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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by wmf on Sunday March 12, 2023 @07:27PM (#35128072)
SVB and Signature bank that have both collapsed in terms of $300 billion

This is not correct. SVB, for example, owes depositors ~$150B but they also have assets of almost $150B. The hole that FDIC needs to fill in may be less than $10B; it may even be zero.

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Re:Joint Statement by the Department of the Treasury, Federa... by firstlink on Sunday March 12, 2023 @09:46PM (#35129634)
This has been repeated ad nauseam but it does not pass the smell test. If SVB were solvent then it would not be in receivership.
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Re:Joint Statement by the Department of the Treasury, Federa... by evan_ on Sunday March 12, 2023 @10:11PM (#35129919)
It’s a cash flow issue. Cash flow kills plenty of profitable businesses.
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Re:Joint Statement by the Department of the Treasury, Federa... by hd95489 on Sunday March 12, 2023 @10:35PM (#35130195)
It’s a true solvency issue. They could have announced this before the bank collapsed and it still would have collapsed eventually because assets were less than liabilities
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Re:Joint Statement by the Department of the Treasury, Federa... by j16sdiz on Monday March 13, 2023 @03:28AM (#35132308)
The rules was setup that FIDC can take over when they smell something wrong before it is proven true insolvent.
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