While you struggle to pay your bills and prepare to send yet more to the government in April, are the rich venture capital funds, woke tech companies, and other businesses that irresponsibly left their money with Silicon Valley Bank going to have to pay the consequences of their actions? Nope. While you suffer in silence, the Treasury and Fed are patting themselves on the back for saving the already wealthy from their own mistakes.
She announced that in a statement released alongside Fed Chair Jerome Powell, saying:
Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.
After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.
Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
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The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.
At least they’re not bailing out the bank like in ’08. But is this really much better? These are the people that the Treasury is helping:
— No Bailouts Poso 🚫💰 (@JackPosobiec) March 12, 2023
And this is who they trusted to manage their risk:
The right needs to cheer SVB’s collapse. Bad things happening to our political enemies is a good thing pic.twitter.com/KWOF2LynFr
— Will Tanner (@Will_Tanner_1) March 12, 2023
Why is the government stepping in to save them from the mistakes of obviously woke and unprofessional crazies? Is this what the American people want? What happened to creative destruction and paying the price for mistakes? One expects that were this a farmers bank in the midwest, were the funds at risk those of ordinary Americans in Texas or Tennessee, were the companies at risk of failing gun companies or Fox News, the government wouldn’t be stepping in to save them. But the woke are at risk, so Yellen and Powell are helping them.