For starters, only depositors are being protected — not shareholders or bondholders.
In addition, taxpayers aren’t financing this move, at least not directly. “Instead, the cost of covering the deposits, including uninsured amounts in excess of the FDIC’s $250,000 limit, will be paid for in part out of the agency’s Deposit Insurance Fund — a reserve that is paid for by a quarterly fee on banks.”
And unlike in 2008, these banks aren’t staying in business and executives aren’t keeping their jobs.
The government instead is selling off Silicon Valley Bank’s assets — to also help fund these emergency measures, NBC’s Wile reports.
A move made to prevent Americans from withdrawing their deposits from other smaller banks across the country.
“We want to make sure that the troubles that exist at one bank don’t create contagion to others that are sound,” Treasury Secretary Janet Yellen told CBS on Sunday.
For starters, only depositors are being protected — not shareholders or bondholders.
In addition, taxpayers aren’t financing this move, at least not directly. “Instead, the cost of covering the deposits, including uninsured amounts in excess of the FDIC’s $250,000 limit, will be paid for in part out of the agency’s Deposit Insurance Fund — a reserve that is paid for by a quarterly fee on banks.”
And unlike in 2008, these banks aren’t staying in business and executives aren’t keeping their jobs.
The government instead is selling off Silicon Valley Bank’s assets — to also help fund these emergency measures, NBC’s Wile reports.
A move made to prevent Americans from withdrawing their deposits from other smaller banks across the country.
“We want to make sure that the troubles that exist at one bank don’t create contagion to others that are sound,” Treasury Secretary Janet Yellen told CBS on Sunday.