[ericpauley]

Where else does the money come from? Either there is no shortfall in which case there didn’t need to be a bailout, or the special assessment will be placed on banks, which will pass it on to consumers in the form of lower rates or increased fees. Just because there isn’t a “Silicon Valley Tech Bailout” line item on statements doesn’t mean it isn’t passed on.

[anonymousiam]

As said in the Treasury Dept release yesterday (here: https://home.treasury.gov/news/press-releases/jy1337)

"Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law."

So this "special assessment" will be paid by all banks with FDIC coverage, and the cost will be passed on to the banking customers (us taxpayers).

[twelve40]

most of the "startup bros deserve to die anyway" drivel I've read so far claims that the shortfall was minimal and the "bailout" was really unnecessary. In which case this special assessment will be small and likely to be covered by existing fdic reserves without those terrible fees passed on to the consumer.

[ericpauley]

My understanding is that the bailout cannot simply permanently pull from existing funds (which by the way were also paid by the depositor). There has to be a special assessment for any payout on uninsured deposits.

[quickthrowman]

Their portfolio of startup loans is definitely not going to be sold for face value, I’d be surprised if bids are above 50. Unprofitable companies in a rising rate environment aren’t who you want to be lending to..