Customers and bystanders form a line outside a Silicon Valley Bank branch location, Monday, March 13, 2023, in Wellesley, Mass. SVB Financial Group is filing for Chapter 11 bankruptcy protection, Friday, March 17. SVB Financial Group is no longer affiliated with Silicon Valley Bank or the bank’s private banking and wealth management business, SVB Private. SVB Financial Group ran Silicon Valley Bank up until it was seized last Friday. (AP Photo/Steven Senne, File)
Customers and bystanders form a line outside a Silicon Valley Bank branch location, Monday, March 13, 2023, in Wellesley, Mass. SVB Financial Group is filing for Chapter 11 bankruptcy protection, Friday, March 17. SVB Financial Group is no longer affiliated with Silicon Valley Bank or the bank’s private banking and wealth management business, SVB Private. SVB Financial Group ran Silicon Valley Bank up until it was seized last Friday. (AP Photo/Steven Senne, File)
Happy Fact Check Friday, y’all!
After the Silicon Valley Bank collapse, Scott Perry tweeted: “Banking failures MUST NOT fall upon Taxpayers.”
However, the Biden administration says taxpayers won’t foot the bill – unlike the 2008 financial crisis.
“We’re not going to do that again,” said Treasury Secretary Janet Yellen the day before Perry’s tweet. “But we are concerned about depositors, and we’re focused on trying to meet their needs.”
The Federal Reserve and FDIC also released a joint statement saying that “no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
President Biden said SVB’s deposits were federally insured up to $250K, but anything else “will come from the fees that banks pay into the Deposit Insurance Fund,” which is supported by two sources of funding: Insurance premiums paid by each FDIC-insured institution and interest earned on U.S. government obligations.
There has been no indication that SVB will receive a govt. bailout funded by taxpayer dollars.
Have a nice weekend!
A collection of interviews, photos, and music videos, featuring local musicians who have stopped by the WITF performance studio to share a little discussion and sound. Produced by WITF’s Joe Ulrich.
