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🇺🇸 Inside Time: US Saves Customers and Reputation⠀
⚠️ The US Treasury, the Fed and the FDIC announced the reorganization of SVB and Signature Bank: yesterday, depositors got access to their funds at the expense of shareholders and some holders of unsecured bonds. The Board of Governors of the Federal Reserve has decided to open access to insurance financing for banks.
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The FDIC transferred all deposits and all remaining assets to a full–service intermediate bank. Tim Maiopoulos, a participant in the recent Fannie Mae scandal, has been appointed SVB manager.
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In the near future, all the bank's clients will receive up to $250,000 in insurance compensation, and those who had more in their accounts will receive the difference after the sale of all the bank's assets. If you're lucky, of course.
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Silicon Vallery Bank, with a capital of $210 billion, became the first US bank whose recommendations were changed from «buy» to «sell» and bankruptcy in two days. A couple of days later, his fate was repeated by Signature Bank, a major lender to crypto projects, the reason is the same – «high systemic risk».
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This is the logical result of the Fed's misguided policies: first, they drowned the markets in stimulus after the pandemic, and now they are happily raising rates in the most aggressive style. The situation is very sad for US technology start–ups and for venture capital in general. Most of the depositors were not insured. Shares of many world banks have already declined, although the real scale of the problems can be assessed in 2–3 weeks.
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The «infection» of the banking collapse is gradually creeping into Europe: yesterday in Milan trading in Unicredit papers stopped three times, and Credit Suisse continues to renew the bottom. This may lead to the fact that the Fed will not change the rate, and the ECB may also slow down.
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It is not yet clear what is more profitable: to panic before the continuation of bank failures or to buy before a new reversal of the Fed's policy. Speculators will provoke the market for at least until the end of the week, so you should be careful with new positions.
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Profits to y’all!