Money and Finance

[gearhog]

The FDIC just published this document regarding its preparations for the failure of a Global Systemically Important Banking (GSIB) organization headquartered in the U.S. with complex global operations.

https://www.fdic.gov/sites/default/files/2024-04/spapr1024b_0.pdf

It basically outlines how the Sec of the Treasury, Federal Reserve, and President will transfer all the assets to a Bridge Financial Company. I thought it interesting that they mention they plan to put the company into FDIC receivership on a Friday evening so as to be able to mobilize the plan and prevent a contagion by Monday morning.

"The appointment as receiver late Friday afternoon would provide time, while most global financial markets are closed, to form a Bridge Financial Company, mobilize resources needed to conduct business beginning on Monday morning, and communicate with key constituencies (including employees, counterparties, and claimants) around the globe. The FDIC recognizes that a Friday night appointment may not be possible in all instances, and the timing will be highly dependent on the nature of the failing institution, how it fails, and market conditions at the time."

The plan says it ensures that only claimants (shareholders and creditors) would incur losses and that US taxpayers would incur no liability. Translation: they'll print the money.

"The ability of the FDIC and other regulatory authorities to manage the orderly resolution of large, complex financial institutions remains foundational to U.S. financial stability. While recognizing the progress that has been made toward enabling such a resolution and ending “too big to fail,” we also recognize that the resolution of a GSIB has not yet been undertaken. When it becomes necessary to do so, carrying out such a resolution will come with a unique set of challenges and risks."

Any bets on who it's gonna be?

Edited April 28 by gearhog

[BashiChuni]

we are so fucked

[SurelySerious]

The FDIC just published this document regarding its preparations for the failure of a Global Systemically Important Banking (GSIB) organization headquartered in the U.S. with complex global operations.
https://www.fdic.gov/sites/default/files/2024-04/spapr1024b_0.pdf
It basically outlines how the Sec of the Treasury, Federal Reserve, and President will transfer all the assets to a Bridge Financial Company. I thought it interesting that they mention they plan to put the company into FDIC receivership on a Friday evening so as to be able to mobilize the plan and prevent a contagion by Monday morning.
"The appointment as receiver late Friday afternoon would provide time, while most global financial markets are closed, to form a Bridge Financial Company, mobilize resources needed to conduct business beginning on Monday morning, and communicate with key constituencies (including employees, counterparties, and claimants) around the globe. The FDIC recognizes that a Friday night appointment may not be possible in all instances, and the timing will be highly dependent on the nature of the failing institution, how it fails, and market conditions at the time."
The plan says it ensures that only claimants (shareholders and creditors) would incur losses and that US taxpayers would incur no liability. Translation: they'll print the money.
"The ability of the FDIC and other regulatory authorities to manage the orderly resolution of large, complex financial institutions remains foundational to U.S. financial stability. While recognizing the progress that has been made toward enabling such a resolution and ending “too big to fail,” we also recognize that the resolution of a GSIB has not yet been undertaken. When it becomes necessary to do so, carrying out such a resolution will come with a unique set of challenges and risks."
Any bets on who it's gonna be?

[Swizzle]

12 hours ago, gearhog said:

The FDIC just published this document regarding its preparations for the failure of a Global Systemically Important Banking (GSIB) organization headquartered in the U.S. with complex global operations.

https://www.fdic.gov/sites/default/files/2024-04/spapr1024b_0.pdf

It basically outlines how the Sec of the Treasury, Federal Reserve, and President will transfer all the assets to a Bridge Financial Company. I thought it interesting that they mention they plan to put the company into FDIC receivership on a Friday evening so as to be able to mobilize the plan and prevent a contagion by Monday morning.

"The appointment as receiver late Friday afternoon would provide time, while most global financial markets are closed, to form a Bridge Financial Company, mobilize resources needed to conduct business beginning on Monday morning, and communicate with key constituencies (including employees, counterparties, and claimants) around the globe. The FDIC recognizes that a Friday night appointment may not be possible in all instances, and the timing will be highly dependent on the nature of the failing institution, how it fails, and market conditions at the time."

The plan says it ensures that only claimants (shareholders and creditors) would incur losses and that US taxpayers would incur no liability. Translation: they'll print the money.

"The ability of the FDIC and other regulatory authorities to manage the orderly resolution of large, complex financial institutions remains foundational to U.S. financial stability. While recognizing the progress that has been made toward enabling such a resolution and ending “too big to fail,” we also recognize that the resolution of a GSIB has not yet been undertaken. When it becomes necessary to do so, carrying out such a resolution will come with a unique set of challenges and risks."

Any bets on who it's gonna be?

UBS has a NYC Americas HQ, big HQ not USA, and...

Switzerland says UBS may need more cash. The bank is fuming

A year after the failure of Credit Suisse, the Swiss government says UBS may have to find as much as $27 billion to absorb potential losses and protect taxpayers from ever having to bail out a major bank, reports my colleague Hanna Ziady.

Now, the giant Swiss lender is hitting back, saying its finances are robust and warning that the proposal could harm Switzerland’s standing as a global financial center.