Loading ...Luongo (thread) on CS
https://twitter.com/tfl1728/status/1637075239552053250?s=46&t=Z31095Tm5Yoaz4yD2m1U4w
h/t CG
My question:
So who came to SVB’s rescue? (I know the why; China and VC side of tech aligned with Dems)
not Fed but Treasury/Yellen instead?
why would Fed backstop SVB if they are Davos ‘front’. ?
I watched Luongos recent explanation
He says the svb bailout of depositors was a compromise
Both the fed and treasury wanted to stabilize the system and prevent a run on all banks so they came up with the bailout BUT
They did not bailout the bond and stockholders…ie the Owners of the Bank…They could have just injected liquidity into the bank and saved it BUT that was where the treasury Compromised and let the bank Fail…which is what the FED wanted as the SVB bank was a conduit for supporting Davos etc
That’s his explanation