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Can the FDIC Afford to Bailout SVB?

2 points by Ajay-p ↗ HN
CNBC reported that SVB had roughly $209 billion in total assets and $175.4 billion in total deposits as of the end of December.

At the end of 2022, the FDIC reported that its Deposit Insurance Fund had a balance of $128 billion, about 1.27% of the total insured deposits.

If the FDIC's intentions are to make all depositors whole, way above the 250,000 insured cap, where is that money going to come from? As I understand it, that money will not come from taxpayer money. So if it's not taxpayer money then it's the FDIC's money... but they don't seem to have it.

3 comments

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rogerkirkness
The announcement said it would basically come from other banks somehow. FDIC will buy the bonds at face value rather than market value, and then some kind of special program will be implemented to recover it from other banks (?).
re-thc
It will eventually come from taxpayer money directly or indirectly.

FIDC will levy other banks, which means those banks' customers will be paying.

stevedewald
It does not come from “taxpayers” per se, it comes from people who keep money in U.S. bank accounts.