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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.

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Jeremycycles t1_jch9i93 wrote

After the assets are sold. So right now if any regular Joe Schmo bank fails the regular people are fucked

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InteractionNOVA2021 t1_jchciwq wrote

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.

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Jeremycycles t1_jchdcee wrote

False, the FDIC is not backed by the treasury but they do invest in treasury securities. The FDIC is completely funded by member banks.

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Warmstar219 t1_jcirqwh wrote

And that, in turn, will be passed onto the people depositing at the bank.

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