Let me get this straight

[Anonymous No.54099404]

So the US federal government is guaranteeing literally ALL bank deposits at ALL banks in the country?

Where's the incentive anymore for major depositors to do due diligence on their bank? What's to stop them from piling into even the dodgiest bank willing to deal with them, safe in the knowledge that if the bank goes down Uncle Sam has their back?

[Anonymous No.54099436]

>>54099404
Is there a place where I can find all these cool jewjaks?

[Anonymous No.54099447]

>>54099404
>So the US federal government is guaranteeing literally ALL bank deposits at ALL banks in the country?
Yup
>Where's the incentive anymore for major depositors to do due diligence on their bank?
There isn't
>What's to stop them from piling into even the dodgiest bank willing to deal with them, safe in the knowledge that if the bank goes down Uncle Sam has their back?
Nothing

[Anonymous No.54099473]

Does this make it easier or more difficult to funnel tax payer money to Isreal?

[Anonymous No.54099498]

>>54099404
>ALL bank deposits at ALL banks in the country?
Of course not Jack. Don't be stupid. We only guarantee them when they fail, not all the time. Come on man, you're smarter than this.

[Anonymous No.54099500]

>>54099404
You know, when the FDIC was created bankers complained about the same thing. They said the most important thing in banking was reputation and that the FDIC would erode the basis of the financial system and incentivize reckless bankers.
The contrary happened, as it basically saved the banking system in the 30's.

[Anonymous No.54099509]

>>54099404
Nothing.
Together with the 0% capital requirement, we literally could start our own 4chan bank

[Anonymous No.54099539]

Didn’t SVB have insurance? So why is this an issue here? Or is this not directly correlated to SVB’s issue?

[Anonymous No.54099604]

>>54099447
>what is the point of having multiple banks? They can be replaced with one bank and some form of digital currency that FED controls.
Viola, and now you are starting to get it

[Anonymous No.54099626]

>>54099500
>in the 30's.
Gold standard adopted in August 1971. So, you'd still need actual gold (capital).
With fiat, guaranteeing all accounts will be a disaster because it is literally just "numbers on a screen."
So, the banks could make up the balances, accounts, or whatever, "do a bad job" and then "lose the money" and the government will back all accounts 100% which basically means they will be printing real money to make up for the fake lost money.

[Anonymous No.54099723]

>>54099626
I was about to ask this. Does anybody even check this shit or could some chucklefuck just say they stashed a billion dollars in there and then never really have to prove it? Obviously you'd have to obfuscate a little bit, and probably couldn't have a no name bank just do that, but at this point what's stopping them from having some kind of fake account they were telling other banks was real to loan out money with and when that all goes super tits up and they default they get to exchange their fake money for real (still fake) money?

[Anonymous No.54099732]

>>54099604
We already have that, but it's opaque so you can't verify anything even if you wanted to. The scenario you describe already exists in the current system. Except there is no blockchain to back it up.

[Anonymous No.54099952]

>>54099723
I'm thinking more of top down than "some chucklefuck." Like, the bank owner's cousin has an fake account with $10 million here, his nephew has an account with a fake $5 million there. Perhaps the bank granted them loans based on some non-existent (complete junk) asset before going under. It would not matter so long as the money is ultimately "lost." The government will pay it out.

As to whether anyone checks anything, I doubt it. Diversity and equity ensures that everything is fucked. The few good workers are probably overworked and exhausted, and dealing with the same economic conditions as everyone else. At some point, people just check out.
Especially as the volume increases, I'm going to assume that the focus will be on paying out quickly to "prevent panic" instead of making sure that anything they pay out is actually legitimate.
And, at that point, the USD will be so fucked that there will be no choice but to flip the table and use something else. By the time criminal investigations happen, there won't be a USD.

[Anonymous No.54100020]

>>54099732
>but it's opaque so you can't verify anything even if you wanted to.
I found deep irony in the SBF scenario given that he was actually arrested. Everyone here knew it was a scam while the MSM was shilling it with a force that made it obvious that they were involved.

It was transparent enough that he got caught. You'd never see that in trad-fi.

