FDIC to hit biggest US banks with $16B bill for SVB clean-up

Ah, yes, and there&#x27;s the hat trick.<p>$16 Billion in fees (so far!) means you and I, regular people, will be paying to bail out SVB, it&#x27;s bad decisions, and it&#x27;s account holder&#x27;s bad decisions. Wonderful.<p>Somehow we convinced a significant portion of the country that tax payers won&#x27;t be responsible for these unprecedented bailouts. Yet, here we are.

Does it seem crazy to anyone else that the FDIC is levying a “special assessment”? The I in FDIC is insurance - the fund should have enough money to cover bank failures at the rate they are expected, much like an insurance company would, not charge other banks.<p>This is like your car insurance company levying a fee on everyone every time someone gets in an accident. It’s not insurance, it’s transferring one bank’s losses to all others in an arbitrary manner.

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&gt; The FDIC said the payments would not begin until the second quarter of 2024 and would be collected over two years, translating to an annual rate of 0.125 per cent of each bank’s uninsured deposits.<p>This is going to be a fun one to track. I fully predict the big banks will game their own deposit holdings to not fall into this category. A year is plenty of time for them to find some loophole.

I swear, people will distort reality any way they can to make themselves victims of this.

Free lunch