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Member banks made depositors whole, not tax payers…

• matheusmoreira 3y ago
  Banks pay the FDIC for insurance. That would be true if only insured deposits were made whole. That's not what happened though. > On March 12, 2023, a joint statement was issued by Secretary of the Treasury Janet Yellen, Federal Reserve Chairman Jerome Powell, and FDIC Chairman Martin Gruenberg > stating that all depositors at SVB would be fully protected and would have access to both insured and uninsured deposits > Regulatory filings from December 2022 estimated that more than 85% of deposits were uninsured. Where'd that come from? Surely not the government?
  • schemescape 3y ago
    From member banks: https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm https://www.federalreserve.gov/newsevents/pressreleases/mone... > No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. > Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. Edit: apologies, I should have included this link and blurb in my original comment.
    • tsunamifury 3y ago
      You're Both arguing about the wrong thing. SVB never was insolvent, all account holders were made whole with available assets. Whole thing was a farce