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The important part here is that SVBs assets are basically guaranteed to pay out, you just have to wait it out. It’s fairly likely that there are basically no co
by rtpg 4y ago
The important part here is that SVBs assets are basically guaranteed to pay out, you just have to wait it out. It’s fairly likely that there are basically no costs (excepting costs to service the insured 250k in the first place, so no marginal costs)
- School-Cotton 4y agoA dollar in ten years is not the same currency as a dollar today. It’s absurd to say that there is “no cost” to holding bonds that pay 1% interest for years when you can now buy bonds that pay multiple times that.
- rtpg 4y agoFor the FDIC I think that "1.01 dollars in a couple of years" is good enough when talking about a bailout.