[Anonymous No.54100078]

>>54099447
>There isn't
lmao, you haven't even got to the point where sensational-public-figure-expert-name-banks offer insane loans

[Anonymous No.54100129]

>>54099626
The gold standard was (effectively) dropped in 1933, same year the FDIC was created.
And the government never guaranteed 100% of the value of all deposits, if that's what you're saying. The limits were always there.
As for banks making up balances, that's illegal, naturally. The Federal Reserves are tasked with supervising banks in their jurisdictions and banks must offer information when asked.
The FDIC has a fund. It doesn't have to - nor can it - print money. If it eventually needs money, the Treasury can cover it, but with debt.
>>54099723
>Does anybody even check this shit
Yes, the Federal Reserves.

[Anonymous No.54100130]

>>54099447
Time to invent a replacement to banks. I call it "the consortium". Bank stakeholders are now eternally btfo, depositors no longer give 2 Fuchs about the health of the bank as they are no longer staked in its health, stakeholders will no longer be able to market on resiliency, redundancy or balanced growth, only pure alpha.

To realign incentives companies band together in consortia, form a banking vechile whose stakeholders are nothing more than sheets of paper in a cayman Islands building. Once their fractional reserve charter is attained, they max credit each other, and dispose of the vechile into receivership, to where their deposits are than covered by the fed, rinse and repeat

[Anonymous No.54100169]

>>54100129
>Yes, the Federal Reserves.
>Hey bank is your shit legit?
>Yeah, sure is
>Okay, cool. Good news guys, they said their numbers make sense.

[Anonymous No.54100210]

>>54100130
Such a vechile is ideal to a group of companies all making hail Mary plays, if they fail well, par for the course, the bailout is there, if they make it, than they offer highest alpha on the market and attract the most deposits to make bigger hail Mary's over the debt roll

[Anonymous No.54100279]

>>54099404
Stop thinking this hard. Just keep voting for boomers

[Anonymous No.54100347]

>>54099404
We are moving into a new paradigm. Even if every depositor made a run on the banks, it wouldn't do shit, since the government will just create the money anew, thus destroying the value of your money that you withdrew. We are going to have hyperinflation. The federal reserve has been testing an instant-transfer protocol called FEDNOW. The trial was earlier this year with 12 major banks, led by the New York Fed. What happened over the weekend facilitates the movement toward this more centralized control over banking. The new facility created over the weekend to manage the transfer of funds to the failing banks, is meant as a bridge to move banks into the FEDNOW system. This will happen over time, with bumps along the way. Once all are in, this will allow the fed to create money at will, moreso than now, and pump it directly where they want instantaneously, and move money here or there when they need to. This will lead to rapid dollar devaluation, but hey, it won't matter, because everyone will be plugged into a digital system that uses gamification psychology so that you will feel like you're winning! There's much more to this than what I've said, but it's very complicated and messy. Just know that the dollar number in your account won't go down, but the dollar value will, and that there will be more tracking and control of money, and less freedom where you spend it as we start rationing.

[Anonymous No.54102546]

>>54099436
they're from basedjakparty

[Anonymous No.54102733]

>>54099404
At this point I'm unironically convinced they're trying to crash this country with no survivors

[Anonymous No.54103410]

>>54099404
Can an anon catch me up on how the fed is guaranteeing these deposits? I'm very lost right now

[Anonymous No.54104142]

>>54103410
>the fed is guaranteeing these deposits?
First of all, FDIC guarantees all deposits up to $250k, but I'm sure you already know that. FDIC is an independent state-owned company created exactly for this. It has a big fund for this purpose and the U.S. Treasury insures another $100 billion or so.
The Fed, on the other hand, has announced a backstop today. The Fed is a central bank. Among his functions is that of lender of last resort, that is, the bank of bankers, who lends money to banks when no one else is able to. As you may imagine, the Federal Reserve has a lot of money in its own accounts and it can even create more money if it's authorized to do so. That is probably not the case here, as the Fed already has enough cash to open a line of credit for SVB and other banks that find themselves in the same situation. This special line of credit to save these is worth $300 billion. This is called a backstop. Of course, this will probably not be used in its entirety. The primary reason for such a big figure is to calm down depositaries, so they won't take money out of their accounts.
The Fed has also nudged other private banks into opening lines of credit to smaller regional banks. First Republic Bank has gotten a few billions today from JP Morgan to cover any possible bank run.

[Anonymous No.54104484]

>>54104142
That cleared a lot up for me anon. I appreciate it.

