Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC

Re:Joint Statement by the Department of the Treasury, Federa... by rtpg on Sunday March 12, 2023 @07:10PM (#35127813)

The important part here is that SVBs assets are basically guaranteed to pay out, you just have to wait it out. It’s fairly likely that there are basically no costs (excepting costs to service the insured 250k in the first place, so no marginal costs)

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Re:Joint Statement by the Department of the Treasury, Federa... by umanwizard on Sunday March 12, 2023 @08:15PM (#35128685)

A dollar in ten years is not the same currency as a dollar today. It’s absurd to say that there is “no cost” to holding bonds that pay 1% interest for years when you can now buy bonds that pay multiple times that.

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Re:Joint Statement by the Department of the Treasury, Federa... by rtpg on Sunday March 12, 2023 @09:10PM (#35129242)

For the FDIC I think that "1.01 dollars in a couple of years" is good enough when talking about a bailout.

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