@#3 ... Biden, in effect, has taken the position that all depositors should be protected. ...
Op-Ed: Biden, Democrats applaud decisive action' to protect Silicon Valley Bank depositors
...President Biden and Democrat lawmakers praised the "decisive action" by federal financial agencies on Sunday to protect Silicon Valley Bank depositors and shore up the financial system ahead of markets opening on Monday.
"The American people and American businesses can have confidence that their bank deposits will be there when they need them," Biden said in a statement Sunday, adding he would deliver remarks on how to protect the banking system on Monday.
"I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again," he added.
The Department of the Treasury, Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) announced in a joint statement on Sunday that depositors of the Silicon Valley Bank will be able to access all of their funds on Monday.
Democrats lauded the decision, saying that it will not only protect the bank, but its customers and workers who relied on the bank for their paychecks.
"This decisive action taken by regulators to fully protect all Silicon Valley Bank deposits will ensure that millions of workers across the country will be paid on time -- and it will limit the potential damage to California's and the nation's economy," Sen. Alex Padilla (D-Calif.) said in a statement Sunday.
"It is also important to note that taxpayers will not be on the hook for this critical resolution, and the protections do not extend to shareholders."...
I am OK with protecting the depositors with up to $250k in deposits.
However, for those with deposits over that level, I start having issues with keeping them whole. They knew their deposits are not FDIC-insured, yet they put their money in that type of account anyway.
I heard one report that some large depositors of SVB now want to move their deposits elsewhere, but they have outstanding loans with SVB, loans with contracts that stipulate that the deposits must be kept at SVB. (I can't find a link for that, though).