InteractionNOVA2021
InteractionNOVA2021 t1_jch8md9 wrote
Reply to comment by Jeremycycles in First Republic in talks with major banks about a rescue plan by Powerpuff_Rangers
The FDIC will require the other banks it insures to pay a special assessment to help pay for at least some of this depositor rescue. The same thing happened after the Banking Crisis of 2008. At that time, the premium was 20 cents for every $100 dollars of domestic deposits.
I also anticipate that the FDIC will recover a decent amount from the sale of SVB's assets. This isn't the typical situation in which the bank is burdened by a substantial portfolio of non-performing loans.
InteractionNOVA2021 t1_jchciwq wrote
Reply to comment by Jeremycycles in First Republic in talks with major banks about a rescue plan by Powerpuff_Rangers
The Deposit Insurance Fund is backed by the U.S. Treasury. The FDIC was bailed out in the 1980's and again after the 2008 Banking Crisis. So, insured depositors are still protected.