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Bank Bailouts

Plain and simple, it was a bailout.

One sentence stands out in the last two days of banking hearings:

"๐™๐™๐™š ๐™ฉ๐™š๐™ฃ ๐™ก๐™–๐™ง๐™œ๐™š๐™จ๐™ฉ ๐™™๐™š๐™ฅ๐™ค๐™จ๐™ž๐™ฉ ๐™–๐™˜๐™˜๐™ค๐™ช๐™ฃ๐™ฉ๐™จ ๐™–๐™ฉ ๐™Ž๐™‘๐˜ฝ ๐™๐™š๐™ก๐™™ $๐Ÿญ๐Ÿฏ.๐Ÿฏ ๐˜ฝ๐™ž๐™ก๐™ก๐™ž๐™ค๐™ฃ, ๐™ž๐™ฃ ๐™ฉ๐™๐™š ๐™–๐™œ๐™œ๐™ง๐™š๐™œ๐™–๐™ฉ๐™š"

This sentence is in Martin Gruenberg FDIC Chairman's written testimony.

It screams bailout.

His testimony also revealed the estimated cost of SVB in total is $20 billion.

๐—ฆ๐—ฎ๐—ถ๐—ฑ ๐—ฎ๐—ป๐—ผ๐˜๐—ต๐—ฒ๐—ฟ ๐˜„๐—ฎ๐˜† ๐Ÿฒ๐Ÿฒ% ๐—ผ๐—ณ ๐˜๐—ต๐—ฒ ๐—ฆ๐—ฉ๐—• ๐—•๐—ฎ๐—ถ๐—น๐—ผ๐˜‚๐˜ ๐˜„๐—ฒ๐—ป๐˜ ๐˜๐—ผ ๐˜๐—ฒ๐—ป ๐—ฑ๐—ฒ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ผ๐—ฟ๐˜€.

๐—ง๐—ฒ๐—ป ๐——๐—ฒ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ผ๐—ฟ๐˜€.

๐—ช๐—ต๐—ฒ๐—ป ๐˜„๐—ถ๐—น๐—น ๐˜„๐—ฒ ๐—ธ๐—ป๐—ผ๐˜„ ๐˜„๐—ต๐—ผ?

Maybe it will be revealed in one of the many agency reports that will follow this debacle. It appears there are at least five in the works:

โ€ข Fed Report of SVB failure of Supervision

โ€ข FED Inspector General Review

โ€ข GAO Review of the FED

โ€ข FDIC Deposit Insurance Recommendations

โ€ข FDIC Review of its Supervision

I discuss this and more in today's episode of With Flying Colors, which you can find on any podcast app.


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