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As of December 31st 2022, the FDIC had approximately 126 billion dollars in its Insurance Fund. That is more than adequate to cover the approximately 20 billion dollars that were insured at Silicon Valley Bank. As for the uninsured deposits, the FDIC will pay a portion of the deposits and they will receive a receivership certificate. The FDIC will administer the Affairs of the bank liquidating assets and possibly selling some deposits. That will take time. The Securities portfolio is not marked to Market and there are likely loans tied to high risk Ventures such as Bitcoin. It is likely that the FDIC may have to rely upon borrowing money from the Federal Reserve or the US Treasury. If there are a cascading number of failures in the next few months, the FDIC will have to go borrow money.

since the beginning of the century, the FDIC has made depositors whole even the uninsured deposits. However if there is a Cascade of bank failures then the depositors will have to settle for a portion of their uninsured deposits.

Thanks, Wallace. There's been a whole lot of disinformation being spread around here the past couple of days. The FDIC has multiple tools to raise cash. For example, back in 2009, the FDIC had banks prepay 5 years worth of deposit insurance. I'm sure numerous banks howled about it, but they still paid up.

I played a role in adding $11 million to the DIF, in one transaction. Investors were seeking a loan modification for their commercial property in Las Vegas. The note was held by a failed bank which was taken over by the FDIC.

The face value of the note was $40 million, and the investors put in a loan mod request at $17 million. My boss's boss asked me to evaluate their request, based on the financial statements and tax returns they provided.

I reviewed the file and assembled about ten questions for him to ask them. As he told me, they asked to modify their proposal, and bumped their proposal to $28 million. That was close to market value, based on current conditions. The loss on the original note was determined during the period the bank was resolved.

I even told my wife to quit listening to the doom and gloom, to trust the FDIC. When she countered my argument that I worked for them for 5 years, by reminding me she worked for Homeland Security for 35 years, I said we're talking apples and oranges. The FDIC has a reputation as a well run, professional agency, while Homeland Security...you get my drift.

I'm on their Ready Recall list, where I'd probably be rehired as a GS-14. I told my current employer I'm going nowhere, I'm on my "last rodeo", closer to 70 than 65.