Yesterday it was announced that depositors in Signature and Silicon Valley banks will be "made whole" beyond the FDIC deposit insurance limit, and (presumably) above the market value of remaining bank assets. Presumably the funds for this are coming from FDIC fees on other banks.
Will any other US banks fail and have their depositors bailed out before May 1, 2023? This market resolves YES on an FDIC or Dept of the Treasury announcement, and NO otherwise.
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I'm betting no because there's been no press release and first republic is being saved by jp morgan, not by fdic. That's the technicals of the market resolution.
Presumably the funds for this are coming from FDIC fees on other banks.
Not necessarily. Apparently since 2008 the uninsured deposits have almost always paid out 100% in bank failures, particularly at larger banks, and it ends up being cheaper for the FDIC to do this. https://www.cato.org/commentary/fdic-invents-costly-solution-imaginary-problem#