>It's also unclear how much of uninsured funds will be recouped (although most people believe the figure will be above 80%)
Where is this 80% number coming from?
Where is this 80% number coming from?
The question is what haircut the FDIC will take on the $209b when they forcefully liquidate all securities. If the above data is still accurate, the FDIC can make depositors whole as long as they don't take more than a 16% haircut when liquidating.
SVB recently liquidated their AFS bond portfolio at ~90c on the dollar. And, this traunch of securities is very sensitive to interest rate changes.
Their HTM bond portfolio consists mostly of securities that could be sold today for ~80c on the dollar.
Given the above, it seems likely depositors will be made close to whole. Then again, who knows what's hidden from public eye.