Quote:
Originally Posted by mostpost
There is no bailout of SVB. Depositors are being made whole.
The first sentence refers to the owners and stockholders of SVB. The money they lost is gone. They will not be rewarded for mismanagement or incompetence. Or criminal behavior if such occurred.
The second sentence refers to people and businesses who have accounts with the bank. People who, in most cases have no say in the management or operations of the bank. Their deposits are guaranteed up to $250,000 by the FDIC. In addition to the amounts over $250,000 are guaranteed by a fund financed by the nations banks.
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A tech company had $400 million in their account, are they being made 'whole' ????? by what 'fund'?
