Fed will make available additional funding to eligible depository institutions

To everyone talking about bailout and money printing:<p>&gt; No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.<p>(from the other article, currently top of HN, about Signature Bank)

Correct me if I am wrong, but that&#x27;s actually a smart move, because the securities cover these liabilities, no?<p>AFAIK, SVB has securities that are currently rated below their nominal value by the market. But these securities <i>will</i> reach their nominal value just before they expire, right? Essentially the fed is just offering a loan on these securities and values them at their nominal value because the fed doesn&#x27;t care about market prices?

Infinite money hack strikes again. The lie here is that this takes care of &quot;households&quot; and &quot;small businesses&quot;—no, this is a bailout (&quot;backstop&quot;) that saves the richest of the rich (namely, VCs whose startups parked cash in SVB). Why do you think Gary Tan, Marc Andreesen, etc. went on a press tour yesterday?<p>This is why gambling on Robinhood and on crypto is so pervasive. Regular folks realize that they have zero chances here, it&#x27;s absolutely a rigged game. Just like in 2008, this isn&#x27;t capitalism, it&#x27;s just socialism for the ultra rich.

Curious if anyone knows if SVB would have been eligible on Thursday?<p><a href="https:&#x2F;&#x2F;www.law.cornell.edu&#x2F;cfr&#x2F;text&#x2F;12&#x2F;201.108" rel="nofollow">https:&#x2F;&#x2F;www.law.cornell.edu&#x2F;cfr&#x2F;text&#x2F;12&#x2F;201.108</a> is the list of supported collateral.

I may get downvoted, I may not. But, I am really surprised so many of you all are all about putting likely hundreds of thousands of people out of work. It goes so much further than the &quot;billionaires&quot;.

So all of the people who banked with SVB and benefited from the excessive risk the bank was taking (perks, higher interest rates on savings) get a freebie , must be nice.

This headline is incorrect. This is the announcement of the ongoing Bank Term Funding Program, which has nothing to do banks that have already failed.<p>Better headlines:<p>* FRB announces it will make available additional funding to eligible depository institutions<p>* Announcing the Bank Term Funding Program

Who&#x27;s paying the bill? Are they benefiting depositors at the expense of other creditors? Not clear from this press release.

The masks came off and never forget it. There were many people dancing on the grave and full of joy that our industry was wounded. That our businesses would fail and we’d be hurt and “taken down a notch”.<p>Remember these people and what they stand for. They aren’t our friends. Put them on your lists. Do not forget.

Awful lot of meme economics in this thread.

So, money machine go brr?

Plebs will just pay $0.10 more for a gallon of milk. Nothing to see here

Everyone should google &quot;moral hazard&quot;

I bet if all the startup investors were Republican this wouldn&#x27;t have happened.

More printing? How can they honestly simply announce all money will be there tomorrow. Where is the money coming from? Are they going to charge every other bank some cash portion of the 208 billion? Or are they going to create more money and cause inflation

Once again billionaires and banks can mismanage their funds, behave recklessly and the government saves them from any consequences. This is completely unacceptable.<p>If i get myself in financial trouble, the Fed will not print money to give me a free loan until I can dig myself out. I am on my own to figure it out or declare bankruptcy.<p>But because our government is completely controlled by big money interests, when the billionaires say jump, our government says &quot;Yes sir! How&#x27;s this?!&quot;<p>I hope this changes in my lifetime.