News for hackers. Stuff that matters.

A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by toughlover917 on Sunday March 12, 2023 @06:53PM (#35127537)
EXACTLY! This will be born by the taxpayer. What were all the VCs f*cking thinking concentrating all their portfolio companies in one financial institution? This was terrible decision making on their part (and by the portfolio companies). Why does this all of a sudden become a taxpayer liability? Because All-In bros got on Twitter and started spamming people?
[ Parent | on HN ]
Re:Joint Statement by the Department of the Treasury, Federa... by notfromhere on Sunday March 12, 2023 @06:59PM (#35127647)
FDIC gets its money by a fee charged to banks. Tax money isn’t going into this
[ Parent | on HN ]
Re:Joint Statement by the Department of the Treasury, Federa... by toomuchtodo on Sunday March 12, 2023 @07:03PM (#35127712)
Where do banks get their revenue and profits from? It’s really immaterial; if depositors weren’t taking a haircut, all of us do in some form or another, it’s simply the optics that change (banks, the Treasury, the Fed, whatever).
[ Parent | on HN ]
Re:Joint Statement by the Department of the Treasury, Federa... by elliekelly on Sunday March 12, 2023 @07:03PM (#35127719)
I think you might have missed an important word in your reading.
[ Parent | on HN ]
Re:Joint Statement by the Department of the Treasury, Federa... by leot on Sunday March 12, 2023 @09:57PM (#35129752)
No one knows that taxpayers will have to pay anything for any of this. It's possible they'll end up ahead. The assets were/are there to cover depositors. The timing of the asset liquidation/redemption is the problem, and only the "bank of last resort" can help avert contagion from skittish depositors, mass layoffs, and pointless disruption.

As said above: would you prefer to see hundreds or thousands of small companies fail, their employees go on unemployment insurance, etc.?

[ Parent | on HN ]
Re:Joint Statement by the Department of the Treasury, Federa... by rudedogg on Sunday March 12, 2023 @11:02PM (#35130431)
> No one knows that taxpayers will have to pay anything for any of this. It's possible they'll end up ahead.

Wouldn't SVB have been sold at auction by the FDIC if that were likely to happen?

I don't want to see startups fail or people lose their jobs, but this all feels like a cloaked way of passing the cost of the bailout onto the taxpayers (via raised FDIC fees that will trickle down).

[ Parent | on HN ]