No money is being given by the government to anybody.
please correct me if i'm wrong but that is exactly what is NOT happening. The shareholders aren't covered as you say, but there are no current buyers for these assets. Therefore, the fed announced the depositors will be receiving all their money from the deposit insurance fund i.e. the treasury, i.e. the taxpayer ultimately if the DIF dips to 0. And the Fed basically indicated in their statement that this applies to every bank, meaning every bank's FDIC insurance is now up from $250k to unlimited. But they don't pay for that insurance, meaning we are now creating a huge moral hazard situation where all these banks can just do anything they want, because even if they use their deposits to buy the riskiest securities ever, it doesn't matter! The depositors will not have to worry. The VC backed companies will never have to worry, they will never lose because they will always play with house money.
If I am understanding this correctly, this is just one degree of indirection from bailout.
Not everything is crypto assets, so as far as I can tell they're going to sell off the good assets, hold onto ones for which there is not currently a market (and sell when and as there is a market) and, yes, use the DIF to make whole the depositors.
please correct me if i'm wrong but that is exactly what is NOT happening. The shareholders aren't covered as you say, but there are no current buyers for these assets. Therefore, the fed announced the depositors will be receiving all their money from the deposit insurance fund i.e. the treasury, i.e. the taxpayer ultimately if the DIF dips to 0. And the Fed basically indicated in their statement that this applies to every bank, meaning every bank's FDIC insurance is now up from $250k to unlimited. But they don't pay for that insurance, meaning we are now creating a huge moral hazard situation where all these banks can just do anything they want, because even if they use their deposits to buy the riskiest securities ever, it doesn't matter! The depositors will not have to worry. The VC backed companies will never have to worry, they will never lose because they will always play with house money.
If I am understanding this correctly, this is just one degree of indirection from bailout.
Not everything is crypto assets, so as far as I can tell they're going to sell off the good assets, hold onto ones for which there is not currently a market (and sell when and as there is a market) and, yes, use the DIF to make whole the depositors.