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~$60 / person. You can be certain the banks will pass on the "special assessment" in a way that won't be regressive against the common person. Certain.
by notch898a 4y ago
~$60 / person. You can be certain the banks will pass on the "special assessment" in a way that won't be regressive against the common person. Certain.
- TMWNN 4y agoLet's see if the Biden administration has the nerve to continue to claim that the bailout won't cost the taxpayer a cent, when the union of taxpayers and bank customers is 1.
- qwytw 4y agoIs FDIC funded through taxes? I thought it was an insurance fund...
- FartyMcFarter 4y agoIf things get bad, it will get funded by taxpayers. It's definitely "too big to fail".
- TMWNN 4y agoIt is an insurance fund; for every $100 in deposits, banks pay a few cents in insurance premiums. notch898a is referring to how, when the full backstop of deposits regardless of size at SVB and Signature bank was announced, the government said that a) it wasn't a bailout because taxpayers wouldn't pay anything, and b) there would if necessary be a "special assessment" (i.e., mandatory additional premiums) from all banks. Our point is that a) is nonsensical given b), because of the total overlap between US taxpayers and US bank customers.
- op00to 4y agoFor every $100 in deposits, banks pay an assessment from one penny per $100 (least risky) to ~40 cents per $100 (most risky). https://www.fdic.gov/resources/deposit-insurance/deposit-insurance-fund/dif-assessments.html https://www.fdic.gov/resources/deposit-insurance/deposit-ins...
- sokoloff 4y agoThere are more bank customers than payers of federal income tax.
- shapefrog 4y agoThe FDIC fund is currently at $128.2 billion - and collects ~5bn a year. I think they have this covered.
- sebzim4500 4y agoDo you not think that the average person would be more than $60 worse off if there were knock-on bank runs and a partial banking system collapse.
- iudqnolq 4y agoDoes the avg person hage at least $250,060 in the bank? Obviously a system-wide crash would hurt, but a handful of weak regional banks failing wouldn't hurt the average person.
- ummonk 4y agoThe point is that banks would incur costs from protecting themselves against a spate of runs on the banks and if it's true that banks pass on all their costs then those costs would be passed on to their customers.