Will all uninsured accounts be made whole by closing (Dec 31, 2025)? Resolves based on announcements from FDIC, SVB, or articles from reputable media sources.
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@fortenforge I think they mean they'll only close it, but not resolve until tomorrow. Personally I'm unclear of the point of closing prior to resolution - why not allow people to keep trading over those last few percentage points?
https://home.treasury.gov/news/press-releases/jy1337
After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13.
Matt Levine also believes that depositors will be made whole, simply because it would be really bad for the fed, the FDIC, and other banks to not set this precedent.
Actually after reading some more, it seems that large banks that have failed have rarely suffered a loss on uninsured deposits: https://www.cato.org/commentary/fdic-invents-costly-solution-imaginary-problem#
Unfortunately, my understanding is that uninsured depositors will likely get most of their money back, but not all. And, the process for getting their money may take a long time (years) to fully wrap up (although it sounds like at least some of the money will be paid out quickly - "The FDIC will pay uninsured depositors an advance dividend within the next week"