No it's not. If they get a single cent above the bank's remaining assets (after administrative costs of the FDIC action), I don't think I will be the only one losing any remaining trust in the system.
I don’t have any money in SVB nor anyone I know.
However, I have a vested interest to lower the risk of a contagion.
I think the ROI to the US economy should make sense for a bailout.
It sucks. And I’m once again paying with my tax dollars. But a deposit bailout, while shaving a few percentage off seems to make sense.
https://www.fdic.gov/news/press-releases/2023/pr23016.html
> As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
Sometimes up to ~75% of the funds is paid out within weeks of collapse, but for some banks it’s only 10 or so percent. Most of the time it seems to end up with over 90% being paid out (sometimes it’s 100%), but the payments can come over ten or more years!
Often seems to be one within weeks, one in the next month or two, and then the payments seem to start coming every three or so years.
The problem now is that startups need the money quicker than 10 years. But to sell everything now means a giant haircut.