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A comment on Sam Bankman-Fried found guilty on all charges. Parent comment

Re:Sam Bankman-Fried found guilty on all charges by matheusmoreira on Thursday November 02, 2023 @09:52PM (#38123369)
Banks pay the FDIC for insurance. That would be true if only insured deposits were made whole. That's not what happened though.

> On March 12, 2023, a joint statement was issued by Secretary of the Treasury Janet Yellen, Federal Reserve Chairman Jerome Powell, and FDIC Chairman Martin Gruenberg

> stating that all depositors at SVB would be fully protected and would have access to both insured and uninsured deposits

> Regulatory filings from December 2022 estimated that more than 85% of deposits were uninsured.

Where'd that come from? Surely not the government?

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Re:Sam Bankman-Fried found guilty on all charges by schemescape on Thursday November 02, 2023 @10:19PM (#38123591)
From member banks:

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

> No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

> Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

Edit: apologies, I should have included this link and blurb in my original comment.

[ Parent | on HN ]
Re:Sam Bankman-Fried found guilty on all charges by tsunamifury on Friday November 03, 2023 @02:16PM (#38132712)
You're Both arguing about the wrong thing. SVB never was insolvent, all account holders were made whole with available assets.

Whole thing was a farce

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