[rcme]

The math here seems disingenuous. There were 10 accounts with 13B in uninsured deposits. The FDIC used 18B to back the entire deposits of the bank. That doesn't mean 13B / 18B went to those 10 accounts.

A better way of thinking about it would be something like: SVB had 170B (random estimate) in uninsured deposits. 13B of the uninsured deposits were from 10 accounts. So (13B / 170B) * 18B = 1.3B went to those 10 accounts.

[JumpCrisscross]

> SVB had 170B (random estimate) in uninsured deposits

$56bn [1]. So about 23% of the emergency insured deposits were held by 10 accounts.

If we stuck to the law, that would have been $2.5mm (0.005%). So 10 accounts got a 5,200x courtesy boost in their backing by the full faith and credit by the United States.

[1] https://www.bloomberg.com/news/articles/2023-03-27/first-cit...

[nr378]

$56bn of deposits at point of sale to First Citizens. It had $119bn of deposits at the point the FDIC took over as receiver and then subsequently guaranteed all deposits [1].

[1] https://www.fdic.gov/news/press-releases/2023/pr23023.html

[JumpCrisscross]

This is correct. Cut my numbers in half.

[rcme]

Hmm this lists SVB's total assets at 209B: https://www.spglobal.com/marketintelligence/en/news-insights...

[JumpCrisscross]

As of 31 December 2022. The FDIC didn't bail out deposits that fled before receivership.

[rcme]

Good point, although this is also included in your link:

> This leaves about $90 billion in securities and other SVB assets in the hands of the FDIC, and an estimated cost of the failure to the Deposit Insurance Fund of about $20 billion.

So the real number is 50 + 90 = 140.

[JumpCrisscross]

> the real number is 50 + 90 = 140

This doesn’t make sense. You’re adding deposits (liabilities) to assets. $56bn deposits doesn’t mean $56bn of cash in a vault, it means $56bn owed to depositors.

[rcme]

It also doesn't make sense that SVB would need a bailout if they had 50B in liabilities and 90B in assets.

[vkou]

A lot more than 10 accounts got that boost, because this prevented panic and contagion.

[JumpCrisscross]

> lot more than 10 accounts got that boost, because this prevented panic and contagion

100% agree. This is the first time, however, we’ve been able to quantify where the direct benefit went.