[colinmorelli]

If you think this created a multi hundred billion dollar hole, then I’m not sure you’re following what actually happened here.

SVB had assets to cover most deposits, if not all. FDIC needs time to sell those assets, but depositors need the security of their cash now. FDIC pledged a larger portion of their pool, which is funded by banks, to cover withdrawals while assets are sold.

By most reasonable estimates, FDIC will recover at least 80-90% of deposits at no cost to anyone. This means that, at most, there’s a 10-20B hole to plug, if any at all. If needed at all, that hole will be plugged by a special assessment on other banks. Given the relatively small dollar amount, it’s my personal opinion that banks wouldn’t bother trying to pass down the fee, be that’s the primary way this would impact regular people.