Mike Masnick ✅Mar 12, 2023

So... the summary is that for all the fear some people had that taxpayers would "bail out billionaires," and the corresponding fear that companies had that "a ton of our money could evaporate and destroy the economy with massive downstream impact"... FDIC/Treasury stepped in and did the right thing: depositors made whole, no taxpayer funds, bank assessment to make up any difference, & SVB equity/unsecured debtholders (mostly) wiped out.

A very good result.

Show threadJohn MinnihanMar 12, 2023

@mmasnick i'm reading the press release + see no mention of how exactly the FDIC is resolving this.

have you seen that detailed anywhere?

Show threadMike Masnick ✅Mar 12, 2023
@jbminn which part is unclear?
Show threadJohn MinnihanMar 12, 2023

@mmasnick

where's the money coming from that is making depositors whole above the insured limit of $250k tomorrow?

Show threadMike Masnick ✅Mar 12, 2023
@jbminn combination of existing assets and FDIC funds in the *short* term, which will be replenished by all other FDIC banks if they have to dip into those FDIC funds. So, basically IF they need extra, other banks will make up the difference. But it shouldn't be that much and spread across many institutions.
Show threadMatt Corallo
@mmasnick the money came from a fund that they charge other banks to cover losses, so “it’s not a tax” is kinda nonsense. The government charged a set of companies money and is using that pot.
Mar 12, 2023 at 11:40pmWeb