Will anyone (the US government, or a large bank) bail out SVB in 2023?
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165
570
resolved Jun 13
Resolved
YES

Mar 12, 4:34am: Will anyone (the US government, or a large institution) bail out SVB in 2023? → Will anyone (the US government, or a large bank) bail out SVB in 2023?

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bought Ṁ200 of YES

@AlexKChen This can resolve YES

predicted YES

Resolve YES 👍🏻

does bailing out the depositors but not shareholders count?

Matt Levine unintentionally mocked this market in today's Money Stuff:

I don’t think that anything interesting turns on whether or not this weekend’s resolution of Silicon Valley Bank was a “bailout,” so let’s not discuss that.

He does leave a footnote explaining his view though:

For what it’s worth, I agree with my Bloomberg colleague Joe Weisenthal that (1) it was obviously a bailout and (2) that is sort of a morally neutral conclusion. If there is some established resolution procedure for a failed bank that would expose some claimants to some risk of loss, and the government steps in to modify that resolution procedure to give those claimants more money and/or certainty, then that is just obviously a bailout; what else could it be? (Josh Barro: “I think a fair definition of a ‘bailout’ is when people or entities receive an ad hoc financial rescue to which they were not legally entitled before the event that necessitated the rescue.”) But it seems perfectly coherent to think something like “the SVB resolution was a bailout of depositors, but that was good, and doesn’t really have much or any economic cost to taxpayers given the likely selling price of the assets.”

predicted NO

Seeing as SVB the corporation no longer exists, it can’t be said to have been bailed out can it?

predicted NO

from Matt Levine:

the BTFP and the guarantees on uninsured deposits — do in some obvious sense amount to a bailout of banks. Not of Silicon Valley Bank, though: SVB had already been seized by the FDIC

There is no more SVB. SVB cannot be bailed out.

bought Ṁ20 of YES

Does this count? Making available liquidity to cover MBS illiquidity. https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm

Does a bank buying SVB qualify?

@Yoav yes

What do you mean by “bail out”? FDIC insurance is a form of bail out. Is the person who buys SVB’s assets bailing out the bank?