General Discussion

But thanks for explaining the process. I assumed it would just be like last time when we bailed out the banks during the 2008 crash. But it's going a bit differently now.

"The FDIC has spent roughly $23 billion on bank collapses this year, and is estimated to spend $13 billion more on First Republic Bank.
That money comes from the agency's Deposit Insurance Fund, which gets money from FDIC-insured financial institutions and interest earned on government bonds."
https://www.investopedia.com/who-is-paying-for-svb-first-republic-bank-bailouts-7487138

But it looks like the FDIC, thanks to FDR and the New Deal that started the FDIC, has enough funding to cover it but may have to increase other banks cost for the insurance. And we may be charged for that in the end. In SVB's case, the FDIC is covering more than the $250,000 deposits that's insured.

"The joint statement also noted, "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law." While it's not clear how much the cost of the special assessment could be, some experts believe that the cost may have to come out of the pocket of bank customers, but it is too early to tell."

"SVB's sudden collapse required the Federal Deposit Insurance Corporation (FDIC) to step in to protect all its depositors.

The FDIC may sell or auction off SVB's assets to other financial institutions to help cover the costs.

The FDIC is funded by banks paying for deposit insurance coverage and may charge a special assessment should it need more funds."

https://www.fool.com/the-ascent/banks/articles/heres-who-will-pay-for-the-svb-bailout/#:~:text=While%20the%20fund%20is%20backed,earned%20on%20U.S.%20government%20investments.