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SVB’s bailout is estimated to have cost the FDIC 20B. The Fed also set up new lending programs to support the banks, which was essentially free* money.
by rcme 3y ago
SVB’s bailout is estimated to have cost the FDIC 20B. The Fed also set up new lending programs to support the banks, which was essentially free* money.
- ahupp 3y agoThe FDIC insurance fund is paid by banks, so ultimately depositors were "bailed out" by the broader banking industry.
- rcme 3y agoI don’t really see how that’s relevant. Paying into the FDIC DIF is a legal requirement of the banks. It’s basically a tax. Somehow bankers have convinced everyone that they have impunity to mess up the financial system just because they pay a special tax. And if the FDIC is really going to offer unlimited depositor protection, they’re going to need a lot more than the 100-200B in the DIF.
- throwway120385 3y agoWhat would you propose as a system to replace the FDIC?
- godelski 3y agoTo be clear, that money comes from the Deposit Insurance Fund