ST Alpha - "The statement I saw said that no taxpayer money would be used. I’m guessing being able to value their remaining treasury holdings at par is enough -- (edited)" (Reading a Post)

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In response to "I don't think 'all the money' is there, but I could be wrong? -- nm" by ty97

The statement I saw said that no taxpayer money would be used. I’m guessing being able to value their remaining treasury holdings at par is enough -- (edited)

Posted by znufrii, meh and problematic (aka znufrii) Mar 13 '23, 07:00

to make depositors whole after someone buys the rest of their assets?

Responses:

Member banks pay into the FDIC don't they? So that, in combo with asset sale, would cover? -- nm - ty97 Mar 13, 07:01 4
- FDIC only covers $250,000 per depositor, and that hasn’t changed as far as I’ve seen. -- nm - znufrii, meh and problematic Mar 13, 07:08 3
  - They said last night that they are covering 100% for SVB and Signature -- nm - ty97 Mar 13, 07:12 1
    - Not specifically through FDIC insurance though, to my reading of it, just that all depositors will be made whole. - znufrii, meh and problematic Mar 13, 07:15
  - "the Fed will make a new lending facility available to banks to buttress any financial risks they face. Also, sale of all or part of SVB’s assets and - mara Mar 13, 07:09
The Fed is going to use a couple of tools from what I heard - 1 being an insurance fund it has for emergencies -- nm - decline Mar 13, 07:01 1
- Gotcha. -- nm - znufrii, meh and problematic Mar 13, 07:04

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