I wonder if he even realizes what he did? He set a new precedent by making SVB depositors 100% whole, overriding the 250k insurance limit.
He said the funds would come from the FDIC insurance pool, which would normally cover just 250k per depositor.
Let the good times roll!
Only payroll debits should be covered on over limit accounts.
In fairness, only really rich elite democrat donors and the Chinese are getting bailed out by the USA taxpayer.
It’s not like the exception will apply to just everyone!
It is not the first time. First I recall is when Continental of Illinois went down in 84. The point is the bank was insolvent in that their bond portfolio of mostly treasuries was not worth what the bank paid for them. This had nothing to do with the depositors, you deposit money in a bank, you expect the bank and the oversight authorities ensure they do not invest in poor decisions. Of course, the oversight authorities cared not a wit as long as they had their ESG statements in on time.
I heard yesterday that 90% of SVB depositors were over the $250,000 FDIC limit.