Page 40 - Backstop News Today

Disturbing a van despite the fact that it now seems damage control may hav worked fairly well and there might not be as broa a financial contagion that w initially worried. >> to some degree the juries out but what, could the feds actions incentivize ba behavior in the future >>, oh, absolutely absolutely the fed has come forward and said that we will not preven these financial institutions from failing in a way that would harm the real economy. it would spread financia contagion. they can and b...

Scenario does emerge, a kind of orderly exit that was set up after the financial crisis. but we havent had really a need to see this. and certainly what i would expect before we get to that point is that perhaps some kind of backstop being offered to a credit suisse in terms of stopping further deposits, leaving the bank. and when we talk about material weaknesses that were described in the report, just help us to understand what that means in laymans terms. well, certainly whats happened is tha...

Government will provide a backstop in all cases, for all banks? >> well, i think thats what is happening as a practical matter with silicon valley bank. and so what that does is it creates the expectation that that will be trouble. when you add that to what president biden says. i think thats where people began to think the market is. and the rules are going to be. but to be clear, its of the to congress. this fda seeing insurance agent was already raised from 100,000 to 250,000. i had a lot of ...

Who are the taxpayers? >> the land making money. remember, in the situation they equities been wiped down, the bombs have been wiped out. the trust has been wiped out. capital structures have been wiped. out when you end up liquidating the asset portfolio of the bank, there will be excess capital. thats most likely the scenario. ran in someones gonna and that excess capital. >> is there any chance that its the depositor? >> no, i dont think theres any chance that its depositor. >>, so that maybe...

Thats most likely the scenario were in, and someones going to own that. >> is there any chance thats the depositor? >> no, i dont think theres any chance its the depositor. >> maybe im missing it, but the depositors are paying in their taxes to get the fdic backstop and wont get the benefit and upside. >> the united states has always chosen to pay the fdic tax to have insurance in place. thats not changing. were not going to give depositors back any fdic tax. that excess return on the balance sh...

Systemic effect it has. i think what happened is we were so focused on the too big to fail that i think a lot of us were saying, yes, but bank number 11, bank number 30, bank number 75, if youre a depositor, its too big to fail in your life in, your business, and i think thats what we saw this weekend. >> thats right. are we at a point though now as a country -- i say this with the caveat most people dont have $250,000 in savings. if the fdic limit is there, they will be fine. but banks are maki...

Whatever needed. are we over the worst now quest mac i whatever needed. are we over the worst now quest ma— whatever needed. are we over the worst now quest mac i think we are over the worst. _ worst now quest mac i think we are over the worst. i _ worst now quest mac i think we are over the worst. i think _ worst now quest mac i think we are over the worst. i think what - over the worst. i think what happened is it took about a day for regular people to really understand what the federal rese...

Sets a dangerous precedent. those designations are supposed to be done in extraordinary circumstances not this kind of situation. if the concern was that they were going to be broad-based uninsured deposit runs, a better approach would be to try to have a complete backstop for the banks. fortunately, it doesnt look like thats going to happen. im holding my breath. i think there was some otherwise healthy regional banks that have been experiencing stress over all of this drama. the new heading fa...

Silicon valley bank. the biden administration has announced it will extend a federal backstop to all of the failed banks deposits. they say customers will have access to all of their money starting monday. this as president biden is vowing to hold those responsible fully accountable. he will speak about the issue in the coming hours. ron brownstein is a cnn senior political analyst and senior editor for "the atlantic." jessica levinson is a professor of law at loyal that law school and host of "...

Funds to be creating a backstop, and emergency lending service for those banks on a liquidity squeeze and none of that footed by the taxpayers and also the investors the at silicon valley will not be squeezed. and so he also said to hold those accountable for what happened. listen. >> second, those will be fired if the bank is taken over by fdic, the people who ran the bank should not be working there anymore. third, the investors of the bank will not be protected, because they knowingly took a ...