US government steps in and says depositors at SVB will get their money back

See? I told ya so


Banking regulators devised a plan Sunday to backstop depositors with money at Silicon Valley Bank, a critical step in stemming a feared panic over the collapsed tech-focused institution.

Regulators said depositors at both failed SVB and Signature Bank in New York, which also has been closed, will have full access to their deposits.

https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html

 

I bet we'll see some record-level volume in banking stocks tomorrow. Like all those folks who bailed on Schwab for no reason, tanking it 25% on Friday, will be piling back in.

 

Well, good luck. It'll likely gap up huge.

 

S&P futures up over 2% for now. Who knows what will happen this week. It's all a house of cards, fiat even more than crypto.

 

Told you!

 

I did tell everyone this. But of course we are traders, right. What do we know about the Fed and Banking???

 

But this is not a real fix because there will surely be more bank failures down the road. What the Fed needs to do is open the discount window and then put the future rate hike on hold.

 

I'm sure they are looking at it.

 

From the article:

"The FDIC’s deposit insurance fund will be used to cover depositors, many of whom were uninsured due to the $250,000 cap on guaranteed deposits".

Unisured? Heck yeah, they're insured to $250K (double that if JTWROS)
Those depositors have so much money they don't need any FDIC bailouts.
Can folks even see when they are getting scammed?

 

No, they have 250K left without intervention. Unless they keep the stuff over 250K under their mattress, or in a self-storage locker...