FDIC

“If SVB would not have been bailed out by the government in, in, in, You know, like, it wasn't just, like, the government's obligations. They were bailing out well beyond FDIC limits. If they wouldn't have done that, it probably would have wiped out half the te…”

“There were both there were other big banks that wanted to buy SVB, and there were private equity firms that wanted to buy SVB, and basically do a private sector bailout requiring no, no taxpayer involvement, and the FDIC actually blocked those also.”

“One of the blocks was there was a bank that was going to buy Silicon Valley bank and by buying Silicon Valley bank, it would move up into the G-SIB category, which is globally systemic important banks. And they're like, no more G-SIBs.”

“We saw a similar situation recently when Silicon Valley Bank and Signature Bank went bust, and the FDIC took over their books. The FDIC was selling it. They were giving it away at very, very advantageous prices.”

“The FDIC has about a hundred and thirty billion dollars. Shane Parrish: And if everybody withdrew their money. Rey Flemings: This is not even everybody. Rey Flemings: They've got a hundred and thirty billion of insurance money. Rey Flemings: How much money do …”

“Vivek did endorse a proposal which we, I think Jason, you and I had both come up with, which was to have a higher level of FDIC insurance for business banking. I think it was like ten million or something like that.”

“Something that's still little commented on today is that the Fed provided a bridge loan to the tune of two hundred and twelve billion dollars to the FDIC's bad bank.”

“The stat I saw that the FDIC had put out was like a six hundred billion dollar hole in bank balance sheets across the US.”

“We have about 17 and a half trillion in deposits in the US, almost eight, 18 trillion. And one of the misnomers you'll hear is, well, it would cost us 18 trillion to basically insure all the depositors. That's not true, because first of all, 10 trillion is alr…”

“The FDIC says US banks have six hundred and twenty billion dollars in unrealized losses sitting on their books, thanks to investments that lost value and interest rates rose.”

“A hundred and eighty billion of deposits, something like a hundred and seventy six billion were uninsured because all, you know, the only thing that's insured is the 250 K.”

“The report noted that banks' aggregate unrealized losses on securities remain, in their words, elevated at six hundred twenty billion dollars in Q-IV. In fact, throughout 2022, these unrealized losses were materially higher than at any other time in the last 1…”

“So in the case of SVB, for example, the team at SVB has signed four-week contracts with the FDIC.”

“I'm in complete agreement because I think the FDIC is fully aware that the potential crisis of confidence among depositors is something that must be avoided at all costs, and the simplest and most elegant solution to that is orchestrating continuity through a …”

“There's actually no way to get these NFT back, NFTs back in like a traditional way, right? And so that's the challenge is like, it's not FDIC insured. It's the kind of the downside of decentralization in some context is that you are self-custodying all of this…”

“The one caveat which the regulators made them put into these securitizations was that you had to be allowed to defer for up to five years before you went into default.”

“Particularly the FDIC, which was run by Sheila Bair, who was particularly difficult. And this caper, as my deputy Ron Bloom used to call it, almost fell apart over that problem.”

“And based on the current regulations if they stay the way they are it puts, even if someone were to become a new bank today, for next two years, they would be pretty much kind of in a restricted category with the Fed and also with the FDIC.”

“The Asian financial crisis hit in the nineties and literally two thirds of the banks in Thailand went under, and there's no such thing as FDIC insurance in Thailand.”