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Let'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 c
by TMWNN 4y ago
Let'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.