https://www.piratewires.com/p/signature-didnt-have-to-die-either-chokepoint-nic-carter?f=homeThis is an interesting article by Nic Carter at PirateWires. It claims that the FDIC closed Signature Bank in order to be able to justify declaring the SVB collapse to be a systemic risk. This allowed it to make whole its uninsured deposits, saving the Biden Administration from the political fallout of ruining a significant part of the tech startup industry.
Or maybe the reason for saving the depositors was that Senator Warren wanted to save her husband's business. In any case, Signature Bank was collateral damage, with the added serendipity of the bank having a significant number of crypto clients. Operation Chokepoint 2 gets a boost.
The article also claims that SVB didn't have to fail because there were several interested buyers. But Senator Warren was against bank mergers so the FDIC had to close it, despite it being solvent.
So what instigated the world's fastest bank run on SVB? It happened straight after Silvergate Bank went into voluntary liquidation due to an anti-crypto shift in FDIC policy making its business model inviable.
Operation Chokepoint 2, a surge in short-term interest rates, nervous depositors and systemic interference in the financial system by a united government and FDIC brought down three banks in quick succession. This is a lesser-known legacy of the Biden Administration.
Another nostr user published this article to
https://archive.ph/yvWss to avoid the PirateWires paywall. Perfectly understandable, as you get to read their excellent journalism. I recommend subscribing to it and supporting their work.
