Aaand …. It’s still not over! I couldn’t believe my eyes but it;s true: the Westminster MSM think they buyers of their papers cannot possibly be interested in news such as bank crashes overseas, or even the budget here at home. The Budget will be presented to us on Wednesday afternoon, day after tomorrow, but why should we plebs worry our little heads about that!

So here’s the collection of dead-tree-press front pages this morning. It’s Lineker all the way down. Only the FT, to no-one’s surprise, has the US bank crash news as leading article. To everyone’s surprise, the grauniad has this event below the fold. But otherwise? It’s entertainment, dear friends: Lineker and a sprinkle of ‘Oscar’ news.

Meanwhile, The Star is again the odd one out, predicting snow and ice for Easter. I’m in awe of their meteorological foresight! Easter is on the 9th of April! Given that the Met Office is rather haphazard in their forecasts I wonder if The Star had some economists doing their own. After all, the old saying applies that ‘economists were invented to make weather forecasters look good’  applies, doesn’t it.

As for that bank crash: well, why not go back to sleep, peasants! It only happened in the USA, in far away Silicon Valley, innit. The name of the bank is programme: “Silicon Valley Bank”. It was aimed at start-up tech firms, so nothing to do with us peasants. Still, ‘our government’ in the form of Sunak and Hunt, were ‘hard at work over the weekend to ‘protect’ us.

Sunak’s presence in San Diego at the weekend was extraordinarily coincidental, wasn’t it! This visit was about making some sort of deal with Australia about building submarines. Perhaps his wife wanted to visit Hollywood? Who knows! Here’s the grauniad:

“Soon after landing in San Diego, the prime minister told broadcasters he had been monitoring the situation during the 15-hour flight, speaking to the chancellor and keeping in touch with regulators including the Bank of England. Sunak […] added he was focused on “finding the best solution” that would “continue to support our world-beating technology sector and all the high-skilled jobs that it supports”.” (link)

I wonder if they were whatsapping each other like mad … Still, he’s clearly hard at work to make the UK look like a tech hotspot! And lookee here: his hard work so paid off! Hunt had also waded in, warning that “fledgling businesses across the tech and life sciences sector were at “serious risk” if deposits were wiped out by the collapse of SVB UK.” (link) – and look what they pulled out of their hats! The FT reports:

“HSBC on Monday averted a crisis in Britain’s tech sector by rescuing Silicon Valley Bank’s UK arm, in a dramatic fire sale concluded after all-night talks with British ministers led by Rishi Sunak and the Bank of England.” (link, paywalled)

That’s ‘only’ for the UK part of yon Bank. Still, aren’t we all glad – “we” meaning the part of us peasants not glued to their tellies watching the Oscars or bellyaching (hah!) about poor old Lineker and Auntie Beeb! Hunt of course made sure that everybody knows who was the head honcho brokering that deal:

“Hunt wrote on Twitter at 7am: “This morning, the government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC. Deposits will be protected, with no taxpayer support. I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise.” The extraordinary overnight rescue mission involved Sunak, Hunt and City minister Andrew Griffith, while Andrew Bailey, Bank of England governor, and Sam Woods of the Prudential Regulation Authority were also involved.” (link, paywalled)

Meanwhile we read in Reuters that “the Fed and U.S. Treasury announced a range of measures to stabilise the banking system and said depositors at SVB (SIVB.O) would have access to their deposits on Monday.” (link), and that the Fed will

“make additional funding available through a new Bank Term Funding Program, which would offer loans up to one year to depository institutions, backed by Treasuries and other assets these institutions hold.” (link)

They were really working their socks off in the USA as well! Not only did they produce a new programme, not only did they reassure the country that “no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.” (link), they even proactively closed another bank. The NYT reported:

“Federal regulators announced on Sunday that another bank had been closed  […] The agencies also said that they would make whole depositors at Signature Bank, which the government disclosed was shut down on Sunday by New York bank regulators. The state officials said the move came “in light of market events, monitoring market trends, and collaborating closely with other state and federal regulators” to protect consumers and the financial system.” (link)

Phew. So all is well, ‘markets rally’ according to Reuters, and we can all go back to sleep, knowing that our glorious government and the Bank of England have got another bank to avert financial disaster. See how hard they all worked to ‘protect’ us poor taxpayers! We’re in such good hands that the morning papers have had time and space to waste on the nothingburgers of Lineker and the Oscars. 

Of course, we won’t ask how come none of the mighty financial minds in the Treasury and the Bank of England, never mind the Fed, seem to have had an inkling. Or had they? Is that why they were so quick with ‘plans’? Perhaps the thoughts of a Bloomberg author are  of interest. I can only print the headlines, not being a paid subscriber: “Fed Rate Pivot Is Back in Play – Markets are predicting a change in the course of interest rates now that there is trouble brewing in the banking sector.” (link, paywalled) because inflation is clearly only a burden for ignorant peasants.

That’s all i have for today. To me, this bank crash and the ever so “reassuring” work of our and the US government to shore them up, after the fact, is anything but reassuring. Perhaps all those ‘economists’ ought to look for new jobs at the Met Office. Have a good day.



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