All SVB depositors get their funds; same with Signature, which was closed today. I believe they're calling them both systemic risks. Funded by bank assessments; no protections for shareholders, other creditors
https://home.treasury.gov/news/press-releases/jy1337
My guess is they'd prefer finding acquirers, but they can't get that done by Monday, so they're at least saying they'll backstop deposits w/ bank assessments if necessary.
@annmlipton So this is basically a stopgap until they can find a buyer? They're not actually permanently paying these people off with taxpayer money, right?
@LouisIngenthron They're not paying them w/ taxpayer money no matter what happens; they're levying a special tax on all banks. Presumably, if they find an acquirer, that will be unnecessary (or the $$ amounts will be lessened)
@annmlipton Ahhhh. That sounds.... extremely reasonable.
