Jump to content

Fade the Jobs Number 3/10/23

Recommended Posts

  • Replies 154
  • Created
  • Last Reply
5 minutes ago, sandy beach said:

FDIC: No losses for SVB will be borne by the taxpayer. All deposits will be available to SVB customers Monday.

Fed: Treasury to backstop emergency loans with $25B.

Bloomberg: New Term Funding Program by Fed announced.

There was never any doubt.

Link to comment
Share on other sites

4 minutes ago, Jimi said:

I don't know how you assure no losses will be born by taxpayers, while simultaneously affording access to all deposits..

is the same trick as with fannie mea and other MBS stuff. They will tell you that they will invest in them or something like that and within 10 year will make money on it. So I guess its the same trick. thats my understanding.


Link to comment
Share on other sites

1 hour ago, sandy beach said:

It used to be called CDARS or Certificate of Deposit Account Registry Service. Now it is part of several options called collectively IntraFi Networks. The FDIC confirmed that these networks allow for "pass-through" FDIC insurance. You can read their study on them here:


Increasing Deposit Insurance Coverage for Municipalities and Other Units of General Government: Results of the 2006 FDIC Study (from 2008)


I believe over 3,000 banks in the US offer these services.

Many brokers are now offering access to FDIC insured sweep accounts. For example Vanguard now offers a "Vanguard Savings a/c Cash Plus, FDIC insured" accounts that sweep the money into partner banks. But read up before investing about when insurance kicks in. My understanding is if the member bank fails or the investment in the bank fails (money market, CD, saving account, etc.) FDIC kicks in. If Vanguard fails SPIC kicks in. If all fail you get FDIC and SPIC involved. Don't quote me on that - do your own due diligence. Unlike above this is not like an IntraFi Network so the normal FDIC limits apply for each product/bank invested in. But if you already have an account it gives you another option without having the open an account at another bank.


Another option to look at are banks with additional supplemental insurance. Some banks pay for additional insurance for all deposits above and beyond FDIC insurance. One example is the Massachusetts DIF-member bank.


Most of the banks are in Massachusetts but they don't have to be. For example:


Again - I'm not offering advice or recommending any products or services. I'm not qualified to do that. I'm just sharing options to research. How well do all these systems hold up in a real nightmare scenario? We would need to research that further... The most straightforward way for most folks is to just open accounts at multiple banks directly. I've always done this because if a bank goes bad I want out within minutes and be up and running without losing time. DYODD! :)


There's not enough money in the world to insure all US deposits. 

But conversely, if in a panic contagion, everybody buys Treasuries bond prices would soar. Problem solved because the banks will recoup most of their losses and they'd be able to fund the bank runs.   

Link to comment
Share on other sites

This was supposed to be the regular Composite Liquidity Update, but we have a slightly more pressing problem at hand for the opening of banks and markets on Monday. So I will ditch the CLI for a few days and take a quick look at where we stand in terms of the potential for a systemic meltdown that endangers all of us. Non-subscribers, click here for access.

Subscribers, click here to download the report.

I’ve been following the financial commentariat on Twitter and elsewhere over the weekend, and the excuse making for the failure of SVB is epic. There are also a few good takes about how the bank’s Held to Maturity, and Available for Sale fixed income portfolios were under water. Non-subscribers, click here for access.

The Dead Bodies Are Finally Rising to the Surface for All to See

OK, surprise, surprise. Non-subscribers, click here for access.

Of course not. There’s no need to get into the particulars of the SVB situation, because it’s merely the tip of the iceberg that we’ve had on our radar for months. I’ve been warning about the dead bodies which would soon be floating to the surface. Well, here we are. Credit Suisse is so far surviving. The Silvergate scam did not, and now SVB (Silicon Valley Bank) has been revealed. Silly con, alright. Non-subscribers, click here for access.

The bank runs have begun. The Fed has an emergency meeting scheduled for Monday morning. Is this the end of QT? It has to be. If not, this will get a lot worse. But if it is, the rally that started in the bond market on Friday could get a lot bigger and that could self mitigate the crisis. Non-subscribers, click here for access.

A lot can, and will happen on Monday alone. Here’s what’s critical for you to know, including what to do to protect yourself if you haven’t already. Non-subscribers, click here for access.

Subscribers, click here to download the report.

KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days! Act on real-time reality! 

Link to comment
Share on other sites

1 minute ago, SiP said:

is the same trick as with fannie mea and other MBS stuff. They will tell you that they will invest in them or something like that and within 10 year will make money on it. So I guess its the same trick. thats my understanding.


"Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law."


And Pat Toomey made it illegal for the Fed to bail them out with "a facility."



Link to comment
Share on other sites


This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...