Would be nice if they can get a relief, But we know who’s blocking it.
Elizabeth Warren criticizes ‘overnight’ bailout of SVB customers while leaving ‘millions of student loan borrowers in limbo’
"On Sunday night, regulators announced they would ensure that all deposits at S.V.B. and Signature would be repaid 100 cents on the dollar. Not just small businesses and nonprofits, but also billion-dollar companies, crypto investors and the very venture capital firms that triggered the bank run on S.V.B. in the first place — all in the name of preventing further contagion," Warren wrote.
“Regulators have said that banks, rather than taxpayers, will bear the cost of the federal backstop required to protect deposits. We’ll see if that’s true,” she continued. “But it’s no wonder the American people are skeptical of a system that holds millions of struggling student loan borrowers in limbo but steps in overnight to ensure that billion-dollar crypto firms won’t lose a dime in deposits.”
Republican lawmakers have blasted student-debt relief as a “bailout,” with some calling for the relief to be blocked in a potential deal to raise the debt ceiling.
It’s unclear whether borrowers will end up getting the “bailout” GOP lawmakers oppose, but for now, Warren wants to ensure big banks won’t be able to escape regulation.
“These bank failures were entirely avoidable if Congress and the Fed had done their jobs and kept strong banking regulations in place since 2018,” Warren wrote. “S.V.B. and Signature are gone, and now Washington must act quickly to prevent the next crisis.”
https://www.yahoo.com/news/elizabeth-warren-criticizes-overnight-bailout-143317825.html
Interestingly
Republicans are slamming the bailout of Silicon Valley Bank’s customers, saying it’s a giveaway to the rich
The abrupt closure and bailout of Silicon Valley Bank has one side of the aisle crying of inequity, with the federal government’s actions protecting the rich at the expense of the poor.
Interestingly, that critique is coming from the right. On Sunday night, the Treasury Department, Federal Reserve Board, and Financial Deposit Insurance Corporation announced what amounts to a bailout for customers of the now-shuttered Silicon Valley Bank, saying that depositors will be made whole, including deposits over the traditional FDIC insurance limit of $250,000.
https://www.msn.com/en-us/money/markets/republicans-are-slamming-the-bailout-of-silicon-valley-banks-customers-saying-its-a-giveaway-to-the-rich/ar-AA18A08I
