It’s interesting to look at the politicians SVB employees donated to. Apparently that investment paid off. If this were a Texas bank with the majority of depositors being oil and gas companies, I am sure that the fed wouldn’t be as interested in paying beyond the insured $250k.
Who ever heard of an insurance company paying off more than the policy limits?
I’m happy for the depositors to be made whole — as long as SVB executives go to jail in exchange. But a failure without consequence isn’t fair to the rest of the country that get to pay higher bank fees as a result.
I've seen this same argument made by lots of people on Twitter. But as far as I can tell, in at least the last several decades of bank failures in the US, every depositor has been made whole or close to whole, regardless of geography or industry or political favor. Usually the mechanism has been to arrange the failing bank be bought out, rather than to extend the FDIC limit.
Who ever heard of an insurance company paying off more than the policy limits?
I’m happy for the depositors to be made whole — as long as SVB executives go to jail in exchange. But a failure without consequence isn’t fair to the rest of the country that get to pay higher bank fees as a result.