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A comment on SVB shows that there are few libertarians in a financial foxhole. Parent comment

Re:SVB shows that there are few libertarians in a financial ... by tripletao on Monday March 13, 2023 @05:44PM (#35143285)
The FDIC is guaranteeing all SVB deposits, including deposits above $250k. Any deficit will be paid from the FDIC's insurance fund, which if necessary will be topped up by a special assessment on all participating banks. So the losses (if any) won't be socialized over taxpayers, but they will be socialized over some combination of bank owners and customers.

https://www.federalreserve.gov/newsevents/pressreleases/mone...

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Re:SVB shows that there are few libertarians in a financial ... by dragonwriter on Monday March 13, 2023 @05:50PM (#35143386)
> So the losses (if any) won’t be socialized over taxpayers,

I mean, a “special assessment” is just a different word for a one-time tax, and it being directly on all banks and indirectly on everyone who banks, or does business with entities who bank, makes distinguishing the payers of this tax and “taxpayers” ludicrous hair-splitting.

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Re:SVB shows that there are few libertarians in a financial ... by ralph84 on Monday March 13, 2023 @11:09PM (#35146902)
Exactly, the banks that practiced sound risk management get to subsidize the banks that didn’t. Textbook moral hazard.
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