Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC

Re:Joint Statement by the Department of the Treasury, Federa... by sanderjd on Monday March 13, 2023 @12:24AM (#35131041)

So I don't know for sure, but my intuition is that if this were a great deal with no losses, there would have been a private solution.

The socialization of the losses is the mechanism where any losses that do happen will be passed on to other banks, who will pass that on in some way. I am certainly glad it isn't taxpayer funds, but it's not a free lunch.

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Re:Joint Statement by the Department of the Treasury, Federa... by sajacy on Monday March 13, 2023 @04:10AM (#35132589)

Your comment really amused me.

"Hold on, let me just... I'm sure there's a Good Reason around here somewhere..." - Hot Take Taylor

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Re:Joint Statement by the Department of the Treasury, Federa... by sanderjd on Monday March 13, 2023 @12:37PM (#35138166)

I mean, they spent the weekend trying to find a private buyer and clearly nobody wanted it. Doesn't seem to be a reach to conclude it might not actually be a great deal for the new owners (the US government)...

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Re:Joint Statement by the Department of the Treasury, Federa... by yunwal on Monday March 13, 2023 @03:21PM (#35141043)

The onus is on the people claiming that this is a no-risk deal for the FDIC. Otherwise, seeing this as a bailout is the reasonable conclusion.

If there was no risk, JP Morgan would be willing to step in to capitalize. The fact that they won’t tells me this is a bailout.

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