The Blank Check Bailout: My God
In a joint announcement from the Federal Reserve, FDIC, and US Treasury last night, only one thing is clear; banks can borrow against asset values that they don't actually have.
As I foreshadowed over the weekend, I have many more thoughts on this banking situation. For those who need to be brought up to speed if you were on vacation or unplugged, here's a very brief TLDR rundown of the last few days:
Silvergate Capital SI 0.00%↑ closed on Wednesday (mostly crypto-clientele)
Silicon Valley Bank SIVB 0.00%↑ (or SVB) was taken over by FDIC on Friday …
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