[Anonymous No.54104674]

>>54099404
What's worse... what's stopping the banks from gambling our deposits even harder? Now that they know we're not their problem anymore, we're the FDIC's problem. Infinite risk is now on, for banks. This can't end well.

[Anonymous No.54104914]

>>54099539
it did but
>over 90% of deposits exceeded the $250,000 limit for federal insurance on bank accounts
why was this the case? why could the depositors not simply keep separate accounts for each lot of a quarter million? no fucking clue

[Anonymous No.54104981]

>>54099500
FDIC didn't save anything. WWII victory "saved" US. FDIC still works well now because before today it only promised rich depositors chump change back. It was good for us fiscal normies who would never have 250k liquid in the bank. Now that FDIC is infinite it is just another government blood sucking operation.

[Anonymous No.54104999]

>>54104914
Some of the accounts had billions so that would be impossible but there are other ways to insure deposits and they didn't even do that.

[Anonymous No.54105690]

>>54104981
>Now that FDIC is infinite it is just another government blood sucking operation.
FDIC is not infinite. It is still capped at $250k. It's not the FDIC that is bankrolling the backstop because it can't. Its purpose is to protect depositories and it does it by insuring that quarter of a million of a given deposit.
It's the Fed that is bankrolling the backstop and that is one of its functions as a central bank. These lines of credit are meant to give enough confidence to people and companies that have money deposited in those banks so that they don't run to them to withdraw their money. It's still credit and when a bank takes it it has to pay it back with interest. Banks usually take overnight loans from other banks when they finish a given day without enough money, but these other banks are not obliged to extend them these overnight loans and when a bank run happens, other banks might have good reasons not to help the affected institutions. That's when a central bank comes in.

And I meant that the FDIC was instrumental to stopping the generalized bank runs and bank failures during the 30's. America's economic recovery is another matter.

[Anonymous No.54105793]

>>54099404
The pucker factor was high enough to learn the lesson: don’t put money into work banks.

[Anonymous No.54105802]

>>54105793
*woke banks

[Anonymous No.54105889]

>>54099404
This is what they are trying to hide, the US governmnet has just guaranteed that banks can just be as speculative and as risky as they want with your money because they can just guarantee deposits and then their shills come on to biz and tell you it wont impact inflation at all.

Hyperinflation incoming.

[Anonymous No.54105909]

delusional doomers

[Anonymous No.54105929]

>>54105889
Shareholders took the loss, dipshit. You think they'll tolerate this? We're not seeing a repeat here. We're seeing banks treating US ZIRP HTM T-bonds as a toxic asset.

The issues are the Fed lowering interest rates as an immediate reaction and SVB getting bailed out by the US Govt. assuming all of the risk on the ZIRP bond, immediately after saying it wasn't bailing it out.

[Anonymous No.54105988]

>>54099404
They pull the plug without a notice and introduce crypto bucks as compensation

[Anonymous No.54106003]

>>54105929
>>54105909
>dipshit
o oh we got a redditor in here

[Anonymous No.54106883]

>>54099404
>>54099447
>noooo! What do you mean the FDIC insures people's money after they lost it? They shouldn't be able to do that! They shouldn't do the very thing it was made for!
This is what you all sound like. Nobody is saying to insure investors who took risk into investing for the banks; this is mere insurance for people who lost money not due to gambling it all away

[Anonymous No.54107026]

>>54104674
What's stopping the banks from gambling our deposits even harder is that now they can't be so sure they'll get bailed out again. SVB was seized by the FDIC and its assets are being sold off to cover depositors, but the INVESTORS in SVB are getting fucked, as they should be, for letting bank management play risky bets.

[Anonymous No.54107029]

>>54099436
No chud you have to hate us projecting!

[Anonymous No.54107094]

>>54105690
>>54104142
the only good posts ITT

[Anonymous No.54107271]

>>54099404
>As of March 9, 2023, the population of the United States is estimated to be 336,195,037.
336,195,037 * 250,000 = $84,048,759,250,000
>$84 trillion if everyone withdraws


In 2022, total federal receipts are projected to total about $4.8 trillion, or 19.6 percent of gross domestic product (GDP). The largest sources of revenues are individual income taxes and payroll taxes followed by corporate income taxes.

they only make 4.8 trillion a year
how much money does the FDIC have?

[Anonymous No.54107283]

>>54107271
oh i'm sorry i forgot for a second they can just print money