"As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer," the statement added.
Looks like the feds and the Fed are using the latter's money so far. Someone who better understands economics can correct me if I'm wrong but so far so good as far as not using taxpayer money to bail these scumbags out.
I think things start to get interesting though if the regulator can't raise enough money from the sale of SVB's assets to offset the deposits. Then the government will have to cover the deposits with "tax-payer dollars"; however, this was always going to be the case with the $250k deposit insurance. That is be definition tax-payers covering deposit losses.
Hmm. Banks are bulletproof. Taxpayers assume all risk, all the time.
Looks like the feds and the Fed are using the latter's money so far. Someone who better understands economics can correct me if I'm wrong but so far so good as far as not using taxpayer money to bail these scumbags out.
I think things start to get interesting though if the regulator can't raise enough money from the sale of SVB's assets to offset the deposits. Then the government will have to cover the deposits with "tax-payer dollars"; however, this was always going to be the case with the $250k deposit insurance. That is be definition tax-payers covering deposit losses.
I’d be shocked if they did, but they could go the Covid route and simply print more money