Letters to the Editor
March 22, 2023
Bank Collapses: Yes, It's a Taxpayer Bailout
US president Joe Biden "stresses that Silicon Valley Bank is not getting a bailout," The Hill reported on March 13.
"[N]o losses will be borne by the taxpayers," he said of the federal government's decision to cover depositor losses in excess of $250,000. "Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund."
But Biden's explanation doesn't support Biden's claim. The bank's customers -- and, by extension, the bank itself -- are definitely getting a bailout. Here's why:
The FDIC is, as its name implies, an ins...