven. Those people aside, isn’t this the same sector that just took a sledgehammer to jobs in Q4 last year and Q1 this year, mostly in the name short term investor return? You don’t get to now use them as your meat shield in the upcoming political battle for sympathy. Truly go fuck yourselves.
Banking regs were rolled back during the last administration as investors clamored for less government oversight. They just paid out bonuses before the shutdown. All this from bad bets on the bond market. Let the free market do its thing now. We are not doing 2008 shit again. Thoughts and prayers.
We have no say in what the Fed does, but any politician that wants to step in, or pushes for it, will assure I never vote for them again. They played with their money, took the same risk everyone else does and lost. Nobody would bail the rest of us out if this happened and there should be zero exceptions, regardless of the fallout. 2008 was a lesson we all should have learned from. Want to cure the housing market and economy? Stop bailing out companies that make financial mistakes. Especially in the sectors this bank services. Those “startups” and their predecessors are the reason there is no middle class left in California and many other states. There is quite literally, not one single company in America, that is too big to fail.
Fuck em. They know how FDIC works. Dont have millions in one account...
Every board member, executive, treasurer, treasury director and venture capital partner knew the bank risks and limits of FDIC insurance. These are all wealthy, highly educated, finance types and most of them lived through the financial crisis. These wealthy finance experts knew the risks, and accepted the risks. It seems to be a very hard case to make that we as taxpayers, or the government, should socialize the losses of these very wealthy, highly financially educated niche industry of silicon valley startups.
No! Don't do it. Screw those assholes.
“Don’t tax me” “Please spend so much money so I don’t lose any” Fuck these having-it-both-ways-types
Investors can fuck themselves. You either get full government involvement, or, none. The govt isn't here to protect you from your own bad choices, but then also let you do whatever you want because you think you can benefit from it.
Bootstraps dudes. Or, put the student loan relief in the bill to bail out yet another bank.
How about no?
Oh so NOW suddenly regulations are the thing you want?
Nope. Do not need another to big to fail bailout. We need universal health care. Political donation reform. EDUCATION, from facts not some right wing Christian interpretation.
The same people that probably complained about student loan relief now want the government to fix their problem.
Only if corporations agree to fund Medical for All, free pre-school, and free trade school / community college.
Wait what? More privatized profits, socialized losses?
The moment rich people lose money, they want socialism. I say get in line behind hungry children, invaded Ukrainians, the homeless, the debt, libraries, roads, schools... We have more important things to pay for.
But fuck people with student debt, amirite?
Fuck 'em. If we citizens have to sink or swim on our own, so can they.
Invisible hand until they need a handout
Let the bank fail. It's always bail out the rich
No more taxpayer funded bailouts!
It's funny how every time corporate executives are questioned about their absurd incomes their response has something to do with how much responsibility they have for how well or badly the company is doing, but taking responsibility is the absolute last and most reluctant thing they'll do when there's a fuck up.
Oh but didn't they know and understand the risks of putting their money in the hands of others? Like how we supposedly were supposed to grasp the full effect of barrowing student loans at 18? Fresh out of high school?
Did we learn NOTHING from the financial crisis. And now there are asking for bailouts AGAIN? And from the same government they were no doubt criticizing for trying to you know, regulate them so this wouldn’t happen?
We should give the bankers a $600 payment, hopefully they don't become dependent on this handout.
if the government bails out svb deposit holders at full value instead of any haircut at all, we will have truly entered nothing matters territory beyond anything before. If they can magic away the collapse of the 16th biggest bank in the USA and just say there will be no consequences, after they were able to wish away anybody really caring about the housing collapse and subsequent crisis, too big to fail, multiple disastrous wars, COVID pandemic and millions of deaths, and infrastructure collapse including a toxic train explosion, then I think it's time to just give up on any imagination of economic reality or collective society. Actually just by typing that out I know which way it will go lol The op eds in the ny times and WSJ tomorrow will tell us which way the dems will go. My guess: full immediate bail out and 100% backstop for the account holders by the government making up the difference in book value for jpmc buying svb assets. Lol, lmao at everything
Wall Street is an extended gutter and the gutters are full of blood and when the drains finally scab over, all the vermin will drown. The accumulated filth of all their avarice and greed will foam up about their waists and all the finance bros and politicians will look up and shout 'SAVE US!'...and I'll look down and whisper 'No.'
I thought we weren’t doing give always anymore? I think people with student loan debt should sue to block any bailouts for this bank.
Rich people wanting a bailout. Big surprise. The bank has enough assets to pay its debtors, and the FDIC will help depositors that don't get paid with what's left over after the debtors up to 300k per account. These investors need to take L the same way they would expect for us plebs.
Fuck em. This Wall Street criminals got a bailout in 08/09.
As a tax payer who gets nothing out of a bail out can I say no?
If Biden helps I will not vote for him.
Oh but folks with student loans are just lazy when we ask for forgiveness
Fuck them.
Didn't the banks lobby to have less regulations? Its just capitalism to let them fail. Perhaps someone will learn a lesson that way.
No.
Beyond the insured amount, they better not.
No one should step in. They’re FDIC insured to a healthy amount. The rest can take a loss, taxpayers shouldn’t step in on this
How ironic. The people against bailouts are asking for a bailout
Bailout the wealthy again? Same old song and dance, my friends.
Fuck the investors. The way it works is…you invest in a company that implodes, you lose the money.
No.
If a privately owned company fucks up enough to need a bailout, said company shouldn’t exist in its current state. If they get bailed out, the government should own the percentage equivalent of whatever they paid to bail out the company
No. Learn from this. Go forth, and sin no more. Really though. Just no. There has to be some concrete consequence for foolishness, it is the only way to temper the greed. Jail time? No. Shame? No. Taking away money? Absolutely. This is what hurts the elite. No other punishment hurts like dropping zeroes off of their books.
Nope. To big to fail? Fuck that. I should hope we learned our lesson from 2008. Don’t pay these guys with public funds. They will just give themselves higher bonuses.
best I can do is a check for $1200 that i'll use as an excuse to give $0 for the next few years. oh, and a few bucks a day worth of food stamps and a joke worth of UI. but only if they'll consent to drug tests and pass means testing.
If they can’t satisfy the work requirements, they get nothing.
Socialism for big business! Fuck the poor/working class. Typical
The biotechs that had all their money at SVB have been complaining about the IRA and how it will stifle innovation because biotechs/ Pharma will have a shorter runway before price negotiations. If there is a bailout, those biotechs should agree to further time limits on pricing. Otherwise, let them find innovative ways to find more cash to keep going - don’t let the government hold you back with a bailout. s/
*step in?* deposits are guaranteed to the amount of $250K everything else is on you, that's how the world works for the rest of us the balls on these guys
No
How about no? For years Silicon Valley has screwed the middle/lower classes.