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It’s an insurance payout, not a bailout. If someone totals my car the insurance doesn’t say “well, that’s the risk of owning a car” and pay nothing. Insurance exists for these scenarios.

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The insurance had an explicit policy limit. That’s what the premiums were based on.

Up to $250k per depositor isn’t a bailout. A penny above that is.

Depends where the money is coming from. SVB has lots of assets — clearly not enough cash on hand for a bank run but they have lots of assets. Once those are liquidized depositors should get as much of their fair share as possible.

It's likely SVB has assets in excess of $250k per account. So if they are sold, I'd expect depositors to get at least $250k and possibly more, depending on how those assets are sold.

It only becomes a bailout if the government pays beyond the sale of svb's assets.

Yep, we are on the same page. No issue with an orderly, open market asset sale and pro rata distribution. That’s how the system is supposed to work.

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