Posted on 03/12/2023 4:36:51 PM PDT by DoodleBob
You are quoting OLD news.
Latest thing I heard on TV news is every dollar deposited in SVB will be available to withdraw, even if it is millions.
Coming out of taxpayers wallets
Yes, every single dollar. Still doesn't mean "paid by the taxpayers"
Where does the government get money? Do they make any product and sell it for profit? The government has 2 sources of cash. Tax revenue and printing bonds. At he end of day that ugly 32 Trilliion debt is on shoulders of tax payers.
No run, no need for a fire-sale of assets.
It does not matter how the federals juggle the source of money.
The taxpayers bear the ultimate burden of government liabilities.
The FDIC will look for a buyer. If the assets don't cover the liabilities, the FDIC will kick in what is needed to close the deal.
Why read articles which are out of date the moment they are written?
On-line live news is more up-to-date.
https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html
Your article was six hours old as of the time of your posting.
Other sources have said the Feds would charge a special fee from ALL BANKS to help pay for this.
Not taxpayer money.
And, presumably, not credit unions, either.
This will be no different.
It will ALL be “paid by the taxpayer” in one form or another.
Private Profits, Socialize Losses.
SVB shareholders are enjoying their profits as we speak.
Haha all banks pay FDIC for insurance.
The customers of bank pay that indirectly with reduced interest. That would be all of us tax payers.
No government has money tree.
All government debt is liability of taxpayers at the end of food chain.
that article says:
The Treasury Department is providing up to $25 billion from its Exchange Stabilization Fund as a backstop for any potential losses from the funding program. A senior Fed official said the Treasury program likely won’t be needed and will exist only as a safeguard.
So the Administration is putting up our dollars to pay for this bail out. Even if the cost is further spread by Banks being charged a fee or special tax, that also is passed to consumers.
The fake discount rate we have had for 15 years devaluing our economy has cost us and will cost us a lot. But the economy is GREAT and our governments are GREAT.
Where does FDIC get money?
It is always tax payers receiving reduced dividends to pay FDIC insurance.
From the insurance premiums they charge all Federal banks to insure their deposits.
So if the FDIC drops the insurance premiums to the banks they’re really giving money back to us taxpayers. Right?
Yes! In the form of higher CD rates and higher yield on savings.
The banks will have more money available to do this. It does not mean every bank will give you higher yields, but at least they will have additional funds to do it if they want to attract more savers.
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