They

 

have made the midsize and regional banks 

"To big to fail", 

but their management made 

"unwise investment decisions, it was poorly supervised and poorly regulated."?

Thats your cover story.

(Again I say, "baloney" they knew what they were doing and they knew they would be taken care of 100% because of the ripple effects that were to happen if they went down. So there was no "unwise investment decisions, it was poorly supervised". etc... It was intentional. As far as "poorly regulated", that I will go with. If you cant enforce regulations why even have the laws and the regulators?

And you dont get to yell and scream for "small government" and then say they should have done something when they dont have the funding to do so.

Smart gangsters know where the holes in enforcement are.)

AND IF EVERYTHING IS AS HUNKY-DORY AS WE ARE BEING TOLD IT IS? 

WHY DIDNT ANYBODY SEE THIS COMING?

Consider yourself lucky if your small business worked with Silicon Valley Bank

"But then the federal government stepped in and “in an effort to shore up confidence in the banking system”, the treasury department, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) announced that all – all! – of the bank’s customers would have their money protected and accessible."

(Creating $ out of thin air (bailout/rescue package) on one hand and trying to reign in inflation with the other anybody? What happens to the value of the $ when they do that for all the banks that are going to fail? By the time you get your $? It wont be worth enough to buy anything anyway...

It might get you a loaf of bread...maybe...if you can find one when the time comes.)

"It’s estimated that 90% of Silicon Valley Bank’s deposits – many of them held by small businesses – were uninsured, an astounding figure when you consider the risks."

(It's not a risk when you know ahead of time you are going to get covered 100%. 90% of deposits were uninsured...and nobody, no bank mgrs/supervisors/loan officers knew or were sounding alarm bells? No regulators either? Until it was to late? 90% of deposits were uninsured...There isn't a banker alive that stupid. It shows intent in my book.)

"This is lazy, complacent, bad decision-making."

(No. They are playing the game just like the big boys did during the financial crisis and that line above is what we are going to be forced-fed.)

"What they should have been doing was manage their risk better."

(That assumes they thought there was risk involved. There's no risk when you know you are to 'systemic" to be allowed to fail. Seriously, what makes more sense? 90% uninsured deposits? Or figuring you'll just get bailed out 100% when the time comes?)

"The federal government’s intervention is a controversial move that leaves a lot of unanswered questions. Will they do this again if more banks fail? How can they do it for one bank and not for others? Will the costs ultimately be borne by taxpayers? Should we just ignore that $250,000 FDIC insurance now that the federal government appears to have rendered it meaningless?"

(Okay one at a time:

"Will they do this again if more banks fail?"

Depends on if they think your bank failing is a "systemic" risk to the industry as a whole one would suppose.

"How can they do it for one bank and not for others?"

Because some will be judged to be a "systemic" risk to the industry as a whole" and others won't.

"Will the costs ultimately be borne by taxpayers?"

They already are in the form of more $ creation = more inflation as the value of the currency drops as more $ is created out of thin air.

"Should we just ignore that $250,000 FDIC insurance now that the federal government appears to have rendered it meaningless."

Again, depends on how big of a systemic risk to the banking industry your bank is judged to be.

I'm blessed :-).

I haven't had a bank account in...6 years maybe?

Something like that.

Like I was saying at home last week, me and a friend of mine were laughing last summer about us going and watching people in lines trying to get their $ out of the bank and by the time they will have? So much $ will have been created it wont buy anything any way, so why waste your time exactly?

How far-fetched does that scenario look rn?

Be honest w yourself.)

“The Fed has basically just written insurance on interest-rate risk for the whole banking system,” Steven Kelly, a senior research associate at Yale’s program on financial stability told the New York Times. “It lowers the threshold for the expectation of where emergency steps kick in.”

"Frankly no one knows what’s going to happen next. What I do know is that millions of small businesses in this country have their cash at more than 4,000 banks. And I’m betting that many of these companies have more than $250,000 in the bank too. So if you’re one of the owners of these companies you may not be as lucky as Silicon Valley Bank’s customers the next time this happens (and there will be a next time, plenty of next times).

God Speed everyone.

Journey well my friends.