Democrat Joe Biden’s disastrous economy has taken another severe blow as Americans prepare for more of his reckless administration’s attempt to control the problems we face as a nation, which is highlighted in the national spotlight again, starling people on a Sunday night.
Making news go viral at an unexpected time, The Fed and the Treasury Department took unprecedented action, releasing a joint statement that jolted the country into talks of stockpiling provisions and filling up their tanks, and getting cash for their households in case more banks followed suit.
Embattled Americans have sensed for a long time that life under the Democrat dreams of transforming the nation and reckless ‘drunken’ spending on bizarre green energy and other social justice enrichments is likely to lead to something that resembles the failed state of Venezuela.
Just as news of Biden’s massive budget to enrich the profiteers of the Administrative state employees in DC, news hit hard about another bank failing.
Posters on Social media talked about their fears of the failed banks under reckless Democrats:
“Yet another bank collapses. Are we about to go into a depression? The administration in Washington, DC needs to be held accountable for this coming economic failure,” one poster wrote on Twitter.
Early in the discussion, banking and financial experts discussed the bank’s connection to Crypto.
🚨BREAKING: Crypto-friendly Signature Bank has been shut down. https://t.co/vAfTNIs53n
— Eleanor Terrett (@EleanorTerrett) March 12, 2023
As reported by our friends at We Love Trump, a letter from the FDIC explained the failure of a second bank in three days, setting Americans into alarm over the insecurity they feel about Biden’s leadership:
“BREAKING: Signature Bank of New York has just collapsed.
March 12, 2023
Superintendent Adrienne A. Harris Announces New York Department of Financial Services Takes Possession of Signature Bank
Superintendent Adrienne A. Harris announced today that the New York Department of Financial Services (DFS) had taken possession of Signature Bank under Section 606 of New York Banking Law to protect depositors. DFS appointed the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver.
Signature Bank is a New York state-chartered commercial bank and is FDIC-insured, with total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of December 31, 2022.
DFS is in close contact with all regulated entities in light of market events, monitoring market trends and collaborating closely with other state and federal regulators to protect consumers, ensure the health of the entities we regulate, and preserve the stability of the global financial system.”
BREAKING: Signature Bank of New York has just collapsed.https://t.co/WbqTs6b1DA
March 12, 2023
— DailyNoah.com (@DailyNoahNews) March 12, 2023
*Signature Bank has been closed
*All depositors of Silicon Valley Bank and Signature Bank will be fully protected
*Shareholders and certain unsecured debtholders will not be protected
*New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits pic.twitter.com/LKipIRMg1T
— Nick Timiraos (@NickTimiraos) March 12, 2023
Tyler Durden at Zerohedge also reported on the story, adding details of the first bank which failed, and was announced late last week:
First Republic Bank’s stock crashed in premarket trading in New York following a statement issued on Sunday night that sought to ease investor worries about its liquidity situation in the wake of the failures of Silicon Valley Bank and Signature Bank.
Shares of the regional bank are down 60% in the premarket. In a statement late Sunday, the lender said it had more than $70 billion in unused liquidity to fund operations from agreements that included the Federal Reserve and JPMorgan Chase & Co.
“The additional borrowing capacity from the Federal Reserve, continued access to funding through the Federal Home Loan Bank, and ability to access additional financing through JPMorgan Chase & Co. increases, diversifies, and further strengthens First Republic’s existing liquidity profile,” the bank said, adding that more liquidity is available through the Fed’s new lending facility.
“The plunge in its shares is classic market psychology at work, with investors starting to question the credentials of any lender that may be remotely in the same category of Silicon Valley Bank,” Bloomberg’s Ven Ram wrote.
We pointed out over the weekend, “as a result of the SVB failure – one look at what is already taking place at some smaller, vulnerable banks such as this First Republic Branch in Brentwood should be sufficient to see what comes tomorrow if the Fed makes the wrong decision today.”
I’ve never seen a bank run in Brentwood Los Angeles in over 40 years — this is at first republic bank branch. People standing in rain pic.twitter.com/k31PqqpyO3
— pjb.eth (@Dr_PhillipB) March 11, 2023
In general, Americans are weary of the bad decision-making skills of the administration as they see the United States failing on multiple levels at once.
Durden goes on in concluding his report:
The current question on everyone’s mind is whether the measures taken by the Fed are sufficient in preventing further depositor panic at other regional banks.
Then there’s this: “There’s no doubt in my mind: There’s going to be more. How many more? I don’t know,” William Isaac, the former chairman of the Federal Deposit Insurance Corporation, told Politico on Sunday. “Seems to me to be a lot like the 1980s,” he added.
ETA until market realizes $25BN is nowhere near enough and futs react appropriately?
— zerohedge (@zerohedge) March 12, 2023
… and Cramer strikes again.
FRC is new focus… very good bank
— Jim Cramer (@jimcramer) March 10, 2023
What many people expect is a massive bailout that will end up costing the American people, one way or the other.
And bailouts for bad decisions of rich and elite people are not a great topic for Americans.
As experts point out- people are not happy:
$25BN? They think $25BN will stop this bank run???
"With approval of the Treasury Secretary, the Department of the Treasury will make available up to $25 billion from the Exchange Stabilization Fund as a backstop for the BTFP."
— zerohedge (@zerohedge) March 12, 2023
If the Fed’s goal was to shore up wavering confidence in the banking system by announcing the alphabet soup of bailout facilities, the BTFP lending program — well, it hasn’t worked yet this morning:
- PacWest Bancorp’s stock tumbled 27%
- Western Alliance Bancorp’s shares slid 17%
- Charles Schwab’s shares lost 6.7%
- Bank of America’s stock fell 4.4%
- Citizens Financial Group’s stock declined 2.7%
- Wells Fargo’s stock slid 2.3%