Another Bank Shutdown: Signature Bank Closed

There will be no accountability and no correction because it is Democrat malfeasance.

Barney Frank was the US Rep behind the Dodd-Frank bill put in place after the 2008 bank crash. The government arguably caused the failure and then turned around and put in a massive amount of regulations in response to the failure.

The monstrosity was the Dodd-Frank bill, named in part for Barney Frank.(TPG)

This is the same Barney Frank whose boyfriend, Stephen Gobie (whom Frank had once hired as a male prostitute) was running a male-brothel out of his home.

The US government shut down Signature Bank on Sunday.

On Friday, regulators closed Silicon Valley Bank, sparking panic among startups and VCs.

By: Yahoo Finance, March 13, 2023:

Both banks had a huge amount of customer deposits that were not insured by the FDIC. There are others.

A second bank was shut down by the US government on Sunday. This time it was Signature Bank.

What does this financial institution have in common with Silicon Valley Bank? They both had huge amounts of customer deposits that were not insured by the FDIC.

The FDIC insures US bank deposits up to $250,000 per account to prevent bank runs and failures. The demise of SVB, and now the collapse of Signature Bank, have stretched this system to a breaking point.

On Sunday, the US Treasury, Federal Reserve, and FDIC said in a joint statement that all depositors of SVB will be made whole on Monday. The authorities are completely ignoring the $250,000 insurance limit. SVB had $173 billion in total deposits and roughly 88% of that was not covered.

That’s more than $150 billion in extra deposits that the FDIC has suddenly decided to insure.

The authorities are giving the same special exemption to Signature Bank, so all depositors will be made whole there too. Signature had $89 billion in total deposits, and 90% of those were not insured by the FDIC. That’s another $79 billion that this agency is taking on its shoulders.

“By insuring all deposits at SVB and Signature, regulators judged the risk of cascading effects to other regional banks and the broader economy to be more significant than the moral hazard of increasing FDIC limits,” said Rich Falk-Wallace, CEO of data analytics firm Arcana and a former portfolio manager at hedge fund Citadel.

In the case of SVB and Signature, the high percentage of uninsured deposits is partly a function of having a relatively small number of clients with large balances. At SVB, for example, Roku revealed it had almost $500 million in deposits at the bank, extending far beyond the $250,000 guarantee.

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AUTHOR

Pamela Geller

RELATED TWEET:

WOW… Silicon Valley Bank gave $73,450,000 to "BLM Movement & Related Causes"

— Charlie Kirk (@charliekirk11) March 14, 2023

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Barney Frank, the Namesake of the Behemoth Dodd-Frank Legislation, on Board of Failed Signature Bank https://t.co/18IgKJEGLX

— The Gateway Pundit (@gatewaypundit) March 13, 2023