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In reply to the discussion: @JohnFetterman to SVB exec Greg Becker:"Shouldn't you have a working requirement after we bail out [View all]grantcart
(53,061 posts)33. Here is the process
FDIC finds SVB without enough capital to pass a stress test (they were still liquid and cashing out any depositor who wished to get their money).
FDIC takes over the control of the bank and takes all the shareholders assets.
Citizens Bank negotiates to take over the shares and SVB opens the next day with all of the depositors getting full credit for their deposits.
Not one cent of FDIC was spent and not one tax dollar was spent.
The Federal Reserve and the FDIC made sure that the depositors would have access by taking the shares from the shareholders and giving them to another bank. Because the balance sheet wiped out the assets of the shareholders the bank balance sheet was now showing a surplus.
Again not one penny of tax dollars was ever involved, or has been in a normal bank failure.
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@JohnFetterman to SVB exec Greg Becker:"Shouldn't you have a working requirement after we bail out [View all]
BeckyDem
May 2023
OP
To think the PA state democrats would not endorse him when he ran for senator.
Butterflylady
May 2023
#8
If a bank is bailed out, I don't want anyone in charge of it to still be working there any longer
MichMan
May 2023
#12
dear mr . bank ceo. have you within the last 4 years ,sold or given away any real or other
AllaN01Bear
May 2023
#15
How the process works? Citizens Bank was under an obligation to take over the shares?
BeckyDem
May 2023
#34
More than the insured amount was paid. Where did that money come from? And why??
Alexander Of Assyria
May 2023
#43
Yeah, you are right no tax dollars were harmed in the rescue of these banks
Farmer-Rick
May 2023
#48