The Federal Deposit Insurance Corp. (FDIC) and Federal Reserve are discussing creating a fund to backstop deposits if more banks fail following the collapse of Silicon Valley Bank.

Silicon Valley Bank was shut down by regulators on Friday in the biggest bank failure since the 2008 liquidity crisis.

Silicon Valley Bank reportedly held $173 billion in deposits.

The Fed interest rate is at 4.57% and $117 billion of Silicon Valley Bank securities are yielding only 1.56-1.66% – this is causing a run on the bank.

By Friday Silicon Valley Bank was in FDIC receivership.

The Federal Reserve caused the run on the bank by raising interest rates seven times in 2022.

2022’s rate hikes totaling 450 basis points is causing problems for bankers because investors want to move their money into higher-yield bonds.

After creating the problem in the first place, the Federal Reserve is now discussing a new vehicle that would allow regulators to backstop deposits if more banks were to collapse.

Bloomberg News reported:

The Federal Deposit Insurance Corp. and the Federal Reserve are weighing creating a fund that would allow the regulators to backstop more deposits at banks that run into trouble following Silicon Valley Bank’s collapse.

Regulators discussed the new special vehicle in conversations with banking executives, according to people familiar with the matter. The hope is that setting up such a vehicle would reassure depositors and help contain any panic, said the people. They asked not to be identified because the talks weren’t public.

The vehicle is part of the agency’s contingency planning as panic spreads about the health of banks focused on the venture capital and startup communities.

The Silicon Valley Bank failure may not be the only bank to fail.

First Republic’s stock on Friday tumbled 50% after Silicon Valley Bank’s failure.

People lined up at the First Republic branch in Brentwood to withdraw their money on Saturday.

WATCH:

I’ve never seen a bank run in Brentwood Los Angeles in over 40 years — this is at first republic bank branch. People standing in rain pic.twitter.com/k31PqqpyO3

— pjb.eth (@Dr_PhillipB) March 11, 2023

The post HERE WE GO: FDIC and Federal Reserve Discuss Creating Fund to Backstop Deposits if More Banks Collapse appeared first on The Gateway Pundit.

Last week, Kevin O’Leary, an investor and judge on the ABC show “Shark Tank,” slammed Rep. Alexandria Ocasio-Cortez (D-NY) for being “great at killing jobs” and making New York City and other liberal states “uninvestable.”

On CNN’s “This Morning,” the business investor said that New York, Massachusetts, New Jersey, and California are losing out in the “competition of states” because of the lack of interest from potential investors.

O’Leary blamed Democrats like socialist AOC for making New York and other liberal states “uninvestable.”

“Those states are uninvestable,” O’Leary said during the interview. “The policy here is insane. The taxes are too high.”

Co-host Kaitlin Collins of CNN rebutted O’Leary, claiming that New York officials would disagree with his judgment.

“Sorry. Don’t shoot the messenger; just telling you how it is,” O’Leary said, adding that he would “debate” elected officials in New York particularly AOC “any time of the day.”

“She’s great at killing jobs. She kills jobs by the thousands. Another New Jersey problem. Where did Amazon take their jobs? They took them away from her. She threatened to sue them if they created jobs. I mean, this is a reality.”

“He’s saying what a lot of people are saying, especially with what happened here with Amazon,” Don Lemon said in support of O’Leary’s statements.

WATCH:

Shark Tank’s Kevin O’Leary claims New York, Massachusetts, New Jersey and California are “uninvestable” https://t.co/HyuU3AgJLM pic.twitter.com/XkhqTmqvnw

— CNN (@CNN) March 3, 2023

O’Leary said that Ocasio-Cortez was responsible for the loss of thousands of jobs in Queens by fighting Amazon’s plans to build its second New York City headquarters there.

Earlier this month, Ocasio-Cortez applauded the decision to delay construction of Amazon’s Virginia headquarters in Pentagon, Metropolitan Park in the wake of company-wide layoffs.

“When I opposed this Amazon project coming to New York bc it was a scam of public funds, the whole power establishment came after us. Billboards went up in Times Sq denouncing me. Powerful pols promised revenge. Op-Eds & CEOs insulted my intelligence. In the end, we were right,” AOC wrote.

When I opposed this Amazon project coming to New York bc it was a scam of public funds, the whole power establishment came after us.

Billboards went up in Times Sq denouncing me. Powerful pols promised revenge. Op-Eds & CEOs insulted my intelligence.

In the end, we were right. https://t.co/F1sNvZcISq

— Alexandria Ocasio-Cortez (@AOC) March 3, 2023

The post Shark Tank’s Kevin O’Leary Rips Socialist AOC and Her America Last Policies: She is ‘Great at Killing Jobs’ (VIDEO) appeared first on The Gateway Pundit.