FDIC wants Big Lenders to Pay more!
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or the bill has come due. The FDIC bill has come due for Silicon Valley Bank and all the other bailouts that they put together. Again, this is what we’ve got here. An assessment of the largest US banks to recover the funds used to protect uninsured depositors who otherwise would have been left holding the bag.
following the failures of Silicon Valley Bank and Signature Bank. First and foremost, they wouldn’t be left holding the bag. And again, part of the narrative out there is that, oh my God, this would have been terrible if the deposit were bailed out, there would have been runs on banks. Yeah, probably. Right? But how did we get to this position?
All right, let’s look at it this way. If you are, if you are Mark Zuckerberg, or you’re a big wigger, and you go to First Republic or Silicon Valley Bank, and you’ve got a lot of money, got a lot of money, and you know, you say, listen, you know, they cut your deal, and they say, hey, listen, we’ll give you all sorts of breaks when you wanna borrow money, lending against your shares.
example, Mark Zuckerberg, 1% mortgage for 30 years. 1% mortgage for 30 years. The caveat was you have to keep a significant amount of money at the bank. Now, Mark Zuckerberg, okay, you would think that he and the other really, really, really, really wealthy people would be aware that, hey, anything over $250,000 is not insured, okay?
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Why shouldn’t they take that risk? Now again, what these banks did, okay, stupidity, borrow short, lend long, all of this. I mean, I don’t understand. We put a fricking warning, okay? We have warning labels on everything in this country. I mean, for crying out loud.
A warning label on every damn thing out there as stupid as stupid could be Maybe maybe we require banks to say hey listen if you know just warn them Okay, well, I expect you know warning if you have over two hundred and fifty thousand dollars in this bank and the bank fails You not getting your money back So what would that do? I mean you think about how much? You know that would
benefit. How much that would benefit certain smaller institutions, people would have to diversify where their money goes. There’s other ways of handling this, quite frankly. If you as a client of a bank, you don’t want to have all these banks. It’s too much paperwork. So what? You pay. You have to pay for a higher level of insurance. So you know what? If the bank goes under, you’re made whole.
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world works for crying out loud. You do understand that the FDIC is insurance. It’s insurance and the FDIC stepped in to bail out really, really wealthy people that should have known better. Period. The end. Now, what is this going to do? Okay. Obviously the smaller community banks are not going to have to pay into this, you know, FDIC special assessment.
You know, the FDIC is going to recoup its money. Big banks are going to have to pay in. But, you know, again, what does this say about, you know, our banking system? It’s a very easy problem to fix. It really is. It’s a very easy problem. Oh, I know, I know. Maybe some of these sweetheart mortgages and special wink, wink, handshake deals for really wealthy people, they might go by the wayside.
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But doesn’t this make a hell of a lot more sense? Again, like I said, we put a warning label on freaking everything in this country. Everything. Yet we can’t say, hey, listen, great, you’re doing well. I’m sorry, we can’t. If the bank goes under, you’re only going to get $250,000 back by the FDIC insurers. Hey, if you want to be protected for more, you could pay for insurance on that.
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Again, simple, easy, fix, but you know, it’s amazing. We can’t get that done. Anyway, watchdog on wallstreet.com.