by Daisy Luther, The Organic Prepper:
After Silicon Valley Bank had its deposits seized by the FDIC, on a Friday, as predicted, there’s a sense of unease across the country. Depositors have been unable to access their funds, and we’re all wondering, “Am I next?” Many of us are quickly making a transition to physical investments we can hold in our hands because the future of banking is incredibly concerning.
On Sunday night, a second bank was closed by regulators and its deposits have also been put in control of the FDIC. Signature Bank out of New York was shut down to “protect consumers and the financial system” according to a joint statement released by the U.S. Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation.
TRUTH LIVES on at https://sgtreport.tv/
According to that statement:
Depositors of the Silicon Valley Bank will have access to all of their money – following the bank’s failure on Friday – at no loss to American taxpayers…
…”Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the joint statement read. “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”
The statement said Treasury Secretary Janet L. Yellen had approved actions enabling the FDIC to complete its resolution of SVB “in a manner that fully protects depositors.”
Depositors will have access to all of their money starting Monday, March 13. The taxpayer will bear no losses associated with the resolution of SVB.
Notably, the regulators’ statement also announced the shutdown of New York-based Signature Bank.
“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” the joint statement read.
So that’s two down.
And while they’re saying that isn’t a bail-out, it sure sounds like a bail-out. More on that shortly.
What we could be facing is anything from “watch and wait” to bank runs to a market collapse. I’ll update throughout the day.
Update: 10:30 AM Eastern: Trading Halted
I’ve gotten word that trading has been halted due to volatility with at least three banks, right after President Biden’s comments that our banking industry was safe.
Banks mentioned by the Wall Street Journal are:
- PacWest Bancorp
- Zions Bancorporation
- First Republic Bank
- Regions Financial
First Republic has already dropped by 60% as per The Street.
Major banks have NOT shut down trading yet but are seeing drops in value:
- Wells Fargo is down 7.5 percent
- Bank of America is down 7.4 percent
- Citigroup is down 5.8 percent
- JP Morgan is down 2.7 percent
This does not mean that the banks have failed. It means that the stock market has lost some faith in them. We’re definitely still in a wait-and-see holding pattern.
UPDATE: 3 PM Eastern Time: More Banks Halt Trading
Newsweek compiled a list from the NASDAQ of banks that have halted trading today. Here’s the list:
- Western Alliance Bancorporation Common Stock
- PacWest Bancorp
- First Republic Bank Common Stock
- Zions Bancorporation N.A.
- OceanFirst Fnl Dp Sh Pfd A
- Customers Bancorp, Inc – Common Stock
- East West Bancorp, Inc.
- Metropolitan Bank Holding Corp. Common Stock
- First Horizon Corporation Common Stock
- Regions Financial Corporation Common Stock
- Comerica Incorporated Common Stock
- Bank of Hawaii Corporation Common Stock
- KeyCorp Common Stock
- Customers Bancorp, Inc 5.375% Subordinated Notes Due 2034
- Macatawa Bank Corporation
- Texas Capital Bnc
- United Community Bk Dep
- The Charles Schwab Corporation – Common Stock
- Coastal Financial Corp Cm St
- Huntington Banc Dep Shs J
- Magyar Bancorp Inc
- Macatawa Bank Corporation
The bank stocks were halted due to volatile, rapid swings in price.
Beware the banking information blackout
I started writing this article on Sunday afternoon, and I’m finishing it at 3 am US time and will update today, Monday, March 14th, as the situation unfolds.
Congress has already talked about censoring any “bad actors” who dare to talk about this banking collapse.
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