You ignore the next sentence: > The FDIC will pay uninsured depositors an advance dividend within the next week. This will likely be a substantial fraction of

You ignore the next sentence: > The FDIC will pay uninsured depositors an advance dividend within the next week. This will likely be a substantial fraction of the uninsured deposits. Take a look at the FDIC website. https://closedbanks.fdic.gov/dividends/ https://closedbanks.fdic.gov/dividends/ Pick a bank, say, "IRWIN UNION BANK & TRUST CO". The first dividend was almost 47% of the uninsured amount, and anoth 25% or so over a decade. The failure of SVB as reported is not nearly as bad.