[rcme]

SVB’s bailout is estimated to have cost the FDIC 20B. The Fed also set up new lending programs to support the banks, which was essentially free* money.

[ahupp]

The FDIC insurance fund is paid by banks, so ultimately depositors were "bailed out" by the broader banking industry.

[rcme]

I don’t really see how that’s relevant. Paying into the FDIC DIF is a legal requirement of the banks. It’s basically a tax. Somehow bankers have convinced everyone that they have impunity to mess up the financial system just because they pay a special tax.

And if the FDIC is really going to offer unlimited depositor protection, they’re going to need a lot more than the 100-200B in the DIF.

[throwway120385]

What would you propose as a system to replace the FDIC?

[godelski]

To be clear, that money comes from the Deposit Insurance Fund