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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 dragonwriter on Sunday March 12, 2023 @07:33PM (#35128154)
> No, that’s been the implicit rule since 2008 at least (arguably earlier).

No, depositors have lost money in failures since 2008. Its true that, for a long time, the FDIC has tried to resolve failures in a way which protects as much of the uninsured deposits as possible, but it has very much not been a guarantee.

The systemic risk exception invoked here is an exception.

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Re:Joint Statement by the Department of the Treasury, Federa... by joe_the_user on Sunday March 12, 2023 @09:46PM (#35129632)
"The systemic risk exception invoked here is an exception."

Yes but it's not a new exception.

The OP claims Yellen implicitly announced something new. She didn't. She's following the playbook from 2008+. The policy isn't new, it's not unexpected, it's kind of like ... a rule.

And whether a new rule is being created matters for moral hazard purposes and all.

Edit: My above quote could have been read as talking about all depositors in all banks but I meant all depositors in the SVB.

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