Yellen says government will help SVB depositors but rules out bailout

Re:Yellen says government will help SVB depositors but rules... by paulpauper on Sunday March 12, 2023 @12:30PM (#35122162)

“This is a bailout”. It would be if shareholders were to get their money back, which doesn’t seem likely. The government will use the bank assets to make customers, not owners, whole.

Except shareholders suffered massive or total losses in 2008, such as AIG or Washington Mutual, despite it being a bailout. A bailout means all depositors are made whole, not the shareholders.

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Re:Yellen says government will help SVB depositors but rules... by schrodinger on Sunday March 12, 2023 @12:34PM (#35122242)

Pretty sure shareholders of bailed-out banks[1] weren't destroyed. For example JPM is up 155% since it's 2007 pre-crash high. That won't be the case for SIVB shareholders.

1: https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program#....

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Re:Yellen says government will help SVB depositors but rules... by zerocrates on Sunday March 12, 2023 @05:37PM (#35126617)

WaMu was not a bailout, it was allowed to fail.

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