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A comment on Yellen says government will help SVB depositors but rules out bailout. Parent comment

Re:Yellen says government will help SVB depositors but rules... by pcl on Sunday March 12, 2023 @11:19AM (#35121076)
The $250k is the protection floor, not the ceiling. The FDIC guarantees that $250k, but SVB has assets well beyond $250k per account.

The FDIC is in the business of protecting depositors. So it will pay out the floor immediately as a matter of course, and then will continue to use the tools it has available and the remaining assets of SVB to pay out more — perhaps 100%, perhaps some amount less — to depositors.

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Re:Yellen says government will help SVB depositors but rules... by roganp on Sunday March 12, 2023 @11:58AM (#35121675)
It will be less than %100, because of the unrealized losses on SVB's bond portfolio. Regardless of the amount, there will be delays in returning those funds as FDIC liquidates.
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Re:Yellen says government will help SVB depositors but rules... by shjake on Sunday March 12, 2023 @12:04PM (#35121768)
If they manage to somehow talk another bank into buying what’s left of SVB it might be the full 100%.

It’s not yet clear that won’t happen.

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Re:Yellen says government will help SVB depositors but rules... by baq on Sunday March 12, 2023 @12:44PM (#35122420)
Yes. FDIC is very persuasive though, as evidenced in the past 15 years.
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