[Wallace T.]

Simple arithmetic: if the FDIC covers all deposits of Silicon Valley Bank, it will assume $175 billion in liabilities. As of December 31, 2022, the Deposit Insurance Fund was $126 billion. That agency has set up a Deposit Insurance National Bank, so they will manage the assets of the failed bank. The FDIC can recoup a percentage of the liabilities through sale of marketable assets of Silicon Valley Bank, such as investment grade securities and good loans. Sale of deposits, particularly consumer deposits, will also help reduce the exposure. However, it is likely that the FDIC will have to borrow from the Fed, as the fallout from the liquidation of this large bank will jeopardize the viability of the Deposit Insurance Fund.

[PAR35]

That agency has set up a Deposit Insurance National Bank, so they will manage the assets of the failed bank.

If by 'they' you mean the FDIC as Receiver and not the DINB, I believe that to be correct. It appears that all that passed to the DINB were the insured deposits. The press release did say that an advance dividend would also be paid on the uninsured deposits, with a Receiver's Certificate for the balance of the unisured deposits.

My guess is that they did a DINB because it happened too fast to do anything else. Before it closed this morning, I thought they would do it at close of business today - I don't recall any going back into the 80s with a morning closing, there were a few where they closed a couple of hours before closing time. I also guessed wrong, I thought they would do a Bridge Bank. I was able to only find one other DINB (Citizens State Bank, New Baltimore Michigan (just before Christmas, 2009).