It will be paid out by fines levied on it’s customers.
If it was possible to extract more money from customers without impacting the bottom line, banks would have done it already.
Oh no my long term bonds are now underwater. Please mister government help me out.
The root of the problem was that SVB (and the hundreds of other FDIC insured banks) weren't paying large enough premiums to carry the load if any one of them failed. Not that they're currently forced to make catch-up payments. Individual clients aren't catching any specific fine or fee that I've seen. Or, if they are at risk of it, maybe they should pick up and move to a Credit Union instead, since they're more likely to be insured by the NCUA.
Just the lack of out rage is pretty pathetic.
There's no straight line from My Student Loans to Your SVB Deposits, sadly. You can't do the "Wonderful Life" bit where you point and say "Your debt's in Tim's House and Jerry's House!" in order to rally the community into collective action, because it isn't inherently clear who owns what. Rage is easily stoked but very ineffectively galvanized at any specific point.
If SVB hadn't failed, my debts wouldn't be any smaller. We all know it. If anything, debtors would be better off with more bank failures, as a systemic bank collapse would heavily disrupt the collections process.
The root of the problem was that SVB (and the hundreds of other FDIC insured banks) weren’t paying large enough premiums to carry the load if any one of them failed.
The value of the Deposit Insurance Fund, which will be used to cover the gap between SVBs assets and liabilities, is currently ~$100B according to the FDIC. The gap between SVB's assets and deposit liabilities is larger than the DIF is designed to cover, but there is enough to money in the fund to gover the gap.
The cost of the new funds will not be paid out by other rich banks. It will be paid out by fines levied on it's customers.
The whole thing is a joke. Student loans you gotta pay those off guys you decided to take them out
Oh no my long term bonds are now underwater. Please mister government help me out.
Just the lack of out rage is pretty pathetic.
If it was possible to extract more money from customers without impacting the bottom line, banks would have done it already.
The root of the problem was that SVB (and the hundreds of other FDIC insured banks) weren't paying large enough premiums to carry the load if any one of them failed. Not that they're currently forced to make catch-up payments. Individual clients aren't catching any specific fine or fee that I've seen. Or, if they are at risk of it, maybe they should pick up and move to a Credit Union instead, since they're more likely to be insured by the NCUA.
There's no straight line from My Student Loans to Your SVB Deposits, sadly. You can't do the "Wonderful Life" bit where you point and say "Your debt's in Tim's House and Jerry's House!" in order to rally the community into collective action, because it isn't inherently clear who owns what. Rage is easily stoked but very ineffectively galvanized at any specific point.
If SVB hadn't failed, my debts wouldn't be any smaller. We all know it. If anything, debtors would be better off with more bank failures, as a systemic bank collapse would heavily disrupt the collections process.
The value of the Deposit Insurance Fund, which will be used to cover the gap between SVBs assets and liabilities, is currently ~$100B according to the FDIC. The gap between SVB's assets and deposit liabilities is larger than the DIF is designed to cover, but there is enough to money in the fund to gover the gap.
Lol