4 ms·

Those were also cases where the power-that-be decided to change the laws and regulations on the fly and removed the FDIC insurance limit to protect their friend

• JumpCrisscross 3y ago
  > the power-that-be decided to change the laws and regulations on the fly and removed the FDIC insurance limit to protect their friends in high places No laws were changed. The FDIC always had broad discretion in managing assets and liabilities under receivorship. You are correct, however, in that a precedent was set. Where you are incorrect is in the friends in high places bit. I was near (though not on) ground zero in those crises, and to the degree politics were involved, it was in the goodwill that would have resulted from visibly screwing certain Silicon Valley elites. If Signature hadn't failed, there is a good chance SVB's depositors would have been capped at the legal limit.