The FDIC has already pushed SVB onto First Citizen's Bank for the price of around $15B in subsidy.
As to whether all depositors are guaranteed from now on: a precedent has been set but there have been other, more significant actions taken to try and head off another bank run liquidity situation - the Fed created a…
The FDIC has already pushed SVB onto First Citizen's Bank for the price of around $15B in subsidy.
As to whether all depositors are guaranteed from now on: a precedent has been set but there have been other, more significant actions taken to try and head off another bank run liquidity situation - the Fed created a new facility where any bank can turn in a bond and get face value for it. Mark to market as well as duration risk for bonds held by banks, removed.
SVB has fully played out.
The FDIC has already pushed SVB onto First Citizen's Bank for the price of around $15B in subsidy.
As to whether all depositors are guaranteed from now on: a precedent has been set but there have been other, more significant actions taken to try and head off another bank run liquidity situation - the Fed created a new facility where any bank can turn in a bond and get face value for it. Mark to market as well as duration risk for bonds held by banks, removed.